Moneycontrol
Apr 21, 2017 01:37 PM IST | Source: Moneycontrol.com

Jet Airways halts pay hike for senior employees, pilots this fiscal, terms it 'unavoidable'

Jet Airways has put a freeze on salary hikes for its senior employees including most pilots, the Times of India reported today.

Jet Airways halts pay hike for senior employees, pilots this fiscal, terms it 'unavoidable'

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Jet Airways has put a freeze on salary hikes for its senior employees including most pilots, the Times of India reported today.

In a letter believed to have been sent out to employees, Jet said the company is now on the threshold of change and it is imperative to reengineer processes and systems.

As it is essential to re-examine the standard remuneration policy and introduce a more dynamic reward mechanism, there is an immediate need to stabilise employee costs, the carrier said.

“This salary freeze will be applicable to all employees in manager grades M3 and above and will be effective April 1, 2017,” the letter read. The company acknowledged these measures are ‘difficult and unsettling’, but said they were ‘unavoidable’.

The salary freezes come at a time when the industry is going through a gradual slowdown in demand. Passenger traffic grew 14.9 percent to 9 million passengers during the month, as against 7.8 million a year ago, according to data released by the Directorate General of Civil Aviation (DGCA) on Thursday. The last time it grew sub-15 percent was in September 2015.

Jet Airways had spent around Rs 2,316 crore in FY17 on salaries of 15,000 employees, out of which 2,000 are pilots that account for nearly half of the wage bill. In addition, employee cost was up by 26 percent on a year-on-year basis for the period.

The company has been also of late been facing the flak from its pilots. Earlier this week pilot’s body National Aviators Guild (NAG) had slammed the airliner saying the company was meting out “step-motherly” treatment to its Indian pilots compared to expats.

It had also pointed to the alleged racist approach of expat pilots at the airline and called for disallowing them in the cockpit. The union of Jet's Indian pilots had also asked local pilots to not fly with foreign pilots in the airline from May 1.

The carrier has around 60 expat commanders, who mainly operate its Boeing 737 and ATR fleet.
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