Jet cuts trainee co-pilots’ pay from Rs 1.3L to Rs 50k

NEW DELHI: India's largest private airline Jet Airways has reduced the monthly salary of its trainee co-pilots by almost 60% from about Rs 1.3 lakh to Rs 50,000 in the New Year. The decision was conveyed to its trainee co-pilots in last week and is among a series of steps that the airline is taking to cut costs and survive the life-threatening phase that Indian carriers are passing through due to a mix of high operating cost environment at home and a slowing down economy.

"The company is going through turbulent times as a result of low fares, ever-rising crude oil process, high airport levies, rupee devaluation and a recessionary economic scenario... we are reducing costs through re-negotiation of all contracts with our vendors, service providers and curtailing expenditure. As a part of the austerity measures effective January 1, 2012, it is proposed that you would continue to draw Rs 50,000 per month till you are released to fly online on the fleet..." the letter sent by S B Srivastava, Jet's V-P (HR), to the trainee first officer says, while adding that other terms of their employment remain unchanged.

During the last slowdown also Jet had reduced salaries of its employees to survive the tough economic conditions and then restored them to pre-cut levels when the environment improved. Its two full service peers - Air India and Kingfisher - have been unable to pay salaries to employees in time for months now. "We last got paid in first week of November and have got nothing since then. Now our five months' salary and allowances are due. There is no light at the end of this tunnel and it seems the government expects us to work without pay. How long can this continue? Our stress levels is dangerously high as the topic of conversation is mainly unpaid bills and EMIs in cockpit of any stressed airline like AI or Kingfisher," said an agitated Air India commander.

While AI and Kingfisher are drowning under the weight of their losses and debt, Jet has also run into losses due to the high cost environment. In the quarter ended September 30, 2011, it posted a loss of Rs 713.6 crore versus a profit of Rs 12.4 crore in same period last year.

Trainee co-pilots join an airline after getting type rated (certified) to fly a particular aircraft. They are first trained to fly by being seated on the co-pilot's seat with a commander and a co-pilot on the third seat in the cockpit (called jump seat).