Jet bosses to take salary cuts to keep flying

New Delhi: Jet Airways, the country’s Number I private airline, has asked its top management to take a 25 per cent cut in salaries and help the company tide over a decline in business.
Sources in the company told CNN-IBN the top management would take a 25 per cent cut in salary. The company’s management has proposed a 10 per cent cut in the salaries of pilots and engineers.
Employees earning up to Rs 5 lakh a month will face a deduction of 5 per cent. Employees earning more than Rs 5 lakh will face a deduction of 10 per cent. The pay cut would not affect employees earning less than Rs 75,000 per month.
A five-member member team led by company chairperson Naresh Goyal has been set up to explore cost-cutting measures. As part of such measures, the company will lease out nine aircraft, reduce hotel and entertainment allowances and scrap training allowance for pilots.
Jet pilots are reportedly opposed to the proposal and have argued that there are other areas in which the airline can cut costs. Goyal met with his pilots on Sunday and is scheduled to meet with flight engineers.
CNN-IBN’s aviation correspondent reports Jet’s top management wants to set an example by taking salary cuts. Goyal has said it is difficult to contain costs and salary cuts is one of the few options the airline has to do it.
23/11/08 CNN-IBN

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Categories: Jet Airways Nov 2008