Jet gives exit order to 50% Air Sahara staff

Mumbai: Jet Airways has almost halved the workforce of Air Sahara to 2,100 from 4,100 since its acquisition of the airline in April.
After the takeover, Jet has renamed Air Sahara as Jetlite and positioned it as an airline offering low fares.
Besides cutting staff, Jet has reduced costs by lowering lease rentals on aircraft owned by Air Sahara and rationalising the use of office space.
Jet has also renegotiated certain contracts and services and reduced overhead costs.
At a later stage, Jet plans to reduce handling, distribution and catering costs.
Sources said most of the retrenched employees were ground staff. They also did not rule out the possibility of many of them being absorbed by the Sahara group. This, however, was not be confirmed by the companies.
In a conference call with analysts after the fourth-quarter results, Jet CEO Wolfgang Prock-Schauer said benefits from the acquisition were realised in the first quarter of 2006-07.
In the next two to three quarters, the company expects to capture all the benefits of the takeover.
01/07/07 The Telegraph

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Categories: Jet Airways Jul 2007, Jet Lite Jul 2007