HR problem at jet airways

About Jet Airways : Jet Airways (India) Private Limited is India's leading private airline. Jet Airways started operations on 5th May, 1993 Its main hub is in Mumbai with secondary hubs at Delhi, Chennai, Bangalore, Pune and Kolkata. It has an international hub at Brussels airport, Belgium It carries about seven million passengers a year. Its reputation for punctuality and outstanding service attracts a large.

JET AIRWAYS

The board of Directors Mr. Naresh Goyal, Chairman Mr. Ali Ghandour, Director Mr. Victoriano P. Dungca, Director Mr. Javed Akhtar, Director Mr. Iftiakar M. Kadri, Director Mr. Saroj K. Datta,Executive Director

MANAGEMENT

The senior management Mr. Nikos Kardassis, Chief Executive Officer Mr. Saroj K. Datta, Executive Director Mr. Abdulrahman Albusaidy, Group Executive Officer Mr. Sudheer Raghavan, Chief Commercial Officer Mrs. Anita Goyal, Executive Vice president

HISTORY

In early years

1992- Incorporated as an air taxi operator 1993- Started commercial operations

1994- Applied for scheduled airline status

2004- International operations

The company was listed on the Bombay Stock Exchange. 2007- It has 10,017 employees

Present

2008- Laid off 1,900 of its employees. Jet Airways and rival Kingfisher Airlines announced an alliance , an agreement on code-sharing 2009- Launched its low-cost brand, Jet Konnect

2010- According to a PTI report, Jet Airways (Jet + JetLite) had a market share of 26.9%

Fleets Of Aircrafts
98 Airplanes in total

Airbus330--200--(12) ATR72 --500--(14) Boeing737--700--(11) Boeing737--800--(42) Boeing737--900--(2) Boeing777300ER*--(11)

*Includes aircraft that have been leased to other airlines

NETWORK OF JET AIRWAYS

76 Destinations- Each connected every 5 minutes.

Provides services in: 52 domestic destinations in India 24 international destinations across Asia, Europe & North America. International destinations include Colombo, New York, Toronto, Singapore etc.

Competitor Analysis
Domestic Market International Market

Market Share

SERVICES

Market Segmentation:

Economic Class Business Class Premium class Business Class Economic class (Jet lite)

Target customers

In-Flight Experiences

ACHIEVEMENTS

2010

"Airline with Best Business Class Service in the World Awards,

"Global Travellers 7th Annual Readership Survey Award", "Best Long Haul Airline Ex Brussels-TM Travel Awards,

7th 'Friends of Thailand Awards Best Full Service Airline International (Indian)' and 'Best Full Service Airline Domestic' Awards by the Air Passenger Association Of India (APAI)

2011

"Best On Time Performer Amongst Scheduled Domestic Airline",

"Air Cargo Award of Excellence ,

"Customer and Brand Loyalty Award", "Hall Of Fame Award,

SWOT ANALYSIS

STRENGTHS

Market Driver.

Experience Exceeding 16 years.

Largest fleet size.

WEAKNESSES

Loosing domestic share.

Weak brand promotion. Strikes.

OPPORTUNITIES

Untapped air cargo market.

Scope in International market.

Service and tourism.

THREATS

Strong competitors.
Fuel price hike. Overseas market competition

Problems faced by JET AIRWAYS in 2008-2009

Being service based industry Jet gave

importance to high quality professional service to its customers. Due to intense competition in the airline industry, company faced high level of attrition of employees in 2004. The attrition rate of employees in march 200414.1% and in Sept 2004- 5.5% .

 In Oct'08 ,1900 employees were laid off and it

was the largest lay off in the history of aviation. Later on all the employees were reinstated . Jet Airways had 1000 pilots on its rolls. 24th July'09 NAG , an union , was formed by Jet airways Pilots and was formally registered with Regional Labour Commissioner, Mumbai. 31st Jul'09 ,Jet airways sacked two senior most pilots Mr. Sam Thomas & Mr. D.Balaraman for forming a trade union

5th Aug'09-Two terminated pilots appeal to the Airline for reinstate On August 22,2009, the management received a strike notice from the union,NAG(National Aviators Guild). The labor commissioner who received the strike notice, called both the parties for a conciliation meeting on 31st Aug09. The labor Commissioner asked the management to come with a satisfactory reply for terminating the services of the pilots by Sept 7, 2009.

Jet sacks two more pilots 8th Sept'09- 450 members of NAG went on stimulated strike by way of mass sick leave. On Sept 9, 2009, 9 central trade unions extended their support to the striking Jet Airways pilots. On Sept 12,2009, the management agreed to take back the dismissed pilots on board a consultative group was formed to resolve the issue

Strike: A Huge Loss

From 8 to 13 September: Strike left the ailing airline with more damages. Jet-Airways
Date (Year 2009) Sept.8 Sept.9 Sept.10 Sept.11 Sept.12 No. of Flights Cancelled 186 170 198 150 180

Strike: A Huge Loss

Reduction in daily revenue. Lost 200 crores in just five days. Average passenger per day dropped from 23000/day to 7500/day. Jet has to accommodate 80% of the passenger on the other carriers. For the rest entire fare has been refunded. Loss of goodwill is not measurable.

Can Pilots Form A union?

It is written in our Constitution that it is a fundamental right of every citizen to form groups or union. Under IDA pilots are classified as workmen.
Under WCA members of any company, organization or Industry can form a trade union if they are more then 100 people.

IS IT STRIKE?

IS PILOTS ARE ON SICK LEAVE?

OR IS IT SOMETHING ELSE?

Actually it is a strike.

Illegal Strike
According to INDUSTRIAL DISPUTE ACT: Any strike without giving notice during conclusion processing is prohibited. Even if they have given a notice then also they have to wait for 14 days. Then only they can go on strike. After the conclusion on consolation proceeding they have to wait for 7 days before they can go on strike.

Advantage of jet airways crisis for other airlines

Transferred as many as 60 percent of the passengers booked on its flights to Air India, the national carrier, and other airlines during the strike. Rival carriers began to charge high fares. A big competitor was out, therefore it was a big advantage to other airlines.

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