In order to bring down its costs, Jet Airways India, has asked its junior-ranking pilots to accept 30-50 per cent pay cuts, or quit. According to a Reuters report, earlier this month, the letter sent to pilots have proposed a salary and stipend cuts. Jet Airways said that it was forced to take such steps as it was “intensely focused on fleet and network rationalisation”.
According to the report, two unnamed sources also told that the action will come into force from August 1 and will impact up to 400 pilots. Another source close to the development said that Jet Airways had to make some work adjustments with pilots. Jet Airways is India’s second-largest airline by market share. It has struggled to keep a lid on costs in one of the world’s fastest-growing aviation markets where competition from low-cost carriers such as InterGlobe Aviation’s IndiGo and SpiceJet is on the rise and is putting it under pressure.
Jet Airways, partly owned by Etihad Airways of the United Arab Emirates is also going through tough time in the international market due to uncertainty in the oil-rich Gulf region which is hurting its revenues.