Cash-strapped Jet Airways clears August salary dues of senior staff, yet to give September pay

The Naresh Goyal-promoted full service carrier was scheduled to clear the remaining 50 percent of the August salary to these personnel on 26 September as part of a staggered-payment plan.

Press Trust of India October 10, 2018 07:29:09 IST
Cash-strapped Jet Airways clears August salary dues of senior staff, yet to give September pay

Mumbai: Cash-strapped Jet Airways on Tuesday paid the balance amount of August salary to its senior management, pilots and engineers.

The Naresh Goyal-promoted full service carrier was scheduled to clear the remaining 50 percent of the August salary to these personnel on 26 September as part of a staggered-payment plan.

Jet Airways, however, could pay only half of the amount on the scheduled date due to paucity of cash and deferred the payment of the remaining amount to 9 October.

Cashstrapped Jet Airways clears August salary dues of senior staff yet to give September pay

Representational image. Reuters.

"We have received the remaining 25 percent of our salary on Tuesday and with this payment, the airline has cleared our August salary dues. But it has still to disburse the September salary," a Jet Airways pilot associated with the National Aviator's Guild (NAG) said.

Notably, the airline management had on 5 October assured its domestic pilots body, NAG, of disbursing the remaining amount of August salary by Tuesday.

The airline, which is struggling to raise capital for its various payment obligations, including payment of salaries to its 16,000 employees, received a breather from its loyalty programme Jet Privilege Private Limited (JPPL), its joint venture with Etihad, which offered it about Rs 258 crore for the advance purchase of discounted tickets.

JPPL is 50.1 percent owned by Etihad Airways, while the rest 49.9 percent is with Jet Airways.

On 6 September, the airline had informed that its senior management, pilots and engineers will receive their monthly salaries in two instalments till November.

The August salary was to be paid in two instalments — half by 11 September and the other half by 26 September.

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