Jet Airways asks junior pilots to furnish surety bonds worth Rs 1 crore, take 30 percent pay-cut

Jet Airways has asked junior pilots to furnish surety bonds worth up to Rs 1 crore

PTI July 23, 2017 16:42:20 IST
Jet Airways asks junior pilots to furnish surety bonds worth Rs 1 crore, take 30 percent pay-cut

Mumbai: Jet Airways has asked junior pilots to furnish surety bonds worth up to Rs 1 crore and serve the airline for at least five to seven years, union sources said. The development comes at a time when many of its junior pilots have been asked to take 10 days off every month, a move that would result in up to 30 per cent pay cut, as part of cost saving measures.

Jet Airways asks junior pilots to furnish surety bonds worth Rs 1 crore take 30 percent paycut

Representational image. Reuters

Sources at the National Aviators Guild (NAG), the pilots' union of Jet Airways, said the bond requirement has been communicated to the junior pilots. These pilots have been asked to furnish surety bonds worth Rs 1 crore and the development also comes as the airline has "unilaterally" decided on salary cuts for them, sources told PTI.

"No new bonds (have been) asked for. It is just a pattern that has been introduced," a Jet Airways spokesperson said. He was responding to a query whether the airline has asked its trainee pilots to sign a bond amount of up to Rs 1 crore.

The spokesperson was also asked the junior pilots have to serve the airline for 5-7 years and face encashment of the bond in case of failure to serve that tenure. Sources at the NAG said plans to meet the airline management this week to discuss the pay cut proposal as it has been done in a unilateral manner.

Jet Airways has more than 200 junior pilots, including those undergoing training.
"As an interim measure, we shall be offering you a Lifestyle Work Pattern which entails 10 days block off per month with the appropriate remuneration. This will be effective from August 1, 2017," the carrier said in a letter to many junior pilots.

The NAG would be taking up the matter with the management soon, sources added.
On 20 July , Jet Airways said that certain developments in the market, including that in the Gulf region, as well as its continued efforts to enhance internal efficiencies, have resulted in the review of network, fleet and crew utilisation.

Consequently, as a proactive measure, the company has made interim alignments to its crew work patterns, which will be reviewed in future, in line with network growth, the spokesperson had said.

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