Why Jet Airways is on perpetual cost-cutting drive

The airline's problems are peculiar and go beyond just wafer-thin margins in aviation

A fortnight ago, Jet Airways announced a new work-life plan that would result in reduced pay and benefits for junior pilots. It also asked its pilots to furnish a surety bond worth Rs 1 crore for five to seven years of service.

Jet Airways Chief Financial Officer Amit Agarwal says this is not a cost-saving exercise, but simply an effort to recalibrate the working hours of pilots based on demand; the airline needs them for fewer hours in the present situation, and will pay them accordingly. While it will mean a 30 per cent cut in the salary bill for the