No salary hike for senior Jet Airways employees this year to ‘stabilise employee cost’


  1. india.com
    The salary freeze is applicable to all employees in manager grades M3 and above and will be effective from April 1, 2017. The airlines said that the decision of freezing the salaries has been taken as there is an immediate need to stabilize the employee…

New Delhi, April 21: In a move that would discourage its employees, one of the major carriers in India, Jet Airways has decided to freeze annual salary hikes of its senior employees this financial year. This move is expected at the end of the April-March fiscal for at least a quarter. The salary freeze is applicable to all employees in manager grades M3 and above and will be effective from April 1, 2017. As India has become the third-largest domestic aviation market in the world, there is fierce competition among the various airlines like Indigo, SpiceJet, Air India, Vistara, etc. that compete in the aviation space.

As per reports, the move comes in the backdrop of the stressed financial position of the airline. The freeze on hike is however been opposed by pilots. The National Aviators’ Guild (NAG), Jet pilots’ association had held its Annual General Meeting (AGM) on March 29 and decided to find ways to protest on the issue. The NAG in a letter said that the pilots of Jet Airways were briefed on the salary increment freeze applicable from April 1, 2017, for a period of three months, after which there will be a review by the management. “The pilots expressed dismay at the anticipated loss of income especially in the current tax environment and the utter disregard of a hard-fought agreement,” a letter sent by NAG was quoted by Economic Times.

The airlines said that the decision of freezing the salaries has been taken as there is an immediate need to stabilize the employee cost. It is applicable to all employees in manager grades M3 and above and will be effective April 1, 2017. “We understand that these measures are difficult and unsettling, but are unavoidable”, the airline’s mail was quoted by TOI.

During the Financial Year 2017, the airline spent around Rs 2,316 crore on salaries of 15,000 employees. Out of the 15,000 employees 2,000 are pilots that account for nearly half of the wage bill. Moreover, the employee cost was up by 26 percent on a year-on-year basis for the period, a Moneycontrol report mentioned.

Passenger Load Factor (PLF)

Despite a spike in passenger load, Jet Airways’ revenue numbers for the quarter that ended December 31, 2016, show the airline’s income from operations declined this fiscal as compared to the same period last year. The Passenger Load Factor (PLF) of the private carrier also went down in March to 79.8% from 86.9% in February, the Directorate General of Civil Aviation report stated. As per an Economic Times report, the revenue this year fell to Rs 14,703 crore for the three-quarters of FY17 against Rs 14,714 crore during the same period last year.

The Passenger Load Factor (PLF) of Jet AirwaysThe Passenger Load Factor (PLF) of Jet Airways

Earlier this week, National Aviators’ Guild (NAG) which is the Jet’s pilots union asked the Indian pilots not to fly with the expat pilots after one of the foreign pilots allegedly assaulted a trainer in Bengaluru r…

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