India’s cash-strapped Jet Airways to pay December salaries
The airline was bailed out by state-run banks and says it will advise staff on the remaining salary arrears
New Delhi — Indebted Indian carrier Jet Airways will pay December salaries to pilots and aircraft maintenance engineers, but for now cannot pay more recent overdue wages, its CEO said on Saturday after pilots threatened to strike over payment delays. Jet Airways has delayed payments to pilots, suppliers and lessors for months and defaulted on loans after racking up more than $1bn in debt. The airline blamed its problems on high oil prices and rising competition. Lessors have grounded more than three dozen Jet Airways planes, forcing hundreds of its flights to be cancelled. The airline was bailed out on Monday by state-run banks, which have temporarily taken a majority stake in the company and given it a loan, under a government-led rescue deal. “These are complex processes and it has taken longer than we had expected and as such we are only able to remit your remaining salary for December 2018,” CEO Vinay Dube told employees in a letter, adding the company was working as fast as pos...
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