February 15, 2010 by akhilendra
Airlines going down
Jet Airways to sack 1900 employees.800 people have already got their notices, remaining will be receiving their pink slips in coming days. There can be more job cuts from other companies also. So, what exactly is happening? Truly saying, I don’t know. But, as per my perception, they are facing unprecedented losses due to bad government policies. They have to pay huge taxes, poor laws like one need to fly in domestic market before being eligible for international routes, fixed foreign equity, etc. but they have created the entire empire. They went very aggressively in their expansion plans, they bought new planes, hired too many people. Now, they are not able to sustain this. So, they are coming with these kinds of cost cutting methods.
There are also suspicions that jet airways & kingfisher came together to form a stronger alliance covering around 60 % of total aviation sector, so that they can pressurize the government. There are both sides to coin, aviation sector form the infrastructure which is required to boost the future growth of India. It is being the hampered by poor government norms. Government should take initiatives to reestablish the sector which is very important because thousands of people are losing jobs. As far as, sector is concerned, we can afford to take some time and think but, “what about those peoples who are losing jobs in these situations?”
Airline company may get a bailout package or do something to reduce the loss but a ordinary professional who has been sacked, will find it very difficult to get some other job. We all know, once you have a sacked stamp on your resume, it is very difficult to reinstate your career. The kind of impact it is going to have on the sector will be catastrophic for the future of aviation industry. Sector’s robust growth has been due to its glamorous &. Lucrative appearance because of which, it has attracted lot of talent. But, now after all of this, I doubt whether people will be still interested in the sector.
Well, it’s a fact that aviation industry is going through a very difficult phase. But, one just can’t be allowed to take this kind of blunt decision. They should address the actual problem rather than taking some drastic steps. In last few months, India has been witnessing these kind of cases, where people have been sacked in big numbers, earlier in IT industry. So, government should take appropriate actions to ensure the job security of the people. There should be a change in approach & policies governing labor in this country. Related laws are very old & they need to be changed now. It has already been very late, so government should take the action immediately.
They should bring required changes in policies so that there can be a relief in industry. Fuel tax should be reduced & foreign equity limit should be increased, so that airline companies can generate liquidity by selling equity. They should change the existing labor laws & make it more difficult for these kind of employer to sack employee. Government need to protect the interest of these peoples as they are neither responsible for poor government policies nor bad management which went for irrational expansion plans.
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