Amid uncertainty over the future of Jet Airways, the Jalan-Calrock Group on Friday said the company may have to make difficult decisions in the near future to manage its cash flows. 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 cut will be up to 50 percent
A source close to the development said that the pay cut would be up to 50 per cent. The amount 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.
CEO gave information
According to the CEO, two-thirds of the employees are not affected at all and no employees have been asked to leave. About 250 employees work in Jet Airways. Besides, last month the National Company Law Appellate Authority (NCLAT) directed the group to pay dues of provident fund and gratuity to the airline’s employees.
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 more time. Due to this, we will have to take difficult but necessary decisions in the near future to manage the cash flow and secure the future as the airline has not yet come into our possession. Significant progress is being made in that direction.
It further said, “We have not violated any of the conditions of the resolution plan and it is our commitment to restart Jet Airways.” 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.