Aviation
Jet Airways struggles to pay staff, industry under ‘great stress’.
Indian airlines in cheap fares, high fuel spiral
The airline, part-owned by Etihad Airways, said last month it would inject funds and cut costs in excess of US$278 million over two years to try to stem losses.
Jet Airways has delayed payments of August wages to 16% of its staff, well over 2,000 employees and including pilots, but says it is in talks to address the delays.
The airline, part-owned by Etihad Airways, said last month it would inject funds and cut costs in excess of US$278 million over two years to try to stem losses.
Earlier, the Times of India reported, citing news agency Press Trust of India, that the pilots had threatened to stop cooperating with the company over unpaid wages.
"Withholding salaries, that too without prior notice, is a serious matter and the management will bear sole responsibility for any repercussions... failure to address the above points and not paying the salaries on time would lead to non-cooperation by pilots," the report quoted Jet Airways' pilots as saying.
Jet said it had paid salaries on time to 84% of its employees and was committed to honouring its obligations. It also said in a statement to Reuters earlier that it was confident of resolving issues through dialogue.
“The rise in the price of Brent fuel, a depreciating rupee and a resulting mismatch between high fuel prices and low fares have adversely impacted the Indian aviation industry, including Jet Airways,” said the airline’s CEO Vinay Dube.
India’s top two airlines by market share, IndiGo and Jet Airways, and debt-laden state carrier Air India are all suffering financial woes, while SpiceJet’s boss has said the industry is in “great stress”.