Banks haven't transferred the promised funding, because of which salaries couldn't be cleared
In an unexpected turn of events that could exacerbate circumstances around Jet Airways, its pilots may go on a strike from April 1, because of no salary payments. The airline's engineers also may join the strike, sources told Moneycontrol.
Pilots are yet to get their January and February salaries, and a large part of their December salary. There were expectations that they would get their arrears cleared by March-end, after Jet Airways' lenders agreed to infuse Rs 1,500 crore into the company. But that hasn't happened.
"A part of the expected interim funding from State Bank of India (SBI) was supposed to be actioned on March 29. Unfortunately, the fund transfer has not taken place, hence no update on salary payment from the management," said a communication to the pilots from its union, the National Aviators Guild.
"The collective decision of pilots taken at the Mumbai and Delhi open house effective April 1 prevails," it added.
On March 19, the NAG had decided that pilots won't report to work unless a letter of intent was signed for pending dues. The situation seemed to have improved later, when on March 25, Jet Airways' Chairman Naresh Goyal stepped down, paving the way for lenders to take over the airline.
"It looks like some paperwork has not been done, because of which the banks haven't transferred the money," said an executive from the industry.A crisis could still be averted, if the pilots are assured that their dues will be cleared.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .