Jet Airways has requested more time from its employees for payment of salaries for the month of September. However, it has assured the employees of a solution to the present financial crisis. The Airline paid 50 per cent of the salaries for August to its pilots, engineers and senior management last week.
On 6 September, Jet failed to pay its staff and announced that the salaries will be disbursed in parts, on the 11th and 26th of the month. This arrangement was to be followed till November. So, the August salary was to be paid on 11 September and 26 September, while the September salary was to be paid on 11 October and 26 October, and so on.
As a result of the repeated delays in salary disbursement, the pilots had even threatened non-cooperation.
Due to rising oil prices and fierce competition from local players, Jet has been facing a financial crisis and struggling to pay its staff. The Company incurred heavy losses amounting to Rs 1,036 crore and Rs 1,300 crore in the quarters ending March and June, respectively and total liabilities from the banks stands at Rs 8,600 crore.
Industry analysts have even begun comparing the present-day crisis at Jet Airways with that of the now defunct Kingfisher Airlines.