Jet Airways has said that it is implementing several measures including sales and distribution, payroll and maintenance, among others to reduce costs and realise higher revenues.
“The airline management is in dialogue with key stakeholders to enlist their full support and cooperation for realising necessary savings.”
However, The Economic Times reported that the airline will be able to operate only for 60 days if cost cutting measures are not implemented. The cost of operations operations has increased due to rising crude oil prices and a falling rupee.
Jet Airways has not posted a profit for the past 11 years, barring FY16 and FY17, but its employee costs have been on the rise.
Some other reports suggest that the airline has approached investment bankers again to help sell a stake in the carrier, two people with direct knowledge of the matter said. The fundraising is crucial for the airline, owned 24% by Etihad Airways PJSC of Abu Dhabi.
In FY18, the airline’s employee cost stood at Rs 3174.22 crore, up from the Rs 3084.21 crore in FY17.
“Jet Airways is committed to creating a competitive cost structure that ensures a sustainable future for the airline and its stakeholders. As part of its cost rationalisation measures the airline continues to evaluate all initiatives to achieve greater business efficiencies. Payroll is one of the important components of the airline’s cost structure and the senior leadership team has undertaken a reduction in their salary to lead by example,” a Jet Airways spokesperson told the paper.
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