Mumbai: With recession eating into its bottom line, private air-carrier Jet Airways is likely to announce a 20% cut in the salaries of its pilots, engineers and some other staff.
“Chairman Naresh Goyal has convened a meeting of airline officials, pilots and engineers here tomorrow, to discuss the issue of salary cuts. An announcement to this effect is also likely,” a source close to the development told PTI today.
The meeting is to be held at a five-star hotel in the metropolis, the source added.
Pilots and engineers to be affected by this move are understood to have expressed their opposition to it and are considering their response, the source said.
The airline employs around 13,200 personnel with around 2,000 of them drawing a salary of more than Rs1 lakh a month. These officials comprise mainly pilots and maintenance engineers.
Despite repeated attempts, Jet Airways officials were not available for comment on the likely meeting tomorrow.
The air-carrier’s move comes in the wake of steep losses and rising operation costs coupled with falling passenger demand.
According to aviation analysts, Jet Airways, which posted losses to the tune of Rs384 crore in Q2 of the current financial year, is likely to post a net loss of Rs1,890 crore in 2008-09.
In October, the airline had announced a lay-off of 1,900 employees as part of its drive to prune costs but had to retract, following political pressure.