Jet Airways eyes more job cuts in overhaul drive
With the aviation sector showing no signs of improvement, Jet Airways is expected to cut its headcount further as part of its overall strategy to cut costs and achieve a turnaround, reports HT Correspondent.india Updated: May 15, 2009 21:37 IST
With the aviation sector showing no signs of improvement, Jet Airways is expected to cut its headcount further as part of its overall strategy to cut costs and achieve a turnaround.
Probationers and retired employees on extension seem to be in the immediate firing line.
A trade union leader told Hindustan Times that the management has assured them not to terminate any permanent employee. Jet did not explicitly announce job cuts, but said on Friday that it would not rule that out.
“The restructuring of the company’s operations and activities, both on domestic and international routes, will continue to be an ongoing process with a view to reviving the economic health of the company,” a Jet Airways spokesperson said.
The airline, which has 13,000 people on its rolls, has excess staff following a 15 to 20 per cent reduction in capacity, suspension of flights in unviable routes and a freeze on international expansion plans.
Jet said it had taken several cost restructuring exercise to tide over the current crisis and “as a last but necessary measure trimming down any excess workforce.”
“The implications in terms of fleet and personnel requirements, both operational and supporting staff, will be established as the details are being drawn up even as we go ahead,” the spokesperson said.
Recently, the airline controlled by Naresh Goyal has terminated contracts of around 250 employees including some cabin crew on probation and over 60 people who had superannuated were asked to go.
The airline has also closed down international crew bases, following which 120 surplus crew have been laid off. Jet has not ruled out further retrenchments, but has said that it would take back affected employees as and when the economic situation improves.
In October last year it had announced plans to lay off 1,900 surplus staff but reversed its decision in a dramatic manner under pressure from political leaders and agitating staff.