Cash-Strapped Jet Airways Once Again Lays Off Staff, 16 Employees Fired To Cut Cost, Stay Afloat

Struggling low budget domestic carrier Jet Airways has once again resorted to cost-cutting measures by pruning its staff.

According to reports, 16 Jet Airways staff have been fired in the latest layoff by the company, PTI has reported.

These employees were working as ground staff in Jet Airways' Kochi and Hyderabad offices.

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"The airline continues to lay off people from various departments in small groups. It has already shut its city office in Hyderabad, which had 4-5 employees. Last week, the airline asked some of its employees working in the Kochi office to quit. Together, it has retrenched another 16 people from these two offices," an unnamed source was quoted by PTI as saying.

Earlier, the airline had laid off 20 employees, including some senior-level executives from the in-flight services department.?

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Another batch of 15 managerial-level employees from various departments—including engineering, security, and sales was asked to leave the company before that.

A Jet Airways spokesperson said the company is optimising its resources in select cities, including re-deploying resources where needed, as part of its turnaround plan, which includes a comprehensive network review and capacity deployment.

"Jet Airways has undertaken a series of initiatives to enhance the economic performance, efficiency and productivity for the long-term health of its business," a Jet Airways spokesperson said.

Jet Airways, promoted by NRI businessman Naresh Goyal has a fleet of 124 planes and a workforce of 16,000 employees.

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There are also reports that Goyal could ask Etihad Airways, which has 24 percent stakes in the airline to increase its stakes.

According to The Economic Times, Goyal and senior officials from Jet Airways held a meeting with the top management of Etihad, where they discussed handing over operations to the middle eastern carrier, in exchange for funds through equity and soft loans,? while retaining his position as the Chairman of the airline. As of now Goyal and his wife, Anita, hold a 51 percent stake in the company.

Jet Airways, which till not so long ago was ranked second-largest airline in India with a 17.8 per cent passenger market share has been experiencing financial troubles for some time now.

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In the recent months, the company had made news for failing to pay salaries to its employees and asking junior pilots to take a 30 percent pay cut and furnish surety bonds worth up to Rs 1 crore along with an undertaking that they will work for the airlines for at least five to seven years.

Some bad publicity over a mid-air fiasco, when some 30 passengers were left with bleeding from their ears and noses after the crew forgot to maintain the cabin air pressure, too did not help the air line's image.