Jet Airways employees to face pay cuts and unpaid leave: Report

After its then-promoters failed to provide liquidity, Jet Airways’ insolvency resolution process began in June 2019.

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According to reports cited by The Times of India, Jet Airways will either put up to 30% of its staff on unpaid leave or decrease their salary by up to 50%.

The Directorate General of Civil Aviation (DGCA) gave the carrier a licence to restart commercial flights in May of this year after the carrier’s activities were suspended in 2019 and it was grounded for three years.

Some airline employees claim that the 50% compensation reductions will begin to take effect on December 1.

Meanwhile, the airline’s management said that the change will not have an effect on two-thirds of the workforce. It further stated that the temporary salary reduction will apply to the remaining third of the workforce.

The story also stated that no employees were being laid off and that just a small part of the workers would receive unpaid time off.

The Jalan Kalrock Consortium (JKC), the company that currently promotes Jet Airways, recently stated that although it had not broken any insolvency terms, it might need to make challenging choices in order to manage cash flow.

“…while we await the handover of the company as per the NCLT process, the longer-than-expected time being taken for the same may result in some difficult but necessary near-term decisions to manage our cashflows to secure the future while the airline is still not in our possession,” the consortium said in a statement.

After its then-promoters failed to provide liquidity, Jet Airways’ insolvency resolution process began in June 2019.

Even after receiving the air operator certificate, JKC has yet to resume operations, despite the National Company Law Tribunal (NCLT) last year approving the resolution plan for the company.

The consortium also stated in the statement that it has made the requisite deposit of Rs. 150 crore under the court-approved resolution plan and that it will invest the remaining sum “only if the next steps of NCLT are satisfied in terms of turnover of the firm to us.”