McKinsey & Co that has been advising Jet Airways and its primary lender SBI on the plan to revive the airline has suggested job cuts and fewer slots. The consultancy firm suggested that after restructuring, the airline would require 60-70 aircraft, compared to the earlier 120. Additionally, it pointed out that the complex combination of aircraft was increasing maintenance cost for the airline before it was grounded.
As mentioned in a report in Hindu Business Line, an internal mail had also said that post discussions with McKinsey, 150 of the total 1,000 pilots would not be required. However, with the new owner, the requirement is likely to completely change.
The daily mentions that from 16,000 permanent employees during its peak operations, Jet Airways was down to 11,500 permanent employees in April. The senior employees of the airline had reached out to multiple airlines to hire their staff. An HR official told the daily that there are many individuals who would like to stay with the airline. They have also received several requests for job opportunities, the official said, further adding that they are trying to get them absorbed.
The airline is likely to go for a less-complex fleet variety as it would reduce their maintenance cost. While maintenance-to-total cost, according to industry standards is 11-12 per cent, at Jet it was as high as 15 per cent. McKinsey pointed out that this was due to fleet complexity.
Separately, the buzz is that the Hinduja Group is finally set to bid for the grounded airline this week, having got the approval of its key stakeholders, including founder Naresh Goyal and Etihad. While the Goyal family owns 51 per cent of the airline, but has pledged 31.2% with lenders, the Gulf carrier is Jet's second largest shareholder, with a 24 per cent stake.
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