Monday, August 06, 2018

Jet Airways releases salaries to employees, decides against pay cut

New Delhi: Cornered by protesting employees and unflattering media reports over the past week, the country's second largest airline Jet Airways has reportedly scrapped plans to trim its operating costs through salary cuts.

"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," a Jet executive told The Economic Times. Chairman Naresh Goyal conveyed this to a section of the employees who met him on Friday. He also assured the staff that the airline is well placed to encash on the growth that the Indian aviation market offers. The same day the airline credited employee salaries for July.

The buzz earlier was that having posted a loss of Rs 1,040 crore for the fourth quarter of fiscal 2018, the airline was in serious damage control mode and had informed its employees that a 5-25 per cent salary cut was on the cards. The top management had reportedly also told employees that though market leader IndiGo boasted a bigger headcount, its salary outgo was lower than Jet's.
06/08/18 Business Today