FAILED AIRLINES : JET AIRWAYS

JET AIRWAYS GROUNDED: Unethical move towards its employees and customers

Hello readers, In this blog i will be sharing my views on how jet airways grounded and what was the impact on employees. I have read the article on 30-01-2020 and I feel the need to share this information with you all. Let’s get into the topic.

In early January 2019, Jet airways and its main lender, state bank of India, met aircraft lessors to assure them there was a plan to rescue the company. The idea was to shore up confidence in one of India's biggest brands, squeezed by low fares and high costs. But some lessors quickly lost patience as the bank did not provide details and Jet's founder angrily defied them to take the planes back.

Thousands of employees have been stunned by the rapid unravelling of jet airways, which, saddled with more than $1.2 billion in bank debt, grounded all its planes on Wednesday after lenders rejected a plea for emergency funds.

The shutdown has deepened the crisis as dues to which staff and suppliers pile up and lenders scramble to find a buyer for what was once India's largest private airline.

Jet airways CEO Vinay Dube told employees on Wednesday that the sale would take time and could throw up more challenges, but he was confident the airline would fly again.

Failure would threaten more than 16,000 staff jobs and thousands more tied to the airline, which at its peak operated over 120 planes and more than 600 daily flights.

More than a dozen employees told Reuters they had gone two to four months without pay. Many grapple with unpaid bills, overdue home loans, School and tuition fees.

Jet airways has lost key employees as the crisis unfolded.

About 400 pilots have moved to other airlines, leaving Jet with about 1,300 pilots, said a senior Jet pilot. About 40 engineers have also left, a senior engineer said.

Some veteran employees remain loyal to the airline and hope it can be restored to its former glory.

The 26-year-old airline has posted losses in eight of the past 10 years and its share of the domestic passenger market has fallen to about 15.5 percent in 2018 from 22.5 percent in 2015.

About 60 percent, or more than $600m, has been wiped off Jet's market value over the past year.

Now, with the airline's running out of ways to make money, state-run banks, led by SBI, took a temporary stake in Jet, promised a new loan of 15 billion rupees ($216m) and forced 69-year-old Goyal to resign as chairman.

So,This company had put thousands of jobs at risk and also tried to escape from the challenges which they had to face. So, this is one of the most unethical step which any company shouldn’t take at any Cost.

Thank you for Reading.
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