Jet Airways to clear September salary dues on 4 December; to come out with revised payment schedule soon

Mumbai: Jet Airways will pay the remaining 25 percent September salary to its senior staff early next month and is likely to come out with a revised payment schedule soon, a source at the airline said Monday.

Notably, Jet Airways pilots had last week threatened not to perform additional duties from 1 December if their salary dues were not cleared by 30 November. The Mumbai-based private carrier, majorly owned by businessman Naresh Goyal, has reported three back-to-back quarterly losses this year, resulting in severe cash paucity and subsequent payment issues with some of its staff and vendors. Besides the remaining 25 percent unpaid September salary, the senior management along with pilots and engineers are yet to be paid for October as well.

"The remaining 25 percent of the September salary will be disbursed on 4 December, while all remaining dues will be paid latest by 31 March next year," said the source after a meeting between the Jet Airways management and its pilots body National Aviator's Guild (NAG) here on Monday.

"The (revised) salary payment schedule will be released by the company at the earliest," he added. Jet Airways spokesperson was not available for comment.

Representational image. Reuters.

Representational image. Reuters.

NAG claims it represents over 1,000 domestic pilots of the 1,800 pilots in the airline. "Almost 15 percent employees have not been receiving their salaries on time," Jet Airways Chief Executive Officer Vinay Dube had acknowledged during the post Q2 earnings analysts call earlier this month.

On 6 September, after it defaulted on payment of August salary, the airline had informed that the salary of these three categories of staffers would be paid in two tranches - on 11th and 26th of the month - till November. As per this payment schedule, the August salary was to be paid on 11 September and 26 September. Similarly, September salary was to be remitted into accounts on 11 October and 26 October.

Though it paid the first tranche of 50 percent of August salary on 11 September, it again made only 50 percent payment of the second tranche and deferred the payment of the balance amount to a later date. And since then, the airline has failed to stick to the staggered payment schedule. NAG would meet again on 4 December to discuss the developments, the source said.

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Updated Date: Nov 27, 2018 07:31:16 IST

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