Cash-strapped Jet Airways’ Chief Executive Officer (CEO) Vinay Dube said Friday that banks will be unable to make salary commitments to its employees till the completion of the bidding process, reported Reuters.
Cash-strapped Jet Airways’ Chief Executive Officer (CEO) Vinay Dube said Friday that banks will be unable to make salary commitments to its employees till the completion of the bidding process, reported Reuters.
In a letter to its employees, Dube said that “banks are unable to make any salary commitments, if at all, until after bidding process is complete”. He added that no clarity or commitment on salaries has been provided by any of the company’s stakeholders.
Jet Airways, which has around 23,000 employees, has delayed payment of salaries to the employees, including pilots.
A day after the airline suspended operations, hundreds of employees had gathered in the national capital seeking measures to revive the carrier, which has been in operation for nearly 26 years. Domestic lenders have invited bids for selling stake in Jet Airways. On April 18, the lenders said they were “reasonably hopeful” that the bidding process for the airline would end successfully.
Jet, which previously had a fleet of around 120 largely Boeing Co planes, was forced to indefinitely halt all flight operations on April 17 after its banks rejected the carrier’s plea for emergency funds.
Its grounding has had a big impact on the domestic market, with inter-city airfares to major cities such as New Delhi, Mumbai, Bengaluru and Kolkata soaring more than 20 per cent in May and June, according to Yatra.com.
In a letter to its employees, Dube said that “banks are unable to make any salary commitments, if at all, until after bidding process is complete”. He added that no clarity or commitment on salaries has been provided by any of the company’s stakeholders.
Jet Airways, which has around 23,000 employees, has delayed payment of salaries to the employees, including pilots.
A day after the airline suspended operations, hundreds of employees had gathered in the national capital seeking measures to revive the carrier, which has been in operation for nearly 26 years. Domestic lenders have invited bids for selling stake in Jet Airways. On April 18, the lenders said they were “reasonably hopeful” that the bidding process for the airline would end successfully.
Jet, which previously had a fleet of around 120 largely Boeing Co planes, was forced to indefinitely halt all flight operations on April 17 after its banks rejected the carrier’s plea for emergency funds.
Its grounding has had a big impact on the domestic market, with inter-city airfares to major cities such as New Delhi, Mumbai, Bengaluru and Kolkata soaring more than 20 per cent in May and June, according to Yatra.com.