Monday, May 23, 2022

Jet Airways employees write a letter to SBI with a plan to save the airline

Must read

PW Bureau

In the letter, the group of employees have said that they would come together to save the airline, with the help of external investors

New Delhi: Amidst Jet Airways’ suitors is a group culled out of its own workforce which wants to purchase a stake in the airline and put it back on its wings. A section of Jet’s employees has written a letter to the State Bank of India (SBI) chairman Rajnish Kumar, urging the lender to consider their bids. They have also promised that they will arrange funding of up to Rs 7,000 crores for the ailing airline over a period of time.

Employees want to save the airline

“On the basis of extensive discussions with various employee groups across the company, and also with colleagues, who have held management positions in the past, we would like to suggest that Jet Airways can be taken over by a consortium of employees and external investor(s),” the letter read. According to the letter accessed by The Economic Times, the group of employees have said that they would come together to save the airline, with the help of external investors.

No support from top management

The group of employees, however, do not have the support of the current top management, who, they feel, still seem to be working for Jet’s promoter Naresh Goyal rather than for the company.

The letter added that the turnaround plan mooted by employees is based on similar turnarounds in the west like that of United Airlines in 1994.

Employees say Rs 3,000 cr have been committed

The letter, signed by PP Singh, senior vice-president (operations), general secretary of Society of Welfare of Indian pilots Ashwani Tyagi, president of Jet Aircraft Maintenance Engineers Welfare Association Asish Kumar Mohanty, said that they had already received a commitment of Rs 3,000 crores.

“As per our initial estimate, the contribution of employee group over a hypothetical five-year Employee Stock Ownership Programme (ESOP) is likely to be upward of Rs 4,000 crore. In addition, we are also confident of securing an investment commitment of up to Rs 3,000 crore from outside investors,” the letter read.

- Advertisement -

More articles

- Advertisement -

Latest News