Private airline Jet Airways asked its senior employees, including pilots, to take a cut in wages over a period of next 12 months due to the financial crises. All the airline employees drawing a gross salary of over Rs 75,000 a month have been requested for a graduated wage cut over the next 12 months, an airline spokesperson said.For pilots the cut in their pay packages would be a combination of wage cut and allowance rationalization, after which their pay package at par will come in line with the other employees in the company.
The top management of the company has already taken a voluntary cut of 25 per cent from this month. The cash-strapped airline industry is facing with high operation costs. High cost jet fuel is cited as one of the reasons for high operational costs. However, the ATF prices have been slashed six times since August, extending some relief to airlines. The measures taken by Jet to reduce operational costs include rationalization of routes.
Reducing frequencies on certain sectors, both international and domestic, and cutting the capacity in line with the demand. The airline had last decided in October to sack about 1,900 temporary employees that led to protests by the employees. The company later decided to retain them. Jet Airways had posted losses to the tune of Rs 384 crore in Q2 of the current financial year.
The top management of the company has already taken a voluntary cut of 25 per cent from this month. The cash-strapped airline industry is facing with high operation costs. High cost jet fuel is cited as one of the reasons for high operational costs. However, the ATF prices have been slashed six times since August, extending some relief to airlines. The measures taken by Jet to reduce operational costs include rationalization of routes.
Reducing frequencies on certain sectors, both international and domestic, and cutting the capacity in line with the demand. The airline had last decided in October to sack about 1,900 temporary employees that led to protests by the employees. The company later decided to retain them. Jet Airways had posted losses to the tune of Rs 384 crore in Q2 of the current financial year.
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