NEW DELHI: Jet Airways is looking at pay cuts for employees in the range of 5 per cent for those earning up to a lakh a month and up to 25 per cent for those with an annual package of Rs 1 crore and above.
On Wednesday, Jet's top management reportedly met some pilot representatives and clearly told them that the airline's finances were precarious.
"They said unless some cost-cutting steps are taken at the earliest, the company may face funding issues," said a source, adding job losses are also not ruled out.
Confirming the pay-cut move, Jet said in a statement it is "committed to creating a competitive cost structure that ensures a sustainable future for the airline and its stakeholders". It added, "As part of its
cost-rationalisation measures, the airline continues to evaluate all initiatives to achieve greater business efficiencies. Payroll is one of the important components of the airline's cost structure and the senior leadership team has undertaken a reduction in their salary to lead by example."
According to sources, the management has asked pilots and aircraft maintenance engineers to take about 15 per cent cuts for 24 months. The deducted salary may not be repaid later.
The reasons given for the loss were unexpected fuel price increases, major markets taken over by competition and no expansion done in last six years. On their part, pilots raised several questions to the management.
Jet Airways is looking at pay cuts for employees in the range of 5% for those earning up to a lakh a month and... Read More
