Jet Airways shelves pay cut proposal of up to 25% for staff

New Delhi: Jet Airways has shelved plans for an up to 25% cut in salaries of its non-management staff after protests from its employees including pilots and commanders. Chairman Naresh Goyal conveyed this to a section of the employees who met him on Friday. The airline also credited employee salaries for July on Friday.

“The salaries were earlier put on hold because the management had expected to convince everyone to take a cut, but were released after the chairman’s assurance that there will be no cut,” said a Jet executive, who did not want to be identified.

Jet Airways’ top management has already taken a salary cut.


The airline officials, who spoke to ET on condition of anonymity, said Goyal also sought help from the staff in salvaging the airline’s image that has taken a beating after media reports on pay cuts.

“You help me out… I will not forget it,” people who attended the meeting quoted Goyal as telling the employees.

The airline did not respond to an email till the time of going to print.

People who attended the meeting said Goyal also told employees that the airline’s image has taken a serious beating leading to cancellations across the network. He assured the staff that the airline is well placed to encash on the growth that the Indian aviation market offers.

After the meeting on Friday, the Jet pilots’ association, National Aviators Guild (NAG), issued a statement asking its members to support the airline in these difficult times.

“Most of us have been loyal employees of Jet Airways and it would be amatter of pride to be a part of ensuring that it maintains its position as India’s premier airline, here and abroad. We look forward to a long and continued relationship with the company and are confident of the airline’s sustainability in short as well as the long term. We advise members to help us achieve our common goals,” a statement from NAG read.

Jet Airways, which is in a bad financial health due to rising crude prices and falling rupee, told its staff last week that there will be a salary cut between 5% and 25% across the board. ET was the first to report the development last Wednesday. The move was aimed at reducing cost to tide over the present financial crisis.

The management has blamed rising fuel prices and major market share gains by IndiGo for its precarious financial position. After two consecutive years of profits in fiscal 2016 and 2017, Jet incurred losses of about Rs 767 crore in FY2018.

Jet is not the only carrier to be affected by adverse industry circumstances. IndiGo, India’s largest carrier by passengers flown, reported a 97% drop in profits for the first quarter of this fiscal. The top management of the airline met employees in Mumbai on Wednesday and in Delhi on Thursday.

While Goyal was present for the Mumbai meeting, he did not attend the meeting in Delhi. The top management told its staff that market leader IndiGo has more number of employees than Jet but has lesser salary outgo. The employees – pilots and engineers – objected to any pay cut seeking replies from the management on the reason behind the bad financial situation of the company.