Indian carrier Jet Airways may face closure within 60 days as the company continues to bleed cash, despite several rounds of cost-cutting measures. With the countdown underway, the company is looking at another set of salary cuts to save the airline from grounding its services.
Headed by Chairman Naresh Goyal, the top management has sat down with employees in Mumbai and Delhi to inform them of the dire condition of the company. They have said that drastic measures need to be put in place to ensure the operations can continue.
India's oldest private sector airline is facing several issues. Its employees recently went on a strike over a 25 percent pay cut, worsening the situation. Some employees have suggested that the situation has been exaggerated so that some people are forced to leave, and save the airline money on salaries.
Apart from the salary cut, which is expected to last up to 24 months, the airline has also waived the notice period requirements for its pilots and laid off most of its engineering staff. More cuts are expected across the board, including from cabin crew and ground handling staff.
The company is also yet to publicly announce the crisis, refusing to respond to a Business Times inquiry on the issue.
"The airline is committed to creating a growth-oriented, sustainable future and a revitalised guest experience armed with the addition of 225 B737 MAX fuel-efficient aircraft which will be inducted in its fleet over the next decade, and of which 11 are slated to join within this financial year. The airline refutes and strongly condemns the speculative comments of/from certain vested interests, who are making deliberate attempts to undermine Jet Airways' transformation efforts," said the company in a statement.
Apart from blaming the rising cost of fuel, Jet has also pointed out to the meteoric rise of IndiGo as a key factor for the losses. Jet lost Rs 767 crore in FY2018.