SlideShare a Scribd company logo
Jet Airways Crisis   …
   +          =

   +          =
                ??
Team Members
 Kunal Banthia      (75)
 Rakesh DhalBisoi   (90)
 Gaurav Patel       (65)
 Shravan Bhumkar    (100)
 Kishore Gulhane    (74)
 Tushar Patil       (66)
 Mangesh Gade       (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 Kaushik-
  President     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   to
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…

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Jet Airways

  • 1. Jet Airways Crisis … + = + = ??
  • 2. Team Members Kunal Banthia (75) Rakesh DhalBisoi (90) Gaurav Patel (65) Shravan Bhumkar (100) Kishore Gulhane (74) Tushar Patil (66) Mangesh Gade (23)
  • 3. 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.
  • 4. 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
  • 5. 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
  • 6. 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 Kaushik- President NAG a section of the pilots and to resolve the impasse-but no success
  • 7. 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
  • 8. 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
  • 9. Jet Set to Fly • The stand-off ended on 12th Sept'09 midnight after five days which led to 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