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Can't Fund Mediclaim Policy, Grounded Jet Tells Employees: 10 Points

"Much as we would wish to do things differently, we are left with little choice," said Jet Airways' Rahul Taneja in the communication to employees.

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Jet Airways owes money to lessors, suppliers, pilots and oil companies

Jet Airways' chief people officer, Rahul Taneja, told the airline's employees on Tuesday that the company is not able to fund the premium towards its group mediclaim policy. In a note to the cash-starved airline's staff, Mr Taneja said that the employees' mediclaim policy will lapse on the midnight of May 1. The communication from the Jet Airways to its staff comes at a time Jet Airways' group of lenders have taken a controlling stake in the now-grounded airline, and are currently in the process of selling a stake to recover their dues.
Here are 10 things to know:
  1. "These circumstances are not of our doing and much as we would wish to do things differently, we are left with little choice," said Mr Taneja in the communication to employees. 
  2. A section of Jet Airways staff wrote to State Bank of India (SBI) on Monday evening, seeking approval to participate in the bidding process in an employee-led turnaround plan.
  3. The employee representatives said they will secure an investment of up to Rs 3,000 crore from "outside investors".
  4. The Society for Welfare of Indian Pilots (SWIP) and the Jet Aircraft Maintenance Engineers Welfare Association (JAMEWA) have sent the proposal.
  5. The associations have promised that employees would contribute towards revival of the airline from their future earnings and increased productivity.
  6. Jet Airways' chief executive officer, Vinay Dube, had last week told the staff that the lenders are unable to make any salary commitments until after the bidding process is complete. (Also read: "Employees facing grave hardships:" Jet CEO in letter to staff)
  7. Struggling with a debt of more than $1.2 billion, the cash-strapped airline owes money to lessors, suppliers, pilots and oil companies. 
  8. Meanwhile, the employees have sought government intervention for revival of the airline, which suspended all of its flight operations indefinitely on April 17.
  9. The Ministry of Civil Aviation has asked domestic carriers to desist from raising fares on routes connecting far-flung areas especially in the northeast.
  10. Jet Airways shares fell as much as 6.81 per cent on Tuesday, underperforming the broader markets

(With inputs from agencies)



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Jet Airways employees' mediclaim policy to lapse on midnight of May 1
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"We are left with little choice," says chief people officer Rahul Taneja
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Grounded airline owes money to lessors, suppliers, pilots, oil companies

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