Get Top latest market news, Stock Market Views, Stock Market Updates and analysis on stock, derivatives, commodity and IPO markets. Get all Stock market news, BSE, NSE, Sensex Nifty, world markets, Indian markets, stock recommendation, Dalal Street, Day trading, futures, options, SEBI, market news, Business and other Financial News.

Jet Airways Pilots, Engineers & Cabin Crew Joining SpiceJet At 30-50% Pay Cut

Jet Airways Pilots, Engineers & Cabin Crew Joining SpiceJet At 30-50% Pay Cut

India’s Low-cost airlines and rival SpiceJet is taking the best advantage of the crisis at Jet Airways.

Spicejet is now recruiting pilots, engineers and cabin crews at much lower pay than their current salaries at the financially-troubled Jet. Industry sources told IANS that pilots from Jet Airways are being asked to take salary cuts of 25-30 percent while engineers have been advised to settle at 50 per cent of their current pay package.

Some months ago, many airlines including SpiceJet were luring the same pilots and engineers with joining bonuses and better salary hikes.

“The prospect of closure is certainly one of the reasons for professionals agreeing to take salary cuts. But average salaries at Jet Airways have also been higher than the industry level,” a top aviation source said.

A senior official who is aircraft maintenance engineer who has applied to SpiceJet and Air India Express for a job said that he has got an offer in the range of Rs 150,000 to 200,000 a month while his current cost to company (CTC) at Jet Airways is nearly Rs 400,000 a month.

“The offer is much lower. It will certainly be a forced choice. We are hoping that some investor would take over Jet and our salaries will remain protected,” he said.

“They have loans and other financial commitments so they are looking for places where there is certainty of jobs and timely salary payment. Not many senior level pilots have so far left Jet Airways. They are reluctant to go to either SpiceJet, IndiGo or Air India Express as they feel their seniority and salary will be impacted. They do not want to sign 3-5 year bonds,” he said.

Flying expert noted that many co-pilots who has very less amount of experience normally get about Rs 2.9 lakh salary month at Jet Airways, and they are forcefully to join other airlines for even less than Rs 2 lakh a month.

Apart from Jet Airways, among airlines plying domestic routes, only Air India Express and Spice Jet operate Boeing fleets. Those operating Airbus aircraft fear huge conversion costs for both pilots and engineers and are, thus, reluctant to hire the technical personnel from Jet Airways.

“We will have to train them for flying and maintenance of Airbus aircraft. In case of pilots, it will need six months of training while for engineers the reskilling would take 3-4 months. This means the salary for entire training period will be a huge cost for us,” said an executive of a private airline operating Airbus planes.

But aviation experts is predicting that it is temporary phenomena and it will be back to normal once Jet gets a proper restructuring.

“This is an unusual situation because Jet Airways remains almost grounded. Normally, supply and demand have been in favour of pilots and engineers. Now, it depends on how quickly Jet restarts again. If that happens things will stabilize. I won’t be surprised if many pilots and engineers go back to Jet,” said Rajan Mehra, a veteran aviation professional and Chief Executive Officer Club One Air.

Mounted with huge debt and terrible losses in past, Jet Airways is fighting for its survival. Currently around 90 percent of its fleet are on the ground and discontinued.

Leave a Reply

Your email address will not be published. Required fields are marked *