TruJet (TRJ, Hyderabad International) has warned its employees in a letter that it is “facing a serious financial crunch/cash flow situation” because of the impact of the covid-19 pandemic, India's BusinessLine reported.
The Hyderabad International-based regional carrier resumed scheduled operations on May 25 following a two-month lockdown, but lessors have grounded five of its seven aircraft over unpaid dues, sources told the newspaper.
The ch-aviation fleets module shows that Trujet operates an all-leased fleet of seven turboprops, five ATR72-500s and two ATR72-600s. Dubai-based DAE Capital leases the -600s, while Ireland's Elix Aviation Capital leases three of the -500s and Aergo Capital, also Irish but US-owned, the other two. According to ch-aviation analysis of Flightradar24 ADS-B data, the only aircraft that has been active in recent days is Aergo's ATR72-500 VT-TMN (man 843).
“We have been forced to cut down our operations. From 60 flights a day with an average 70% load factor, we have come down to 22-23%. Under these circumstances, we have no option but to reduce our overall costs to ensure our survival,” the letter explained according to BusinessLine.
“Though Trujet Management was liberal in paying full salaries in the months of March and April 2020 and a slight reduction in May and June, going forward we need to take tough decisions, though it is unpleasant, in the interests of the survival of the company,” the letter said.
TruJet has now decided, the letter concluded, to implement a wage cut of 50% for gross salaries of up to INR1 million rupees (USD13,370) and 60% for salaries above that sum, effective July 26.
