TIL Desk/Business/New Delhi/ India’s biggest full-service carrier Jet Airways Ltd has told its pilots the airline may be grounded in 60 days unless cost-cutting measures including pay cuts are put in place, a senior company executive told on Friday.
Pilots who have refused a proposed 15% pay cut for two years had been informed that the airline was running out of time to slash costs and raise revenue, the source said. The company was looking at sales and distribution, payroll, maintenance and other areas for savings to create a “healthier and a more resilient business”, a company spokesman said in a statement.
Management was in talks with all stakeholders, he added, without giving further details. Jet Airways is looking for working capital loans but banks want the airline to show a turnaround commitment, the source said, adding that salary reduction was part of the same issue. “There are some job losses across verticals but not among pilots,” the source added, declining to be named as the talks with staff were private.
