Jet Airways defers March salaries to employees

Jet Airways defers March salaries to employees

Agency News

New Delhi, Apr 3 (UNI) The debt-ridden airline Jet Airways on Wednesday deferred the salaries for March 2019 due to “complexities” in finalizing the resolution plan, the airline said on Wednesday. Jet Airways management team has been working with the lenders and other institutions to finalise the resolution plan to stabilize its operations and build a sustainable future, its Chief People Officer Rahul Taneja said in a statement here.

“However, given the complexities of such processes, it has taken us longer than expected. However, please be assured that we continue to strive and are in continuous deliberations with the lenders and institutions to find a solution. In light of the current situation, please note that salaries for March 2019 will be deferred,” he added.
However, the next update on the status of the payout would come by April 9, 2019.
The airline owes months long salaries to its pilots, crews and employees.

On March 25, the Jet Airways board had approved a resolution plan by SBI and other banks, under which the lenders have taken control of the airline and decided to infuse a capital of Rs 15,000 crore in the carrier to bring it on the roadmap of recovery. They also decided to convert the loan into equity worth 50.1 per cent for a notional value of just Re 1 each share. However, the funds are yet to be disbursed due to "technical" reasons. Earlier in the day, Civil Aviation Ministry Secretary Pradeep Singh Kharola said the Government is contemplating to examine the Jet Airways’ eligibility to fly internationally as it was operating less than 15 planes. (UNI)