Jet Airways in Trouble

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In a shocking news for fliers, India’s largest full-service carrier Jet Airways Ltd can survive only 60 days and the officials have asked its staffs to cut down pay scale in salary. A senior company executive told Reuters on Friday, that the airline may be grounded in 60 days unless cost-cutting measures including pay cuts will be made in staffs salary.

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On Wednesday, the top officials including the chairman, Naresh Goyal met pilots and stakeholders to discuss the future course of action to revive the airline. However, the pilots have denied a proposed 15 per cent cut in their salary for two years, that had been informed to them as the airline was running out of time to slash costs and raise revenue, the source said.

In order to create a healthier and a more resilient business, the company was looking at sales and distribution, payroll, maintenance and other areas for savings aforesaid a company spokesperson.  The airways is looking for a working capital loans but the banks want the airlines to produce a turnaround commitment, the source said. Adding to that he also said, salary reduction was part of the same issue.  “There are some job losses across verticals but not among pilots,” the source added, declining to be named as the talks with staff were private.

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Jet also issued a statement, “In line with its stated focus of creating a healthier and a more resilient business, Jet Airways has been implementing several measures to help it reduce cost as well as realise higher revenues, for desired business efficiencies. Some of these include sales and distribution, payroll, and maintenance, among many others. As part of this approach, the airline management is in dialogue with key stakeholders to enlist their full support and cooperation for realising necessary savings across all parts of the business.

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The further said in a statement that, “The airline is committed to creating a growth-oriented, sustainable future, and a revitalized guest experience armed with the addition of 225 B737 MAX fuel-efficient aircraft which will be inducted in its fleet over the next decade, and of which, 11 are slated to join within this financial year. The airline refutes and strongly condemns the speculative comments of/from certain vested interests, who are making deliberate attempts to undermine Jet Airways transformation efforts.

Also, in July 2017, Jet Airways had asked most of their junior pilots to take a 30-50 % salary and the stipend cuts or quit.

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