Cost Cutting Measures Leads to Axing Of 800 Jet Airways Crew

October 15, 2008 12:06 p.m. EST

Mumbai, India (AHN) - A cost-cutting alliance by Jet Airways with Kingfisher Airlines inked Monday led to the lay off of 800 Jet Airways cabin crew two days later.

The slashing of the 800 jobs is just the first phase of a series of job cuts Jet Airways plans to implement. Following the mass lay offs, hundred of Jet Airways workers held a protest in Mumbai.

Jet and Kingfisher concluded a deal on Monday that will involve route sharing and joint use of crews. The two airlines corner 60 percent of the Indian domestic travel market. Jet denied the lay offs was linked to the tie-up, pointing to their rising aviation fuel bill as the main reason why it joined forces with Kingfisher.

Kingfisher's staff are not also secure in their jobs as there are reports the second largest Indian domestic carrier will follow Jet Airway's footsteps and axe some of its cabin crew as well.

The route sharing and reduction of redundant routes is expected to save Jet and Kingfisher $309 million (15 billion rupee) a year.

Kingfisher chairman Vijay Mallya told media at Hyderabad on Wednesday, "No company can last if it doesn't cut costs... The alliance will be able to help us."