Last week Jet Airways had announced that they might reduce the salaries of their employees by almost 25 % owing to a financial crunch.
The Airline has decided to not go ahead with this plan after a lot of backlash from their staff, including pilots.
The management had delayed their staff’s salary thinking that they would be convinced that a pay cut would be in the overall interest of the airline. However, the management went back on its proposal after the chairman’s assurance to employees. The airline has credited the full salary of its staff for the month of July.
The top-level management has taken a pay cut to help the airline cut on wage costs and survive this financial storm, which has been created by the unfavorable aviation market.
Jet Airways brand name has taken a beating after news of financial turbulence. In fact, the airline saw many ticket cancellations across the country due to this.
The airline’s Chairman, Mr. Naresh Goyal, held a meeting with the staff saying that these circumstances are temporary and Jet Airways is ready to benefit from the growth in the Indian aviation sector.
Following the meeting, pilots association National Aviators Guild (NAG), issued a statement calling for unity in these tough times. They said that NAG is confident of Jet Airways’ short and long-term sustainability.
Jet Airways finances have been hit due to rising crude oil prices and weakening of the rupee, which has inflated their operating cost. In addition to these factors, the airline has lost a chunk of its market share to its main competition, IndiGo.