The Hush Post: As Indian carrier Jet Airways is looking at yet another set of salary cuts to save the airline from grounding its services, news reports have quoted sources suggesting that the airlines might face closure within 60 days, if it does not implement drastic cost-cutting measures, including more pay cuts and job losses.
Headed by Chairman Naresh Goyal, the company’s top management reportedly informed the staff of its dire condition. Pilots have refused a proposed 15 per cent pay cut for two years.
According to a news report in International Business Times, some employees have suggested that the situation has been exaggerated so that some people are forced to leave, and save the airline money on salaries.
The airline has already waived off the notice-period requirement for its pilots. There has been drastic reduction in engineering staff, more cuts are expected in cabin crew and ground handling staff.
The company is also yet to publicly announce the crisis. “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,” said the company in a statement.
India’s oldest private sector airline, Jet Airways is facing several issues. Its employees recently went on a strike over a 25 per cent pay cut. Apart from blaming the rising cost of fuel and weaker rupee, Jet has had to face the meteoric rise of rival domestic airline IndiGo which witnessed a 97 per cent plunge in profit in the beginning of this week alone. On the other hand, Jet airways had net debt of Rs 8, 150 cr as on March-end, with the bulk of it being US dollar denominated, a news report in Times of India said. Jet lost Rs 767 crore in FY2018.