Jet Airways (Mumbai International) CEO Vinay Dube says the refusal by a consortium of lenders, led by the State Bank of India, to release funds needed to cover the carrier's overdue salaries is eroding its value, Quartz has reported.
In a letter to employees dated April 23, Dube said that despite management's appeal to the banks to disburse the funds, they have refused to release even half of the required sum.
"While on the one hand, we are being told to preserve the value of Jet Airways during the bid process, on the other hand, with no salary payment, some of our colleagues, who are the very fabric and value of this airline, have no choice but to find employment elsewhere. When we highlight the disappointing irony of this situation to the lenders, we are simply told that this problem is to be addressed by the company’s shareholders," he said.
Jet Airways has around 16,000 permanent employees and around 6,000 contractors. Many of them have not been paid for months as the airline has struggled with its worsening financial situation.
The National Aviator's Guild (NAG) has also appealed directly to Prime Minister Narendra Modi, asking him to order the SBI to release funds necessary to repay wage debts.
The loss of qualified staff has exacerbated other problems at the carrier, such as the reallocation of Delhi International and Mumbai International airport slots to other airlines and the repossession of its aircraft.
Investors have until May 10 to submit binding bids for the now-dormant airline.
