HR PROBLEM IN JET AIRWAYS: TROUBLE IN THE TURBULANT

TIMES IN CIVIL AVIATION

Communication is an important fundamental unit of any business. The dynamic attitude of business makes communication an integral part of it without which a company is bound to fail.

In this case study the main failure for JET AIRWAYS was the communication. The way it communicated with the employee about termination of their jobs (by 1 liner emails), HIDING FACTS and INFORMATION from the employees and public put it into a sticky situation. Due to which it suffered a huge loss.

INTRODUCTION

Jet Airways is the second of India's two major airlines based in Mumbai, Maharashtra, both, in terms of market share and passengers carried.

51% of Jet airways owned by Naresh Goyal Operates over 1000 flights daily to 76 destinations worldwide. Its main hub is Mumbai, with secondary hubs at Delhi,

Kolkata, Chennai, Bengaluru and Pune. It has an international hub at Brussels Airport, Belgium

It AIRBUS A330-200, AIRBUS A330-300, BOEING 737-800, BOEING 777-300ER, BOEING 787-9 ETC.

Slogan, “The Joy of Flying “

About Jet Airways

• Jet Airways was incorporated as an air taxi operator on 1 April 1992.

• It started commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft.

• In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995.

• Naresh Goyal – who already owned Jetair (Private) Limited, which provided sales and marketing for foreign airlines in India – set up Jet Airways as a full-service scheduled airline to compete against state-owned Indian Airlines.

History

o Naresh Goyal (born July 29, 1950 in Punjab) is an Indian businessman and founder Chairman of Jet Airways.

o After graduating in commerce in 1967, Naresh Goyal joined the travel business as a general sales agent for Lebanese International.

o He started operating Jet Airways in 1993. Following the 2005 IPO of Jet Airways, Forbes magazine declared him the sixteenth richest person in India with a net worth of $1.9 billion.

o He has over twenty-six years of experience in the civil aviation sector. Under his leadership, Jet Airways has emerged as one of India's most preferred airlines

Founder

Problem faced by JET AIRWAYS: COMMUNICATION GAP.

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THE UNFILLED GAPS IN COMMUNICATION MADE BY JET AIRWAYS WITH IT EMPLOYEES LEAD TO A HUGE HR AND PR DISASTER WHICH IN TURN LEAD THE COMPANY SUFFER A HUGE LOSS.

1.Has created a good image among the Indian fliers2. Trusted Airline by the Corporates3. One of the biggest Indian airline companies with over 13,000 employees4. Operations in over 76 Indian cities and over 400 daily flights

1. Poor communication system2. Layoffs tarnished the image of Jet airways.

1. Strongly positioned in the International routes2. Has presence in every segment3. Increasing number of people opting to travel by airlines

1. LCCs (LOW COST CARRIERS) eating up the market share2. Rising Fuel Costs and Labour Costs3. Unfavourable Govt policies and aviation regulations

WEAKNESSSTRENGTH

OPPORTUNITIES THREATS

SWOT ANALYSIS

Communication being a backbone of any organisation. It shouldn’t be looked over. If the method of communication were correctly used by the management of Jet Airways then there would have been less fuss about the layoffs. The way Jet airways communicated with it employees with one liner email terminating their jobs citing no reasons shows the least concern attitude towards it employees.

The strategic mistake made by it and came with a high price as in which it lost its financial resources, lost the trust of the employees and it’s consumers. And last but not the least it lost it dominance in LCC.

Thus in management one should plan adequately before employing any decisions. Layoff is not the only solution during financial crisis. A manager should venture into different paths for the solution and should always maintain adequate communication.

CONCLUSION

1. Communication is the backbone of any business as it links the external and internal world.

2. HR one of the most important aspect and asset of an organisation.

3. Layoff or termination of service of its employees is not the only solution during financial crisis.

4. Every organization should treat its employees properly and maintain adequate communication with them.

5. If a company fails to cope up with the huge demand its service it should be transparent in disclosing the facts of its possible failure.

Learning from case study:

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