Jet Airways employees seek interim financial assistance from CoC
Jet Airways’s employees asked the CoC to look at providing a month’s salary as interim financial assistance till the completion of the insolvency process
August 06, 2019
Employees of Jet Airways gathered at Jantar Mantar in the national capital on Tuesday and sought interim financial assistance from the beleaguered airline’s Committee of Creditors (CoC). Jet Airways, which shut down operations in April and is currently facing insolvency proceedings at the National Company Law Tribunal (NCLT), has discontinued salaries to its employees since January this year.
The employees’ consortium asked the CoC to look at providing a month’s salary as interim financial assistance till the completion of the insolvency process.
Employees say have been let down time and again
Making their case, the employees’ consortium pointed out that despite the fact that a fund infusion was promised by lenders before the airline shut down operations, no capital came their way and they are still waiting to get their salaries.
“Jet Airways (I) Ltd was admitted to NCLT after the lenders claimed, that the resolution of the issue is only possible under IBC. Earlier, the lenders initialised a ‘Bank Led Resolution Plan (BLRP),’ in which the debt of the company was supposed to be converted to equity, and thereafter, funds would be infused by the consortium of banks. However, that plan was also rolled back, and no fund infusion took place,” employees said in a written appeal.
“In this process, however, employees of the company got victimised, and have suffered for no fault of theirs. It is now over seven months that the employees are without salaries. Although the banks became absolute owners of the company, they did not release even a meagre amount, which would have given some respite for the employees,” they claimed.
‘Release at least a month’s salary’
“Some have committed suicide, and few others are on death beds due to lack of funds required for medical care, as the company even denied their due medical insurance. Several requests were made by the employees to the lenders, and the government, for release of at least one month salary to the existing employees of Jet Airways, as banks do own a majority of shares of the company, but these requests were turned down,” employees said.
The consortium represents around 9,000 employees, including pilots, engineers and cabin crew. Most of Jet’s employees who gathered at Jantar Mantar on Tuesday were clad in the airline’s uniform.