Jet Airways will send nearly a third of its employees on leave without pay or cut their salary by up to 50%, The The US Express News reported citing sources.
The airline, which ceased operations in 2019 and was grounded for three years, was granted a license to resume commercial flights from the Directorate General of Civil Aviation (DGCA) in May this year.
According to some airline employees, the 50% salary cuts will take effect on December 1.
The airline’s management, meanwhile, said two-thirds of its staff will be unaffected by the move. For the remaining one-third of workers, it added, their wages will be temporarily cut.
Management said only a small portion of staff will be on unpaid leave and no employee was laid off, the report said.
The Jalan Kalrock Consortium (JKC), the current promoters of Jet Airways, recently said it had not violated any terms of the insolvency and may have to make tough decisions to manage cash flow.
“…as we await the transfer of the business under the NCLT process, the longer than anticipated time to do so may result in some difficult but necessary short term decisions to manage our cash flows to secure the future while the airline is still not in our possession,” the consortium said in a statement.
Jet Airways’ insolvency process began in June 2019 after the then promoters failed to provide liquidity.
While JKC’s resolution plan was approved by the National Company Law Tribunal (NCLT) last year, the airline has yet to resume operations even after obtaining its Air Operator Certificate (AOC).
In the statement, the consortium also said it has deposited Rs 150 crore as required by the court-approved resolution plan and will invest the remaining amount “only after the next steps of NCLT are fulfilled in terms of transferring the company to us”.
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