Jet Airways has further delayed the payment of last month’s salaries to its pilots, aircraft maintenance engineers and senior managers. They were earlier to be paid in two instalments, half by the second week of September and the rest by the last week of September. However, the wait for salaries for these employees is to be extended till October 9, as per an official communication.
Rahul Taneja, chief people officer, Jet Airways, has confirmed in the communication that while the first instalment had already been processed, half of the second instalment will be paid immediately, and the second half would be paid later. In his own words, “The Company is committed to honour its obligations and shall make every effort to release the remainder by October 9, 2018.”
Taneja also apologised on behalf of the leadership for the unexpected change in plans and the inconvenience caused to the staff. He also expressed the management’s appreciation for the continued patience and support of its staff.
However, following the delayed salary disbursement, the shares of the airline have fallen by almost five per cent.
The recent decision to impose five per cent customs duty on aviation turbine fuel (ATF), which is a primary part of an airline’s operational costs, will only make matters worse.