Shares of Jet Airways slumped nearly 6 per cent on reports that the company’s financials are in a bad shape and drastic measures need to be taken to cut costs.
After opening on a weak note at Rs 324.80, the stock fell 5.72 per cent to a low of Rs 312.25 on the BSE. Similarly on the NSE, the stock opened at Rs 323.90, then fell to a low of Rs 312.15, down 5.73 per cent over its previous closing price.
According to media reports, Jet Airways has informed its employees that the airline will not be able to operate beyond 60 days unless cost-cutting measures, which include pay cuts, are put in place.
Earlier reports had surfaced that the airline has proposed up to 25 per cent pay cut for employees, but the proposal has been rejected by pilots and and engineers.
The full-service carrier was believed to be in discussions with a certain section of employees on the pay cut proposal.
Jet Airways, which had completed 25 years of operations earlier this year, had 16,558 permanent employees as on March 31, 2018. Besides, there were 6,306 temporary/casual employees, as per the airline’s annual report for 2017-18.