No relief package if jobs are cut: Aviation ministry to airlines

New Delhi: Desperate to show that its 'relief' for aviation industry was not just for rich airline owners but the aam admi albeit indirectly, the
oil and aviation ministers put pressure on carriers not to cut jobs while clearing the oil package on Wednesday.
This is the only quid pro quo the authorities have managed to extract as airlines have steadfastly refused to pass on benefit of cost cuts to passengers by slashing fares citing mounting losses.
In fact, aviation minister Praful Patel had told Jet chief Naresh Goyal to reinstate the 1,900 employees or else it would become difficult for the government to extend any relief package to airlines.
During Wednesday's Patel-Deora meet, the issue of job cuts came up when AI chief Raghu Menon while speaking on behalf of the industry is learnt to have said how high losses were forcing airlines to cut costs by reducing capacity and job cuts.
At this stage, oil minister Murli Deora is learnt to have said: "Why is this issue being raised now? There should not be any layoffs."
Not to be left behind, Patel is also learnt to have said that Jet's laying off 1,900 was 'inexcusable'. He also told Deora that AI was not planning to lay off any employee and its yet to be cleared leave-without-pay scheme did not have any such feature.
After the meeting Kingfisher chief Vijay Mallya said: "There will be no retrenchment, we will not take anyone's job."
23/10/08 Times of India

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Categories: Indian Aviation- In General Oct 2008