Airlines feel price hike pinch, Go Air sacks 7
For seven employees of Go Air, Tuesday morning came as a rude shock. As they were about to enter the airline’s office at New Delhi airport, they were handed a pre-drafted resignation letter, on which they had to sign.
“We were forced to sign a pre-drafted resignation letter,” said one of them on condition of anonymity. “No notice or time was given to us. I am a family man and am literally on the street now.”
He said they were told about the development in the morning. “The company officials have told us we are being retrenched as the company is in losses and such an action is necessary.”
Reacting to the development, Jeh Wadia, managing director, Go Air said: “Yes we are downsizing the company. Since we have pulled out from some routes we need to downsize.”
Go Air’s 10 per cent cut in employee strength is perhaps only the first downsizing story in the Indian aviation sector.
Incessant hike in aviation fuel prices coupled with increasing operating costs has left the airlines in a financial tizzy.
Oil marketing companies on Monday again hiked aviation turbine fuel prices by 4.3 per cent.
Jet fuel is about 60 to 70 per cent higher in India than anywhere in world, the overriding reason why airlines in India are in bad fiscal health.
Low-cost carrier Spice Jet has decided to close operations at Jaipur and has reduced the number of flights to 97 from 117 per day.