As many as 1300 Jet staff may have to forego a part of their savings in their Forex cards.
Forex cards issued to Jet staff for their overseas expenses were "frozen" on Wednesday. The staff includes 300 pilots and other cabin crew members.
An anonymous source was quoted in a PTI report as saying that money in the prepaid cards had been saved over multiple trips. Many of the staffers reportedly used the forex cards to save money. And, some of the cards may have had saving of up to $2,000 (approximately Rs 1.40 lakhs).
Axis Bank is learnt as providing the Forex cards while Weizmann Forex was the distributor. "The bank has no role to play in these transactions," said a spokesperson of Axis Bank.
In the PTI report, Weizmann Forex claimed that Jet Airways was indeed its client and it had shut the cards since it had been awaiting a payment of Rs 1.62 crores. In the absence of payment, the service provider transferred the money to an escrow account and "froze" the cards.
This could be a latest disruption to the lives of Jet staffers, many of whom have been awaiting their salaries for months.
Jet Airways had an estimated workforce of 20,000 staffers. Challenges for these staffers began sometime in late 2018. Salaries for Ground-staff, cabin crew and even pilots had reportedly been delayed by months.
Once India's popular and customer-friendly airline shut its operations on April 17 over financial difficulties. A few days ago Jet management said that it would not be able to provide Mediclaim. The airliner also failed to pay agents and customers the ticket fare post cancellation of flights. It was also reported that an association of employees filed an FIR at a Mumbai police station over failure to provide employee provident fund and gratuity benefits to employees who had left the airline until two months ago.
An association leader had reportedly said that the situation was alarmingly similar with that of Kingfisher airlines.