Jet Airways denies reports of pay cuts, stake sale, says it will be part of aviation growth story

Beleaguered Jet Airways today clarified that recent media reports questioning the sustainability of the airline are incorrect and denied any intent of a stake sale. Reports have indicated that Jet Airways has proposed to cut salaries of its employees by as much as 25%. Citing strong growth in Indian aviation sector, Jet Airways, in a statement said that it is well placed to be a part of this story. 
 
In a statement, Vinay Dube, CEO, Jet Airways said that the company is committed to create a growth-oriented, sustainable future and a revitalized experience armed with the addition of 225 B737-MAX fuel efficient aircraft, which will be inducted in its fleet over the next decade, with 11 being inducted this fiscal." He also cut all talk of job losses by saying, "This envisioned growth will in fact, require additional human capital." 

He explained that, in line with Jet's stated focus on creating a healthier and more resilient business, the company has been implementing several measures to reduce costs as well as realize higher revenues for desired business efficiencies. Some of these areas include sales and distribution, payroll, maintenance and fleet simplification.

Statement by Mr. Vinay Dube, CEO, Jet Airways pic.twitter.com/exNowCBvWP

— Jet Airways (@jetairways) August 3, 2018

Dube said that the company has been in dialogue with all its key stakeholders, internal and external, and added, "The dialogue with employees, has been to apprise them of the challenges being faced by the aviation sector in India and by the Company in particular, with an intent to enlist their full support and cooperation for realizing necessary savings across all business functions."
 
Since the aviation industry is currently passing through a tough phase given a depreciating rupee and the mismatch between high fuel prices and low fares, Jet Airways, which has been in existence for over 25 years, has been successful in combating such business volatility, he added. 
 
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Jet Airways CEO  concluded the statement by saying, "We are confident that the various transformation initiatives identified and under implementation by the company will help in addressing the current issues faced by us and the industry. In fact, several transformation initiatives have already started to deliver positive results."