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‘No staff being let go but…’: Jet Airways CEO Sanjiv Kapoor

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In an another tweet, he stated the record straight and said that no employees are being fired.

Kapoor wrote, “To set the record straight (as many numbers and %s flying about): 1. Two-thirds of staff not impacted at all; 2. Of the remaining one-third, most will be on temp pay reduction. 3. Only a small portion of the total (~10%) will be on temp LWP. 4. No staff let go.”

Kapoor clarified, “These are all good people who have been working hard to try to do what has never been done before: revive an airline that has gone bankrupt. However with the ownership transfer timeline slipping due to factors outside our control, some temporary hard decisions had to be taken.”

Kapoor also defended the airline’s promoters, Jalan Kalrock Consortium (JKC) saying that they are reviving the airline using fresh capital, to give consumers more choices, to create more jobs and bring back old jobs.

“The team working to revive Jet was not responsible for Jet running out of cash and suspending operations. They are trying to revive the airline using fresh capital, to give consumers more choices, to create more jobs and bring back old jobs. They deserve our full appreciation,” he wrote.

Earlier, there were reports that the company which is yet to resume operations under its new owner, will reduce salaries for various staff and send many employees on leave without pay, amid uncertainty over resumption of its operations. The measures, which will be effective from December 1, were revealed hours after the winning bidder Jalan-Kalrock Consortium (JKC) said it might take “difficult” near-term decisions to manage cashflows.

While a section of Jet’s total workforce comprising 230-250 employees will see their pay cut by up to 50%, some will be placed on leave without pay until further notice from 1 December, a person familiar with the matter had said on the condition of anonymity.

Prior to that, the Jalan Kalrock Consortium on Friday had said it has not breached any terms of the insolvency resolution plan and might take difficult near-term decisions to manage cashflows.

The consortium’s resolution plan was approved by the National Company Law Tribunal (NCLT) in June last year but the airline, which also got its air operator certificate revalidated by aviation regulator DGCA in May this year, is yet to start operations.

“… while we await the handover of the company as per the NCLT process, the longer-than-expected time being taken for the same may result in some difficult but necessary near-term decisions to manage our cashflows to secure the future while the airline is still not in our possession,” the Jalan Kalrock Consortium (JKC) had said in a statement.

The statement also came against the backdrop of the National Company Law Appellate Tribunal (NCLAT), last month, directing the consortium to pay the unpaid provident fund and gratuity dues of employees of the carrier.

“After the NCLT’s approval, all conditions precedent, as outlined in the resolution plan, were completed by May 20, 2022, and the necessary filings in this regard were made before the NCLT on May 21, 2022.

“JKC has deposited 150 crore as required under the court approved resolution plan with the lenders, with the remaining amounts to be invested only after next steps of NCLT are fulfilled in terms of handover of the company to us,” the statement said.

Ankit Jalan, Board Member of the JKC, said the revived Jet Airways will also provide additional career opportunities, including the airline’s former staff who currently make up more than 60 per cent of the current workforce, and for many more as the revived airline grows.

Earlier, it was planned that the airline would be launched in October 2022.

Sanjiv Kapoor, Chief Executive Officer for Jet Airways, said it has LOIs (Letters of Intent) in place for aircraft, engines, IT systems, Ground Handling Services, Catering, Call Centre, and all of the other services required to run an airline.

Last month, the NCLAT had directed the consortium to pay the unpaid provident fund and gratuity dues of employees of the carrier.

The appellate tribunal had also directed the former resolution professional of the airline to “compute the payments to be made to workmen and employees within one month from today” and communicate the same to the consortium to take steps for the payment.

Earlier this week, Kalrock Capital said the ongoing investigations related to its promoter Florian Fritsch in foreign jurisdictions will have no impact on the acquisition of Jet Airways. Fritsch has come under the lens of regulatory agencies in Liechtenstein, Switzerland, and Austria.

(With inputs from agencies)

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