Jet Airways CEO writes to frequent fliers, allays concerns over pay cut reports

Jet Airways' CEO Vinay Dube has written to the airline’s frequent fliers, assuring them that the company is well placed to make the most of the growth in the Indian aviation sector, and called the recent media reports – questioning its sustainability - as factually incorrect.

“You might have read recent media reports questioning the sustainability of our airline. We have already clarified to the media that these reports are factually incorrect and malicious,” says Dube in the letter.

The airline’s frequent flier programme is called Jet Privilege and has over 5 million members.

The CEO’s outreach to the customers comes after the airline was forced to issue a series of statements, including one to the Bombay Stock Exchange, responding to reports that Jet will be unable to operate beyond 60 days unless costs are cut.

The company’s senior management, led by Chairman Naresh Goyal and Dube, had reportedly met pilots and engineers in Mumbai and Delhi to brief them about the challenges. The management is said to have asked pilots to take a pay cut of 15 percent. Latest reports though indicate the company may have paused on its pay cut plans.

Like in the other statements, Dube in the letter to the customers, again highlighted Jet Airways’ 25 years track record of overcoming challenges.

He said Jet Airways was well placed to make the most of the ‘strong growth’ in the Indian aviation sector. “We will continue to expand our network, both domestic and international, and revitalise our guest experience. This will be augmented with the addition of 225 Boeing 737-MAX fuel-efficient aircraft, 11 of which are scheduled to be inducted into our fleet this fiscal,” he said.

At the same time, he outlined some of the challenges - depreciating rupee, high fuels prices, and low fares.

Customer focus

The travel industry has welcomed Dube’s confidence-building letter to the customers. But there are differing views on whether the news on the company’s challenges has impacted bookings.

While a Yatra spokesperson said, “There has been no impact on bookings,” a senior executive from another travel company pointed out the long-term leisure bookings could get impacted.

“Business clients, who travel on official purpose, may not hesitate to book on Jet Airways, as they buy a ticket within 10 days of travel. But leisure customers, who are looking to book much in advance for the upcoming holiday season, may look for more options,” said the executive.

The festival and year-end season make up for 20 percent of the travel business.