The aviation industry in India, a USD 6 billion turnover industry, is expected to lose USD 2 billion in 2008-09. The economic viability of the industry has been severely affected by the record high fuel prices and most recently due to the crisis of the financial markets globally and the downturn in traffic.
Jet Airways had planned for a continuous growth in the domestic aviation market and the implementation of the first phase of its international expansion program.
However, the domestic market has declined by double digit figures in recent months. Apart from this, Jet Airways’ long haul expansion had to be pruned down due to international developments. Also in these difficult times, the number of flights Jet Airways will be offering in winter schedule will be approximately 15% lower than originally planned.
This is inevitable in view of the declining traffic volumes. 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.
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. This will cut across all the activities of the Company. 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.
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.
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