Jet Airways to pay remaining 25% of September salary to senior staff by Dec

Jet Airways has failed to stick to the staggered payment schedule

Jet Airways will pay the remaining 25 per cent September salary to its senior staff early next month and is likely to come out with a revised payment schedule soon, a source at the airline said Monday.

Notably, Jet Airways pilots had last week threatened not to perform additional duties from December 1 if their salary dues were not cleared by November 30.

The Mumbai-based private carrier, majorly owned by businessman Naresh Goyal, has reported three back-to-back quarterly losses this year, resulting in severe cash paucity and subsequent payment issues with some of its staff and vendors.

Besides the remaining 25 per cent unpaid September salary, the senior management along with pilots and engineers are yet to be paid for October as well.

"The remaining 25 per cent of the September salary will be disbursed on December 4, while all remaining dues will be paid latest by March 31 next year," said the source after a meeting between the Jet Airways management and its pilots body National Aviator's Guild (NAG) on Monday.

"The (revised) salary payment schedule will be released by the company at the earliest," he added.

Jet Airways spokesperson was not available for comment.

NAG claims it represents over 1,000 domestic pilots of the 1,800 pilots in the airline.

"Almost 15 per cent employees have not been receiving their salaries on time," Jet Airways Chief Executive Officer Vinay Dube had acknowledged during the post Q2 earnings analysts call earlier this month.

On September 6, after it defaulted on payment of August salary, the airline had informed that the salary of these three categories of staffers would be paid in two tranches - on 11th and 26th of the month - till November.

According to this payment schedule, the August salary was to be paid on September 11 and September 26.

Similarly, September salary was to be remitted into accounts on October 11 and October 26.

Though it paid the first tranche of 50 per cent of August salary on September 11, it again made only 50 per cent payment of the second tranche and deferred the payment of the balance amount to a later date.

And since then, the airline has failed to stick to the staggered payment schedule.

NAG would meet again on December 4 to discuss the developments, the source said.