Mumbai Government Takes Action Against Jet Airways: Seizing Aircraft Over Unpaid Gratuity Dues

The news of the seizure of four aircraft belonging to Jet Airways has come as a shock to the aviation industry in India. Jet Airways, one of the leading airlines in the country, has been struggling with financial issues since the beginning of the year. The airline was forced to shut down operations due to dwindling funds and mounting debt. The airline had failed to secure a bailout package from the government, which had left the company in a dire financial situation.

The seizure of the aircraft by the Mumbai district administration is a sign of the dire financial situation of Jet Airways. The gratuity dues payment of 960,000 rupees ($11,760.38) plus 10% interest had defaulted, which resulted in the seizure of the aircraft. This is the latest in a string of setbacks for the airline, which has been facing a financial crisis for some time now.

The recent decision by the National Company Law Tribunal to allow the ownership of Jet Airways to be transferred to a consortium, led by Murari Lal Jalan and Kalrock Capital, has been seen as a positive step for the airline. The consortium has proposed a resolution plan that will help the airline get back on its feet. However, this seizure of aircraft will not bode well for the airline’s financial situation.