Jet Airways' employees will bid for 75% stake in the airline along with London-based AdiGroup

• Jet’s employee consortium and UK-based AdiGroup are bidding for 75% stake in the grounded airline, says IANS.
  
• Employees were also worried that their interests will not be safeguarded during the bankruptcy proceedings.
  
  

Jet Airways’ employees are saving their jobs along with their company, as have joined hands with an investor to bid for the grounded airline.

Jet’s employee consortium and UK-based AdiGroup are bidding for 75% stake in the grounded airline, says IANS.

AdiGroup is a global management and investment advisory firm based in London. It is headed by Sanjay Vishwanathan who had earlier in May showed interest in bidding for Jet.

Employees who have been venting their anger against Jet’s largest lender State Bank of India for refusing to extend a credit line, were also worried that their interests will not be safeguarded during the bankruptcy proceedings.

Jet’s employees have been crusading for the cause of their company ever since it was grounded. Two days after it was grounded, a few employees had written a letter to the chairman of SBI claiming that they can arrange funding of up to Rs ₹70 billion, over a period of time.

Jet Airways was declared bankrupt on June 20, as lenders could not find a viable bid.

This is the first good news that the grounded airline had received since it was grounded in April. This was after many attempts to stitch a deal between Jet’s existing investor Etihad and Mumbai-based Hinduja group which too had showed interest in the airline. However, their bid had many conditions and hence could not go through.


Jet Airways has been in debt of as much as ₹85 billion, after it made unwise bets expanding the company even as competition heightened in the aviation sector with the entry of new players. The increasing costs of aviation turbine fuel and other operational costs too weighed heavy on the company, making it borrow more and more, deepening its crisis.

Jet Airways’ stock fell by almost 5% in today’s trade to ₹67 per share. As of today, the market capitalization of the company was at ₹7.6 billion, after the stock was hammered for months.

See also:
Some employees in India are stepping up with investments to save the company and their jobs
It’s official-- Jet Airways is bankrupt, declares a Indian court on the same day the share price jumped 93%