Jet Airways: Staff tears force boss to change mind

[Greg McDonald]

From NEWS.COM.AU:

THE boss of India's biggest domestic airline said he had scrapped plans to lay off up to 1900 employees because their tears caused him sleepless nights.
All 800 employees at Jet Airways who had already been laid off were called back to work Friday - just 48 hours after they were told to go by the airline, citing large losses.

Jet said earlier this week it would sack up to 1900 employees, marking the first mass layoffs in the formerly booming Indian aviation sector.

"I could not sleep at night. I was mentally disturbed when I saw tears in their eyes. I apologise for all the agony you went through," Jet chairman Naresh Goyal said.

He said he had made a "personal decision... without any external pressure."

"The management will have to understand this," he said.

India's airline sector - a potent symbol of the country's economic progress - is going through its "worst ever" crisis, according to Civil Aviation Minister Praful Patel.

Soaring global fuel prices have forced airlines to hike fares and cut routes which have hit passenger numbers.

On Monday, Jet announced a tie-up with its fierce rival Kingfisher Airlines for an "operational alliance" including joint fuel management, ground handling, network rationalisation and crew sharing.

The sector posted a combined loss of $US938 million ($A1.35 billion) in the fiscal year to March 2008 and analysts expect a $US2 billion ($A2.89 billion) dollar loss this year.

Many of those laid off were newly hired flight attendants and ground crew in their early 20s.

One man, Jet purser Salim Suleiman, was on leave and heard he was to lose his job on his wedding day, Indian media reported.

He had to return after the ceremony to hand in his uniform, badge and security pass.

Some new employees expressed worry about repaying bank loans they had taken to pay flight-training and cabin crew school fees.

Shocked employees, a number in uniform, took to the streets this week, many weeping at the unexpected sackings two weeks ahead of the major Hindu festival Diwali - a time when many in India spend heavily on gifts.

Several politicians also expressed dismay at the firings.

"You cannot just sack so many people suddenly," India's Oil Minister Murli Deora said yesterday.

Employees cheered and distributed sweets outside the Jet Airways head office in Mumbai after Mr Goyal's change of mind.

The company however maintained it still needed to cut costs in coming months as the industry seeks to fly through stormy weather.

State-run carrier Air India is considering allowing 15,000 workers to take up to five years' unpaid leave as it battles the downturn.

"We will need to take some tough financial decisions," Mr Goyal said, without elaborating.

Jet posted a full-year loss to March of 2.53 billion rupees ($A75.05 million) and has defaulted on payment of fuel bills worth 2.59 billion rupees ($A100 million) to the state-run Indian Oil Corp.

The Government has rejected industry appeals for a bailout but has said it will look at cutting taxes on jet fuel and reducing airport landing and parking fees to ease the burden on the sector.

[Rhys Xanthis]

You know, it's often been a wonder of mine how executives sleep at night.

While I know and realise their job is to maintain the profits of the company (just like the pilots to fly the planes), I can't help but wonder how it feels to lay off thousands of workers and keep getting payed millions of dolllars per year...I dont think i could do that without taking a pay cut myself.

[Nigel C]

Meh...you're just too soft Rhys.

[Montague S]

you know it makes me wonder if Boeing was right all along, the A380 purchases in the current economic climate look to be few & far between.

[Raymond Rowe]

Originally Posted by Rhys Xanthis

You know, it's often been a wonder of mine how executives sleep at night.

While I know and realise their job is to maintain the profits of the company (just like the pilots to fly the planes), I can't help but wonder how it feels to lay off thousands of workers and keep getting payed millions of dolllars per year...I dont think i could do that without taking a pay cut myself.

Just ask Dixon what it is like. He would sleep at night.

[Marty H]

Originally Posted by Raymond Rowe

Just ask Dixon what it is like. He would sleep at night.

$12million 'golden handshake' when he parts next month, I'd be sleeping pretty well also.

I would also doubt he would lose his travel benefits either.

[Nigel C]

Originally Posted by Raymond Rowe

Just ask Dixon what it is like. He would sleep at night.

Having kept Qantas in a relatively strong position in terms of global aviation, I think he deserves to sleep well at night. There could/would have been a lot more jobs shed if things went pear shaped.

Wouldn't you agree?

[phil.l]

Agree

[Rhys Xanthis]

I agree also, i think he has done a very good job.

[Adam T]

You'd be hard pressed to see any sign of human emotion from Geoff Dixon LOL