Jet Airways joins SpiceJet, Vistara, starts variable pay to save wage bill

Plan covers 100 execs; fixed pay at 80-85%, rest based on staff performance, firm's profitability

Jet Airways is introducing 15-20 per cent variable pay component for its top management as it looks to save on its wage bill.

The Mumbai-headquartered airline has a higher cost structure than other listed domestic airlines and is undertaking cost control exercises to remain nimble. The variable pay scheme will be applicable to around 100 senior executives of Jet Airways and is expected to result in annual savings of Rs 25-30 crore, an airline source.

While the fixed salary component will be 80-85 per cent, the remainder will be linked to employee performance and airline profitability. The senior executives will also not receive salary increment this year.

A Jet Airways spokesperson did not offer immediate comments.

Some of Jet's peers already have a variable pay scheme in place. Vistara and SpiceJet too have variable pay for its senior management. Air India a productivity linked incentive scheme which was a variable pay out in mid-1990s but the same was discontinued in 2012.

Jet Airways has a staff strength of around 15,000 and had a wage bill of Rs 2,316 crore in the first nine months of FY 17. Employee costs rose 26 per cent on a year on year basis for the period. The airline has around 2000 pilots on its rolls whose salaries account for nearly half of the wage bill. Read more

SpiceJet offers Rs 444 one-way fare

SpiceJet offers Rs 444 one-way fare

SpiceJet is offering one-way fares beginning at Rs 444 (excluding taxes and fees) in a five day sale offer till Sunday.

The base fare of Rs 444 is available on routes, including Jammu-Srinagar, Ahmedabad-Mumbai, Mumbai-Goa, Delhi-Dehradun and Delhi-Amritsar.

Discounted tickets are valid for travel between July 1 and September 30.

Fares would vary from sector to sector depending on the travel distance and flight schedules and timings, the airline said and added that limited inventory is on offer under the sale.

Tickets for this new sale can be booked across channels on airline website, online travel portals, the SpiceJet mobile app and through travel agents. Tickets under this offer are non-refundable (statutory taxes are refundable), though they are changeable with a change fee and payment of the fare difference. Discount offers (more).

Cabinet clears civil aviation policy; replaces 5/20 rule

Cabinet clears civil aviation policy, replaces 5/20 condition with 0/20 rule

Amid hectic lobbying, the Cabinet on Wednesday gave its approval for partial abolition of the 5/20 rule, which will enable new carriers like Vistara and Air Asia to start international operations sooner.

According to the Civil Aviation Policy, released by the ministry on Wednesday, the government has decided to scrap the minimum five years requirement. However, an airline will have to allocate 20 aircraft or 20% of their total fleet of aircraft, whichever is higher, to the domestic sector if they wish to fly overseas. This effectively means a carrier must have a minimum 20 aircraft in its fleet.

“This is to ensure that any new airlines starting business in India should essentially serve the remote parts of the country,” a ministry official said.

In an interview to Business Standard, Mahesh Sharma, Minister of State for Civil Aviation, had hinted at this proposal. “In place of 5/20, we can make it 3/10 or 3/12. We have also looked at options like 0/10 and 0/20,” he had said.

ALSO READ: We are looking at partial abolition of 5/20 rule: Mahesh Sharma

While proposing to liberalise India’s skies, the government had earlier kept proposed three different options to replace the rule: continuing the present norms, complete abolition from immediate effect and a credit-based system to replace it. At present, an airline requires five years of operations and 20 aircrafts in its fleet to go on international routes. Read more.

GoAir and SpiceJet woo passengers with discounts

Two airlines are giving offers of cheaper tickets and discounts at hotels/cafes.GoAir is offering discounts up to 50 per cent at select hotels, cafes, spas and gift outlets through its boarding pass privilege scheme. SpiceJet has launched a pre-paid-cum-loyalty card called SpiceClub, which gives members discounted and free tickets on occasions such as birthdays and anniversaries. 

GoAir said its customers could avail of the discounts on presenting their boarding passes at any of the partner outlets within 30 days of their travel. SpiceJet said their card, designed to enhance engagement with frequent flyers, while also targeting new customers, offers privileges such as a free ticket on one's birthday, up to 50 per cent off on domestic air tickets for two on an anniversary, free vouchers, priority check-in and updates about new offers. The loyalty card membership has a minimum fee of Rs 599 and customers can avail of benefits worth Rs 5,999.

Amit Srivastava, vice-president at SpiceJet, said: “We are always looking at ways and means to serve our customers better. Customer satisfaction automatically translates into highest Passenger Load Factor (over 90 per cent here for the past 10 months) and higher ancillary revenue.”Read More.

SpiceJet announces special fares under 'Happy New Year Sale'

No-frills airline SpiceJet today announced a four-day sale, offering one-way base fares as low as Rs 716 for the journey period between January 15 and April 12 next year for domestic fliers.

The special fares under “Happy New Year Sale” are available for flying on domestic routes, SpiceJet said in a release.

As a part of this sale launched today, for which bookings will remain open till midnight of December 31, one-way base fares start at Rs 716 (excluding taxes) for domestic network, the release said.

The travel period for tickets availed under this offer stands between January 15 and April 12, 2016 and only for flying on direct flights on the domestic network, it said.

Tickets under this offer are refundable (only taxes and fees) and changeable with a change fee and payment of fare difference, the airline added. Read More.