With an uncertain future of the over 22,000 employees of the grounded Jet Airways, bank unions on Monday suggested that lenders must come forward to offer special loans to them to tide over related-party transactions (RPT) over the financial crisis arising from non-payment of salaries.
Last week, the unions had written to Prime Minister Narendra Modi demanding a take over of the carrier by the government so as to ensure job security to the employees. In a letter to the Indian Banks Association, the union had requested the banking lobby to “ask member banks to device a special loan scheme to the Jet staff to help them tide over their present financial problems”.
The unions also suggested that banks can extend special and exclusive loans to the airline to pay the salary dues or some subsistence payments to them against proper collateral. Vinay Dube, chief executive, Jet Airways, said on Saturday that around ₹170 crore would be needed to clear at least a month’s salary. Flying for 25 years, last week, Jet announced grounding after its lenders declined an interim funding of ₹400 crore.
