Jet staff suffocate in cost squeeze
Salary cuts, lower allowances, overtime reduction, slashed overseas perks – Jet Airways employees are solidly feeling the pinch of the slowdown as the airline cuts costs, report Ruchi Hajela and Samiran Saha.india Updated: Dec 16, 2008 21:02 IST
Salary cuts, lower allowances, overtime reduction, slashed overseas perks – Jet Airways employees are solidly feeling the pinch of the slowdown as the airline cuts costs.
In a circular, the airline informed its cabin crew that their allowances for international travel will be reduced with effect from December 1.
“This would reduce our international overlay allowances by about 20 per cent. Allowances for captains have already been reduced substantially," a steward told Hindustan Times.
Allowances for domestic travel that amount to Rs 1,000 have already been cut.
In October, it retracted a move to lay off 1,900 employees following protests and political pressure, but went on a cost-cutting drive. Later, it sent out 35 of 240 expatriate pilots.
The airline’s senior managers had agreed to a 25 per cent pay cut.
Staff members have been asked to share hotel rooms at international destinations.
The number of working hours for crew members has been shortened to 70 hours a month from 75 to 80 hours.
“For cabin crew it is rather depressing because our salary base is low and with our perks being reduced our take home salary has gone down substantially,” the crew member said.
The airline employs around 13,200 people, with around 2,000 of them – mainly pilots and maintenance engineers — drawing a salary of more than Rs 1 lakh a month.
A Jet Airways spokesperson offered no comment on the measures. The airline is expected to post a net loss of Rs 1,890 crore in 2008-09.
First Published: Dec 16, 2008 21:00 IST