BackMore Jet Airways employees hit by salary default
The Naresh Goyal-led airline is struggling to mop up funds to meet its payment obligations, including salaries to its over 16,000-strong workforce
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Mumbai: After delaying salary to pilots and engineers along with the senior management, Jet Airways has now defaulted on the payment of September salary to other categories of employees as well, an airline source said on Wednesday.
The Mumbai-based full-service airline, partially owned by UAE’s Etihad Airways, has been facing financial problems for quite sometime now.
The Naresh Goyal-led airline is struggling to mop up funds to meet its payment obligations, including salaries to its over 16,000-strong workforce.
“We generally get our salary on the 1st of (every) month. Last month, the airline paid salaries to all employees, except the senior management, pilots and engineers, on time.
“But this time (September), they failed to pay even to other categories of employees such as those above manager level," the source said.
Employees in A1-A5, O2 and O3 grade, or whose salaries were up to ₹ 75,000 per month, were paid on 1 October, while the rest of the staffers in the M2, M3, E1 and above grades had not been paid yet, the source added.
A query sent to Jet Airways on the issue did not elicit a written response.
On 6 September, the full-service airline informed senior employees that their salaries would be paid in two instalments till November. The salaries for August was to be paid in two instalments — 50% by 11 September 11 and the remaining by 26 September.
Though the private carrier paid the first tranche on time, it could disburse only 50% of the amount of the second instalment on the designated date, and deferred the payment of the remaining 50% to 9 October.
Also read: Jet Privilege can actually get higher valuation than Jet Airways
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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