Fund raising plans of private carrier Jet Airways may hit a roadblock because of the ongoing tussle between pilots and management over re-instatement of two senior pilots who were allegedly instrumental in forming National Aviators Guild, the 650 pilot’s strong union. Jet had previously on multiple occasions deferred plans to raise additional capital to the tune of $400 million. That was approved by the company’s board due to volatile market conditions. The ongoing mass protests of pilots could also impact investor sentiments say financial planners. The carrier posted Rs 225 crore net loss for the quarter ended June 30, 2009 and has been in discussion with investment banks to raise funds by the end of the year. To add fuel to fire, the airline is also loosing out on market share which would disrupt its biggest fund raising plan. Jet stock fell 3.54% on Thursday to close at Rs 253.25 on the Bombay Stock Exchange.
Meanwhile, despite facing a legal notice from Bombay High Court on contempt of court against Jet Airways pilots for halting work, the mass protest leading to a strike entered its third day on Thursday .NAG is likely to meet the labor commissioner on Friday to discuss the veracity of the issue.Meanwhile,executive director of Jet Airways,Saroj Dutta met chief labor commissioner SK Mukhopadhyay in the Capital on Thursday .However, no decision was taken after the talks, which are scheduled to resume on Friday .The pilot’s association kept away from the meeting .Dutta said that there has been no direct meeting between management and striking pilots. The Labor department trying to bring about conciliation between the two sides. Jet chief Naresh Goyal had earlier said,” We want the matter settled at Joint Commission level in Mumbai itself otherwise if it is referred to us under the Industrial Disputes Act, it will take a lot of time”.
The strike has resulted in the cancellation of nearly 450 flights all over the country and has inconvenienced over 28,000 passengers in the past two days. On Thursday, 136 domestic flights were cancelled .The government is expected to chip in to resolve the crisis. The Jet management insisted that the pilots who went on mass leave should provide medical certificates of their illness. The pilots on the other hand have made it clear that they would report to work only when two sacked pilots are re-instated. Jet Airway domestic bookings have slumped 39% to 14,000 a day since the strike began. International reservations are down 9.5% to 9,500 a day.
According to reports, Chairman Naresh Goyal has not ruled out hiring foreign pilots if it came to that. Asked if Jet Airways would think of recruiting foreign pilots, Goyal, who recently met civil aviation minister Praful Patel in New Delhi, said the airline might request the government authorities for the purpose.”There are enough pilots available in the world “; he said adding that the airline will not tolerate such blackmail.
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