Jet Airways Could Reportedly Be Grounded in 60 Days If It Doesn't Cut Costs
Jet Airways is in financial trouble. As in, if the airline's cost-cutting measures don't take place, it'll reportedly only be able to operate for the next 60 days.
According to the Times of India, Jet Airways has told its pilots that operations might be grounded in 60 days if the company isn't able to successfully get cost-cutting measures, including pay cuts, in place. On Friday, the company, however, told Reuters that it was confident it would be able to cut costs and keep flying.
However, there are conflicting reports of just how Jet Airways will be able to get it to happen. According to a senior executive, the company has asked its pilots to take a 15% pay cut for two years, which they refused. But, the company's CEP Vinay Dube called that report "factually incorrect" and "malicious."
Dube also said that the airline was, in fact, in talks with its employees and suppliers to cut costs. Possible cost-cutting measures the company have confirmed include sales and distribution, payroll, maintenance and fleet simplification.
The airline says that it's "confident about its operations" continuing beyond 60 days, however, at this point, its exact plans for doing so have yet to be publicly disclosed.
Jet Airways is partially owned by Etihad Airways and was carrying 81.5 billion rupees ($1.2 billion) in debt as of the end of March. Earlier on Friday, Reuters reported that chairs of the company told employees that drastic measures were needed in order to keep the airline running.
In July, Jet Airways purchased 75 Boeing 737 MAX aircraft — worth $9.5 billion — in order to make its fleet more fuel efficient. The carrier also has 10 Boeing 787s on order for its long-haul operations.