NEW DELHI: Jet Airways is aiming to cut its non-fuel costs by 12-15 per cent and increase revenue generation to fly out of the turbulence caused in Indian skies due to factors like world’s costliest jet fuel prices here, weakening of rupee and inability to hike fares due to stiff competition.
To soothe frayed nerves of pilots, who are at the forefront of opposing the proposed 15 per cent pay cut, the airline has decided to give an equal cut for its expat pilots.
Jet promoter-chairman Naresh Goyal has begun personally meeting key employees like pilots to bring them on board with the pay cut move.
In the early hours of Saturday, the union of Jet’s Indian pilots — National Aviators’ Guild (NAG) — issued a statement to their members, asking them to cooperate with the airline in its hour of financial difficulty. “We are endeavouring to assist our company in facing these challenges by meeting with the management and being a part of the solution in achieving cost efficiencies and enhancing our service standards,” a statement by NAG committee said.
In a mail to pilots and other employees on Friday evening, Jet CEO Vinay Dube dismissed fears that the airline will run out of cash in 60 days, while stressing upon the need to cut costs and increase revenue. “We are implementing several measures to create a more competitive cost structure…”