Jet Airways will send almost a third of its employees on unpaid leave or cut their wages by up to 50%, The Times of India reported citing sources.
The carrier, which suspended operations in 2019 and remained grounded for three years, was granted permission to resume commercial flights by the Directorate General of Civil Aviation (DGCA) in May this year.
According to some airline employees, the 50% pay cuts will begin to take effect from December 1.
Airline management, meanwhile, said two-thirds of staff would not be affected by the move. For the remaining third of employees, he added, their salaries will be temporarily reduced.
Management said only a small portion of staff would be granted unpaid leave and no employees were being made redundant, the report added.
The Jalan Kalrock Consortium (JKC), current promoters of Jet Airways, recently said it had not breached any of the insolvency terms and may have to make tough decisions to manage its cash flow.
“…while we await the transfer of the business in accordance with the NCLT process, the longer than expected time taken for the same may result in difficult but necessary short-term decisions to manage our cash flow to ensure the future while the airline is still not in our possession,” the consortium said in a statement.
Jet Airways’ insolvency resolution process began in June 2019 after its then promoters failed to provide cash.
While JKC’s resolution plan was approved by the National Company Law Tribunal (NCLT) last year, the airline has yet to resume operations even after obtaining the air operator certificate (AOC).
In the statement, the consortium also said that it had deposited Rs 150 crore as required by the court-approved resolution plan and would only invest the remaining amount “after the next steps of NCLT have been completed in terms of transferring the business to us”. .
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