Jet Airways' security services to 38 foreign carriers to end on 10 May

Jet Airways has informed foreign airlines it would be unable to provide security services to them after May 10. The development comes in the backdrop of the aviation security regulator asking foreign airlines to make alternative arrangements as soon as possible.

Jet provides security services to 38 foreign airlines in India and the development is another setback for the airline facing risks of insolvency proceedings from vendors and service providers. 

Around two dozen firms have sent notices to Jet, threatening insolvency action after it stopped operations on April 17. Jet has not paid vendor dues and staff salaries for the past few months. It provides security and engineering services to other airlines and now that revenue stream is also under threat.

“After suspension of operations, approval for one month of transition time with effect from April 30 is granted to Jet by the Bureau of Civil Aviation Security (BCAS) headquarters to carry out security services functions for foreign carriers. However, the service provider (Jet) may pull out at any time, keeping in view their current state of affairs. You are requested to make alternative arrangements as early as possible for security functions and uninterrupted operations,” BCAS wrote in a letter to foreign airlines last Friday.

Security functions include pre-departure checks, baggage X-ray (in non-metro airports), frisking of staff, among others. The airline security also frisks passengers at the time of boarding during high alerts. These services are provided by domestic airlines to foreign carriers in India. Staff providing the services are certified by the regulator.

“Jet’s operating permit has not been suspended and BCAS has also not withdrawn permission granted to Jet to provide security service. However, these services may get affected as many employees are leaving the company.  Some are not reporting to work. Staff morale, too, could be low as they have not been paid for months. BCAS seems to have issued the letter in this context,” said an executive with a foreign airline.

Jet Airways did not respond to an email query.

The Directorate General of Civil Aviation has de-registered 56 of Jet’s aircraft and its slots at key airports have been given out temporarily to rival airlines. State Bank of India is discussing a proposal to pay around Rs 400 crore of aircraft loan, giving it the first right of recovery over five Boeing 777 planes. With no clarity on funding, employees are joining rival carriers and vendors are warning of action.

“Jet has been making promises to its vendors and service providers that it will settle dues. The funds have been elusive and the airline has no money to pay anyone. Vendors are threatening Jet to pay dues or face insolvency action,” said a source.

Meanwhile, Shiv Sena has jumped on the protest bandwagon and has planned a rally at Mumbai airport to protest the suffering of Jet employees. “This happens because of mismanagement of Jet and an indifferent attitude by consortium banks,” Sena’s labour union Bharatiya Kamgar Sena President Suryakant Mahadik said in a letter.

Clipped wings

• Jet provides security services to 38 foreign airlines in country
• Bureau of Civil Aviation Security asks carriers to make alternate arrangements 
• Jet faces risk of insolvency, receives notices from two dozen vendors
• Shiv Sena plans rally at Mumbai airport in support of employees