Pilots of crisis-hit Jet Airways this week discussed the current situation and are likely to take a final call next month in case the airline fails to adhere to the timeline set for partial payment of salaries, according to a source.
Grappling with acute financial woes, the full service carrier is looking to restructure debt and raise funds.
Jet Airways has been making salary payments to many of its employees, including pilots, in a staggered manner, amid financial crunch.
The current situation of the airline was discussed during an open house meeting, organised by the National Aviator’s Guild (NAG), in Mumbai Monday, the source said.
The NAG is a grouping of the airline’s pilots.
The source said, the main issue was regarding non-adherence to the salary payment schedule that was communicated to the pilots in December.
According to the source, it was decided at the meeting that in case of a default in the salary payout committed for February, then the pilots would collectively take a final call next month.
The airline will seek approval for conversion of loans into shares, among other proposals, at the meeting of shareholders to be held on February 21.
Jet Airways would seek nod to “convert the whole or part of the outstanding under loans, extended/to be extended by the lenders, into shares, or convertible instruments or other securities, of the company…”, as per a filing made last month.
The conversion would be done as per the terms contained in the respective loan documents between the company and its lenders. It would also be subject to all requisite regulatory approvals.
Besides, Jet Airways would seek shareholders’ approval to negotiate and finalise the terms and conditions with the lenders for raising further loans from time to time as well as provide the lenders with a right to convert such loans into shares, or convertible instruments or other securities.