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Wed, Oct 15, 2008

Curious Timing: Jet Airways Slashes Jobs Days After 'Alliance' Announcement

As Many As 1,900 Positions Eliminated, Including 800 Recently-Hired FAs

Citing "these difficult times" and an expected $2 billion USD loss in the Indian aviation industry in 2008-2009, on Wednesday Jet Airways announced it would cut back its previously announced winter schedule by 15 percent... while also firing the personnel who were recently hired to handle those extra flights.

"This is inevitable in view of the declining traffic volumes," the airline said. "Jet Airways expects these difficult market conditions to continue for some time. Jet has been watching the situation for some time in the hope that it may turn around, but has now reached a stage at which some hard decisions are inevitable.

"As a consequence, personnel hired for the expansion, probationers and unconfirmed personnel, (who have been recently hired), will have to be released. As a first step, around 800 flight attendants, recently recruited for the planned expansion program, which has now been suspended, have been released. We are in the process of releasing personnel in other categories also."

Reports out of India indicate the total number of job losses could surpass 1,900... including probationary and temporary workers, as well as cockpit crew and management positions.

The airline said all cuts would be directly tied to "the lower number of flights and seats offered" -- and stressed the layoffs had nothing to do with the announcement this week of a planned "alliance" with rival Indian carrier 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 step in the future."

Despite Jet Airways' lamentations, the timing of the layoffs is curious, to say the least... especially given the fact both Jet Airways and Kingfisher stated their alliance would "significantly rationalize and reduce costs... with immediate effect." 

And nothing cuts costs quicker than job layoffs.

FMI: www.jetairways.com

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