DGCA flags off concern: Jet Airways' non-payment of employee salaries could impact flight security

Directorate General of Civil Aviation (DGCA) in its audit report has said that salary delay at the debt-laden Jet Airways could become a safety risk, according to a media report.

“Non-payment of salaries is a concern and the DGCA audit flags it off as a type 2 concern,” a government official, who did not want to be identified, was quoted as saying by The Economic Times.

The audit findings have been shared with the Naresh Goyal-promoted airline and the airline is yet to send its response, the report said.

In December 2018, loss-making carrier Jet Airways failed to disburse the month’s salary to some other categories of employees after defaulting on salary payment to its senior management along with pilots and engineers.

The airline did not pay salaries of managerial employees and those above for December, the source said.

Jet Airways, which is part-owned by Gulf carrier Etihad, has not been paying on time to about 15 percent of its over 16,000 employees since August last year due to a liquidity crunch.

When contacted, a Jet Airways spokesperson did not give a direct reply, said a PTI report.

On 2 December, 2018, Jet Airways had to cancel at least 14 flights after some pilots reported “sick” over their unpaid salaries.

Jet Airways had partially paid the salaries of these staff members for September even as the full salaries of October and November remain unpaid.

The troubled airline had said that the flights were cancelled over an “unforeseen operational circumstance” and not because of the protest by pilots.

“The company continues to enjoy the complete support and cooperation of all its employees, including pilots and engineers, individually and through their respective representative bodies, who have extended their solidarity and full support to the airline,” the cash-starved airline had said.

In November 2018, pilots of Jet Airways had threatened not to perform additional duties from next month if their salary dues were not cleared by end of the month.

On 2 January, Jet Airways had defaulted on loan repayments to banks, besides non-payment of salaries to its employees.

“Payment of interest and principal installment due to the consortium of Indian Banks (led by State Bank of India) on 31 December, 2018 has been delayed due to temporary cashflow mismatch,” the company said in a regulatory filing.

— With PTI inputs

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