A week after effecting five to 25 per cent pay cut for senior employees, India’s leading private carrier Jet Airways has laid off over 100 people as an additional measure to tide over severe financial crisis. The steps will save the ailrine Rs 5 crore a month.
The decision was taken on April 30.
The affected employees include 60 cabin crew who were on probation. Their contracts have been terminated. This group was among 850 cabin staff who were asked to go in mid-October, but were taken back following a nation-wide uproar.
Another 50 employees who were on contract have been told to go. The airline did not renew their contract to save on employee costs. All these staff are believed to be above 60 years of age.
“Jet Airways undertakes additional measures to streamline costs to improve the financial health of the company under the challenging global economic environment. The airline has issued notices of termination to identified employees on contract who have superannuated,” the airline said in a statement.
“The (laid off) cabin crew were in their probation period. The termination is in accordance with law and their service conditions,” the statement said.
The airline has a staff strength of 13,000 and a monthly wage bill of Rs 100 crore. More lay-offs are expected unless the situation improves. Kingfisher Airlines is also likely to ask some surplus staff to go as it, too, faces financial crunch.
Jet Airways has offered to forward the names and contact details of the crew who are keen to seek employment with other carriers. Gulf-based airlines are still hiring. ]