National Aviator’s Guild (NAG), which is the pilots’ union of Jet Airways, has said that a sum of Rs. 175 crore is needed to pay employee salaries.

CHENNAI: 

The banks can lend some money to Jet Airways specifically for the purpose of paying employee salaries, a major bank employees’ union official said on Monday.

This amount can be lent by the consortium of lenders to the financially crippled Jet Airways on lien against the airline employees’ provident fund balance or gratuity, CH Venkatachalam, the general secretary of the All India Bank Employees’ Association (AIBEA), the largest union in the banking sector, told news agency IANS.

“The consortium of banks not extending further financial assistance to Jet Airways is right. However, the banks can extend a loan to Jet Airways only for the purpose of paying the salaries to employees,” he said.

“Since the future of the Jet Airways is not clear, banks should clearly mention that the money lent is to be used only for payment of staff salaries subject to banks having a lien on the airline employees final dues like provident fund, gratuity.”

According to Mr Venkatachalam, if the airline gets a new promoter and continues to employ the staff, then the sum lent by the banks towards paying salaries can be recovered.

Original Source

 

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