Jet Airways employees group seek govt intervention on salary dues
Premium- The Jalan-Kalrock consortium has proposed to invest ₹600 crore in the first two years in the grounded Jet Airways to repay creditors and acquire an 89.79% stake in the carrier
NEW DELHI: An employee group of Jet Airways has sought the intervention of newly appointed civil aviation minister Jyotiraditya Scindia for resolving job issues under the new owners of the airline and clearance of pending social security dues raked up under the previous management of the airline.
In a letter addressed to Scindia on 27 July, the All-India Jet Airways’ Officers & Staff Association, affiliated to National Front of India Trade Unions, said that it was shocked and surprised to see the partly salary dues offered by the new owners of the airline, which is about Rs52 crore and a miniscule amount compared to the original claims of employees.
"A large number of employees continue to be on the payroll of the company (Jet Airways) who have indicated complete uncertainty in respect of their continued employment as they believe that they would contribute to the success of the revived entity of SRA (Successful Resolution Applicant)," the letter said.
A copy of the letter has been reviewed by Mint.
In June, the Mumbai bench of the National Company Law Tribunal (NCLT) had approved the insolvency resolution plan submitted by Kalrock Capital and Dubai-based entrepreneur Murari Lal Jalan.
It had then directed the Jalan-Kalrock consortium to get the required approval and licences to restart the airline within 90 days.
The Committee of Creditors (CoC) of the grounded airline, led by the State Bank of India (SBI), had approved the resolution plan submitted by a consortium of UK's Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan in October 2020.
The Jalan-Kalrock consortium has proposed to invest ₹600 crore in the first two years in the grounded airline to repay creditors and acquire an 89.79% stake in the carrier.
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It has also proposed to pay ₹131 crore, ₹193 crore, and ₹259 crore at the end of the third, fourth and fifth year, respectively, to financial creditors from the airline’s cash flows. Overall, the consortium hopes to repay ₹1,183 crore to creditors over five years, which would include collections from asset sale proceeds and cash flows.
"If the airline has to take off into the skies under a revived management, it is imperative that employee issues need to be addressed sincerely and genuinely..," the letter written by the employee group said. "We trust that you would take up our request at the earliest and invite us for an audience with you along with a few of our representatives."
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