Jet Airways slashes salaries by up to 50%; no layoffs

Delhi/Mumbai, November 18

Jet Airways, which is yet to resume operations under its new owner, will reduce salaries for various staff and send many employees on leave without pay, amid uncertainty over resumption of its operations.

CEO, CFO to take higher cuts

• The once-storied airline shuttered operations in April 2019
• The pay cut would be up to 50% and the quantum would be higher for the chief executive officer and chief financial officer

The measures, which will be effective from December 1, were revealed hours after the winning bidder Jalan-Kalrock Consortium (JKC) said it might take “difficult” near-term decisions to manage cashflows.

The once-storied airline shuttered operations in April 2019 and JKC’s resolution plan was approved under the insolvency process by the National Company Law Tribunal (NCLT) in June last year. However, due to various issues, the airline is yet to restart operations.

The pay cut would be up to 50% and the quantum would be higher for the CEO and CFO. The temporary pay cuts and Leave Without Pay (LWP) for the affected staff would be effective from December 1, a source close to the development said.

In a series of tweets, Jet Airways CEO Sanjiv Kapoor said less than 10% of the total staff would be on temporary Leave Without Pay and one-third would be on temporary pay reduction.

According to him, “two-thirds of staff (are) not impacted at all” and no staff has been asked to go. Jet Airways has around 250 staff.