Though it has withdrawn salary cuts, crisis-hit Jet Airways has begun a cost-cutting process by offering pink slips to more than a dozen-odd technical support staff.
Sources said more employees are likely to be shown the door in coming days.
According to sources in Jet Airways, most of the staffers who have been served notices are from Mumbai and Delhi. "It seems to be a tragic situation as we remain in perpetual fear of being next in line to be asked to leave," said an employee in Mumbai. "People have already started looking for jobs outside," said another employee.
A Jet Airways spokesperson said, "Jet Airways categorically denies news of any lay-offs and firmly reiterates that it is committed to creating a growth-oriented, sustainable future for its employees." The spokesperson added that this fiscal year alone, Jet Airways will induct 11 new B737-MAX aircraft. Two of these 11 have already been delivered with two more expected this month, as the airline has envisioned growth at 8-10% CAGR over the next fiveyears, which will require additional (and not lesser) human capital.
"As part of its transformation given the current macroeconomic environment, the airline is taking various measures that align its workforce with the changing objectives and priorities of its business and harnesses their performance potential for greater efficiency in operations," said the spokesperson.
The airline's shares have plunged since the start of this month after reports came out about airline not being in a position to survive beyond 60 days if cost rationalisation is not done and the promoter Goyal even offering to lowering his stakes in the company in order to raise some immediate funding. The airline has denied the reports, though accepting that cost cutting measures are on.
Meanwhile, trouble seems to be mounting as the airline along with some credit rating agencies are reported to have come under the regulatory scanner for alleged lapses in timely disclosure of default risk of loans worth Rs 11,000 crore taken from state-owned as well as private sector banks. While the concerned loan accounts are believed to have been standardised now, it has been alleged that they were in default on multiple occasions during the quarter ended June 30 and are continuously on the watch list of the lenders, regulatory officials said.
While the capital markets regulator Securities and Exchange Board of India (Sebi) is already looking into the issues surrounding deferment of the airline's financial results following reservations expressed by the company's audit committee, the issue of disclosure about alleged loan default is also being examined now, officials said.
While Jet Airways did not immediately reply to PTI queries in this regard, rating agency Icra said it has been regularly receiving the no default declaration (NDS) in the Sebi-prescribed format from the company at the end of every month and the same has been received for the month of July as well.
"In case of all accepted ratings, our ratings on the bank lines of Jet Airways also remain under regular surveillance and we would respond to any new information subject to the necessary due diligence and confirmation from bankers/lenders/issuers," an Icra official said.
SBI chairman Rajnish Kumar had last week said that the bank's exposure to Jet Airways was part of a "watch list". A day later, Jet Airways, however, said it is "regular" in all payment obligations including to all its banks.
The company has also been asked to inform the exchanges about the date on which its Board will consider the June quarter financial results and also the exact reasons for which Audit committee has not approved the financial result.
STRONG TURBULENCE
- Rs 1,040 cr
Net loss reported by the airline in the fourth quarter
- Rs 11,000 cr
Loans taken from state-owned as well as private sector banks
(With inputs from PTI)
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