Jet board to discuss cost-cut plan on August 27

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Mumbai | Published: August 23, 2018 4:20:03 AM

The board of troubled carrier Jet Airways will consider cost reduction initiatives and turnaround plan along with its June quarter results at its meeting on August 27, according to a regulatory filing on Wednesday.

jet, jet airwaysJet Airways is struggling with a debt of over Rs 9,425.31 crore and other liabilities amounting to Rs 11,539 crore. (Reuters)

The board of troubled carrier Jet Airways will consider cost reduction initiatives and turnaround plan along with
its June quarter results at its meeting on August 27, according to a regulatory filing on Wednesday.

The company, which is financially facing a hard time, has been looking at ways to reduce costs amid high oil prices and intense competition but not met much success so far.

On August 9, its board of directors deferred the announcement of unaudited financial results for the April-June quarter and the same would now be taken up on August 27. The delay in announcement of financial results has come under the regulatory scanner and the ministry of corporate affairs has sought clarifications from the auditors of Jet and markets regulator is also looking into the issue, sources had said.

“While considering the unaudited financial results for the June quarter, the board would also take up the matters in relation to the cost reduction initiatives and turnaround plan, for which the management had earlier sought time,” the filing said.

The airline was in discussion with a section of its employees last month as well as earlier this month to take at least a 15% cut in salary, but the pilots and engineers rejected the proposal.

The airline’s CEO Vinay Dube had said at the company’s annual general meeting on August 9 that the airline is in discussion with its employees for rationalisation of costs and is also taking a view on the manpower needs at the carrier. “Whatever is in the best interest of the airline and employees will be done,” Dube had said.

Jet Airways is struggling with a debt of over Rs 9,425.31 crore and other liabilities amounting to Rs 11,539 crore.

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