Business Daily from THE HINDU group of publications
Tuesday, Sep 23, 2008
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Business Daily from THE HINDU group of publications Tuesday, Sep 23, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Airlines Logistics - Human Resources Domestic airlines clip staff strength
Kingfisher offers VRS to 300 employees, paying Rs 2.5-crore total severance package JetLite offers employees absorption into Jet Airways or voluntary separation scheme Our Bureau New Delhi, Sept. 22 To achieve economies of scale and stay afloat despite a decline in passenger numbers, several domestic airlines are looking to downsize their workforce. On Monday, Kingfisher Airlines announced that 300 of its employees have parted ways with the company. The exiting employees include 200 working in the security department and another 50 each in flight operations, engineering and maintenance, constituting less than 5 per cent of the airline workforce of about 8,500. The announcement comes soon after the merger of Kingfisher and Air Deccan has been put in place. Sources indicated that even after paying almost Rs 2.5 crore as a severance package to the 300 staff, the annual savings for the airline will be more than double of what it is paying out. Staff salaries account for 20-25 per cent of the running cost of a full service airline. Kingfisher joins the growing list of domestic airlines that have downsized or announced similar plans so as to improve the bottomline. JetLite, the 100 per cent subsidiary of Jet Airways, has undertaken a rightsizing exercise in several departments except security, engineering personnel, cabin and cockpit crew. “We have offered employees several options ranging from being absorbed in Jet Airways or a voluntary separation scheme. We have also entered into tie-ups with certain employment agencies to assist employees in getting alternative employment,” the airline said in a statement. Officials, however, refused to comment on the number of people who would be offered the golden handshake. Jet Airways took over operations of JetLite in April 2007. Air India sabbaticalAir India is also looking at a sabbatical scheme which will allow its non-operational staff to take leave for two-to-five years, saving the airline Rs 16-20 crore annually. Domestic airlines post 17% drop in passengers in Aug Estimated airline industry losses More Stories on : Airlines | Human Resources
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