After the Indian IT sector made news for layoffs and pay cuts, the pattern now seems to have shifted to the airline sector. Indian carrier Jet Airways has asked its junior pilots, who joined the brand in 2016, to take a 30 percent pay cut or leave.
In a bid to trim costs, Jet Airways is said to have made a few changes to the pilots' contracts and it will now be mandatory for them to take 10 days of leave in a month apart from their weekly offs, which in turn will result in a 30 percent reduction in their salaries. The pilots have been given until the end of the month to take a decision.
"As a valuable asset to the company, we would like to ensure your continued employment while simultaneously balancing our cost structure. As an interim measure, we shall be offering you a Lifestyle Work Pattern which entails 10 days block off per month with the appropriate remuneration. This will be effective August 1," the private full-service carrier told its employees in a note, according to Reuters.
"In case you do not wish to accept the above terms and desire to seek alternate opportunities, within the industry or outside, you may revert by July 31, 2017. In such a case, we shall assist you by facilitating the necessary formalities as may be required."
Jet Airways' decision is said to have affected about 320 junior pilots. The cost cutting move comes in light of a generally slow business as well as the headwinds that the brand is facing in the international market due to the economic slowdown in the Gulf region.
Speaking about the development, a Jet Airways spokesperson explained: "Jet Airways continues to remain committed to all its employees which includes crew members and trainees, who are essentially a part of the Jet family.
"However, certain developments in the market, including that of the Gulf region, as well as our continued efforts to enhance internal efficiencies, has resulted in the review of our network, fleet and crew utilisation. Consequently, as a proactive measure, the Company has made interim alignments to its crew work patterns, which will be reviewed in future, in line with network growth."
Meanwhile, pilots who do not take up the new offer and decide to leave will also not be asked to serve the usual six months notice period and will be allowed to leave early.
Jet Airways currently has a fleet of 113 aircraft and flies to 65 destinations worldwide. The full-service airline plans to add eight more this fiscal.