India’s Jet faces dilemma over jobs

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India’s Jet Airways is planning to restructure its operations in the coming months in an effort to cut costs but the airline is saying publicly that there will be no job losses.

Reports in India, quoting from unidentified officials at Jet, say the company restructuring will result in approximately 3% of the 13,000 jobs at the airline being cut.

But Jet’s executive director, Saroj Datta, told me briefly over the phone today that “there is no truth” in the assertion that the restructuring will result in job losses.

He says the carrier is restructuring to put itself on a better financial footing.

Last year Jet cut capacity in response to the sharp downturn in global traffic and Datta says this year it will be further cutting capacity.

But he declines to elaborate or say what the restructuring involves. Discussions on this are continuing and details will be released in the coming weeks when the plan is put into effect, he adds.

It is no surprise that Jet is stressing publicly there will be no job cuts. Last year Jet had a plan to lay off 1,900 employees.

But it abandoned the move last October following protests by sacked staff and growing opposition from politicians.

Jet knows that prosper in India it needs to keep the government on side.


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