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Rediff.com  » Business » Jet once again defaults on salary payment

Jet once again defaults on salary payment

September 26, 2018 22:27 IST

The salaries for August were to be paid in two instalments -- 50 per cent by September 11 and the remaining by September 26.

Crisis-hit Jet Airways has told its pilots, aircraft maintenance engineers and senior management team that part of their August salaries will be paid by October 9, according to a communication.

 

On September 6, the full service airline told senior employees that salaries would be paid in two instalments till November.

The salaries for August were to be paid in two instalments -- 50 per cent by September 11 and the remaining by September 26.

In a communication Wednesday, Jet Airways chief people officer Rahul Taneja said that part of the August salaries would be paid by October 9.

“While we have remitted the first instalment, please note that we shall be remitting 50 per cent of the second instalment today and defer the remaining sum to a later date.

“The company is committed to honour its obligations and shall make every effort to release the remainder by October 9, 2018," Taneja said.

The communication is addressed to pilots, Aircraft Maintenance Engineers (AMEs) and senior management team.

"On behalf of our leadership team, I regret this change of plan and the attendant inconvenience this may cause you," Taneja said.

A Jet Airways spokesperson said the airline Wednesday remitted half of the second instalment of pending emoluments of its pilots, AMEs and senior management for August.

"The airline has also communicated a revised date of payment to the concerned employees and stands committed to honour its obligations," he said in a statement.

While the management regret the attendant inconvenience, it also appreciates the continued support and understanding of the employees, he added.

The airline, which has posted losses for two straight quarters, is grappling with financial woes.

Earlier this month, the airline said that disbursal of salary for "GMs and above, cockpit crew and AMEs will be postponed for the month of August 2018, and shall be disbursed in 2 instalments - 50 per cent by 11th September and balance fifty per cent by 26th of September 2018".

For the months of September and October 2018, the same disbursement schedule will be followed, Taneja had said.

Shares of Jet Airways closed almost flat at Rs 191.90 apiece on the BSE.

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