Business

Can't Fly Beyond 60 Days, Says Jet Airways, Implementing Strict Cost Cutting Measures

JAVED SAIFI | 0
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| August 3 , 2018 , 11:15 IST

Jet Airways a major Indian international airline is going through a bad face as airline’s financials are not in a good shape and operational cost cutting measures need to be taken.

The airline told its employees on Friday that it will be tough for the airline to operate 'beyond the 60 days,' unless the cost-cutting measures are implemented.

Already pay cut by up to 25 percent of its employees have been implemented by the airline management.

The salary cut was 5 percent for employees earning Rs 12 lakh per annum and 25 percent for employees who earn up to Rs 1 crore. Pilots faced a 17 percent cut in their salaries.

As per reports in media, the management staff on Thursday chaired by Chairman Naresh Goyal informed its employees about the cut in their salaries.

Also Read: Jet Airways Places Additional Orders For 737 MAX Aircraft 

Following the crises, the airline has decided to approach investment bankers again to help sell a stake in the carrier to raise the funds.

In the situation of high fuel prices, weak rupee and intensifying competition in the market it is not easy for Jet Airways to raise the funds.

Jet Airways is the second largest carrier in India, with 51 percent stakes owned by Goyal and 24 percent stakes owned by Etihad Airways PJSC of Abu Dhabi.

Jet Airways reported a loss of Rs 636.45 crore during the financial year 2017-18, whereas it competitors IndiGo and SpiceJet reported a profit of Rs 2,242.37 crore and Rs 566.66 crore.

The situation is even more stressful for Jet Airways as its pilots' union, the National Aviator’s Guild has asked its members on Thursday not to accept the salary cut.