NEW DELHI: After defaulting on payment of August salary to its pilots, engineers and senior management, cash-strapped Jet Airways is now unable to pay timely salary to other categories of employees as well. An employee of the airline confirmed to TNIE that they are facing salary issues, but avoided giving further details. Last month, the airline had said to its high paying employees that their salaries would be paid in two installments till November. While it paid the 50 per cent by September 11, it defaulted on paying the remaining 50 per cent by September 26. It was reported that airline would disburse the half August salary on October 9.
However, this time, the salary issue was not just limited to the three mentioned categories, but reached to other levels as well. As per an agency report, the employees in A1-A5, O2 and O3 grade, or whose salaries are up to Rs 75,000 per month, were paid on October 1, while the rest of the staffers in the M2, M3, E1 and above grades have not been paid yet. Jet has an employee strength of 16,558 people.
"We generally get our salary on the 1st of (every) month. Last month, the airline paid all employees except for senior management, pilots and engineers on time. But this time (September), they have failed to pay even to other categories of employees such as manager and above levels," said an employee with the airline.
Last month, when the airline had delayed salary disbursement, its pilots had threatened the management of "non-cooperation." Jet had also proposed an up to 25 per cent cut in salaries in late June but was forced to defer the plan following opposition from the pilots' union and engineers.
Queries sent to Jet by TNIE did not elicit a response at the time of publication. The Naresh Goyal-led company, which is partially owned by UAE national carrier Etihad Airways, is facing several financial woes to keep its wings up in the air, apart from paying its employees on time.
As its losses piled up to Rs 1,323 crore in the recent quarter on account of high fuel prices and low fares, the airline had informed its lenders that it will raise about Rs 3,500 crore through a stake sale in its loyalty programme and pump in fresh funds into the company.
The airline has also told lenders it will shave off costs by as much as Rs 2,000 crore over the next two years. However, continuous depreciation of rupee against US dollar and over 7 per cent recent hike in ATF prices might impact the airline's cost-saving measures.