India’s second-largest airline Jet Airways asked 15 managerial staff to leave the company in October as “gracious exit” and told other staff to take a 25 per cent pay cut as its financial crisis worsens.
The airline also grounded seven airplane – An Airbus A330, a Boeing 777, two 737s and three ATRs, because it failed to meet some leasing obligation.
According sources close to Jet Airways, the planes are grounded at the Chennai and Mumbai airports, and their engines are dismounted., means that these planes may remain grounded for six months or more.
At Jet Airways 8 to 10 planes undergo regular maintenance every day, and it may increase to more than 20 planes be out of service on daily basis.
According to Bloomberg, “Jet Airways’ short-term debt stands at 46 percent of its total debt, the highest among its Asian competitors. Jet Airways hopes to cut its costs by Rs 2000 crore in the next two years” as it failed to raise capital from any of the financial institutions.