Jet Airways CEO Sanjeev Kapoor Clarifies Salary Cuts, Says No Staff Will Be Let Go
November 20, 2022: These are all good people working hard to do something that has never been done before: revive a bankrupt airline.
However, as the ownership transfer timeline slipped due to factors beyond our control, some temporary tough decisions had to be taken, Sanjeev Kapoor said on Friday.
After media reports that grounded air carrier Jet Airways has decided to cut employee salaries by up to 50 percent and send a significant chunk of employees on unpaid leave effective December 1, CEO Sanjeev Kapoor on Friday clarified that no staff have been furloughed.
Kapoor told the news report that 60 percent of current employees, including senior management, were sent on leave without pay for 3 months as “100% false information.” In another tweet, the Jet Airways CEO noted that many were not affected by these temporary measures.
Jet Airways employs around 100 cabin crew, junior managers, and so forth in the lower-level staff category and reportedly has a workforce of 230.
According to Kapoor, two-thirds of the staff will not be affected by the move and most of the remaining one-third will take a temporary pay cut.
“Only a small portion (~ 10%) of the total will be at the temple LWP,” Kapoor said in a tweet, adding that no staff has been let go.
These are all good people working hard to do something that has never been done before: revive a bankrupt airline.
However, as the ownership transfer timeline slipped due to factors beyond our control, some temporary tough decisions had to be made, Kapoor clarified.
He also backed the Jalan Kalrok consortium that the team working to revive the jet was not responsible for the airline’s cash crunch and suspension of operations.
They are trying to use new capital to revive the airline, give customers more choices, create more jobs and bring back old ones. They deserve our full appreciation; he said.
Jet Airways was slated to take to the skies again in October this year, however, the airline’s new owner Jalan-Kalrok Consortium has hit another hurdle in its relaunch with the National Company Law Appellate Tribunal (NCLAT) reporting its inability to pay the excess. Provident Fund and employees about Rs. 250 crores of money to pay gratuity.
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