CEO Nikoss Kardassis has written to 8,000 of the airlines staff stating that they will get title and salary hikes on a case-to-case basis, soon. It can translate to a decent raise, considering the upper limit of salary hikes is capped at around 25%. The recent improvement in the companys performance, although modest, should have helped, and so would have the industrys prospects.
The company posted a net profit of Rs 59 crore for the March quarter of FY2009-10, compared with Rs 53 crore in the same quarter a year ago. The carrier has seen its Ebidtar margins improve to 19% for 2009-10 as against 4% in 2008-09. Similarly, its revenues from passengers stood at 12 million, up 9% compared with the same period last year. It registered load factors of over 77% compared with 67.7%.
Shiv Agarwal, CEO of ABC Consultants said that the growth in the aviation sector was broadly linked to growth in the economy. With sustained growth in air traffic and capacity additions, airlines are flying into black. Hence, airlines need to retain in-house talent instead of hiring newer talents with higher salaries. He added that companies which have seen growth of late are going an extra mile to retain talent.
An email query sent to Jet on Friday remained unanswered.
However, the company, which actually saw its staff costs climb down 13% to Rs 1,226.60 crore in 2009-10 from Rs 1,410.5 crore, may still find it cant satisfy all on the salary front, as its pilots, who amongst other staff, also did not get a hike last year, are still complaining. We were supposed to get a 6% increment in 2008-09 and another 6-8% in 2009-10. This can at best be best termed a correction and not really an increment, said a pilot.