Cash-crunched Jet Airways has delayed the salaries of 20 percent of its staff; mostly the employees falling in the higher paid brackets including pilots.
The full-service airline, which is taking austerity measures after surmounting losses is on a turnaround mode. The airline said that it has disbursed the salaries of over 80 percent of its employees.
"Jet Airways is committed to honouring its obligations towards its employees and has already paid salaries on time to 84% of its employees. In line with the mandate received from the company's board of directors, the airline management is undertaking definite steps to turn around its business and is evaluating various funding options on priority to resolve the interim challenge," the airlines was quoted as saying by Financial Express.
The pilots' fraternity has condemned the decision taken by the Jet management and said that the August salaries are not to be paid till mid-month. One of the pilots said, "It is unacceptable and the management agreed that henceforth salaries would be paid on time and if there is any delay, the same will be communicated to pilots on time."
It is to be noted that Jet Airways has emerged as one of the biggest losers in the airline industry. It has reported a loss of Rs 1,323 crore in the first quarter of the current fiscal year. Similarly, Air India is also facing the issue of cash crunch but with the government infusing additional capital for the national carrier, it is expected to carry out its operation at least for the time being.
Recently, a CAPA India report claimed that the losses to Indian Airlines could touch $1.9 billion this fiscal year. The industry is facing stiff competition among its players and the increasing crude oil prices and depreciating rupee have added to the woes of the airlines.
