Jet Airways asks junior pilots to take pay cuts ranging up to 50 percent or quit: Sources
NEW DELHI: In a move that is likely to impact the livelihood of hundreds of pilots, the second largest domestic airline in India, Jet Airways, has asked its junior pilots to accept significant salary cuts or quit their job.
In several internal communications with its employees, the airline said it is forced to take the decision in order to cut its costs as it needs to focus on “fleet and network rationalisation”.
According to sources in the airline, the letters--asking junior pilots to either take pay cuts in the range of 30-50 percent or look for other opportunities-- were circulated earlier this month. Sources said the pay cuts are to implemented from August 1.
Commenting on the matter, an airline spokesperson said, “Certain developments in the market, including that of the Gulf region, as well as our continued efforts to enhance internal efficiency, have resulted in the review of our network, fleet and crew utilisation.” The spokesperson, however, called the developments “interim” and said crew work patterns will be reviewed in future, in line with network growth.
Industry insiders said that Jet Airways has been struggling to maintain its position as one of the leading airlines in India’s domestic sector due to tough competition from low-cost carriers IndiGo and SpiceJet. According to the air traffic data, the market share of Jet Airways fell to 18 percent at the end of June from about 23 percent two years ago.
In the international market too, Jet Airways--partly-owned by Etihad Airways of the United Arab Emirates—the airline’s revenue has been hurt because of the economic weakness in the oil-rich Gulf region which has affected air travel. Sources in the airlines said two letters were sent by the airline to its pilots, asking them to accept the new lower salary by end of July, or quit.
A source quoted one of the letters which stated, “We have had to revisit our manpower requirements...Your support and understanding in the matter will play a major contribution in preserving the health of the company, and our position in the industry.” In another letter, the airlines asked some pilots to take 10 days off each month “with the appropriate remuneration”. The letter also read, “In case you do not wish to accept the above terms, and desire to seek alternate opportunities, within the industry or outside ... we shall assist you by facilitating the necessary formalities.” Sources explained 10 days off would have meant a 30 percent cut in the salaries of these pilots.
National Aviator’s Guild, a union of Jet Airways pilots, said they would take up the matter with the company. Pertinently, the cost cutting move has come at a time when some media reports have stated that Jet is looking to sub-lease its fleet of 18 ATR aircraft to new regional carrier TruJet to raise funds.