‘Cannot commit re-employment to all’: Jet Airways new owners tell staff

The new owners of Jet Airways, Murari Lal Jalan and Kalrock Capital consortium, have made it clear that it will not be possible to re-employ all the staff in the revamped firm. Last June, the NCLT approved the consortium's resolution plan for Jet Airways after a two-year long insolvency resolution process.

New Delhi: The new owners of Jet Airways, Murari Lal Jalan and Kalrock Capital consortium, have made it clear that it will not be possible to re-employ all the staff in the revamped firm. However, they assured that they will be meeting employees at the earliest on the issue. "In the coming days, we intend to engage with many of you to ascertain the role you can play in years to come, in our effort to make history, when Jet Airways becomes airborne again. We cannot commit re-employment for each one of you but can surely say that this company belongs to you and right now, it is not in the interest of your airline to onboard everyone," said the consortium in a statement, reviewed by ETV Bharat.

On Tuesday, the All India Jet Airways' Officers and Staff Association wrote a letter to the newly appointed Civil Aviation Minister Jyotiraditya Scindia and sought his intervention to resolve issues related to their employment under the new owners of the airline. "We are shocked and surprised to notice that complete injustice has been done to the employees of the company in as much that the dues offered is about Rs 52 crores which is a minuscule amount compared to the original claims accepted by the resolution professional," said the letter sent to Civil Aviation minister.

The employees’ letter stated that despite approaching the monitoring committee to take up the payment dues issue, no information has been provided to them and further requested the minister for a meeting so that their issues are redressed. Jet Airways, which started as an air taxi operator in May 1993, became a scheduled carrier in 1995. The airline has been grounded since April 2019 because of bankruptcy under its previous promoter Naresh Goyal. There were around 3,500 employees who had remained at Jet Airways even after it was grounded two years ago.

The airline has been grounded since April 2019 as it witnessed mounting losses under its previous promoter Naresh Goyal. There were around 3,500 employees who have remained with the firm even after it was grounded. Last June, the National Company Law Tribunal (NCLT) approved the Jalan Kalrock Consortium's resolution plan for Jet Airways after a two-year long insolvency resolution process.

As per the Kalrock-Jalan proposed plan, employees and workmen would be paid Rs 11,000 and Rs 22,800 respectively and each of the workmen would be given a phone, laptop or an iPad through a lottery basis and ticket vouchers worth Rs 10,000. The consortium proposes to invest Rs 600 crore in the first two years to repay creditors and acquire 89.79% stake in the carrier.