Jet defaults on salary payment to its employees again
Jet Airways has defaulted on salary payments again. The cash-strapped airline on Wednesday sought over 10 more days from its employees to pay balance 25 per cent of their salaries for August.
Jet Airways had paid 50 per cent of August salaries to its employees on September 11 and the rest was to be paid on Wednesday. But it could pay only half of the balance amount.
The cash-strapped airline, which is struggling to meet its cost of operations, had earlier attempted to cut salaries of its employees, but the move was met with stiff resistance that forced it to defer the plan.
Jet had reported net loss of Rs 1,323 crore for the first quarter ended June.
It is not the only carrier to be affected by adverse industry circumstances, mainly due to soaring fuel charges and a falling rupee. IndiGo, the country’s largest carrier by passengers flown, reported 97 per cent drop in its profits for the first quarter while SpiceJet reported losses.
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