News: Jet Airways postpones employees’ March salary

Compensation & Benefits

Jet Airways postpones employees’ March salary

Jet Airways defers March salary payment for its employees citing circumstances beyond its control.
Jet Airways postpones employees’ March salary

The Mumbai headquartered Indian international airline, Jet Airways has deferred the March salaries of a specific section of its employees. In an internal communication, the airline intimated employees that due to certain circumstances, which are beyond the company’s control, the salary of March 2018 is postponed. As per the media reports, pilots, engineers and all managers and above level staff would be paid March salary on April 10.

While the company refused to comment on media, it is speculated that the delay was due to end of the year administrative reasons. However, some officials shared in media that the company was facing cash flow issues.

Jet Airways Group had recorded a net profit of Rs 186 crore for the quarter ended December 31, 2017, down 38 percent from Rs 299 crore in same period last fiscal.

It is also reported that on National Stock Exchange, shares of the company has dropped 4.53 percent to close at Rs 608.75.

Amid the news of falling stocks and non-payment of salary,  Naresh Goyal-led Jet Airways is considering to place a bid for national carrier Air India. Vinay Dubey, CEO, Jet Airways was quoted in media saying, “I think we need clarity on what the government's position is. Once we get more clarity, we will have an opinion." Earlier this month, a consortium of Jet Airways, Air France-KLM, and Delta Airlines had expressed interest in the Air India's planned disinvestment.

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Topics: Compensation & Benefits

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