Faced with severe liquidity crisis, grounded Jet Airways has informed employees that it will not be able to fund the premium of Group Mediclaim Policy and advised them to take medical cover of their choice.
IANS first reported on April 27 that Jet employees face uncertainty over extension of their Mediclaim provided by the company.
"In the absence of any emergency funding from the lenders or any other source of funds forthcoming in the near future, we find ourselves facing a situation where we are not able to fund the premium of our Group Mediclaim Policy," the airline Chief People Officer Rahul Taneja wrote in a letter to its employees.
He said that the Group Mediclaim Policy lapses on the midnight of April 30, 2019, adding that "these circumstances are not of our doing and much as we would wish to do things differently, we are left with little choice".
Taneja, however, sounded optimistic and gave hope about revival of the airline.
"I must also state that we have not yet given up on our efforts and continue to engage with the lenders and support them in the bid process. We are working with them proactively to find opportunities to revive our beloved airline. As soon as we have more clarity on this matter, we will share the same with you," he said.
Lenders of Jet Airways led by SBI are currently in the process of selling the airline to recover their dues of over Rs 8,400 crore. Private equity firm TPG Capital, Indigo Partners, National Investment and Infrastructure Fund (NIIF) and Etihad Airways are in the race to buy a stake in the grounded Jet Airways.
--IANS
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)