Jet Airways sends many staffers on leave without pay & goes in for pay cuts

NEW DELHI: About “one-third” of the stalled Jet Airways 2.0’s 230 employees (about 70) will be sent on leave without pay or face salary cuts of upto 50% starting December 1, 2022.
The Jalan Kalrock Consortium (JKC), that had won the bid to revive the grounded airline under India’s bankruptcy law, is yet to make that happen due to disagreement over who — lenders or the consortia — needs to share past financial liabilities to different stakeholders including Jet 1.0 employees. And now the consortium’s ability or intention to raise and infuse funds required for the airline’s revival is increasingly being questioned by the affected employees.
The Directorate General of Civil Aviation had revalidated Jet’s licence exactly six months back on May 20, 2022. But so far there is no sign of when — and now more importantly if — the airline that got grounded in April 2019 will fly again.
“Pay cuts of upto 50% will be effected from December 1. Most of the affected get Rs 50-60,000 per month. A 50% pay cut means basically being asked to leave. Did JKC not know what it takes to revive an airline before making those claims and hiring people, many of who are those who had lost their jobs when Jet 1.0 shut down” said some employees.
On its part, airline management said: “Two-thirds of staff not impacted at all. Of the remaining one-third, most will be on temporary pay reduction. Only a small portion of the total (about 10%) will be on temporary LWP. No staff (is being) let go.”
The consortium spoke of taking “difficult decisions” in a statement issued Friday in which it yet again claimed to be committed to reviving Jet. Except itself, the consortium pinned the blame for the delay on other stakeholders without naming anyone. JKC said it “…has been, and remains, fully committed to reviving Jet Airways…. After the NCLT’s approval, all conditions precedent, as outlined in the resolution plan, were completed by May 20, 2022…. JKC has deposited Rs 150 crore as required under the court approved resolution plan with the lenders, with the remaining amounts to be invested only after next steps of NCLT are fulfilled in terms of handover of the company to us.”
While claiming it has “not breached any term of the resolution plan,” and that there was no delay from its side, the statement warned: “…while we await the handover of the company as per the NCLT process, the longer-than-expected time being taken for the same may result in some difficult but necessary near-term decisions to manage our cashflows to secure the future while the airline is still not in our possession.”
During Covid — global aviation’s worst ever crisis — the stock of grounded Jet Airways was the world’s best performing airline stock. JKC now has another possible first to its credit — sending staffers on leave without pay and effecting pay cuts even before there is any sign of the airline taking to the skies again.

Leave a Reply

Your email address will not be published. Required fields are marked *