Jet Airways to clear Rs 120 crore pilot salary arrears

NEW DELHI: Jet Airways will soon begin clearing pilots’ salary arrears, amounting to about Rs 120 crore, for the three years to end 2013-14, according to a senior pilot of the airline.

The country’s second-largest carrier by passengers carried, according to the pilot, had been showing an increase in salary on paper for three years beginning 2011-12, but not passing it on to the pilots

“We have been assured that the arrears for three years will be disbursed in instalments. The first instalment, which will be about 50% of the total due, will be disbursed in March,” the pilot said.

“Moreover, salary negotiations for the current fiscal are also due. Discussions on the same will begin soon.”

The decision was taken by the airline management at a meeting in Mumbai on Wednesday. It will benefit about 1,100 pilots who had been protesting for a week now. Jet Airways refused to comment.

Another pilot said the airline has cut weekly offs of Boeing 737 pilots from two days to one. “The airline says deduction in weekly offs is being done to improve productivity. An airline cannot increase productivity just by reducing weekly offs, but needs to do a lot of other things. The productivity can be improved even with two off days,” the pilot said.

Jet Airways, which made a profit of Rs 69 crore in the second quarter of the current fiscal on back of funding from Etihad, has registered a profit of about Rs 63.11 crore during the third quarter of the current fiscal.

The profit, however, lags Centre for Asia Pacific Aviation’s estimate that the Jet Group is likely to make a profit of Rs 120-180 crore. CAPA has also forecast an increase in airlines’ profitability in the third quarter.

“Oil prices are changing market dynamics significantly. Further ATF cut would further reduce cost base.

December was the best performing month for all carriers — both yields and PLF due to SpiceJet’s challenges. Overall, Q3 was a very positive and stable quarter,” CAPA said.