The employees of Jet Airways lost their medical cover as the embattled airline could not pay the premium for the group mediclaim policy. The policy has expired, leaving around 16,000 employees of the debt-laden carrier in more trouble, in addition to the delayed salaries and an uncertain future. Last month, Jet Airways had grounded all operations after lenders refused to disburse funds demanded by the airline to bear daily expenses.
In a letter to the employees, Jet Airways Chief People Officer Rahul Taneja informed that the company would not be able to pay the premium for the group mediclaim policy. "In the absence of any emergency funding from the lenders or any other source of funds forthcoming in the near future, we find ourselves facing a situation where we are not able to fund the premium of our Group Mediclaim Policy. The policy lapses on the midnight of April 30," Taneja wrote.
In the letter, Taneja clarified that the company is left with little choice in the matter after lenders refused to provid the requested funds. The letter also underlined the troubled state of Jet Airways, pointing out how the company's repeated requests to its lenders for emergency funding had been turned down.
The lenders that extended loans to Jet Airways have initiated a bidding process for selling 75 per cent stake in the beleaguered airline. The State Bank of India-led consortium of banks expected to recover Rs 8,400 crore from the stake sale process.
So far, four entities have been selected for the Etihad Airways, TPG Capital, Indigo Partners and National Investment and Infrastructure Fund (NIIF). A British entrepreneur, Jason Unsworth, and even employee unions of Jet Airways have shown interest to take part in the bidding process.