Talks on with pilots to resolve salary disbursement issues: Jet

Last Updated: Fri, Sep 07, 2018 15:08 hrs
Jet Airways

Mumbai: Financially troubled Jet Airways said that it is in talks with pilots and other employees to resolve salary disbursement issues. "Jet Airways is committed to honour its obligations towards its employees and has already paid salaries on time to 84 per cent of its employees," a Jet Airways spokesperson said in a statement.

"In line with the mandate received from the Company's Board of Directors, the airline management is undertaking definite steps to turn around its business and is evaluating various funding options on priority to resolve the interim challenge."

The development comes after the airline pilots' union raised the issue of delay in August salary disbursement in a letter to the company's management.

The Issue:

A PTI story had reported late on Thursday night quoting it's own sources that pilots had warned the airline of "non-cooperation" over delay in pay.

There are unverified reports that salaries for the month of July were unpaid. Another report added that 100 pilots since August have tendered resignations. Jet's workforce of 16000 employees is estimated to comprise of some 2000 pilots, according to an industry estimate.

According to PTI's report, Jet assured its staff that 50% of August salary would be paid by September 11. And, the whole salary would be paid latest by September 26.

Rahul Taneja, Jet's Chief People Officer said "For the months of September and October 2018, the same disbursement schedule will be followed."

The Naresh Goyal promoted airline is reported to be in rough financial weather. It has posted losses in the last two quarter results.

For the April-June quarter Jet's losses stood at Rs 1,323 crore, even as employee costs rose up by 12.6% to Rs 816.29 crore.

On Friday, the company's scrip on the Bombay Stock Exchange was trading at Rs 270.30 a share, down by 1.55% or 4.20 points.

With Agency Inputs