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| Jet Airways 'planning job cuts' | |
| (about 2 hours later) | |
| India's top private airline Jet Airways is to lay off between 800 and 850 employees as it cuts back on flights amid soaring costs, officials say. | India's top private airline Jet Airways is to lay off between 800 and 850 employees as it cuts back on flights amid soaring costs, officials say. |
| Company officials are quoted saying new cabin crew members on probation would account for most of the cuts. | |
| They said the main reason for the move was a reduced number of flights. | |
| On Tuesday Jet formed an alliance with India's second largest private airline, Kingfisher, which will allow route sharing and the joint use of crews. | On Tuesday Jet formed an alliance with India's second largest private airline, Kingfisher, which will allow route sharing and the joint use of crews. |
| The two airlines, who have nearly 60% of the market in India, said the rise in the price of jet fuel by a quarter this year was a major factor in wanting to join forces in order to cut costs. | The two airlines, who have nearly 60% of the market in India, said the rise in the price of jet fuel by a quarter this year was a major factor in wanting to join forces in order to cut costs. |
| Jet Airways told the BBC it would issue a statement later on Wednesday. | |
| According to reports, Kingfisher Airlines is also considering laying off some of its staff. | |
| 'Slowdown' | 'Slowdown' |
| A Jet Airways spokesperson confirmed that job cuts were in the offing, the Times of India newspaper reported. | A Jet Airways spokesperson confirmed that job cuts were in the offing, the Times of India newspaper reported. |
| "Because of the slowdown in traffic, both on international and domestic routes, we have announced discontinuation of a number of flights," the spokesman said. | "Because of the slowdown in traffic, both on international and domestic routes, we have announced discontinuation of a number of flights," the spokesman said. |
| "As a professional organisation we had to do a comprehensive rationalisation of our network by taking into account the current traffic demand, our capacity utilisation, etc. | "As a professional organisation we had to do a comprehensive rationalisation of our network by taking into account the current traffic demand, our capacity utilisation, etc. |
| Mr Mallya (left) and Mr Goyal need to save money | Mr Mallya (left) and Mr Goyal need to save money |
| "Consequent to this, we will have to release the unconfirmed staff to match up with the changes," the spokesperson said. | "Consequent to this, we will have to release the unconfirmed staff to match up with the changes," the spokesperson said. |
| All staff on probation would be laid off on a 30-day compensation package, the Press Trust of India news agency quoted a top Jet Airways official as saying. | All staff on probation would be laid off on a 30-day compensation package, the Press Trust of India news agency quoted a top Jet Airways official as saying. |
| Staff had been given letters severing their contracts, the official said. | Staff had been given letters severing their contracts, the official said. |
| On Tuesday, the chairman of Kingfisher Airlines, Vijay Mallya, said the alliance with Jet would bring benefits to both partners. | On Tuesday, the chairman of Kingfisher Airlines, Vijay Mallya, said the alliance with Jet would bring benefits to both partners. |
| "We both recognise the economic realities and the opportunities going forward. We both are aware of the benefits that the alliance will bring, and let me tell you that it is both the meeting of mind and heart." | "We both recognise the economic realities and the opportunities going forward. We both are aware of the benefits that the alliance will bring, and let me tell you that it is both the meeting of mind and heart." |
| The two airlines, which have a combined fleet of 189 aircraft, say there was a 33% increase in passenger numbers last year, but growth this year has slowed to 7.5%. | The two airlines, which have a combined fleet of 189 aircraft, say there was a 33% increase in passenger numbers last year, but growth this year has slowed to 7.5%. |
| "There will be huge cost savings and revenue enhancement opportunities arising from this alliance," Jet Airways chairman Naresh Goyal said. | "There will be huge cost savings and revenue enhancement opportunities arising from this alliance," Jet Airways chairman Naresh Goyal said. |
| In recent years, more than a dozen private airlines have sprung up in India. | In recent years, more than a dozen private airlines have sprung up in India. |
| Last year Kingfisher merged with another rival airline, Deccan, and Jet, the country's largest domestic carrier, bought Air Sahara. | Last year Kingfisher merged with another rival airline, Deccan, and Jet, the country's largest domestic carrier, bought Air Sahara. |