Jet Airways, a struggling Indian carrier, will be giving out 25% salary for September to its pilots, engineers, and senior management on the 25th. The airline has not disclosed when crews will receive the remaining 75%.
Airline Chairman Naresh Goyal had a meeting with the president and vice president of the National Aviators Guild (NAG) at his residence in the city of Mumbai. They decided to give pilots, engineers, and senior management 25% of their salaries to minimize backlash.
Jet Airways has over 16,000 employees. It has been delaying payment to staff since August.
“We would like to inform you that the first tranche 25% of September salary will be remitted on the forthcoming week of October 25,” Jet Airways Chief People Officer Rahul Taneja said.
Even though there is a delay, Jet Airways promised to pay remaining salaries as soon as possible.
Jet Airways decided to hold salaries for two months September 6th in an effort to return to profitability.
According to Business Today, Jet Airways says it is “working” towards a solution for the payment but has not given a date.
Jet Airways has a history of financial ups and downs. In 2013, they sold 24% of their stakes to Etihad Airways. In the same year, they also had to slash prices to combat rising low-cost rivals such as Indigo and Spicejet ; Jet Airways was, however, still using passengers. Jet Airways’ market value dropped to ₹4.84 billion (US$67 million).
Jet Airways returned to profitability in 2014, but it has to pay off large debts in order to grow and compete in the Indian marketplace.
Featured image From Skift