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Can’t fly beyond 60 days unless pay cuts, says Jet Airways

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KalingaTV News Network

New Delhi: Jet Airways (India) Ltd will be unable to fly beyond 60 days unless cost-cutting measures including pay cuts of its employees are put in place, official sources said on Friday.

The management team, including Chairman Naresh Goyal, has informed employees in face-to-face meetings in recent days in Mumbai and Delhi that the airline’s financials are in a bad shape and drastic measures needed to be taken to cut costs, the Economic Times reported citing two company executives.

The airline management has already decided to pay cut of salaries up to 25 per cent of its employees.

The salary cut was 5 percent for employees earning Rs 12 lakh per annum and 25 per cent for employees who earn up to Rs 1 crore. Pilots faced a 17 per cent cut in their salaries, sources added.

Meanwhile, the airline has approached investment bankers again to help sell a stake in the carrier to raise the funds.

Jet Airways is the second largest carrier in India, with 51 per cent stakes owned by Goyal and 24 per cent stakes owned by Etihad Airways PJSC of Abu Dhabi.

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