Jet pilots, engineers joining SpiceJet at 30-50% pay cut
Low-cost carrier and top rival SpiceJet appears to be making the most of the crisis at Jet Airways.
 
Spicejet is now hiring engineers and pilots at much lower pay than their current salaries at the financialy-troubled Jet. 
Industry sources told IANS that pilots from Jet Airways are being asked to take salary cuts of 25-30 per cent, while engineers have been advised to settle at 50 per cent of their current pay package.
 
Not long ago, many airlines including SpiceJet were luring the same pilots and engineers with joining bonuses and better perks.
 
"The prospect of closure is certainly one of the reasons for professionals agreeing to take salary cuts. But average salaries at Jet Airways have also been higher than the industry level," a top aviation source said.
 
A senior aircraft maintenance engineer who has applied to SpiceJet and Air India Express for a job said that he has got an offer in the range of Rs 150,000 to 200,000 a month while his current cost to company (CTC) at Jet Airways is nearly Rs 400,000 a month.
 
"The offer is much lower. It will certainly be a forced choice. We are hoping that some investor would take over Jet and our salaries will remain protected," he said.
 
A SpiceJet executive said that the budget carrier was offering salaries based on their own structure and not the highly inflated one paid by Jet Airways.
 
A senior commander with Jet Airways said that pilots with 4-5 years of experience are going to other airlines as they are feeling the pinch of salary delays.
 
"They have loans and other financial commitments so they are looking for places where there is certainty of jobs and timely salary payment. Not many senior level pilots have so far left Jet Airways. They are reluctant to go to either SpiceJet, IndiGo or Air India Express as they feel their seniority and salary will be impacted. They do not want to sign 3-5 year bonds," he said.
 
The flying veteran noted that many co-pilots who do not have much experience generally get about Rs 2.9 lakh salary month at Jet Airways, and they are willing to join other airlines for even less than Rs 2 lakh a month.
 
Among various domestic airlines, only Air India Express and SpiceJet operate Boeing fleets, apart from Jet Airways. Those operating Airbus aircraft fear huge conversion costs for both pilots and engineers and are, thus, reluctant to hire the technical personnel from Jet.
 
"We will have to train them for flying and maintenance of Airbus aircraft. In case of pilots, it will need six months of training, while for engineers the reskilling would take 3-4 months. This means the salary for entire training period will be a huge cost for us," said an executive of a private airline operating Airbus planes.
 
But aviation experts feel that the current situation is temporary and it will normalise once Jet gets back on its feet.
 
"This is an unusual situation because Jet Airways remains almost grounded. Normally, supply and demand have been in favour of pilots and engineers. Now, it depends on how quickly Jet restarts again. If that happens things will stabilise. I won't be surprised if many pilots and engineers go back to Jet," said Rajan Mehra, a veteran aviation professional and Chief Executive Officer Club One Air.
 
Saddled with mounting debt and losses, Jet Airways is fighting for its survival. The airline is in gradual descent and staring at closure with nearly 90 per cent of its fleet on the ground.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Mayo, Welhams, American Embassy schools caught in IL&FS Bond embrace
In the continuing IL&FS noxious bonds saga, the creme de la creme of some of Indias top educational institutions have now come under the bus. Some of the toniest names have their staff provident funds enveloped by the disturbing scandal.
 
A hapless government and new Uday Kotak-led management looks on, but does nothing as the case is being heard in NCLAT. While NCLAT wants to speed up the hearing on the intervening petitions filed by the parties impacted, the new management/government cannot let those who have impleaded get priority in the creditor queue.
 
IANS, which has been at the forefront of reporting this scandal of epic proportions which keeps burgeoning due to the emergence of new details constantly, top of the line academic institutions are now directly in the line of fire. Their staff PF is afflicted by the virus.
 
The list compiled after painstaking research reveals Welhams Girls' School Dehradun, American Embassy School New Delhi, Kodaikanal International School, the prestigious Mayo College Ajmer which incidentally has two entries, Ashoka Hall in Kolkata and then the fabled DAV College Trust with six entries, DAV College with three entries, Manipal Academy of Higher Education with 12 entries while Manipal Institute of Technology has an additional 5 entries. 
 
Notable alumni from Manipal include Satya Nadella, Rajeev Suri, Rajeev Chandrasekhar, Vikas Khanna and many others. DAV Chandigarh is the alma mater of Capt. Vikram Batra, Ayushmann Khurana and Rajiv Pratap Rudy. Mayo alumni include Maharaja Hari Singh of Kashmir, Jaswant Singh, K. Natwar Singh, Amitabh Kant while those from Welhams include Brinda Karat, Deepa Mehta, Radhika Roy.
 
A case of some being more trusting of the veracity of the IL&FS triple A rated bonds more than others. Teachers who impart education at these institutions are part of a larger community of working class people who are suffering as their savings are now affected. Moreover, another excellent Kolkata institution - Orient Day School in Behala with 107 faculty members has also invested staff PF in these bonds. Ditto for a solitary government-owned Kendriya Vidyalaya which too is stuck with this Chinese pup. 
 
It is the teaching staff at these blue riband institutions whose provident fund money is tied up in the bonds. Let us understand that the teachers at some of the best boarding schools must be better paid than other peers in day schools. Mayo College for instance charges Rs 650,000 p.a. for a resident and Rs 13,00,000 p.a. from NRI. Over and above this, a development fee of Rs 26,600 is charged p.a., a computer class fee of Rs 7,700 p.a. Further caution money of Rs 325,000 is charged from a resident and Rs 650,000 from a NRI. Next admission fee of Rs 82,500, one time IT fee Rs 24,900, impress money of Rs 40,000, uniform advance of Rs 25,000 et al.
 
At American Embassy School New Delhi, the fee structure is in dollars. Annual tuition fee Kdg to grade 5 $12,860, grade 6-8 $13,830, grades 9-12 $14,500. The school also charges a registration fee of $5,750 per student payable on first enrolment, an application fee of $200 and a round trip bus fee of $820. The dollar is potentially around Rs 70 currently. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Like this story? Get our top stories by email.

User

COMMENTS

Rahul Choudhury

2 months ago

This article quotes Amitabh Kant as being from Mayo College, if it is referring to the incumbent CEO at NITI Aayog, he is from Modern School Delhi and this is incorrect.
(source: www.amitabhkant.in)

NPS, CBT-EPFO have huge exposure to toxic IL&FS bonds
India's National Pension System and Central Board of Trustees of retirement fund body EPFO stand imperiled due to the toxic nature of the IL&FS bonds it has exposure to. Innumerable NPS funds have exposure to these bonds, IANS has totalled them up to over Rs 1,200 crore.
 
While the government continues to hardsell NPS as a perfect solution for retirement planning providing old age income with reasonable market-based returns, based as it is on a unique Permanent Retirement Account Number (PRAN) allotted to every subscriber for NPS, it is contaminated by the bonds. 
 
What makes it worse for the BJP government trying to get itself re-elected is that Central Board of Trustees EPF too has exposure to the same virus-infected bonds. Both NPS and CBT have skin in the game which is not good news for the government. The amounts vary here as well but CBT EPF 11 B DM has an outstanding exposure of Rs 147 crore while CBT EPF 25 B DM has an exposure of Rs 200 crore. 
 
Another CBT EPF 5 C DM had an exposure of Rs 181.81 crore. The Central Board of Trustees (CBT) of retirement fund body EPFO has in the past turned down the proposal to reduce the mandatory contributions from workers and employers to 10 per cent. Employees and employers contribute 12 per cent of basic wages each towards Employees Provident Fund Scheme (EPF), Employee Pension Scheme (EPS) and Employee Deposit Linked Insurance Scheme (EDLI). 
 
The contributions invested in NPS are managed by eight Pension Fund Managers (PFM) appointed by PFRDA. The Subscriber can choose any one of the given entities: HDFC Pension Management Company Limited, Reliance Capital Pension Fund Limited, UTI Retirement Solutions Limited, Kotak Mahindra Pension Fund Limited, LIC Pension Fund Ltd, SBI Pension Funds Private Limited and ICICI Prudential Pension Funds Management Company Limited. 
 
Subscribers have the option to select allocation pattern for their investment across various asset classes. The subscriber has the freedom to design the portfolio among 3 asset classes: Equity (E): This is a 'High risk – High Return' option as the funds are invested in equity a subscriber can choose to invest up to 50% in this class; Corporate Bonds (C): Funds are invested in fixed income bearing instruments which offer medium returns and government securities;(G): Funds are invested only in government securities. It is important to give this background for IL&FS bonds were 'triple A' rated and considered best of breed till the meltdown began.
 
Pension Fund Regulatory and Development Authority (PFRDA) that regulates the National Pension Scheme (NPS) expects assets under management (AUM) to touch Rs 2.85 lakh crore in FY19, from Rs 2.3 lakh crore in the last financial year. This is a significant number. IANS which has been at the vanguard of exposing the problems with IL&FS bonds has now discovered that NPS too has large investments in these toxic bonds: 
 
* NPS Trust - A/c UTI Retirement Pension Fund scheme - Central govt: Rs 10 cr
* NPS Trust - ditto - state govt: Rs 4 cr
* NPS Trust - ditto - central govt: Rs 10 cr 
* NPS Trust - ditto - C Tier 1: Rs 0.10 cr
* NPS Trust - ditto - state govt: Rs 9.80 cr
* NPS Trust - ditto - NPS Lite scheme Govt pattern: 0.10 cr 
 
Over 75 such entries were found with amounts varying from a high of Rs 110 crore in one case to Rs 75 crore in two cases and others ranging between Rs 10 lakh to Rs 10 to Rs 15 crore to several entries of Rs 20 crore to Rs 19.50 crore to Rs 14.36 crore to many of Rs 15 crore each. Also there are entries of Rs 40 crore, Rs 50 crore, Rs 28 crore, Rs 35 crore. As a norm they are for central and state govt employees who had joined the NPS. Ballpark, it is in excess of Rs 1,200-crore exposure.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Like this story? Get our top stories by email.

User

COMMENTS

Sudhakar Ojha

2 months ago

In a country like India where corporate governance is weak and trustees act like owners the idea of government sponsored pension fund scheme itself is now open to question.

Hudaf Shaikh

2 months ago

Reality is that there is no return without risk - that said, the EPF and PPF trustees ensured that the debt instruments they invested are low risk as they were AAA rated. Sadly, it seems that not just the auditors but also the rating agencies collaborated with IL&FS directors and promoters in masking high risk debt as AAA to defraud the investors which include a number of PF and pension trusts.

The Government should not just recover the huge bonuses and other benefits given by IL&FS to it's directors but also the promoters who rewarded themselves with huge dividends from fictitious profits.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

online financial advisory
Pathbreakers
Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
online financia advisory
The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
financial magazines online
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
financial magazines in india
MAS: Complete Online Financial Advisory
(Includes Moneylife Online Magazine)