amanwadhwa
Prime VIP
Battling a clawing downturn enveloping the aviation industry, Jet Airways today (Oct 15) announced sacking of 1,900 of its employees across all operations. “It is an unfortunate decision, which all of us in the company regret but it is an attempt to save the company and the jobs of the remaining employees,” Jet Airways Executive Director B Saroj Dutta told reporters at the airlines headquarters in Mumbai.
“A total of 1,900 people are being served separation notice. 800 have already been served notice. In the next few days the others will also be served notice. It is an attempt to save the jobs of remaining 11,100 employees,” he said.
He said the decision to terminate the employees had nothing to do with the alliance entered into with Kingfisher. “It (alliance) has nothing to do with the workforce of the companies. These are independent decisions of the two companies.”
Kingfisher Airlines has laid-off nearly 300 jobs and may announce more cuts across the board in the coming days. The airline chief Vijay Mallya gave enough hints of it, saying the company would do whatever it takes to cut costs.
Dutta said all sections and activities of the company were being covered by this action, which the airline said was inevitable in view of the declining traffic volumes. Jet would talk to all sacked employees tomorrow. We have spent money in training them and would like to take them back when market conditions are good, Dutta said.
Asked about the alliance, he said there was no cartelisation. It is just rationalisation and cooperation. “Companies in India and everywhere in the world do this.”
About 800 unconfirmed and under-probation employees have been given termination letters and the rest will be given termination notices this evening. “These people were recently hired… This is being done to strengthen the economic viability of the company,” said Dutta, who was flanked by CEO Wolfgang Prock Schauer.
The airlines has rolled back all expansion plans, besides cutting flights in winter by 15 per cent. “This is the first time since Jet Airways has been formed that employees are being sacked for reasons other than non-performance,” he said. These people were recruited in the hope of expansions. The aviation industry in the country is estimated to have a turnover of USD 6 billion. In the current fiscal, it is expected to do USD 2 billion.
The sack order has evoked protests from Raj Thackeray, who warned that no Jet flights would be allowed from Mumbai in case the airline did not reconsider the decision. Thackeray said activists of his Maharashtra Navnirman Sena will meet Jet officials tomorrow to discuss the issue. Sacked Jet employees had approached the party for help as also staged a protest outside the airline’s office in Mumbai today.
“It is part of handling economic slowdown and carefully rationalising the operation,” the official said, adding the downsizing is based on capacity, load-factor and traffic patterns. Jet Airways and Kingfisher Airlines, both of which account for 60 per cent market share in India, had announced an alliance on Monday to share their resources and routes.
Meanwhile - angry sacked jet employees protested in front of the Jet Airways Headquarters in Mumbai. The employees of Kingfisher Airlines have also joined the agitation. The sacked staffers are alleging that they have not been given a notice and neither have they been paid one month’s salary as per the stipulated contract.
At least 1,000 staff including cabin and ground crew have been given the pink slip and sources suggest that Jet is likely to relieve at least another 3000 employees by Jannuary, especially those hired for expansion purposes and probationers.
However, Jet is not the only airline to cut jobs, Vijay Mallya-promoted Kingfisher Airlines has also said it may cut jobs. But more importantly the Kingfisher chairman has said he will have to re-think of the ordres given for new airplanes.
Meanwhile, Jet Airways officials justified the layoff saying the airline was forced to sack around 800 staffmembers due to the massive losses they were facing.
Raj asks Jet to reconsider its decision
Maharashtra Navnirman Sena (MNS) chief Raj Thackeray today said that no Jet Airways flight would be allowed to take off from Mumbai if the airline does not reconsider its decision to terminate the services of 850 flight attendants.
The MNS chief’s threat comes in the wake of the private airline’s decision to lay-off nearly 1,000 employees with a view to rationalise its operations.
Raj was talking to reporters after meeting a group of Jet employees, who called on him at his office ‘Rajgad’ in central Mumbai. MNS activists will meet Jet officials tomorrow (October 16) to discuss the issue.
Kingfisher to show pink slips too?
Saddled with mounting losses, Vijay Mallya-promoted Kingfisher Airlines might also cut jobs. More importantly, the Kingfisher chairman said that he would hve to rethink on the orders given for new airplanes.
Kingfisher has also cut the fleet size to overcome the situation.
Stating that demand is more compelling now than ever before, Mallya said, “We are re-evaluating our entire international route structure. No point in flying London (by Kingfisher) half-an-hour after Jet. Therefore, we are doing code sharing and rationalising international route.”
Exuding confidence that their alliance would help them save an estimated Rs 1,500 crore, leading private carrier Jet Airways and Kingfisher Airlines have invited state-owned Air India to come on board for overcoming the slowdown in the crisis-ridden aviation sector.
“Everybody is welcome to join the operational alliance, including Air India,” said Vijay Mallya, owner of Kingfisher, which on Monday singed an alliance with competitor Jet Airways to share resources and routes to keep afloat.
“Cost saving can be Rs 1,500 crore for both. But this is my personal estimate. People are working on it…The results of benefits of the alliance you can see in the next quarter,” he added.
Jet Airways and Kingfisher Airlines, both of which account for 60 per cent market share in India had announced an alliance on Monday night to share their resources and routes.
“It is part of handling economic slowdown and carefully rationalising the operation,” the official said adding the downsizing is based on capacity, load-factor and traffic patterns.
The rationalistaion also seeks to optimise the operations in line with the rationalisation of its flight and he pointed out that the airline has stopped some of its existing flights including that to San Fransisco.
Earlier while announcing the alliance, both Goyal and Mallya had said that the coming together was in tune with the global practice of reducing killing costs and clarified that there was no equity involvement.
The alliance would work together on seven fronts, including route and code sharing as also sharing of crew, a move that would help them cut exorbitant cost that had been putting enormous pressures for the last 4-6 years.
Both Jet and Kingfisher are believed to be losing about Rs 10 crore a day, accentuating a financial crunch that has prompted each of them to downsize the manpower, rationalise and cut routes.
“A total of 1,900 people are being served separation notice. 800 have already been served notice. In the next few days the others will also be served notice. It is an attempt to save the jobs of remaining 11,100 employees,” he said.
He said the decision to terminate the employees had nothing to do with the alliance entered into with Kingfisher. “It (alliance) has nothing to do with the workforce of the companies. These are independent decisions of the two companies.”
Kingfisher Airlines has laid-off nearly 300 jobs and may announce more cuts across the board in the coming days. The airline chief Vijay Mallya gave enough hints of it, saying the company would do whatever it takes to cut costs.
Dutta said all sections and activities of the company were being covered by this action, which the airline said was inevitable in view of the declining traffic volumes. Jet would talk to all sacked employees tomorrow. We have spent money in training them and would like to take them back when market conditions are good, Dutta said.
Asked about the alliance, he said there was no cartelisation. It is just rationalisation and cooperation. “Companies in India and everywhere in the world do this.”
About 800 unconfirmed and under-probation employees have been given termination letters and the rest will be given termination notices this evening. “These people were recently hired… This is being done to strengthen the economic viability of the company,” said Dutta, who was flanked by CEO Wolfgang Prock Schauer.
The airlines has rolled back all expansion plans, besides cutting flights in winter by 15 per cent. “This is the first time since Jet Airways has been formed that employees are being sacked for reasons other than non-performance,” he said. These people were recruited in the hope of expansions. The aviation industry in the country is estimated to have a turnover of USD 6 billion. In the current fiscal, it is expected to do USD 2 billion.
The sack order has evoked protests from Raj Thackeray, who warned that no Jet flights would be allowed from Mumbai in case the airline did not reconsider the decision. Thackeray said activists of his Maharashtra Navnirman Sena will meet Jet officials tomorrow to discuss the issue. Sacked Jet employees had approached the party for help as also staged a protest outside the airline’s office in Mumbai today.
“It is part of handling economic slowdown and carefully rationalising the operation,” the official said, adding the downsizing is based on capacity, load-factor and traffic patterns. Jet Airways and Kingfisher Airlines, both of which account for 60 per cent market share in India, had announced an alliance on Monday to share their resources and routes.
Meanwhile - angry sacked jet employees protested in front of the Jet Airways Headquarters in Mumbai. The employees of Kingfisher Airlines have also joined the agitation. The sacked staffers are alleging that they have not been given a notice and neither have they been paid one month’s salary as per the stipulated contract.
At least 1,000 staff including cabin and ground crew have been given the pink slip and sources suggest that Jet is likely to relieve at least another 3000 employees by Jannuary, especially those hired for expansion purposes and probationers.
However, Jet is not the only airline to cut jobs, Vijay Mallya-promoted Kingfisher Airlines has also said it may cut jobs. But more importantly the Kingfisher chairman has said he will have to re-think of the ordres given for new airplanes.
Meanwhile, Jet Airways officials justified the layoff saying the airline was forced to sack around 800 staffmembers due to the massive losses they were facing.
Raj asks Jet to reconsider its decision
Maharashtra Navnirman Sena (MNS) chief Raj Thackeray today said that no Jet Airways flight would be allowed to take off from Mumbai if the airline does not reconsider its decision to terminate the services of 850 flight attendants.
The MNS chief’s threat comes in the wake of the private airline’s decision to lay-off nearly 1,000 employees with a view to rationalise its operations.
Raj was talking to reporters after meeting a group of Jet employees, who called on him at his office ‘Rajgad’ in central Mumbai. MNS activists will meet Jet officials tomorrow (October 16) to discuss the issue.
Kingfisher to show pink slips too?
Saddled with mounting losses, Vijay Mallya-promoted Kingfisher Airlines might also cut jobs. More importantly, the Kingfisher chairman said that he would hve to rethink on the orders given for new airplanes.
Kingfisher has also cut the fleet size to overcome the situation.
Stating that demand is more compelling now than ever before, Mallya said, “We are re-evaluating our entire international route structure. No point in flying London (by Kingfisher) half-an-hour after Jet. Therefore, we are doing code sharing and rationalising international route.”
Exuding confidence that their alliance would help them save an estimated Rs 1,500 crore, leading private carrier Jet Airways and Kingfisher Airlines have invited state-owned Air India to come on board for overcoming the slowdown in the crisis-ridden aviation sector.
“Everybody is welcome to join the operational alliance, including Air India,” said Vijay Mallya, owner of Kingfisher, which on Monday singed an alliance with competitor Jet Airways to share resources and routes to keep afloat.
“Cost saving can be Rs 1,500 crore for both. But this is my personal estimate. People are working on it…The results of benefits of the alliance you can see in the next quarter,” he added.
Jet Airways and Kingfisher Airlines, both of which account for 60 per cent market share in India had announced an alliance on Monday night to share their resources and routes.
“It is part of handling economic slowdown and carefully rationalising the operation,” the official said adding the downsizing is based on capacity, load-factor and traffic patterns.
The rationalistaion also seeks to optimise the operations in line with the rationalisation of its flight and he pointed out that the airline has stopped some of its existing flights including that to San Fransisco.
Earlier while announcing the alliance, both Goyal and Mallya had said that the coming together was in tune with the global practice of reducing killing costs and clarified that there was no equity involvement.
The alliance would work together on seven fronts, including route and code sharing as also sharing of crew, a move that would help them cut exorbitant cost that had been putting enormous pressures for the last 4-6 years.
Both Jet and Kingfisher are believed to be losing about Rs 10 crore a day, accentuating a financial crunch that has prompted each of them to downsize the manpower, rationalise and cut routes.
