Preview

Jet Airways : Retrenchment Case

Satisfactory Essays
Open Document
Open Document
251 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Jet Airways : Retrenchment Case
Why did Jet Airways announce retrenchment?

The announcement was done due to rise in aviation fuel. Jet Airways thought through retrenchment the expenditure can be controlled which was going high due to fuel prices.

What was the immediate reaction in the environment?

Employees were protesting as they were with no job. By seeing the employees of Jet in such a situation, political parties supported them. Due to this government was forced to rethink on the hike of the prices and as well as the lower staff of the company.

Was this reaction different from a reaction in USA over job losses in the Citi Group? Why?

Why is retrenchment/lay-off such a big issue in India but not in USA/UK?

Does it have something to do with the state of development or society/economy in the two countries?

Do we have different laws? Why? Who or What gives shape to legislation?

Does our history have any role in shaping the kind of labour legislation that we have?

➢ Challenges

1. Rising Fuel Prices

2. Political Factor

3. Economic Slowdown

4. Financial Viability

5. Increased Competition in Aviation Sector

➢ Reaction

1. Agitation

2. Political Support

3. Panicking Environment

4. Instability in Aviation Sector

5. Public Support/ Media Attention

➢ Short Term

1. Proper Procedure

2. Shifting to lower Waged jobs

3. Reduction in Salary

4. Rescheduling in smaller group

5. Giving media statement

➢ Long Term

1. Change in legislation (more flexible)

2. Aviation government conference

3. Sensitizing to employees needs by
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Air Canada - Organizational Changes
    • 4668 Words
    • 19 Pages

    Air Canada - Organizational Changes

    Air Canada was established by Canadian parliament on April 10, 1937. The company was initially incorporated under the Trans-Canada Air Lines Act, as Canada’s national airline service. At the time of incorporation, Air Canada was established as a wholly-owned subsidiary of the Canadian National Railway Corporation.(AIF) In 1977, Air Canada reorganized under the Air Canada Act, at which time it became property of the Canadian government. In 1988, Air Canada was reorganized under the Canada Business Corporations Act, and shares were sold to the public. On April 1, 2003, Air Canada filed for creditor protection and on September 30 2004, ACE Aviation Holdings Inc. became successor and parent holding company of the reorganized Air Canada and its subsidiaries. Various Air Canada subsidiaries include Aeroplan, Air Canada Jazz, Air Canada Technical Services, and Air Canada Cargo. Finally, Air Canada “is Canada’s largest domestic and international provider of scheduled passenger services in the domestic market”.(AIF)…

    • 4668 Words
    • 19 Pages
    Powerful Essays
    Read More
  • Good Essays

    Summary Of The Film 'Hydraulic Fracking'
    • 830 Words
    • 4 Pages

    Summary Of The Film 'Hydraulic Fracking'

    It was only a few people who work for higher up government companies that were brave enough and know what they are doing as a company is wrong and they cannot stand for it any…

    • 830 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Jetblue Case Analysis
    • 1125 Words
    • 5 Pages

    Jetblue Case Analysis

    However, the airline industry has been exposed to many external threats, and therefore, JetBlue has been facing financial problems which were mainly caused by fuel prices. The rising fuel costs have impacted the airline’s financial performance and affected its customers by increasing ticket prices. Another threat for JetBlue is terrorism which has impacted the industry as whole after 9/11. There is also strong competition from other low-cost airlines such as…

    • 1125 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    The Airline Industry: Westjet's Business Model
    • 496 Words
    • 2 Pages

    The Airline Industry: Westjet's Business Model

    Clive Beddoe and three other entrepreneurs founded Westjet on February 29th 1996. They had only three airplanes and five destinations and 220 employees, Beddoe believes that “Just because you pay less for your flight, doesn’t mean you should get less”. With this motto, Westjet becomes one of the lowest operating costs and the most successful airline company nowadays.…

    • 496 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Bombardier Cseries
    • 2212 Words
    • 9 Pages

    Bombardier Cseries

    Politically and legally, governments had always supported aeronautics by shielding national manufacturers against competition and subsidizing their research and development projects. To some extent, foreign competition called for the intervention of the World Trade Organization to control anti-dumping policies. Governments also got involved in establishing environmental regulations to control the damaging effects of air transportation on the environment. The deregulation of the aerospace industry in the mid-1990s led to a socio-cultural change in consumer's preference from high comfort level to lower prices. The latter pushed airline companies to seek low-cost-carriers to reduce costs. Economically, airline carriers adopted flexible financial models with manufacturers to meet fluctuating aircrafts demand and develop the business further. Technologically, airline manufacturers focused on innovating their core competencies through R&D and achieved economies of scale by outsourcing airplane segments to suppliers and developing strategic partnerships with subcontractors.…

    • 2212 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Good Essays

    Jetblue Strategic Management
    • 785 Words
    • 4 Pages

    Jetblue Strategic Management

    Technology/Innovation: R & D essential in creating efficiencies and reducing expenses with turn-around times, fuel costs, reservations etc…

    • 785 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    The U.S. Airline Industry
    • 1205 Words
    • 4 Pages

    The U.S. Airline Industry

    The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.…

    • 1205 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Significance Of The Num's Defeat In The Miners Strike
    • 1796 Words
    • 8 Pages

    Significance Of The Num's Defeat In The Miners Strike

    The Labour leader, Neil Kinnock found himself “deliberately distancing itself [Labour] from the unions,”5 and “cauterizing – the Scargill factor.”6 Labour, forced by the outcome of the Miners’ Strike “to change its policies even more… in order to make itself electable,”7 abandoned its commitment to working-class interests by repealing Clause IV, once the cornerstone of its socialist policy. ‘New Labour’ with Tony Blair at the helm no longer had need for the trade unions’ support and, according to Alastair Campbell's diaries, Blair was quoted to have said that they can “just f**k off.”8 This clearly demonstrates how far Labour has distanced itself from the unions. At a speech in 1995, during a time of heated discussions over the removal of Clause IV, Blair commented on New Labour’s direction, stating that, “our relations with the trade unions changed and better defined for today's world.”9 However, perhaps Blair’s stated opinions on the party’s relationship with the unions may have been exaggerated as around the same time as his speech Labour support had dropped to 47% from a high of 53% earlier that year10. Therefore Blair may be emphasizing his anti-union rhetoric to win back support for his…

    • 1796 Words
    • 8 Pages
    Better Essays
    Read More
  • Powerful Essays

    What Were The Strengths Of British Conservatism
    • 1864 Words
    • 8 Pages

    What Were The Strengths Of British Conservatism

    It is important to remember than one of the tactics that labour used to propel its party was its ability to demonise the Conservative party. The Labour camp was successful in creating an image in the minds of the public that likened the conservative camp with its pre-war history of economic and social inefficiency. However, in the favour of labour, they were successful in instilling ideas of collectivism and full employment with their voters. However, it was this industrial charter that managed to counteract this force. The main reason for this was the rhetoric.…

    • 1864 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    JET BLUE ; PREPARING FOR FINANCING
    • 2882 Words
    • 16 Pages

    JET BLUE ; PREPARING FOR FINANCING

    The core of JetBlue's strategy was low operating cost achieved through a smaller and more productive workforce; utilizing aircraft efficiently; better use of technology to achieve lower distribution cost i.e. use of electronic ticket as against paper ticket; use of brand new single model planes that reduced maintenance costs and training costs at the same time. However, moving into the growth phase, JetBlue was contemplating expansion with the introduction of a new model of planes, i.e. Embraer E190, that are smaller than the A320s that they were using. These planes were to be utilized for penetrating mid-size cities and also during off-peak times on existing routes. The company defined these markets as destination with 100 to 600 local passengers per day each way, compared to the much larger markets that the company was serving with its A320s. This had potential implications for its low-cost strategy.…

    • 2882 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Good Essays

    American Airlines Case Study
    • 1220 Words
    • 5 Pages

    American Airlines Case Study

    With 1988 operating income of $801 million on a revenue of $8.55 billion, American Airlines, Inc. (American), principal subsidiary of Dallas/Fort Worth-based AMR Corporation, was the largest airline in the United States. At year-end 1988 American operated 468 aircraft on 2,200 flights daily to 151 destinations in the United States, Bermuda, Canada, Mexico, the Caribbean, France, Great Britain, Japan, Mexico, Puerto Rico, Spain, Switzerland, Venezuela, and West Germany.…

    • 1220 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Air Canada
    • 788 Words
    • 4 Pages

    Air Canada

    In 2001 it acquired its largest competitor (Canadian Airline) and became the eighth largest airline. However, the merging caused problems of having two systems and different approaches and that caused the customer service to be bad. That led Air Canada to file for creditor protection in 2003. Air Canada received $850 million from Deutsche Bank as support and protection from going bankrupt under a condition of a total of $1.3 billion reduction. Air Canada focused on decreasing their costs and the following three years they started to get an operating income but they lost it during the financial crisis in 2008 and 2009. After that Air Canada just focused on cutting costs significantly and they also focused on customer service and expanding its international operations, and their financial results was getting better in 2010.…

    • 788 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    What Are Your Key Organizational Characteristics
    • 4559 Words
    • 19 Pages

    What Are Your Key Organizational Characteristics

    JetBlue began operations in 2000 as a well-funded start-up, which afforded us the ability to make significant investments in our product offerings, including all new aircraft equipped with leather seats and Live TV. This product investment combined with superior customer service at low fares led to widespread brand recognition and early success, predominantly with leisure travelers in New York. By the end of 2006, JetBlue employed over 10,000 employees (to whom we refer as Crewmembers), operated500 daily flights with a fleet of 119 aircraft and generated annual revenues exceeding $2 billion. A heavy debt load taken on to finance this rapid early growth, a wide-spread economic recession and record high energy prices led to annual losses in 2005 and 2006. It became clear to us this rate of growth, as then reflected in our aircraft order book, if not moderated, was unsustainable. Over time, we modified our growth rate through the sale and deferral of aircraft. Additionally, we began to structure our network and invest in offerings targeted to attract a higher mix of business travelers, particularly in Boston. At the same time, we allocated growth to Caribbean routes which typically mature to profitability faster than domestic routes.…

    • 4559 Words
    • 19 Pages
    Powerful Essays
    Read More
  • Best Essays

    Reforms to the Employment Tribunal System
    • 3555 Words
    • 15 Pages

    Reforms to the Employment Tribunal System

    Bibliography: Ashwood, R. & Hitchins, C., 2011. Radical Reforms to UK 's Employment Laws. [Online] Available at: http://www.morganlewis.com/index.cfm/fuseaction/publication.detail/publicationID/c0b07889 35fd-4ed8-9639-5305c714af45 [Accessed 30 March 2012].…

    • 3555 Words
    • 15 Pages
    Best Essays
    Read More
  • Good Essays

    Outline of Optimal Pricing-Boeing vs. Airbus
    • 493 Words
    • 2 Pages

    Outline of Optimal Pricing-Boeing vs. Airbus

    Key take away: Threaten to lease planes from Singapore Airline to bring prices down by Boeing and Airbus. No counter offers were entertained. Also the key was getting two bidders: Boeing as a stalking horse into the situation.…

    • 493 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics