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"Banks Unable To Make Salary Commitments:" Jet Airways CEO Vinay Dube To Employees

Jet Airways temporarily suspended all its operations earlier this month after its lenders rejected a plea for emergency funds.

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Jet Airways temporarily suspended all its operations earlier this month


Highlights

  1. Jet Airways is struggling with a debt of more than $1.2 billion
  2. Jet Airways owes money to lessors, suppliers, pilots and oil companies
  3. Jet is now hoping to be bailed out by a new investor

Grounded Jet Airways' chief executive officer, Vinay Dube, told the cash-starved airline's staff that its group of lenders are unable to make any salary commitments until after the bidding process is complete. In a letter addressed to Jet Airways employees, Mr Dube wrote: "We have told them (banks) repeatedly that our employees are facing grave hardships owing to non-payment of their salaries and that if this were to continue any longer, our employees will have no option but to find employment elsewhere."

The letter from the chief executive of the private sector carrier to its staff comes at a time Jet Airways owes money to its lessors, suppliers, pilots and oil companies. Struggling with a debt of more than $1.2 billion, Jet Airways temporarily suspended all its operations earlier this month after its lenders rejected a plea for emergency funds.

"Your leadership team has spent the last few days trying to convince the consortium of Indian banks (led by State Bank of India) to release some funds for our employees, while continuing to support the bank led bid process for Jet Airways," he wrote to the carrier's employees.

"We face this reality despite our best efforts to portray the very real suffering that is being endured by each one of you."

Jet is now hoping to be bailed out by a new investor, with final bids due on May 10.

Its group of lenders, led by State Bank Of India, has said that it is hopeful of a successful bidding process for Jet.

The government has said it plans to form a committee to temporarily allocate takeoff and landing slots left vacant by the grounding of Jet Airways flights.



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