Budget airline Jet Airways is cutting its workforce and squeezing its operations in order to battle its ongoing financial crisis. Around 15 people at manager and general manager level positions in various departments such as engineering, security and sales have been asked to leave this month, reported Economic Times.
The financial daily report quoted a person privy to the matter saying, “A few, but not all of them were aged. There was a lull in September but now the pink slips have begun again.” The person also added that a few more exist can be expected.
The carrier has also grounded about eight planes which include one Airbus330, one Boeing 777, two Boeing 737s and three ATRs at Chennai airport and an Airbus A330 in Mumbai. The source further told ET that said engines have been dismounted from the grounded planes which suggest that these planes may remain grounded for six months or longer.
While the airline did not comment on workforce cuts, the report quoted the carrier saying, “In line with practices followed globally, the airline regularly reviews its network to address its capacity exposure to routes, markets and airports. Important external factors that necessitate changes in the airline’s network and scale of operations are surging crude prices, ongoing rupee devaluation, and pricing environment.”
Worth mentioning here is that the Tata Group recently expressed an interest in buying the loss-ridden airline. The initial proposal of equity collaboration floated by the Naresh Goyal-led company has been rejected as the Tata Group wants complete control over the management of the airline.
