India’s indebted Jet Airways Ltd told its pilot union on Thursday it will clear all salary dues by April and has given them a schedule outlining when the payments will be made, according to a source familiar of the matter.
Jet Airways is facing financial difficulties and owes money to pilots, lessors and vendors. The carrier and its second-largest shareholder Etihad Airways are in talks with Jet’s bankers on a rescue deal that may involve the Abu Dhabi-based airline increasing its stake from 24 per cent.
The airline has told the union it will pay a quarter of the salary for October on Thursday and 50 per cent during December. The remainder will be paid in January, along with 75 per cent of the salary for November, the source said.
The remaining dues for November, salary for December and 25 per cent for January will be paid in February. In March, Jet will clear the remainder for January and February and thereafter all dues will be paid on time, the person added.
Jet Airways is committed to meet its salary obligations and has assured a section of its employees, including pilots and senior management, of clearing all pending dues by April, 2019, the airline said in a statement.
All employees “continue to actively cooperate to ensure its successful turnaround”, Jet said.
Jet Airways, controlled by founder Naresh Goyal, is India’s biggest full-service carrier by market share, serving one of the world’s fastest-growing domestic aviation markets.