Jet Airways Postpones Plan to Cut Salaries of Employees Up to 25% After Protests From Pilots, Commanders
The airline also credited the salaries for July on Friday.
Mumbai, August 6: In the latest development to the Jet Airways controversy, the airline postponed their plans to cut salaries up to 25 percent of its non-management staff, after protest from pilots, and commanders, according to a report on the Economic Times. Reportedly, the news was conveyed by Chairman Naresh Goyal to all its employees. The airline also credited the salaries for July on Friday. Reportedly, the salaries were delayed because the management thought that it will be able to convince everyone to take a pay cut.
A week back, the news came out that employees will have to take a pay cut in the range of 5 percent to 25 percent, and without the reduction, they won't be able to operate beyond 60 days. It was announced that 5 percent cut would be for those employees whose annual package is 12 lakh, and 25 percent cut will be for employees earning Rs 1 crore, and above. Reportedly, the top management has already taken a pay cut.
On Friday, hours after reports claimed that Jet Airways is staring at its worst financial crisis, the private carrier issues a clarification calling them malicious. The airline categorically denied any conjecture of stake sale, calling it misreporting by a section of the media. In the statement issued by the company's CEO Vinay Dube, he said the carrier is only aiming to enact steps which would cut down costs and maximise revenue.
"The company has been implementing several measures to reduce costs as well as realise higher revenues...some of these areas amongst others include sales and distribution, payroll, maintenance and fleet simplification," Dube said. He further clarified that the market volatility would not spell doom for Jet Airways as it has survived such turbulent situations in its 25 years of existence. Jet Airways Refutes Reports Claiming Financial Crisis, Denies Mulling Stake Sale.
Over the last few days, there have been reports all over that the airline management team has briefed their employees about the bad financial condition, and the drastic need to take measures on reducing the spiralling costs.
(The above story first appeared on LatestLY on Aug 06, 2018 10:32 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).