Can’t Fly Beyond 60 Days is Incorrect and Malicious Says Jet Airways

New Delhi: Multiple media reports stating that Jet Airways (India) Ltd will be unable to fly beyond 60 days unless cost-cutting measures, including pay cuts, are put in place, have been denied by the company and have been termed as “malicious and incorrect.”

Reports also stated that Jet has approached investment bankers again to help sell a stake in the carrier. The company denied this as well.

In a statement issued on Friday, the carrier claimed that in line with its stated focus of creating a healthier and a more resilient business, Jet Airways has been implementing several measures to reduce cost as well as realise higher revenues, for desired business efficiencies.

Some of these include sales and distribution, payroll, and maintenance, among many others. As part of this approach, the airline management is in dialogue with key stakeholders to enlist their full support and cooperation for realising necessary savings across all parts of the business,” Jet Airways said in a response.

According to reports the management team, including Chairman Naresh Goyal, informed employees during meetings in Mumbai and Delhi recently that the airline's financials are in a bad shape and drastic measures needed to be taken to cut costs, the The Economic Times reported, citing two company executives.

Shares of the company fell more than 5 per cent in early trade in Mumbai.

"In line with its stated focus of creating a healthier and a more resilient business, Jet Airways has been implementing several measures to help it reduce cost as well as realise higher revenues, for desired business efficiencies," the company said in response to Economic Times without specifically mentioning the 60-day deadline given to employees.

Separately, Mint reported Jet Airways approached investment bankers again to help sell a stake in the carrier, citing two people with direct knowledge of the matter.

The airline is facing several challenges including a surge in fuel prices, weaker rupee and intensifying competition.

"Jet Airways is looking to raise immediate cash and the transaction may include Jet Airways founder Naresh Goyal offloading a part of the promoter's stake in the company," one of the sources told Mint on condition of anonymity.

Earlier in the week, several media reported that Jet Airways had asked its employees to take a pay cut of up to 25 per cent due to rising costs.