Seeing that different options to revive the grounded Jet Airways as the fast running out, a group of airline employees has now written to the State Bank of India seeking the permission to allow the employees and external investors a bid for the company management control.
The employee representatives have also revealed that they will secure an investment of around Rs 3000 crore from a clutch of external investors.
The associations which have also sent the proposal are the Society for Welfare of Indian Pilots and Jet Aircraft Maintenance Engineers Welfare Association.
The associations this time have promised that employees would be going to contribute towards the revival of the airline from their increased productivity and future earnings.
“With respect to our initial communication, the contribution of employee group over a hypothetical 5-year Employee Stock Ownership Programme (ESOP) is likely to be upward of Rs 4,000 crore,” a joint letter to the SBI Chairman stated.
They also revealed that the decision had been taken with the extensive discussion with the various employee groups across the entire company and also with the colleagues who have successfully held senior management positions.
“We also recognize with some of the different legacy issues of high operating costs, over staffing, unfavorable vendor/lease agreements and adverse debt/equity ratio are involved,” the proposal letter said.
The associations have also urged the lenders to ensure the process of the entire de-registrations of aircraft and re-allocation of airports slots to be immediately reversed.
“… if not reversed quickly, (it) would spell doom for any future prospects of reviving the company,” the associations warned.
The lenders of the Jet Airways led by the SBI are as of now currently in the process of selling the airline to recover their whole dues of around Rs 8400 crore. Some of the private equity firms like the Indigo partners, TPG Capital, Etihad Airways and National Investment and Infrastructure are in the race to buy a high stake in the grounded airline.