Hyderabad, All India Bank Employees’ Association (AIBEA) has urged the Central government to takeover the Jet Airways if no bidder is willing to invest and acquire the Airline.
‘We learn banks have invited bids to possible investors to takeover the company. If it does not materialises and no bidder is willing to invest and purchase the airline, we urge upon the Union Government to takeover the airline so that the jobs and future of the thousands of employees, most of whom are young, are safe and without jeopardy’, AIBEA General Secretary Ch Venkatachalam said in a letter to Prime Minister Narendra Modi on Friday.
‘You are fully aware that Jet Airways is facing deep trouble on account of its financial difficulties caused due to various business decisions of the management of the airline. Banks have already extended credit of around Rs. 8,500 crore to Jet Airways and these huge loans have turned non-performing in view of the company not being able to pay the loan in due time’.
This has not happened overnight and the airline has been facing problems for the past few years. Yet, Banks have been helpful with the hope that the company would soon come out of the problems. But it was not to be and the company is now in crisis for its survival, Mr Venkatachalam said.
Incidentally, he said everyone is looking to the Banks to bail out the airline as though Banks are the owners of the company. Mr Naresh Goyal, the former Chairman of the Jet Airways is still the promoter and major share-holder with 51 per cent of the shares with him and it is his headache to run the company or sell it someone.
There are reports that most of the woes of the company are due to their own wrong and unwise business decisions and hence there should be a thorough enquiry into the affairs of Jet Airways and the wrongdoers should be punished, the AIBEA General Secretary said.
The attempts to sidetrack the whole issue by building pressure on the Banks to extend further loan and save the company is only with a view to keep Mr Naresh Goyal out of the picture whereas he is the real man who is answerable for the whole crisis.
We are concerned that the staff of the company have not been paid their salaries and the proposals of the Banks to temporarily help to tide over the problem are not being accepted by the company.
When such companies make huge profits, the same is paid as dividend to the owners on which no tax is payable to the Government. But when they are in trouble due to their mismanagement, they expect the Banks to rescue them.
Mr Venkatachalam said the AIBEA welcome the decision of the Mumbai High Court declining to give a direction to the Government to ask the Banks to extend further loans to Jet Airways.
‘We seek the immediate intervention of the Government so that Banks are not pressurized by any quarters to dole out further loans’, the top union leader mentioned in his letter to Mr Modi.