Jet Airways waysAirways Jet Paths
NEW DELHI: In light of growing concern about its fiscal soundness and the wage problems of airlines, India's major full-service provider Jet Airways has stated that it hopes to overcome the present problems. This imbalance between high petrol and low fare rates is the greatest short-term obstacle for the airlines, Jet said. Overall, Jet needs to develop its overall costs policy as a matter of urgency as it does not have sufficient resources to operate for more than two month - a fact that Jet Airlines reports has allowed to its employees.
Affected by increasing gasoline prices and a declining Rupie, India's oldest privately owned carrier, Jet Airways, it may run out of opportunities to stay on the water due to having a hard times. In addition to other costs reduction actions, the firm has alerted its staff, as well as pilot staff, to the need to reduce salaries as it only has 2 month operating currency.
Airlines' pilot staff have rejected a 15% wage reduction for two years, as proposed by senior managers, who have also reassured the pilot that the proposed reduction will not affect them. Meanwhile, the pilots' trade unions have asked them to work with the airlines and be "part of the solution" to their current fiscal crises.
Although the company had requested a working cap facility, it was advised by the banking community - several of them wisely by unsecured credit to another company founding the company, Vijay Mallya - that it first had to show its support for a trend reversal, as its debts, most of which are in dollars, were Rs 8,150.
At the beginning of the year, Jet Airways also became known for the poorest timeliness of all India's airline companies in two successive monthly periods, although it achieved the third-best punctual result for June after Indigo and SpiceJet. However, Jet Airways clarified to the markets that it could no longer operate after 60 working days - even though it acknowledged that it was in discussions with airline drivers and civil servants to push through a wage slash.
Meanwhile, in a strange gesture of the time, a Jet Airways aircraft took off from the Riyadh airstrip during a missed takeoff.