Senior management and pilots quit Jet Airways amid uncertain future
Erstwhile top private airliner Jet Airways has reportedly been hit with a new blow. As per CNBC TV-18, several members of its senior management, pilots, and cabin crew have exited the grounded carrier. The airline hit rock bottom in 2019 due to mounting debt. It was expected to restart operations in March this year, but lenders are not ready to take on fresh liabilities.
Why does this story matter?
Jet Airways was once India's largest private airline. Its fall from those heights to bankruptcy will always remain a shock. The airline's insolvency proceeding was the first in the aviation industry and wasn't without complications. Since winning the bid, Jalan-Kalrock hasn't been able to take it forward. The longer it takes, the more difficult it will get for Jet Airways.
Managerial staff whose salaries were cut resigned
Among the employees that quit Jet Airways is the vice president of engineering and human resources. Some pilots and cabin crew who have been on standby have also exited the airline to join operational counterparts. The company has also lost quite a few of its managerial staff, according to the report. Many of them had their salaries slashed earlier.
CEO and CFO are working with slashed salaries
Jet Airways' CEO Sanjiv Kapoor and CFO Vipula Gunatilleka have reportedly taken pay cuts, while its vice president of in-flight services, Mark Turner, has been sent on leave without pay. The company docked the salaries of many of its staff by up to half last month. Few have been sent on leave without pay as well. This forced many to quit the airline.
The airline's recovery has hit several bumps so far
Jet Airways' road to recovery has hit several bumps. The beleaguered airline's new owner, Jalan-Kalrock consortium's, efforts to get it back on track haven't been fruitful yet. The National Company Law Appellate Tribunal's direction to pay unpaid provident funds and gratuity to employees is the latest cause of the delay. The consortium argues that paying unpaid dues wasn't part of its original resolution plan.
