Jet Airways shows pink slips to 1,000 employees

Forward by Pooja

Riding the strength of its alliance with Kingfisher Airlines, another private carrier Jet Airways [Get Quote] has laid off up to 1,000 employees to rationalise its operations.

The entire force of unconfirmed staff is being laid off on a 30-day compensation package, a top Jet Airways official, who did not want to be named, told PTI.

The staff, which has been retrenched is from all across the operation and letters severing their services, were given on Tuesday, he said.

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.

Both Naresh Goyal of Jet and Vijay Mallya of Kingfisher are in Hyderabad to attend the Airshow.

“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.

News Update

Raj Thackeray threatens Jet Air over firing staff

Maharashtra Navnirman Sena chief Raj Thackeray on Wednesday 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 on Thursday to discuss the issue.