Jet defers 25% of Aug salary to Oct

Cash-strapped Jet Airways will pay only 75 per cent of August salary to its pilots, engineers and senior management in September. The airline has said it shall “make every effort” to release the remainder 25 per cent by October 9.

Earlier this month, the airline announced it would pay salaries to pilots, engineers and senior management in two instalments. It paid 50 per cent of the sum on September 11 and the balance was to be credited on 26 September (Wednesday).

But only 75 per cent of August salary was credited on Wednesday. “While we have remitted the first instalment, please note that we shall be remitting 50 per cent of the second instalment today (Wednesday) and defer the remaining sum to a later date. The company is committed to honour its obligations and shall make every effort to release the remainder by October 9,” the airline's chief people officer Rahul Taneja wrote in an email to staff. Other employees have been paid the full August salary.

Jet Airways had a wage bill of over ~31 billion in 2017-18. Pilots make up little more than 10 per cent of airline's 16,000 employee force but account for about half of its salary bill.

The airline’s senior management has taken 5-25 per cent pay cut, but salary cuts for pilots and engineers were put on hold because of protests. The airline posted ~13-billion first-quarter loss amid increasing costs and pressure on revenue.

The airline is implementing a cash reduction plan and aims to save ~20 billion through various measures. It is also in discussions with private equity firms TPG Capital and Blackstone to sell its stake in loyalty programme. The bids are likely to be between $350 million and $400 million, lower than what Jet Airways expected, CNBC reported, adding that the airline expected to close the deal by the end of October.