Tag Archives: Naresh Goyal

Hire , Fire and then hire again – It happens only in India

On Thursday evening Jet airways chief announced that he would be hiring all those employees again , who were fired only two days ago by his management . 

Here is a time-line of the events:
1. Jet and Kingfsher two major Indian airlines request for $1 billion from the government as bailout package
2. The Indian Government is not interested in such a deal and the request is put on hold .
3. Jet Airways and Kingfisher Airlines agree on a wide-ranging working alliance to help them battle slowing growth and high fuel costs.
4. Jet  fires 800 and announces another 1100 could get fired.
5. Naresh Goyal (jet airways chairman) announces that all sacked employees would be re-instated. “I apologize for all the agony you went through,” he told a news conference in Mumbai, adding that he could not bear to “see tears in their eyes”.
Mr Praful Patel (Civil Aviation Minister) said on the same day that “The airlines have sought a bailout package worth Rs 4,750 crore($1 billion) to tide over the crisis spawned by fuel costs and poor load factor.”If tomorrow no plane flies on the Indian skies, who is there to answer. There is a bad patch in the industry and it needs to be resolved,” he said.
In the coming days people will get to know that a bailout deal has been agreed upon by the government. Can the government afford to be unpopular during election year? i do not think so

So who turns out to be a looser in this :

1. Indian TaxPayer (as 1$ billion of the tax payer money would be used to bailout these companies)
And the winners are
1. Kingfisher Airlines
2. 800 Jet Employees
3. Jet Airlines
4. and  MNS , whose leader threatened on Wednesday that he would not allow Jet flights to operate in Maharashtra if the sacked employees were not reinstated
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