Monday, October 15, 2018

Jet Airways says it needs more time to pay September salary to employees

New Delhi: Cash-strapped airline Jet Airways has sought more time to pay the salaries of its employees for September. Though no confirmed deadline has been given for the disbursement of salaries for the month, the airline assured its employees that it is "committed" towards finding a solution. The airline paid the balance amount (50 per cent) of the salaries for August to its pilots, engineers and senior management last week only.

The Mumbai-based full-service airline, partially owned by UAE national carrier Etihad Airways, has been suffering from the cash crunch for the past few months, resulting in constant delays in the salaries of its employees. A few days ago, its pilots had earlier threatened its management of "non-cooperation" over further delays in the disbursement of their salaries but to no avail.

"First of all, we would like to apologise for the delayed payment of your salaries and appreciate your patience in this matter. We remain committed towards your dues and profusely thank you for doing what you do for Jet Airways every day," Jet Airways said in a statement to its employees on Sunday. The company also said it has met with the pilots' representatives and are "working towards a solution".

The airline has been reportedly defaulting on employees' salaries for some time, making partial payments in some cases or not paying at all. The airline is facing a deep financial crisis due to high fuel cost and continuously depreciating value of rupee. A fierce competition from local players 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. Its total liabilities from banks have grown to over Rs 8,600 crore.
15/10/18 Business Today

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