Jet Airways has retracted its plan to slash the salaries of non-management employees by as much as 25 percent, following protests by staff, including pilots.
The airline's chairman Naresh Goyal conveyed the same to a group of employees on Friday, according to a report by The Economic Times. The full salary for July was also credited to employees' accounts.
The management had delayed remunerating its staff with the expectation that they would be convinced that a pay cut would be in the overall interest of the airline.
However, the management went back on its proposal after the chairman's assurance to employees. The top management has already taken a pay cut to reduce the wage bill and help the airline weather the storm created by unfavourable market conditions.
Jet Airways' brand image also took a beating after news of the proposed austerity measures went public. The number of cancellations across the network has also increased.
Goyal reportedly told the employees who attended the meeting that the prevailing circumstances were temporary and that the airline was well placed to reap the benefits of the the Indian aviation market's growth.
Following the chairman's intercession to assuage employees' sentiments, the Jet pilots' association, the National Aviators Guild (NAG), issued a statement calling for unity in these tough times.
The NAG said it was confident of Jet Airways' sustainability in the short and long term, and that it would be a matter of pride to work towards ensuring that the airline maintains its position as India's premier airline.
Last week, Jet Airways had informed its staff that all non-management employees will have to take pay cuts of 5-25 percent to help the airline return to profitability.
Jet Airways' finances have been hit because of a weakening rupee and a rise in crude oil prices, which has inflated its fuel bill.
In addition to these adverse factors, the airline has also ceded market share to domestic rival IndiGo, which is the largest carrier in the country in terms of passengers flown.
After reporting positive earnings in 2016 and 2017, Jet reported a loss of Rs 767 crore for the financial year ended March 2018.
The recent downturn in the aviation sector has also impacted other players. IndiGo's profit for the June quarter fell 97 percent year on year.
However, despite having more employees on its rolls, IndiGo's wage bill is less than that of Jet Airways.
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