Jet Airways to slash salaries by as much as 50%
Jet Airways will ship practically one-third of its staff on go away with out pay or slash their salaries by as much as 50%, reported The Times of India quoting sources.
The service, which suspended operations in 2019 and remained grounded for 3 years, was granted licence to renew business flights by the Directorate Basic of Civil Aviation (DGCA) in Could this 12 months.
In keeping with some staff of the airline, the 50% wage cuts will begin taking impact from December 1.
The airline administration, in the meantime, mentioned that two-thirds of the employees won’t be impacted by the transfer. For the remaining one-third of the workers, it added, their pay will likely be lowered briefly.
The administration mentioned that solely a small portion of the employees will likely be given go away with out pay and that no worker was being laid off, the report added.
The Jalan Kalrock Consortium (JKC), present promoters of Jet Airways, not too long ago mentioned that it had not breached any terms of the insolvency and may need to take tough choices to handle cashflow.
“…whereas we await the handover of the corporate as per the NCLT course of, the longer-than-expected time being taken for a similar might lead to some tough however essential near-term choices to handle our cashflows to safe the long run whereas the airline remains to be not in our possession,” the consortium mentioned in an announcement.
The insolvency decision means of Jet Airways began in June 2019 after its then-promoters failed to supply liquidity.
Whereas JKC’s decision plan was accredited by the Nationwide Firm Legislation Tribunal (NCLT) final 12 months, the airline is but to renew operations even after acquiring the air operator certificates (AOC).
Within the assertion, the consortium additionally mentioned that it has deposited Rs 150 crore as required by the court-approved decision plan and can make investments the remaining quantity “solely after the following steps of NCLT are fulfilled when it comes to handover of the corporate to us”.
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