HR Problems at Jet Airways: Coping with Turbulent Times in the Indian Aviation Industry

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Case Details:
Case Code : HROB117
Case Length : 16 pages
Period : 2007-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Jet Airways (India) Limited
Industry : Aviation
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Reasons for Retrenchment

The growing challenges in the Indian aviation industry were the main reason for the lay offs at Jet, according to the company and other industry analysts.

Turbulent Times for the Indian Aviation Industry

The Indian aviation industry was one of the fastest growing aviation industries in the world. The Air Corporations (Transfer of Undertakings and Repeal) Act 1994 opened the Indian skies up to private operators. Apart from government-owned airlines, the aviation industry was flooded with private operators and low cost carriers...

The Debate Leading to the Reinstatement of Employees

Jet received criticism from several quarters for retrenching its employees. Many of its employees protested against the decision to oust them without prior notice. Most of them had paid substantial amounts to receive training at major Aviation Training institutes...

Massive Salary Cuts Follow

In the last week of November 2008, Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staff. The company planned a 5 percent to 10 percent cut in the salary of top officials who drew a salary above Rs. 75,000...


Exhibit I: A Snap-shot of Kingfisher Airlines
Exhibit II (a): Financial Snapshot of Jet Airways for the year 2007-2008
Exhibit II (b): Comparison of Financials of Jet Airways in the quarters from June 2008-June 2007
Exhibit III: Growth in Passenger Traffic in the Aviation Sector


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