New Delhi: Jet Airways pilots and management are on a warpath over salary reductions and possible job cuts at various departments.

Sources said that the full-service carrier has also told the employees that the compulsory one-year notice period for captains would be done away with.

There are more than 16,000 employees at Jet Airways.

Earlier this week, the top management in a meeting with staff, including pilots, informed them that the airline is in a financially bad shape and sought their cooperation in reducing costs.

In a filing to the BSE, the airline said it is implementing several measures to reduce cost as well as realise higher revenues, for desired business efficiencies.

Amid concerns over its financials, Jet Airways CEO Vinay Dubey said, “Indian aviation is experiencing strong growth and Jet Airways is well placed to be a part of this growth story. Despite the high growth environment, the aviation industry is currently passing through a tough phase given a depreciating rupee and the mismatch between high fuel prices and low fares.”

He added, “While continuing with cost-saving and revenue enhancement measures to create a growth-oriented sustainable future, Jet Airways will continue to accord the highest priority to safety and will ensure that safe operation continue to be resourced as required under regulatory compliances.”

The Naresh Goyal-led airline, in which Gulf carrier Etihad holds 24% stake, has already slashed 25% of the salaries of its senior management, sources had said on Wednesday.

Pilots and engineers have refused to accept the proposed pay cuts.

A senior company executive speculated that the airline might have to shut operations in 60 days unless they implement effective cost-cutting measures.

However, on Friday, Jet Airways said described reports that the airline cannot fly beyond 60 days are "incorrect and malicious" and they also denied any talks of a stake sale.