Jet Airways is yet to start operations after the arrival of its new owner. Amidst an atmosphere of uncertainty, Jalan-Kalrock Consortium (JKC) said on Friday that the company may have to take difficult decisions in the near future to manage cash flow.
Jet Airways will send several of its employees on leave without pay with pay cuts amid uncertainty over restarting its operations. The airline company is yet to start operations after the arrival of its new owner. Jalan-Kalrock Group Jalan-Kalrock Consortium (JKC) said on Friday that the company may take difficult decisions in the near future to manage the cash flow amid uncertainty over the future of Jet Airways.
The group’s resolution plan was approved by the National Company Law Tribunal (NCLT) in June last year. Jet Airways is yet to start operations even after the airline got the certificate of air operations from the Directorate General of Civil Aviation in May this year.
Salary can be cut by up to 50%
A source related to this development said that the salary cut will be up to 50 percent. The quantum of deduction will be higher for CEO and CFO. The temporary pay cut and leave without pay (LWP) for the affected employees will be effective from December 1.
Jet Airways CEO Sanjeev Kapoor said in a series of tweets that less than 10 per cent of the total employees would be on temporary leave without pay and one-third would be on temporary pay cut. According to the CEO, two-thirds of the employees are not affected at all and no employee has been asked to leave. About 250 employees work in Jet Airways.
Besides, last month the National Company Law Appellate Authority (NCLT) directed the group to pay dues of provident fund and gratuity to the airline’s employees.
Jalan Kalrock Consortium takeover process not completed
Jalan Kalrock Consortium (JKC) said in a statement, “We are waiting for the control of the company to come into our hands as per the process of NCLT but it is taking much more time. Due to this, we will have to make difficult but necessary decisions in the near future to manage the cash flow and secure the future as the airline is not yet in our possession.
Claims to meet all conditions
JKC said that significant progress is being made towards restarting the airline. It further said, “We have not violated any of the conditions of the resolution plan and have our commitment to start Jet Airways afresh.” It further added, “Subsequent to the approval of NCLT, the resolution plan will All the conditions stated were fulfilled by 20 May 2022 and the necessary filing in this regard was also done before the NCLT on 21 May 2022.” Earlier there was a plan that the airline would be started by October 2022.
