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Cash-strapped Jet Airways defers March salary payment to employees

Updated : April 04, 2019 06:55 AM IST

Cash-starved Jet Airways Wednesday deferred the March salary payment to its employees and will provide an update by April 9, 2019.

"Jet Airways Maintenance Engineers Welfare Association (JAMEWA) during the meeting pressed for the early payment of overdue salaries. We were told that the intent of management is to clear the arrears as soon as the lenders release the much-needed funds," the association informed its members in a

post-meeting communication.

Jet Airways has nearly 560 engineers to maintain its fleet of around 100 planes. The JAMEWA claims representing around 490 engineers.

The management also told the association that the documentation procedure regarding the debt-recast plan was at the final stages and expected to be ready by Wednesday ahead of the meeting with the lenders scheduled for Thursday, as per the communication.

Dubey during the meeting also assured the engineers of providing an update on the developments by Friday.

The airline had been delaying the salaries of its pilots, engineers and senior staff since August who have not been paid since January. Jet Airways had delayed payment of salaries to its employees twice last year as well.

Meanwhile, the operational fleet strength Jet Airways, where the lenders are set to take control as part of a debt resolution plan, reduced to 26, as per a flight tracking website.

However, aviation regulator DGCA and civil aviation secretary Pradeep Singh Kharola said that Jet Airways is operating "28 planes", including 15 aircraft in the domestic route.

Yesterday, Jet Airways had informed the stock exchanges that 15 more planes have been grounded. However, Directorate General of Civil Aviation (DGCA) today clarified that the airline has 28 planes as on date.

The SBI-led consortium of lenders had taken over the management of the cash-hit Jet Airways last month.

Shares of Jet Airways Wednesday fell up to 4 percent today. On BSE, the stock opened on a negative note at Rs 257.80 and further declined 3.90 per cent to a low of Rs 254.55. Similarly, on NSE, the scrip touched a low of Rs 254.40, down 4 per cent from the previous close.
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