Jet Airways employees write to SBI, offer to take over airline

A  group of Jet Airways employees have written to State Bank of India Chairman Rajnish Kumar, offering to take over the distressed airline that was forced to suspend operations earlier this month.

"We propose that a consortium of employees and investors be permitted to offer its bid to take over the management control of Jet Airways," said the letter that was sent on Monday.

The letter also promises a commitment of Rs 7,000 crore, which includes Rs 3,000 crore from investors and Rs 4,000 crore from employees through a 'hypothetical five-year employee stock option programme.'

It adds:

"You are therefore requested to kindly consider the 'Employee Consortium' as one of the intending bidders in the process and invite us for preliminiary discussions."

It was signed by senior Jet Airways employees including Capt PP Singh, Sr Vice President (Operations) and Accountable Manager, Jet Lite, and BB Singh, Manager, Human Resources, Jet Airways.

"We have investors, but we can't disclose their identities right now. Being the employees, we know we can turnaround the airline.  We know the value of the company," said Capt Ashwani Tyagi, General Secretary of Society for Welfare of Indian Pilots. He is also a signatory to the letter.

"We are optimistic that the banks and Govt of India will give our plan a serious consideration," he added.

The letter comes after concerns that bidders for Jet Airways may lose interest following the distribution of its slots to its peers. The government plans to distribute 440 of Jet Airways slots in Delhi and Mumbai airports to other airlines.

Many of Jet Airways aircraft have also been leased to competition, including SpiceJet and Vistara.

"To our consternation, we learn about aircraft being de-registered and given to other operators along with facilities including the invaluable slots and routes..." said the letter.

The four bidders shortlisted by the banks are - Etihad Airways, TPG Capital, Indigo Partners and NIIF. The bids have to be submitted by May 10.