The Jet Airways Managing department has suggested its senior pilots that there is a need to ground the 23 Boeing 737 to cover the losses. The meeting was held on 9th October with the National Aviators Guild (NAG) and the pilot union of Jet. The full carrier service airline also said that they won’t be able to meet the promise to pay pilots and engineering staff their pending salaries for the month of September.
As per the sources, the CEO of the airline Vinay Dube and Rahul Taneja the chief people officer were presented in the meeting. The management staff of the airline suggested that they are thinking to ground 23 Boeing 737s which operates on domestic routes to cut down the losses, said one of the senior pilots present in the meeting.
The airline has a fleet of 124 aircraft, it has 82 different types of Boeing 737s including Boeing 737-700, 737-800, 737-900 and 737-900ER and this aircraft is mainly used for all domestic operations.
In an interview with one of the leading newspaper, Jet Airways spokesperson said that the Airline firmly refuses this information which is totally baseless and misleading. The airline also advises the newspaper to stop spreading this baseless information which was being circulated through different mediums with hateful intentions.
The grounding of the aircraft happens in two cases. Number one, it is done to limit the extra expenses due to operational losses because the direct operating expenses do not get recovered through profit. The second case in which the grounding of the aircraft can be done is, if the airline is having any issues with its rent payments and if they have any pending payments, or in the case, if they do not have sufficient money to pay their vendors and suppliers on time, said an aviation expert.
Jet Airways recorded loss of Rs 1,323 crore in its first quarter. From June 2018 onwards, it had total debt of Rs 8,620 crore, of which Rs 1,968 crore was related to aircraft. The airline’s total build up losses stand at Rs 10,878 crore and at present it is working on a turnaround plan to save Rs 2,000 crore through many proposals which were accepted by the board.