BusinessNews

‘Can’t fly beyond 60 days without cost cutting measures’

Employees feel situation has been exaggerated so that staff quits 

New Delhi: Jet Airways has told its employees that it won’t be able to operate beyond 60 days unless cost-cutting measures are put in place, The Economic Times reports.

The cost-cutting measures include pay cuts, the report adds.

The airline on Thursday said it is implementing various cost-cutting measures across sales and distribution, payroll and maintenance.

“We have been informed that the airline cannot run beyond two months and the management needs to cut costs through pay cuts and other means to ensure that it stays afloat. The airline did not inform us about this for all these years, which has dented the trust of employees in the management,” a senior Jet Airways senior executive told the paper.

Employees have been wondering how they should interpret the warnings. Some feel that the situation has been exaggerated to force some employees to leave voluntarily.

Pilots, management lock horns

  • Jet Airways pilots and management are on a war path over salary reductions and possible job cuts at various departments, with the airline telling them that it might not be able to continue operations for more than two months, sources in the pilot community said.
  • However, Jet Airways on Friday said described reports that the airline cannot fly beyond 60 days as “incorrect and malicious” as well as denied any talks of a stake sale.
  • Sources said the full-service carrier has also told the employees that the compulsory one-year notice period for captains would be done away with.
  • There are more than 16,000 employees at Jet Airways.
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