Jet plans major job cuts

Jet Airways has decided to lay off about 800 to 850 employees due to falling air travel and soaring costs, according to reports in India.The Times of India claims to have spoken to the company and that cabin crew members under probation will account for most of the cuts, while other reports suggest the layoffs would include cabin crew, pilots, ground staff and management.

The news follows the announcement earlier this week that Jet Airways and Kingfisher Airlines have agreemed to the formation of an alliance of wide-ranging proportions that will “help both carriers to significantly rationalize and reduce costs and provide improved standards of service and a wider choice of air travel options to consumers with immediate effect.”

Commenting upon the alliance, Naresh Goyal, Chairman of Jet Airways said:

“All over the world Airlines have formed alliances in order to become more efficient, improve revenues and provide seamless travel opportunities for their customers.  India has witnessed tremendous growth in the past which has slowed down considerably.  In this environment the Jet Airways - Kingfisher alliance represents a completely new industrial model for aviation in India which would be based on an unprecedented depth of cooperation between the two companies.  There will be huge cost savings and revenue enhancement opportunities arising from this alliance.”

Dr. Vijay Mallya, Chairman, Kingfisher Airlines said:

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“This is a quantum leap forward in the evolution of Indian aviation which will benefit customers by delivering the most comprehensive integration in the industry.  Both Jet and Kingfisher fully realize that better understanding of supply and demand in this capital and labour intensive industry is the key to profitability and enhancement of shareholder value.  I look forward to this alliance delivering superior quality, cost savings, flexibility and enhanced consumer value which is the hallmark of all successful alliances.”

While maintaining their separate legal entities and brand entities both Jet and Kingfisher will examine co-branding opportunities and have formed a core committee of senior management personnel from both companies who will drive the various identified initiatives forward with immediate effect under the overall direction of Mr. Naresh Goyal and Dr. Vijay Mallya.
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