Jet Airways pays balance August salaries of senior staff, says September payments will be delayed
As part of a staggered payment plan, Jet Airways was to clear the remaining 50% of the August salary to its senior staff on September 26. On the scheduled date, the airline could pay only half of that amount due to paucity of funds. The remaining money was to be paid on October 9, which the airline did.business Updated: Oct 10, 2018 12:53 IST
Crisis-hit Jet Airways Tuesday paid the balance amount of salaries for the month of August to its pilots, engineers and senior management, but told them that September payments would be delayed, sources said.
As part of a staggered payment plan, the full service carrier was to clear the remaining 50 per cent of the August salary to these personnel on September 26.
On the scheduled date, the airline could pay only half of that amount due to paucity of funds. The remaining money was to be paid on October 9, which the airline did.
“We have received the remaining 25 per cent of our salary on Tuesday and with this payment, the airline has cleared our August salary dues. But it has still to disburse the September salary,” a Jet Airways pilot associated with the National Aviators Guild (NAG) told PTI.
Jet Airways Chief People Officer Rahul Taneja told pilots, Aircraft Maintenance Engineers (AMEs) and senior management team that it has remitted the balance of the August 2018 payroll on Tuesday.
“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,” he said in a communication.
Noting that these delays are unavoidable, Taneja also said every effort would be made to release the September salary at the earliest.
“Once again I regret the change in remittance plan and the resulting inconvenience...,” he said in the communication seen by PTI.
The National Aviator’s Guild (NAG) told its members the management has conveyed that it is not in a position to honour the October 11 commitment for part payment of salaries and no firm date has been given for making the payment.
NAG represents around 1,000 pilots of Jet Airways.
The September salaries was to be paid in two instalments -- on October 11 and October 26.
In a statement, the airline said it remains committed to honour the obligations.
“While the company has been diligent in running its payroll as per schedule for all employees, it is only in the last couple of months that the schedule has been impacted due to unavoidable reasons.
“Despite these challenges, the company has ensured that 85 per cent of its employees are paid salaries on time while those of the leadership, pilots and engineers have been delayed,” it said.
On September 6, the airline had informed that its senior management, pilots and engineers would receive their monthly salaries in two instalments till November.
The August salary was to be paid in two instalments - half by September 11 and the other half by September 26.
The airline, which is struggling to raise capital for its various payment obligations, received a breather from its loyalty programme Jet Privilege Private Ltd. JPPL, a joint venture with Etihad, offered about Rs 258 crore for the advance purchase of discounted tickets.
JPPL is 50.1 per cent owned by Etihad Airways, while the rest 49.9 per cent is with Jet Airways.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
First Published: Oct 10, 2018 12:52 IST