The plan also involves asking employees and the top management to take a pay cut. However, AdiGro plans to offer employees ESOPs in return for the cut
New Delhi: AdiGro Group, one of the unsolicited bidders eyeing a stake in beleaguered Jet Airways, has said that it has a plan to put Jet back in the sky by July 1, with about eight to nine thousand employees and 70 aircraft. Founder and Chairman of AdiGroup, the parent company of AdiGro Aviation, Sanjay Viswanathan said that the company is keen to partner Etihad Airways to turn around Jet.
What is the plan?
The two emphasis points in AdiGro’s six-point plan for reviving Jet are: balance sheet management and not running the airline like a lifestyle company. The plan also involves asking employees and the top management to take a pay cut. However, AdiGro plans to offer employees ESOPs in return for the cut. “The top leadership will need to take at least about 25 percent pay cut and others would have to give up 10 percent,” AdiGro said.
“We have asked for a relevant and practical haircut, but more importantly, we are actually giving equity upside. Our binding bid has an equity component for the lender group, which means that not only will they recover their money, but also get a significant upside once our turnaround plan is executed,” Viswanathan said.
AdiGro says lenders quite receptive about revival plan
Viswanathan said, “We have put in a binding bid to resurrect the airline. We have been in constant touch with Etihad. SBI and the lender group are quite receptive of the turnaround plan.” He added, “We need approximately ₹5,000-6,000 crore (to resurrect the airline). It’s [the assumption] based on our discussions with Etihad and SBICaps so far.” While sounding bullish about AdiGro emerging as a partner of Etihad Airways, Viswanathan said that they will put Jet back in the sky July 1.
The statement comes as State Bank of India, Jet’s lead lender started reaching out to unsolicited bidders, including UK-based entrepreneur Jason Unsworth, Mumbai-based Darwin Platform Group and London-based AdiGro Aviation.
Etihad, which holds a 24 percent stake in the airline, has said that it will only infuse as much equity as would be required to maintain the minority stake.