Bank union writes to PM Narendra Modi, urges govt to take over Jet Airways

The government should take over Jet Airways and ensure that state-owned lenders don't give more money to the grounded airline, said a banks union in a letter to the Prime Minister on Friday.

In a letter to the prime minister, AIBEA general secretary C H Venkatachalam said that banks had already extended credit of around Rs 8,500 crore to Jet Airways and these loans had turned non-performing since the company had not been able to service them.  

"This has not happened overnight and the airline has been facing problems for the past few years. Yet, banks helped the company in the hope that it would soon come out of the problem. However, it was not to be and the company is now in fighting for its survival," he said.

The union also urged the government to take over Jet Airways and secure the jobs and future of the thousands of employees, if no investors were found for the beleaguered air carrier.

"Incidentally, everyone is looking to the banks to bail out the airline as though banks are the owners of the company," said Venkatachalam.

"The attempts to sidetrack the whole issue by building pressure on the banks to extend further loans and save the company is only with a view to keep Naresh Goyal out of the picture whereas he is the man who is answerable for the whole crisis," Venkatachalam alleged.

He also sought an enquiry into the affairs of Jet Airways and said that the wrongdoers needed to be punished.