In a meeting with its senior pilots and aircraft maintenance engineers on Tuesday Jet management has conveyed that it will not be able to disburse salaries for the month of September as conveyed earlier to them on October 11.
The management also said that it would not be able to commit to a firm date as to when the airline will be able to give the salaries to this section of employees.
“Management has conveyed that it is not in a position to honour the October 11 commitment nor can they give a firm date for payment,” a communication from Jet’s pilot union, National Aviation Guild’s committee (NAG) said.
The NAG Committee will now be meeting the management in the presence of Jet’s promoter and Chairman Naresh Goyal to discuss the further course of action.
Jet however, credited the balance salaries for the month of August on Tuesday.
The airline currently facing its worst liquidity crisis did not pay its pilots and the aircraft maintenance engineers (AMEs) salaries for the month of August, the highest human resource in any airline along with the senior management.
Later, in September these employees were paid half the salary with an assurance that the remaining amount will be paid towards September end with the same to be followed for September and October salary payments. But the airline deferred on that commitment and then said that remainder salaries will be paid on October 9, which was honoured.
In a communication to employees, Rahul Taneja, Chief People Officer at Jet Airways said on October 9, “I sincerely regret that owing to unprecedented circumstances, including the continuing rise in the price of Brent fuel and the appreciation of the US dollar there will be a delay in the payment of the September 2018 payroll,” adding that the delays are unavoidable and that the company remains committed to honour its obligations.
Due to rise in fuel cost and also depreciating rupee operating cost for airlines is up by 20% and it has made the operating environment tough as fares have not gone up commensurate to the escalating costs, bleeding airlines.
Jet’s salary bill for the first quarter of this financial year was Rs 816.29 crore up 12.6% from Rs 725.03 crore for the same quarter the previous year, which is about 13.6% of its Rs 6,010 crore of revenues, the highest in the industry.Jet posted a loss of Rs 1,323 crore for the quarter its third worst quarter performance ever. It had tried to negotiate a salary cut with its pilots and engineers in August this year but negotiations fell through.