Jet Airways slashes salaries by another 23% and sends 10% of its workforce on LWP
- ByStartupStory | November 19, 2022
In order to save money while waiting for the handover of the airline, the Jalan-Kalrock consortium (JKC) has placed 10% of Jet Airways employees on leave without pay (LWP) and decreased the salaries of another 23% of staff (NCLT). According to sources, several mid- and senior-level personnel had their salary lowered by up to 50% in exchange for working a “reduced amount of hours.” They claimed that lower-level employees, members of the cabin crew, and pilots were unaffected.
About 250 people work for the airline, which hoped to begin flights by October. In April 2019, it filed for bankruptcy under the previous owners. The committee of creditors and the NCLT both approved a resolution plan put out by JKC in October 2020 and June 2021, respectively.
However, ownership has not yet been transferred to JKC since the issue of paying the provident fund and gratuity obligations of the former employees is being litigated.
JKC has filed a petition with the National Company Law Appellate Tribunal (NCLAT) asking that the consortium of lenders led by the State Bank of India compensate them. Sanjiv Kapoor, the chief executive officer of Jet Airways, tweeted on Friday that “no staff has been let off.”
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