Jet Airways Warns Staff That Airline May be Grounded in 60 Days Unless Pay Cuts Are Put in Place
Battling financial woes, Jet Airways Ltd has warned its pilots that the airline may be grounded in 60 days unless cost-cutting measures including 25 per cent pay cuts are carried out, Reuters reported. It must be noted that the proposal for pay cuts have been rejected by pilots. The pilots have been informed that the airline was running out of time to slash costs and raise revenue, the report said.
Reports said that in order to create a “healthier and a more resilient business”, the full-service carrier was looking at sales and distribution, payroll, maintenance and other areas for savings. Further, the airline management has been in the talking terms with all stakeholders.
Jet Airways has more than 16,000 employees. The Naresh Goyal-led airline, in which Gulf carrier Etihad holds 24 per cent stake, has already slashed by 25 per cent the salaries of its senior management, one of the sources told PTI here.
Senior management executives are those holding general manager post and above level positions. At a meeting held with Jet Airways’ CEO Vinay Dube here this evening, pilots made it clear that the proposed pay cut was not acceptable.
“Last week, Jet Airways management held a meeting with the airline’s pilots union National Aviator’s Guild (NAG) and sought its cooperation with respect to proposed salary cuts,” another source said. The management had told the pilots that they should go along with engineers and other employees by taking a 25 per cent wage cut due to the prevailing financial health, the source added.
As the union outrightly rejected the proposal, sources said the management decided to talk to the pilots separately and had called for today’s meeting of all its Mumbai-based pilots. “However, the pilots reiterated the position taken by the union,” one of the sources said.
Engineers have also rejected the salary cut proposal, they added. Queries sent to Jet Airways Deputy CEO and CFO Amit Agarwal, and an airline spokesperson on the issue did not elicit any response. Another round of meeting with pilots is likely to be held tomorrow in the national capital, the sources said.
Jet Airways — which completed 25 years of operations earlier this year — had 16,558 permanent employees as on March 31, 2018. Besides, there were a total of 6,306 temporary /casual employees, as per the airline’s annual report for 2017-18.
PostedOn: 03 Aug 2018 Total Views: 41004