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Jet Airways lays off cabin crew Jet Airways lays off cabin crew
(about 1 hour later)
India's top private airline Jet Airways has laid off 800 employees as it cuts back on flights amid soaring costs. India's largest private airline Jet Airways has laid off 800 employees as it cuts flights amid soaring costs.
The company said cabin crew hired for a planned expansion programme which had been suspended will lose their jobs. The company said cabin crew hired for a planned expansion programme which had been suspended would lose their jobs.
Hundreds of shocked and angry members of staff have gathered in the city of Mumbai (Bombay) to protest at the move. Hundreds of members of staff gathered in the city of Mumbai (Bombay) to protest at the move.
Jet said it expects to cut more jobs. Its announcement follows a recent cost-cutting alliance with India's second largest private airline, Kingfisher. Jet said it expected to cut more jobs. Its announcement follows a recent 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. The deal, announced on Monday, will include route sharing and the joint use of crews - although Jet says the job cuts are not linked to the tie-up.
We have got terminated. We know that. But we don't know why Jet employee The two airlines, which 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. All they're giving is one month's basic salary. How can anyone manage? Manav, Former Jet employee class="" href="/1/hi/business/7669301.stm">Indian airline dreams hit turbulence
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.
India's aviation industry has boomed as the country's economy has grown in recent years, with new airlines offering bargain flights around the country.
But rising fuel costs over the past year have pushed up ticket prices, and fewer passengers than predicted are opting to fly.
'Painful''Painful'
"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."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.
More job cuts are planned, it added. It said the company planned more job cuts.
"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
Meanwhile, hundreds of staff in the airline's uniform gathered in Mumbai to protest at being sacked. "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."
"We have got terminated. We know that. But we don't know why," said one female crew member. The airline says it will be offering 15% fewer flights than scheduled this winter because of "declining traffic volumes".
Some cabin crew said they had received their letters terminating their employment on Tuesday, while many others had received letters on Wednesday. Meanwhile, hundreds of the airline's staff gathered in uniform in Mumbai to protest at being sacked.
Some cabin crew said they had received letters terminating their employment on Tuesday, while many others had received letters on Wednesday.
Some said they had yet to receive letters.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. One former Jet employee, Natasha, said: "I was working for another airline before this. But I joined this to be in India. I just flew last week. There are no complaints. How can they terminate our jobs just one fine day. The letter gives no reason. This is no way to go about things."
Another, Manav, said: "I'm not from Mumbai. I've taken a place on rent. Paid deposit, spent so much on courses. All they're giving is one month's basic salary. How can anyone manage?"
In its 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."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.""If at all, improved economies in other areas would help obviate such a step in the future."
'Benefits''Benefits'
On Tuesday, the chairman of Kingfisher Airlines, Vijay Mallya, said the alliance with Jet would bring benefits to both partners. The two airlines, which have a combined fleet of 189 aircraft, say their alliance will be of mutual benefit.
"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." They 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%. Jet Airways chairman Naresh Goyal spoke of "huge cost savings and revenue enhancement opportunities".
"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. Recent years have seen consolidation. Last year Kingfisher merged with another rival airline, Deccan, and Jet, the country's largest domestic carrier, bought Air Sahara.