Jet Airways Pilots’ Body Moves SC Seeking Interim Funding from SBI

Jet’s plea says SBI’s decision not to infuse money was responsible for the airline’s operations coming to a halt.

Pilots of Jet Airways in a protest in Mumbai.

(Photo: The Quint)

Pilots of grounded Jet Airways moved the Supreme Court on Tuesday, 8 May, seeking direction to SBI to provide the assured interim finance for Jet to restart its operations. The suspension of Jet Airways’ operations has affected the livelihoods of around 22,000 employees, reported news agency PTI.

The petition filed by the National Aviators Guild has sought direction to the Centre and the Director General of Civil Aviation (DGCA) to disallow slots of Jet Airways to other airlines on a permanent basis.

The plea, filed by advocate Gaurav Agrawal, has sought that the airline not be de-registered.

The distressed airline, which had 115 aircraft, started suffering losses and was unable to pay its employees from last December.

The company’s Board of Directors had approved a plan on 25 March that envisaged an infusion of Rs 1,500 crore over a certain period by SBI, so that the company could be sold as a going concern – but the promised funds were not disbursed, the plea said.

It said that SBI's decision not to infuse the money was responsible for the airline’s operations coming to a standstill, and its substantial devaluation.

"The respondents have deliberately, or otherwise, brought down the value of Jet Airways and as of now, there are no bidders who have submitted the bid to SBI. Consequently, the employees of Jet Airways have not been paid for the last four months and have lost all hope of the revival of the airlines," the plea said.

SBI Letter Lays Blame on Jet

A Business Standard report on the plea suggests that in a letter dated 16 April, to the chief executive officer of the airline, Vinay Dube, SBI said that the delay in creating security is one of the reasons that led to the stalling of the interim funding’s disbursement.

SBI’s letter is also part of the petition, the report says.

(With inputs from PTI and Business Standard)