Kingfisher to sack 300 employees
New Delhi: Employees of lowcost carriers that have been merged by full service airlines are becoming the first ones to lose their jobs in this crisis time. Days after Jet Airwaysowned JetLite (former Air Sahara) downsized nearly 750 employees, Kingfisher Airlines has decided to give the pink slip to almost 300 employees majority of whom came from Air Deccan.
While JetLite is moving towards integration with Jet, Kingfisher has already merged with Deccan and both the mega carriers are now integrating operations and axing employees of the airlines they have acquired.
Both Jet and Kingfisher are reported to be losing anywhere up to Rs 10 crore a day. Now in a bid to cut losses, the Vijay Mallya-owned airline is also going to return some leased planes to reach a capacity that's closer to actual demand.
A Kingfisher spokesperson said the airline had embarked on a series of restructuring measures designed to achieve cost savings, route rationalization and operational efficiencies to "minimize the impact of the ongoing turbulence faced by the aviation industry".
"Many employees were counselled on their career path progression and best utilization of their individual skill sets. As a result, a set of 300 employees have chosen to move on and have parted ways with the company and/or put in their resignations... we are offering all these employees a severance package equal to 2 months' gross salary for every completed year of service (subject to a minimum of 3 months pay-out)," Kingfisher said. This severance is likely to cost about Rs 2.5 crore.
The merged Kingfisher-Deccan combine is also going to reduce its fleet size. The spokesperson said: "...having closely examined aircraft utilization, we have identified surplus aircraft which are now redundant and are therefore being returned back to lessors." After effecting about one-fifth of its flights, Kingfisher operates over 400 flights daily on its 85 aircraft.
The decision to return two leased aircraft and possibly increase this number comes close on the heels of Kingfisher asking Airbus to defer deliveries of some A-320 family planes as also reducing its requirement for the ultra long haul A-340 variety.
While JetLite is moving towards integration with Jet, Kingfisher has already merged with Deccan and both the mega carriers are now integrating operations and axing employees of the airlines they have acquired.
Both Jet and Kingfisher are reported to be losing anywhere up to Rs 10 crore a day. Now in a bid to cut losses, the Vijay Mallya-owned airline is also going to return some leased planes to reach a capacity that's closer to actual demand.
A Kingfisher spokesperson said the airline had embarked on a series of restructuring measures designed to achieve cost savings, route rationalization and operational efficiencies to "minimize the impact of the ongoing turbulence faced by the aviation industry".
"Many employees were counselled on their career path progression and best utilization of their individual skill sets. As a result, a set of 300 employees have chosen to move on and have parted ways with the company and/or put in their resignations... we are offering all these employees a severance package equal to 2 months' gross salary for every completed year of service (subject to a minimum of 3 months pay-out)," Kingfisher said. This severance is likely to cost about Rs 2.5 crore.
The merged Kingfisher-Deccan combine is also going to reduce its fleet size. The spokesperson said: "...having closely examined aircraft utilization, we have identified surplus aircraft which are now redundant and are therefore being returned back to lessors." After effecting about one-fifth of its flights, Kingfisher operates over 400 flights daily on its 85 aircraft.
The decision to return two leased aircraft and possibly increase this number comes close on the heels of Kingfisher asking Airbus to defer deliveries of some A-320 family planes as also reducing its requirement for the ultra long haul A-340 variety.
--~--~---------~--~----~------------~-------~--~----~
Feedback for the group.
http://spreadsheets.google.com/ccc?key=pMGSuXcWB0fTc5dPBUEvKcw&hl=en
Live Market News www.LiveNewsUpdater.blogspot.com
EagleEyeTrade Group http://groups.google.com/group/EagleEyeTrade
Association of Indian Individual Investor www.groups.google.com/group/Aiii
-~----------~----~----~----~------~----~------~--~---
No comments:
Post a Comment