Jet Airways to cut some employees’ salaries by 50%

Jet Airways Group has reduced some employees’ salaries by up to 50% and placed some others on leave without pay, which is effective from December 1.

CEO Sanjiv Kapoor and the CFO Vipula Gunatilleka have both taken temporary cuts of over 50%. Kapoor said: “These are all good people who have been working hard to try to do what has never been done before: revive an airline that has gone bankrupt. However, with the ownership transfer timeline slipping due to factors outside our control, some temporary hard decisions had to be taken.”

In the statement, Jet Airways said it “remains, fully committed to creating history in Indian aviation by reviving Jet Airways.’

Jet Airways is India’s oldest private airline. It stopped operations on April 17, 2019. It was taken to the National Company Law Tribunal (NCLT) by the airline’s lenders subsequently. The Kalrock Jalan Consortium’s revival plan was approved by the NCLT in June last year after two years of insolvency proceedings.

The consortium said it remains engaged in a standoff with the lenders over how much debt needs to be repaid before the airline revives.