Jet Airways, the nation’s biggest full-service carrier is just a recent addition to the long list of Indian Aviation Companies trying their hardest to survive the challenges. Jet, who has recently incurred a loss of Rs 76 Crore in FY 2018 is likely to report a whopping loss of Rs 1,000 Crore in the first quarter of the current fiscal.
The company is followed by IndiGo, the largest carrier by passengers flown, in terms of losses incurred. Companies like SpiceJet Ltd. and Kingfisher Airlines comes next in the list, of which the latter had to be shut down owing to its lenders, staffs, airports, and lessors.
A Plead!
Now talking of Jet Airways, the company is in such a situation that its Chairman, Naresh Goyal, had to request its employees to allow a salary cut ranging from 5% (for the ones getting Rs 12 lacs per annum from the company) to 25% (for the ones getting a hefty sum of Rs 1 Crore and above as salary per annum).
The rejection.
This was the second time when the company had to stretch hands before its employees and therefore, the pilots didn’t agree to the founder’s appeal this time. Some people say that the pilots very well knew that there is a huge deficit of pilots in the country and hence there is no need for them to accept this pay cut for the second consecutive time.
Tata – The Saviour?
Very recently, Modi Government accompanied by the SBI was seen approaching Tata Group to step in and save the economy from facing the potential job losses (just a few months before the Lok Sabha Elections) from the falling of Jet Airways.
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The Tatas who already hold 51 percent stake in Vistara, its joint venture with Singapore Airlines, and 49 percent stake in AirAsia India, were too stiff-necked in helping Jet Airways in any way until it’s founder chairman, Naresh Goyal steps down from the board. The Tata Group, who also happens to be the first Indian company to enter into the aviation industry and had always dreamt of re-entering the industry and start an airline, but couldn’t successfully execute their plans.
The Aftermath
If Tata acquires Jet Airways, they will get hold of a huge number of airplanes together with a hub in India’s second–biggest airport, accompanied by the Jet’s flying rights to everywhere ranging from Bangkok to London. In short, with Tatas serving as the “Capital Backyard” for the Jet Airways, and Jet Airways being a good fit for Vistara, keeping in mind Vistara’s international ambitions, the Indian Aviation Industry is expected to see a downward graph in terms of aggressive competitiveness and might also take some increase in fares.
