Wednesday, October 03, 2018

Jet Airways defaults on employees' salaries once again

Cash-strapped Jet Airways has once again defaulted on the salaries of its employees. The debt-ridden carrier had last month delayed salary to its pilots and engineers along with senior management. The embattled airline has now defaulted on the payment of September salary to other categories of employees as well, news agency PTI reported.
The Mumbai-based full-service airline, partially owned by UAE national carrier Etihad Airways, has been facing financial problems for quite some now. Pilots had earlier threatened its management of "non-cooperation" over further delays in the disbursement of their salaries.
The airline industry is facing financial headwinds due to high ATF prices and falling value of Indian rupee. A price war started by budget carriers has also added to its woes, leading to Rs 1,036 crore and Rs 1,300 crore losses in the quarters ending March and June, respectively.
The Naresh Goyal-owned airline is struggling to mop up funds to meet its payment obligations, including salaries to its over 16,000-strong workforce. "We generally get our salary on the 1st of (every) month. Last month, the airline had paid to all employees except senior management, pilots and engineers on time. But this time (September), they have failed to pay even to other categories of employees such as manager and above levels," an anonymous source told the news agency.
03/10/18 Business Today
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