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…