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Jet Airways 'planning job cuts' Jet Airways lays off cabin crew
(about 1 hour 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 has laid off 800 employees as it cuts back on flights amid soaring costs.
Company officials are quoted saying new cabin crew members on probation would account for most of the cuts. The company said cabin crew hired for a planned expansion programme which had been suspended will lose their jobs.
They said the main reason for the move was a reduced number of flights. Hundreds of shocked and angry members of staff have gathered in the city of Mumbai (Bombay) to protest at the move.
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. Jet said it expects to cut more jobs. Its announcement follows a cost-cutting alliance with India's second largest private airline, Kingfisher.
The deal, announced on Monday, will include route sharing and the joint use of crews.
We have got terminated. We know that. But we don't know why Jet employee
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.According to reports, Kingfisher Airlines is also considering laying off some of its staff.
'Slowdown' 'Painful'
A Jet Airways spokesperson confirmed that job cuts were in the offing, the Times of India newspaper reported. "As a first step, around 800 flight attendants, recently recruited for the planned expansion programme, which has now been suspended, have been released," a statement issued by Jet Airways 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. More job cuts are planned, it added.
"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. "The other categories include probationary and unconfirmed personnel in other areas, including cockpit crew and management personnel, to reflect the lower number of flights and seats offered.
"As painful as it may be for every single person affected, this adjustment was inevitable in the greater interest of regaining viability of Jet Airways and to securing its economic health," the statement said.
Mr Mallya (left) and Mr Goyal need to save moneyMr 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. Meanwhile, hundreds of staff in the airline's uniform gathered in Mumbai to protest at being sacked.
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. "We have got terminated. We know that. But we don't know why," said one female crew member.
Staff had been given letters severing their contracts, the official said. Some cabin crew said they had received their letters terminating their employment on Tuesday, while many others had received letters on Wednesday.
Some said they had yet to receive letters.
In the statement, Jet Airways said its alliance with Kingfisher Airlines had nothing to do with the job cuts.
"We wish to clarify that the reconsideration of our operations has been ongoing for some time now and this adjustment in personnel numbers did not result from the planned alliance with Kingfisher Airlines.
"If at all, improved economies in other areas would help obviate such a step in the future."
'Benefits'
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.