Jet cuts pay, routes to stay afloat
Jet Airways has announced adjusting route network and adopting salary cut of employees to trim costs across the organisation.india Updated: Dec 02, 2008 21:14 IST
Jet Airways has announced adjusting route network and adopting salary cut of employees to trim costs across the organisation. It has reduced flight frequencies in sync with demand and pruned long haul expansion plans.
“All employees earning a gross salary of over Rs 75,000 per month have been requested for a graduated wage cut over the next 12 months,” Jet Airways said in statement.
For pilots, this pay cut will be in the form of a combination of wage and allowance cut, which will be roughly 20 per cent of their salary. The top management has taken a voluntary cut of 25 percent, effective from December 08, the airline said.
The airline is renegotiating contracts and payment schedules with vendors, pushing back new aircraft deliveries, leasing out surplus aircraft, letting go of excess foreign pilots.
It is also trimming executive ranks by reducing expatriate executives in India and overseas. The airline is reviewing and rationalising perquisites, allowances across the board. It has frozen recruitment, eliminating overtime, wasteful expenses and spends on expensive hotels.