SBI chalking out plan to pay Jet employees: Sources
Jet Airways has been struggling with cash flows for the past six months because of rising fuel costs and intense competition
The new interim management of the cash-strapped airline Jet Airways led by state-run SBI to oversee the daily operations and cash flow on Tuesday drew up a plan in consultation with the Civil Aviation Ministry to address the disbursal of pending salaries of employees, sources said.
With the airline's erswhile promoter Naresh Goyal stepping down and State Bank of India (SBI) leading a consortium of banks to take charge of the interim committee, ₹1,500 crore has been infused as emergency funding by the lenders to attend to immediate issues.
Jet Airways has been struggling with cash flows for the past six months because of rising fuel costs and intense competition. It has even delayed payment to lessors, airport operators and oil marketing companies, besides a part of its workforce, to keep the company running.
Tuesday's meeting attended by representatives of the SBI, head of aviation regulator DGCA B.S. Bhullar, Civil Aviation Secretary Pradeep Singh Kharola and Jet CEO Vinay Dube also discussed the number of planes to be brought back into operations by the airline.