Jet enforces no-pay day for cabin crew every month

Analysts say amount minuscule against the 12% it spends on salaries.

The 3,000-odd cabin crew of Jet Airways cabin has been asked to take a day's leave without pay each month as a cost-saving exercise.

Jet cabin crew earn between Rs 35,000 and 70,000 each month, depending upon seniority and hours flown. The move could result in a monthly saving of a minimum Rs 30 lakh. The airline did not share its saving estimate.

Jet’s email reply to queries was: "The airline has sought the help of its employees at all levels, not only to implement stringent cost controls, but recommend fresh ideas for cost saving. The airline has seen an encouraging trend whereby our staff have responded with suggestions, some of which are under active consideration and implementation, too.'' Employees have made suggestions to change work processes and improve productivity.

Jet, India's largest domestic airline by market share, posted losses of Rs 713 crore in the second quarter of 2012. Unlike Air India and Kingfisher, which have defaulted on vendor dues and delayed salaries, Jet has not done so.

It has a total of 13,000 employees and its wage bill last year was Rs 1,342 crore. The airline has said it was not cutting jobs but was "continuously looking at controlling costs in several areas mostly non payroll''.

The day following one of the weekly off, has been shown as leave without pay in the crew roster. The crew are also being encouraged to apply for long leave for further studies or personal reasons, an airline source said.

Jet has cabin crew bases in Mumbai, Delhi, Chennai, Bangalore, Hyderabad and Kolkata. It is setting up new crew bases in Kochi and Thiruvananthapuram. Sources said the airline has sufficient crew and another 200 were undergoing training.

According to an equity analyst, about 12 per cent of Jet's revenue goes in to paying salaries each month. "Savings from one day cabin crew salary is a miniscule amount and the airline will have to look at other ways to reduce costs,'' the analysts said.

"The entire domestic scene is a matter of concern. The cost of operations is going up every day and yields are not going up. We are cutting costs in all areas, including real estate utilities, supplies, hotel accommodation, travel expenses. We have to put a freeze on all capital expenses, which include ground support equipment, information technology and furniture,'' a senior executive said.