Jet Airways is right now on the brink of a massive collapse, as only 7 aircrafts are remaining with them, even as fuel usage has dropped to 75%.
Employees from jet Airways have contacted PM Modi, and in a desperate attempt, have requested him to save 20,000 jobs.
Will SBI pitch in, and save the company from collapse?
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Jet Employees To PM Modi: Please Save 20,000 Jobs
Trade union National Aviator’s Guild, which represents 1100 pilots from Jet Airways, have requested PM Modi to intervene and save 20,000 jobs from getting vanished.
Jet Airways is reeling under severe debt, and have no money to pay for salaries anymore.
The trade union also requested SBI, which has been the biggest lender to Jet, to infuse an emergency fund of Rs 1500 crore to help the company stay afloat.
PM office or PMO held several rounds of emergency meetings on Friday to diffuse the situation, and to make sure that Jet Airways doesn’t crash.
Pilots, engineers and the ground staff haven’t been paid for 3 months and they staged several demonstrations in and around Mumbai, seeking help.
SBI Requested For Emergency Funds
SBI, which is the biggest lender for Jet Airways, and is leading the negotiations to resolve the issue, has been requested by Jet employees to immediately release Rs 1500 crore as promised. SBI has only released Rs 250 crore as of now.
This emergency funds of Rs 1500 crore will help Jet release the salaries for three months, and to stay afloat.
However, Jet used to spend Rs 7000 crore per year only on aviation fuel, and it is doubtful whether Rs 1500 crore can save the company now.
Last year, Jet Airways spent Rs 2995 crore on salaries, Rs 2375 crore on maintainance, Rs 2316 crore on rentals and Rs 2400 crore on landing and navigation.
Jet Airways Cancels All International Flights
After creditors started taking claim of aircraft owned by Jet Airways, they have cancelled all International flights till Monday.
Right now, only 7 aircraft are being used by Jet for domestic routes, rest all flights have been canceled. At its peak, Jet operated 124 flights, and 1500 pilots were required for the same.
Jet owns Rs 3000 crore to customers, whose flights were canceled.
SpiceJet Taking Advantage?
Another set of reports claim that Spicejet is taking undue advantage of the situation, and hiring employees from Jet at upto 50% pay cut.
Engineers are being told that they will get only 50% of their salaries, while pilots have been asked to work at 25-30% reduced salaries.
More details are awaited.