Jet Airways shut down has left it’s 20,000 employees in a crisis

India's oldest and 2nd largest private airline- Jet Airways had suspended all of its flights back in April due to lack of funding. Jet was unable to meet its basic expenses like fuel and other critical services that would allow swift operations. The airline has since approached various associations of lenders and investors for interim fund, summing up to about Rs. 400 crores. The loan was denied as the investors and lenders deemed it to be unprofitable and that the company would end up in the same condition after a certain period of time. Hence, Jet Airways had to shut down its operations.

In an attempt to avert this crisis, Jet had already stopped paying some of the employees from the month of January. Other employees have been kept on payroll but have not been paid since April. This crisis has rendered about 20,000 employees jobless. Many other airline organisations, hotels, private companies and start-ups are hiring ex-employees of the Jet but they pay lower salaries. The well-trained employees are being hired for entry-level jobs at entry level salaries. Many employees have been forced to give up their lifestyle to adapt with the sudden crisis that hit them.

Amit Kelkar, an engineer who has worked for Jet for 22 years now says, “My job is not over yet,” further expanding that “the aircraft are grounded but very much there. As long as the aircraft is with us, I will keep working on them. There is no reason to lose hope.”

While many employees hope that this shut-down is temporary, things do not seem to look up Jet anytime soon. Due to this, many have squabbled to hunt for jobs while most still remain unemployed. The blow of unemployment came hard and fast for the employees who were unprepared to handle such a plight.

Jet Airways is the second Indian airline to shut down, after Kingfisher (2012) in this decade. Mallya tweeted out, addressing the crisis: “Even though we were fierce competitors, my sympathies go out to Naresh and Neeta Goyal who built Jet Airways that India should be extremely proud of. Fine Airline providing vital connectivity and class service. Sad that so many Airlines have bitten the dust in India. Why?”

The Jet Airline has a total debt of $1.2 billion. According to Mark Martin, founder of Martin Consulting (an advisory firm), once an airline shuts down in India, it stays that way. This has been proved by history and business dynamics.

 

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