Jet Airways

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Jet Airways Crisis

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Team Members Kunal Banthia Rakesh DhalBisoi Gaurav Patel Shravan Bhumkar Kishore Gulhane Tushar Patil Mangesh Gade

(75) (90) (65) (100) (74) (66) (23)

Jet So Far.. • Jet Air Ways was incorporated as an air taxi operator in Apr'92 • It started domestic commercial airline operations in May'93 • It began international operations in Mar'04 • Company is listed on the BSE, 80% of the stock is controlled by Naresh Goyal • More than 30 K employees • It operates a fleet of 84 aircrafts over 380 daily flights to 65 destinations worldwide • It is India's second largest airline • In Apr'07 taken over Air Sahara for US$ 340 million in all-cash deal • It also operates two low-cost airline,Jet Lite ( formerly Air Sahara ) & Jet Airways Konnect

• In Oct'08 Jet announced an alliance with rival Kingfisher regarding code-sharing on domestic and international flights, joint fuel management, common ground handling and utilization of crew etc.

Jet So Far.. Contd.... • World's thirty second airline to introduce private First Class Suites on their Boeing 777-300ER • In Oct'08 laid off 1900 employees-largest lay-off in the history of Indian aviation. Later on all the employees were reinstated . • Awards & Achievements-Best Domestic Airline, India's Airlines, Service Excellence award, India's most respected co in the travel and food sector, Best Cargo airline of North Asia etc • Market Share 26.4% (including Jet Lite) Jan to July'09 • Domestic Flights- 280 daily and International Flights-100 daily • 24 K passengers daily across its network • US$ 8 million average daily revenue

Jet & Pilots Stand-off • Jet Airways has 1000 pilots on its rolls • 24th July'09 NAG , an union , is formed by Jet airways Pilots and is formally registered with Regional Labour Commissioner,Mumbai • 31st Jul'09 ,Jet airways sacked two senior most pilots Mr Thomas & Mr Balaraman for forming a trade union • 5th Aug'09-Two terminated pilots appeal to the Airline for reinstate • 17th Aug'09-Jet airways CEO refuse to reinstate the two pilots • 24th Aug'09- NAG sends two week strike notice to the airline management and a formal notice to the labour commissioner

• 31st Aug'09-A conciliatory meeting was called on between the management and union (650 pilots) by regional labour commissioner • Demand by the union to reinstate both the terminated pilots and recognisation of NAG

Jet & Pilots Stand-off Contd.... • 7th Sept'09- Bombay High Court restrained them from resorting to any form of strike • Jet sacks two more pilots

• 8th Sept'09- 450 members of NAG went on stimulated strike by way of mass sick leave • 221 flights cancelled on 8th Sept'09 and 20 K passengers affected

• 296 flights cancelled on 9th Sept'09 and 14 K passengers affected • 261 flights cancelled on 10th Sept'09 and 10 K passengers affected • 243 flights cancelled on 11th Sept'09 and 8 K passengers affected • 346- Total no of flights a day Jet Airways chairman met Civil Aviation Minister & with Capt. Girish KaushikPresident NAG a section of the pilots and to resolve the impasse-but no success

Jet & Pilots Stand-off Contd.... • Jet Airways management was not willing to buckle in light of high court order • “ They are behaving like terrorists. They can't hold the country, the passengers the airline hostage.”-Naresh Goyal • Had booking for 14,000 domestic passengers and 9,500 intn'l passengers

• 80% of the passengers were accommodated on other carriers and 20% cases refunded • Labour minister said ESMA could be invoked against the striking pilots if the • Civil Aviation Ministry recommends • Jet Airways indicated to rope in 60-80 expat pilots Naresh Goyal threatened to close down the business

Govt Role in Jet Turbulence • Civil Aviation Minister told Mr Goyal to end the crises asap due to report of other

airlines charging

sky high fares.

• Under Fire for some time now on fronts like AI, and high air-port user charges the timing of the current crisis in the run up to Maharashtra polls was causing acute discomfort to Mr Patel. • Last year Mr Patel was not comfortable with MNS leader Raj Thackeray getting credit for reinstating of 1900-odd cabin crew members.

• This time he did not speak out at all due to the public perception of his being close to Mr Goyal and Mr Mallya and remained in the back ground . • Pilots roped in congress MP Sanjay Nirupam • PM Dr Manmohan Singh inquired about the situation in the cabinet meeting • Govt was worried for malign of international image due to the the strike The govt bodies involved were :Civil Aviation Ministry,DGCA,the Labour Ministry,The Chief Labour Commissioner& the Regional Labour Commissioner of Mumbai

Jet Set to Fly • The stand-off ended on 12th Sept'09 midnight after five days which led

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cancellation of 800 flights • Jet Airways agreed to reinstate four sacked pilots • NAG would not be dissolved • Consultive Group to be put in place : 2 directors,CEO,2 representatives from flight operations and 5 pilots .

• Jet not to initiate any action against the agitated pilots • Jet would also not pursue the pending contempt petition before Bombay High Court • Jet Airways resume the service on 14th Sept'09 The five days stand-off translates in to a revenue loss of US$ 10 million

Thank you…