Jet Airways to review pilots' pay hike freeze after Q1 results
Jet Airways has told pilots that the freeze on pay hikes would be reviewed after declaring the first quarter results and urged them to make "personal sacrifices" amid business headwinds.
Faced with financial challenges and intense competition, the full service carrier recently decided to freeze the increments for the staff in the current fiscal year -- which it had done in 2016-17 too.
Pilots have been having differences with the airline management on certain issues, including those related to expat pilots. The carrier has around 1,500 pilots.
In a communication to the pilots, Jet Airways said continued efforts are being taken to improve the over-all performance, processes and trim costs. As a result, the operations management team has been restructured and work force has been rationalised.
"This has begun to yield results and we need to sustain fully this momentum. To this, we need to make some personal sacrifices.
"We therefore, appeal to you, to share a part of the burden. As a result, we will take an increment freeze for the present, which will be reviewed post declaration of the first quarter results of FY 2017-18," the communication said.
In the interim, the airline said the international per diem layover and the international trainers allowances would continue.
The casual leave encashment for the 2016-17 financial year would be paid in June and July this year, respectively, in two equal instalments, it added.
Jet Airways, listed on the BSE and the NSE, is yet to inform the exchanges about the date of announcing the March quarter results.
In the three months ended December 2016, the airline had reported a 70 percent decline in net profit at Rs 142.38 crore as higher fuel expenses and other costs took a toll on the bottom line.
The full-service carrier had a net profit of Rs 467.11 crore in the year-ago period.
In the 2016 December quarter, the group reduced its net debt by Rs 1,001 crore. "We are once again at a crossroad where challenges require various decisions (including some unpleasant) to be made. This is to remain relevant in the present competitive environment," the communication said. Next month, the airline would be completing 24 years.