Jet Airways In Trouble – Can Be Shut Down In Next 60 Days; Employees Refuse Salary Cut!
As per reports, job cuts have already started across engineering department, and ground staff teams.
India’s oldest private airlines: Jet Airways has found themselves in deep trouble. They have sent a letter to all employees, informing them that unless salary cuts are implemented, the airlines will be shut down in the next 60 days.
What is the future of Jet Airways now?
Jet Airways: We Can’t Fly Beyond 60 Days
A senior Jet Airways employee has said to Times of India, that their management is in deep trouble, and the same have been communicated with all employees.
That unnamed employee said, “We have been informed that the airline cannot run beyond two months and the management needs to cut cost through pay cuts and other means to ensure that it stays afloat beyond that.”
As per that employee, this has ‘dented the trust’ of the management, and the future looks uncertain.
Job cuts have already started, as several executives have been asked to leave, and some employees from the engineering department too have been sacked.
Some bonds and contracts for employees have been terminated, and as per reports coming in, job cuts will soon happen across cabin crew and ground handling teams.
25% Salary Cut?
Earlier, Jet Airways management had asked their employees to accept 25% salary cut, for 24 months.
And, as per the reports, the management has even refused to provide compensation for this loss later.
Pilots have straightaway refused this arrangement, stating that this is “not acceptable”.
The meeting in which the proposal for 25% salary cut was announced was headed by founder Naresh Goyal, and happened in Mumbai.
Another senior level meeting happening in Delhi yesterday, where Goyal was not present.
Another set of reports state that 25% salary of senior management have already been deducted.
What is the reason for this debacle?
The aviation industry has been experiencing massive losses for the last few years, and the demise of Vijay Mallya owned Kingfisher Airlines was a side-effect of this.
Rising fuel costs and market domination by Indigo has been attributed for Jet Airways’ record losses in the last 2 years. In the FY 2018, Jet Airways experienced loss of Rs 767 crore, meanwhile by the end of first quarter of 2018, it is estimated that they will incur a loss of Rs 1000 crore by the time FY ends.
Jet Airways have 16,000 employees as of now, and Gulf carrier Etihad holds 24% stake in the company.
We will keep you updated, as we receive more updates.