HR Problems at Jet Airways: Coping with Turbulent Times in the Indian Aviation Industry

            
 
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Case Details:
Case Code : HROB117
Case Length : 16 pages
Period : 2007-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Jet Airways (India) Limited
Industry : Aviation
Countries : India

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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"We have created high morale for our people. Our employees believe in the company. They believe it's their company. There's a feeling among employees that if the company makes money, it's their money and if the company loses money, that's their loss." 1

Naresh Goyal, Chairman, Jet Airways (India) Limited, in July 2007.

"While the mishandling of the Jet Airways sacking and reinstatement of 1,900 employees was an HR and PR disaster, the larger implications of what happened are also worth considering. It is not just that the chairman of India's most successful airline became the butt of jokes, it is also a question of what he knew, when he knew it, and who did the bungling."2

- Anjuli Bargava, Columnist, Business Standard, October, 2008.

"The sackings were completely illegal. There was no notice nor was government's permission taken to sack 800 employees. Perhaps they realized their folly and decided to take these employees back. The matter would have landed in the court otherwise."3

- Anand Pujari, Labour lawyer, SI Joshi & Co.4, in October 2008.

Introduction

In October 2008, Jet Airways (India) Limited (Jet), one of India's leading domestic airlines, decided to lay off more than 1,000 employees to streamline its operations.5 The retrenchment was the second phase of its trimming operations.

The first phase, which took place a day earlier, saw the airline showing the door to 850 cabin crew members6. The second phase of retrenchment included employees from all operations - cabin crew, pilots, ground staff, airport services staff, and employees from management departments.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

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Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies


1] Tara Weiss, "How Naresh Goyal Built Jet Airways," www.rediff.com, July 24, 2007.
2] Anjuli Bhargava, "Naresh Goyal is His Own Worst Enemy," www.business-standard.com, October 24, 2008.
3] Dev Chatterjee and Mithun Roy, "Layoffs Could Have Landed Jet in a Legal Soup," http://economictimes.indiatimes.com, October 18, 2008.
4] SI Joshi & Co. is a law firm base in Mumbai, India.
5] "Jet Airways to Lay Off 1100 More Employees," www.financialexpress.com, October 16, 2008
6] "Jet Airways to Lay Off 1100 More Employees," www.financialexpress.com, October 16, 2008.

 

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