The airline industry is likely to lose 1,00,000 jobs in the coming year worldwide as the financial meltdown and soaring crude oil prices force companies to cut corners to stay afloat, said Giovanni Bisignani, director general and CEO, International Air Transport Association.
“These are projections and there have been massive layoffs and several airlines have gone bankrupt,” Bisignani said.
He, however, did not specify the number of job cuts in India, but said the industry was clearly distressed.
Scarred by spiralling crude oil prices and crippling finances, domestic airlines are adopting cost-cutting measures including retrenchment. Kingfisher Airlines and Jet Airways recently terminated the services of 300 employees.
“No industry can predict its human resource requirement,” said Wolfgang Prock Schauer, CEO, Jet Airways.
Among the low-cost carriers, Go Air has already retrenched 10 per cent employees and SpiceJet resorted to pruning several of its unviable routes.
Indian airlines could post a loss of $1.5 billion this year, the largest outside the US, Bisignani said. He asked the government to “wake up” to the crisis and take speedy steps towards reforms in the sector and reduce taxes.
India is among the most expensive places to tank up for air carriers, primarily due to a high cost taxation structure, he said.