Jet Airways Denies Reports Of Grounding Of Airline, Pay Cuts

Jet Airways chief executive officer Vinay Dube on Friday dismissed reports about the airline's sustainability. Terming such reports "not only factually incorrect, but also malicious", he said the airline has been implementing several measures to reduce costs and realise higher revenues "for desired business efficiencies". Comments from Jet Airways' management came after news agency Reuters reported citing a senior company executive that the airline told its pilots that it may be grounded in 60 days unless cost-cutting measures including pay cuts are put in place.

"The airline would also like to deny any conjecture of a stake sale," he said.

Pointing at rupee depreciation and "the mismatch between high fuel prices and low fares", Mr Dube stated that the dialogue with the airline's employees was to "apprise them of the challenges being faced by the aviation sector". (Also read: Jet Airways shares fall 7%)

Here's the full text of Mr Dube's statement:

Indian aviation is experiencing strong growth and Jet Airways is well placed to be a part of this growth story. The company is committed to create a growth-oriented, sustainable future and a revitalised experience armed with the addition of 225 B737-Max fuel efficient aircraft, which will be inducted in its fleet over the next decade, with 11 being inducted this fiscal. This envisioned growth will in fact, require additional human capital.

In line with the Company, stated focus of creating a healthier and more resilient business, it has been implementing several measures to reduce costs as well as realise higher revenues, for desired business efficiencies. Some of these areas amongst others include, sales and distribution, payroll, maintenance and fleet simplification.

As part of these measures, the Company has been in dialogue with all its key stakeholders - internal and external. The dialogue with employees, has been to apprise them of the challenges being faced by the aviation sector in India and by the Company in particular, with an intent to enlist their full support and cooperation for realising necessary savings across all business functions.

Despite the high growth environment, the aviation industry is currently passing through a tough phase given a depreciating rupee and the mismatch between high fuel prices and low fares. let Airways has been in existence for over 25 years and through the years has been successful in combating such business volatility.

While continuing with cost saving and revenue enhancement measures to create a growth-oriented sustainable future, Jet Airways will continue to accord highest priority to safety and will ensure that safe operations continue to be resourced as required under regulatory compliances required under regulatory compliances.

We are confident that the various transformation initiatives identified and under implementation by the Company will help in addressing the current issues faced by us and the industry. In fact, several transformation initiatives have already started to deliver positive results.