Jet Airways And Kingfisher Handout Pink Slips

JET AIRWAYS AND HANDOUT PINK SLIPS Jet Airways, India's biggest and mostestablished private airline, had sacked 1,900 employees from its 13,000-strong workforce on 15th Nov. ,a move it says is necessary to stave off collapse given the "exceptional" pressures confronting the airline industry.



EFFECT OF US RECESSION ON INDIAN ECONOMY  

slowdown in the US economy is bad news for India. Indian companies have major outsourcing deals from the US. India's exports to the US have also grown substantially over the years. The India economy is likely to lose between 1 to 2 percentage points in GDP growth in the next fiscal year. Indian companies with big tickets deals in the US would see their profit margins shrinking.

Recession



A recession is a contraction phase of the business cycle. The U.S. based National Bureau of Economic Research (NBER) defines a recession more broadly as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales."A sustained recession may become a depression.

Causes of recessions: Currency crises Inflation National debt Speculation War

       

Effects of recessions: Bankruptcies Banks lend less money Deflation Foreclosures Reduced sales Stock market crash Unemployment

EFFECTS OF SACKING EMPLOYEES 

Shares of leading private carrier Jet Airways fell over 6 per cent on concerns of an additional cost burden after it reinstated 1900 sacked flight attendants, following protests and demand for a probe by politicians. At noon, Jet Airways shares trimmed early losses but were still down 3.09 per cent at Rs 251.



India's Jet Airways reinstates fired staff

Jet Airways, announced it has dropped plans to sack hundreds of staff following angry protests. Jet chairman Naresh Goyal also apologised to the 800 people laid off earlier in the week as part of a bigger cost-cutting plan involving the shedding of 1,900 jobs. "I could not sleep at night. I was mentally disturbed when I saw tears in their eyes. I apologise for all the agony you went through, Goyal said at a press conference in Mumbai late Thursday. million dollars) and has defaulted on payment of fuel bills worth 2.59 billion rupees to the state-run Indian Oil Corporation.

Shocked employees, a number in uniform, took to the streets this week, many crying at the unexpected sackings two weeks ahead of the major Hindu festival Diwali -- a time when many in India spend heavily on gifts. Several politicians also expressed displeasure and surprise at the firings.

Thank you….