Airlines

Banks must pay Jet Airways staff’s PF, gratuity: Jalan-Kalrock

Banks slowing down Jet airways takeover. Why Indian banks unsupportive to Aviation Industry ?

The successful bidder for Jet Airways, the Jalan-Kalrock consortium, has filed a petition with the National Company Law Appellate Tribunal (NCLAT), saying that the provident fund and gratuity obligations of Jet employees must be covered by the airline’s current financial stability, with the remaining balance coming from the lenders’ share.

Until the date of insolvency graduation in June 2019, the appeal tribunal had ordered the consortium to pay gratuities and provident funds to the airline’s employees on October 21. Around ₹275 crore is the total declared.

United Airlines Blocking Seats Due To Passenger Weight(Opens in a new browser tab)

The banks, who already receive an average 95% haircut as part of the decision process, have refused to split the cost of PF and gratuity dues, casting additional doubt on the two-year-old decision deal. The Jalan-Kalrock consortium (JKC) has stated that all claims must be resolved within that amount and that it is not obligated to pay creditors anything more than the total amount of Rs. 475 crores.

The airline’s cash balance, which is approximately 50 crore, will be used to cover all extra claims that haven’t been taken into account in the authorized resolution plan, with the remaining funds coming from the banks’ stake of the airline, said.

Air India to take legal action and impose fine on unruly passengers, to charge Rs 5 lakh for 1 hour delay(Opens in a new browser tab)

JKC’s overall obligation to former Jet Airways creditors is set at 475 crores. The resolution plan, which has been accepted by Jet Airways lenders, NCLT, and NCLAT, already clearly lays out the source and method of payments, according to a consortium representative.

In 2020, Jalan-Kalrock was successful in its bid to revive the bankrupt airline through a bank-run insolvency process, but since then, little progress has been made due to disagreements over payment concerns that have arisen between the lenders and the consortium. Employee legal challenges have also slowed down the procedure.

The consortium offered a price of Rs. 1,375 crores for the carrier, of which Rs. 475 crores would be used to pay stakeholders and Rs. 900 crores would be allocated for working capital and capital expenditure. The consortium must fulfill the plan’s upfront payment requirement of 185 crores within 180 days; that period ends on November 29. Lenders are unlikely to transfer the airline to the consortium without getting their initial payment.

Source:

Airlines

Qantas Engineers Stage Walkout Over Cost of Living Concerns

Tensions at Qantas reached new heights as base maintenance workers in Brisbane walked out of a hangar meeting hosted by the airline’s CEO, Vanessa Hudson.

The walkout was a clear display of displeasure and aimed to send a strong message to the company’s management about the growing frustrations within the workforce. The workers, represented by the Qantas Engineers Alliance, have been pushing for wage increases that reflect the rising cost of living.

In an open display of displeasure, Qantas Base maintenance workers walked out of a hangar meet hosted by the CEO Vanessa Hudson in Brisbane, also aimed to send a message to the management.

Qantas Engineers Alliance members have been demanding decent wage increases to match with… pic.twitter.com/y9EVjc46VM— FL360aero (@fl360aero) September 14, 2024

Despite ongoing discussions, the employees feel that their concerns have been overlooked, leading to this public show of dissent. The hangar meeting, meant to foster dialogue and address employee concerns, instead became the stage for a visible demonstration of dissatisfaction as the workers exited in unison.

For some time, the engineers and maintenance staff have expressed frustration over wage stagnation amid increasing inflation and living costs. Their demand is simple: a decent and fair wage adjustment that keeps pace with economic realities. The walkout underscores the workers’ determination to stand firm on their request for better pay and fair treatment.

As Qantas navigates its recovery post-pandemic, this incident highlights the growing internal challenges the airline faces, especially concerning its workforce. The maintenance staff’s actions have put additional pressure on the company’s leadership to address the wage concerns and avoid further escalation.