Thursday, March 22, 2012

Kingfisher Airlines may layoff employees to reduce costs

Mumbai: Kingfisher Airlines Ltd may lay off employees as it prepares to run just one-fourth of its fleet and wind up its international flights, according to three airline executives. Jet Airways (India) Ltd had tried to lay off more than 800 employees in late 2008 but had to reinstate them after they took to the streets in protest. The Vijay Mallya-promoted Kingfisher Airlines, which till last year had 7,000 employees on its rolls, may reduce its management staff even as pilots, engineers and board members quit. The airline has identified employees to be fired, said one of the three people mentioned above, adding each department has been asked to prepare a list. The exercise began a fortnight ago and a decision on the layoffs will be taken this month before the next fiscal year begins, the executive said. "The management is making a detailed list for the lay-offs," the second executive said. “The fresh recovery plan (submitted to the aviation regulator) is just buying time to re-organise the airline with the help of an investor."

The third executive said some engineers may be among those asked to leave. "A large section of engineers are also waiting for the (salary) dues to put in their papers. The management has not clarified the structure of lay-offs, but has given sufficient indication of the same," this executive said, adding that the layoffs are unlikely to be challenged as the airline's employees are not represented by any labour union. While the extent of the layoffs is not clear, the first executive said the airline is targeting a highly reduced fleet and corresponding staff strength for the foreseeable future. All the three executives declined to be named.
22/03/12 TravelBizMonitor
To Read the News in full at Source, Click the Headline

0 comments:

Post a Comment