The measures together impact approximately half the airline’s current workforce of approximately 250.
A chunk of the current staff is employed by JKC while others are still on Jet’s payroll. Both segments may be impacted, even though JKC hasn’t assumed ownership of the airline yet.
People in the know said the airline’s CEO Sanjiv Kapoor and the CFO Vipula Gunatilleka have both taken temporary cuts of over 50%.
In a press release earlier in the day, JKC said: “..while we await the handover of the company as per the NCLT process, the longer-than-expected time being taken for the same may result in some difficult but necessary near-term decisions to manage our cashflows to secure the future while the airline is still not in our possession,”
In the statement, it also said it “remains, fully committed to creating history in Indian aviation by reviving Jet Airways,”
The consortium has had several differences with banks on unpaid dues.
It recently moved the National Company Law Appelate Tribunal saying that the provident fund and gratuity dues of employees of the airline should be paid from the existing cash balance of the airline.
On October 21, the NCLAT directed the consortium to pay gratuity and provident fund to the airline’s employees till the date of insolvency commencement in June 2019. The total claim is around Rs 275 crore.
The consortium says that all additional claims that haven’t been factored in the approved resolution plan are to be settled from the cash balance of the airline which is around Rs 50 crore and the remaining from the share of banks.