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    Case Study of Jet Airways

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    rishitkhakhar
    Jet Airways began as an air taxi operator in 1992 and grew significantly but faced challenges as the Indian aviation industry became flooded with competition. In October 2008, Jet Airways laid off nearly 1,100 employees across different departments with no prior notice, though they were given one month's pay, citing growing challenges in the industry. This led to criticism and protests from employees. Later in November, Jet Airways instituted a salary cut of 20% for pilots and engineers and 5-10% for top officials to further address financial difficulties in the turbulent aviation market.

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    Case Study of Jet Airways

    Uploaded by

    rishitkhakhar
    219 views2 pages
    Jet Airways began as an air taxi operator in 1992 and grew significantly but faced challenges as the Indian aviation industry became flooded with competition. In October 2008, Jet Airways laid off nearly 1,100 employees across different departments with no prior notice, though they were given one month's pay, citing growing challenges in the industry. This led to criticism and protests from employees. Later in November, Jet Airways instituted a salary cut of 20% for pilots and engineers and 5-10% for top officials to further address financial difficulties in the turbulent aviation market.

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    Jet Airways began as an air taxi operator in 1992 and grew significantly but faced challenges as the Indian aviation industry became flooded with competition. In October 2008, Jet Airways laid off nearly 1,100 employees across different departments with no prior notice, though they were given one month's pay, citing growing challenges in the industry. This led to criticism and protests from employees. Later in November, Jet Airways instituted a salary cut of 20% for pilots and engineers and 5-10% for top officials to further address financial difficulties in the turbulent aviation market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    219 views2 pages

    Case Study of Jet Airways

    Uploaded by

    rishitkhakhar
    Jet Airways began as an air taxi operator in 1992 and grew significantly but faced challenges as the Indian aviation industry became flooded with competition. In October 2008, Jet Airways laid off nearly 1,100 employees across different departments with no prior notice, though they were given one month's pay, citing growing challenges in the industry. This led to criticism and protests from employees. Later in November, Jet Airways instituted a salary cut of 20% for pilots and engineers and 5-10% for top officials to further address financial difficulties in the turbulent aviation market.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Case study- jet airways employees layoff

    Background Note
    Jet, with its headquarters in Mumbai, India, began as an air taxi operator in April 1992 and started its commercial operations a year later, in 1993. It operated with just 24 flights across 12 destinations initially, but showed exceptional growth with more than 357 daily flights to about 62 domestic and international destinations in 2008. It was first listed in the National Stock Exchange (NSE) in the year 2005. As of June 2008, it operated over 370 daily flights to about 68 destinations both in India and abroad including San Francisco, New York,Toronto, Singapore, Brussels, London (Heathrow), Hong Kong, Shanghai, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Abu Dhabi, Dubai, etc...

    HR Issues, Management and Decision Making at Jet


    According to the company, Jet paid the utmost importance to the composition of its senior management and its human resources with emphasis on teamwork as a key success factor. Being in the service-based industry, Jet gave priority to high quality, professional service to its customers...

    The Retrenchment Drama Unfolds


    The retrenchment drama unfolded on October 16, 2008, when Jet announced that it would lay off nearly 1,100 of its staff a day after it had already laid off around 800 of its cabin crew members. The second phase of 1,100 employees included those from departments like management, flight attendants, and the cockpit crew. The company decided to lay off these employees with no prior notice but offered them a month's remuneration...

    Reasons for Retrenchment


    The growing challenges in the Indian aviation industry were the main reason for the lay offs at Jet, according to the company and other industry analysts. Turbulent Times for the Indian Aviation Industry The Indian aviation industry was one of the fastest growing aviation industries in the world. The Air Corporations (Transfer of Undertakings and Repeal) Act 1994 opened the Indian skies up to private operators. Apart from government-owned airlines, the aviation industry was flooded with private operators and low cost carriers...

    The Debate Leading to the Reinstatement of Employees


    Jet received criticism from several quarters for retrenching its employees. Many of its employees protested against the decision to oust them without prior notice. Most of them had paid substantial amounts to receive training at major Aviation Training institutes...

    Massive Salary Cuts Follow

    In the last week of November 2008, Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staff. The company planned a 5 percent to 10 percent cut in the salary of top officials who drew a salary above Rs. 75,000...

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