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Jet-KF alliance not a marriage of convenience: Naresh Goyal
Published on Wed, Oct 15, 2008 at 09:56   |  Updated at Wed, Oct 15, 2008 at 20:12  |  Source : CNBC-TV18

Jet Airways Chairman Naresh Goyal said that consolidation (in the aviation sector) is inevitable, reports CNBC-TV18, adding that market share was not the answer to profitability. According to Goyal, rationalisation of routes, capacity and costs are essential for survival.

 


His company’s alliance with Kingfisher Airlines is not marriage of convenience, he clarified. Rationalisation will improve their bottomlines, Goyal said.

 

Vijay Mallya, Chairman, Kingfisher Airlines, said the benefits of the alliance would be seen in the next quarter.

 

As a cost-cutting measure, Kingfisher and Jet had on Monday entered into a code sharing alliance. The two companies made a pact for common fuel management, ground handling, network rationalisation and cross-crew use. The two airline rivals also joined hands for cross sales and staff training.

 

The move was followed by Jet dismissing 600 employees in one of the largest layoffs in the Indian aviation sector and there was speculation that Kingfisher may follow suit.

 

 Talking on the similar lines, Wolfgang Prock-Schauer, CEO, Jet Airways and Saroj Dutta, ED, Jet Airways pitch in their views on laying off plans.

 

Employees under probation:

Wolfgang Prock-Schauer, CEO, Jet Airways, said with respect to employees under probation, it is in all categories of the company. So, it is not only flight attendants, this goes through the whole system in our company including management personnel.

 

It is a very difficult decision, but we had to take it despite being very painful for every single employee. But in the great interest of the company, and regaining viability, we had to take these steps. So, this is a summary on network restructuring and relevant consequences on manpower planning.

 

I also want to clarify that this has nothing to do with the plans or alliance or cooperation with Kingfisher. This alliance is aimed to strengthen our economic viability of both airlines and what we are doing here is an adjustment to lower the number of flights.

Come back plans for employees??

Prock-Schauer said, “We will have discussions with every single employee on the subject and will assure the colleagues that they have first priority when the situation improves to come back into our company. We have trained them, and spent money training them.”

 

The procedure:

Saroj Dutta, ED, Jet Airways, said there are two things that we need to clarify. The process that has been followed in giving them notices of termination is entirely correct and it’s the way any company would do it so there is nothing unusual in what has been done.

 

They have been given dates and places to come and meet with us to complete the entire process. It is just that everything has happened suddenly than it was expected.

 

Dutta said as it is indicated in the press statement that was reissued this morning; we have about 800 cabin crew being issued with notice of separation from the company or adjustment in the company’s payroll. We are continuing with the process. There will be some more in other categories, which are being issued later today. The balance staff will happen in the next day or so. The total we expect would be around 1,900 employees in the company.

 

Employees under probation:

Wolfgang Prock-Schauer said with respect to employees under probation, it is in all categories of the company. So, it is not only flight attendants, this goes through the whole system in our company including management personnel.

 

It is a very difficult decision, but we had to take it despite being very painful for every single employee. But in the great interest of the company, and regaining viability, we had to take these steps. So, this is a summary on network restructuring and relevant consequences on manpower planning.

 

I also want to clarify that this has nothing to do with the plans or alliance or cooperation with Kingfisher. This alliance is aimed to strengthen our economic viability of both airlines and what we are doing here is an adjustment to lower the number of flights.

Come back plans for employees??

Prock-Schauer said, “We will have discussions with every single employee on the subject and will assure the colleagues that they have first priority when the situation improves to come back into our company. We have trained them, and spent money training them.”

 

The procedure:

Saroj Dutta said the process that has been followed in giving them notices of termination is entirely correct and it’s the way any company would do it. So there is nothing unusual in what has been done.

 

They have been given dates and places to come and meet with us to complete the entire process. It is just that everything has happened suddenly than it was expected.

 

Dutta said as it is indicated in the press statement that was reissued this morning; we have approximately 800 cabin crew being issued with notice of separation from the company or adjustment in the company’s payroll. We are continuing with the process. There will be some more in other categories, which are being issued later today. The balance staff will happen in the next day or so. The total we expect would be around 1,900 employees in the company.

 

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