Jet Airways slumps 6% in morning trade on bourses

Shares of Jet Airways today slumped nearly 6 per cent in morning trade on the bourses after reports surfaced that the company's financials are in bad shape and drastic measures need to be taken to cut costs.

Shares of the company today opened on a weak note at Rs 324.80, then fell 5.72 per cent to a low of Rs 312.25 on BSE.

Similar movement was seen on the NSE as well, where the stock of the company opened at Rs 323.90, then fell to a low of Rs 312.15, down 5.73 per cent over its previous closing price.

According to media reports Jet Airways has informed its employees that the airline will not be able to operate beyond 60 days unless cost cutting measures, which include pay cuts, are put in place.

Earlier reports had surfaced that the airline has proposed up to 25 per cent pay cut for employees, but the proposal has been rejected by pilots and and engineers.

The full-service carrier was believed to be in discussions with certain sections of employees on the salary cut proposal, which has been mooted amid efforts to save costs.

Jet Airways, which completed 25 years of operations earlier this year, had 16,558 permanent employees as on March 31, 2018.

Besides, there were a total of 6,306 temporary/casual employees, as per the airline's annual report for 2017-18.