Cloud over dues of Jet Airways subsidiary staff

The NCLT order of June 2021, which approved the JKC’s resolution plan paving the way for the revival of Jet Airways, said that the JKC had proposed to offer 100% equity held by Jet Airways in JetLite to the financial creditors, and if that was not acceptable, the JKC would have to liquidate the airline as soon as possible

There is no clarity yet on the dues owed to the almost 600 staff of JetLite, the wholly owned subsidiary of the debt-ridden Jet Airways.

This is despite the National Company Law Appellate Tribunal having ordered the new promoters of Jet Airways, the Jalan Kalrock consortium, to pay provident fund and gratuity to the airline’s employees.

“JetLite India Limited is not part of the resolution plan submitted by the Jalan-Kalrock Consortium (JKC) as approved by the NCLT,” a spokersperson of JKC said in response to a query from The Hindu.

“Accordingly, we cannot comment on the present status of Jetlite, its employees or the assets owned by it.

Jet Airways had acquired Sahara Airlines in 2007 as a wholly owned subsidiary and christened it as JetLite. Sahara Airlines’ employees were now considered its “continued employees.”

The NCLT order of June 2021, which approved the JKC’s resolution plan paving the way for the revival of Jet Airways, however said that the JKC had proposed to offer 100% equity held by Jet Airways in JetLite to the financial creditors, and if that was not acceptable, the JKC would have to liquidate the airline as soon as possible.

Industry sources closely involved with Jet Airways’ insolvency process say that the creditors refused the JKC proposal, which implies that once a board for Jet Airways is constituted, comprising JKC and creditors, a call maybe taken on liquidating JetLite.