Jet Airways
Jet Airways halves salaries, sends staff on leave without pay: Report
Mumbai: Grounded carrier Jet Airways has slashed the salaries of some of its employees by 50 percent and sent some others on leave without pay, media reports said.
The changes will be effective from December 1, 2022, Moneycontrol reported, adding that almost half its staff remain unimpacted by the decision.
Sources in the know of the developments told the publication that "Even Sanjiv Kapoor (Jet Airways CEO) has agreed to take a substantial pay cut."
This comes after the airline's new owner Jalan-Kalrock consortium has told the National Company Law Appellate Tribunal (NCLAT) of its inability to pay additional monies to clear staff provident fund (PF) and gratuity dues of around Rs 250 crore.
The NCLAT had ordered the Jalan-Kalrock consortium to pay employees’ unpaid PF and gratuity dues until June 2019, the time when the insolvency proceedings were initiated.
The consortium has said that they are waiting for the handover of Jet Airways in accordance with the NCLAT order but the longer-than-expected time in the same may result in some difficult decisions, according to the Moneycontrol report.
The consortium said that it was not liable to pay anything beyond Rs 475 crore, and all claims had to be settled with that sum.
All additional claims not factored in the approved resolution plan should be settled from the cash balance of the airline, which was around Rs 50 crore, and the remaining from the share of banks, it said.
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