Cash-strapped Jet Airways' 16000 permanent employees get jobless

Apr 18 2019 04:52 PM
Cash-strapped Jet Airways' 16000 permanent employees get jobless

New Delhi: In a recent news, Cash-strapped Jet Airways, which decided to suspend all its operations from Wednesday, has rendered 16,000 permanent employees jobless while 22,000 employees have been affected indirectly, said Kiran Pawaskar, Nationalist Congress Party (NCP) leader and president of All India Jet Airways Officers and Staff Association addressing a press conference. Pawaskar said most of the aviation companies have faced shutdown (like Kingfisher Airlines) and this sector does not give any surity to the employees. The employees union had already raised this issue earlier in the Vidhan Parishad but there was no result.

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Here it is to be noted that Jet employees have not got their salary for the last few months. Pawaskar said, no other company is willing to take Jet Airways employees now. Questioning banks decision to not provide emergency funding of Rs 400 crore, Pawaskar said "Chowksi and Mallya ran away but Jet people are still here. So, why the money is not given?" The employee's union also questioned bank's decision to oust Naresh Goyal out of the Jet board.  "When Naresh Goyal could make this company so big, why was he booted out....There is nobody who can be questioned," Pawaskar said.

Jet Airways has a debt of over Rs 8,000 crore on its books. The company also owes crores of rupees to airline lessors and fuel suppliers. The company has been reporting huge losses amid fierce competition from budget airlines and elevated aviation turbine fuel(jet fuel) price. It required urgent equity infusion to continue its regular operations. The beleaguered airline management has to wait till May 10 when the lender consortium, led by State Bank of India, will reveal the bidding results for buying a majority stake in the ailing airline.

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