LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » Companies News

Salary cut lesser evil than layoffs in aviation space

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Salary cut lesser evil than layoffs in aviation space
Representational Image. Photo: Pixabay
Written By: PTI
Updated: Sun, Jul 23, 2017
03:17 pm
New Delhi, PTI
RELATED NEWS
Massive layoffs! Up to 5,000 jobs to be cut at this Covid-19 hit airlines Massive layoffs! Up to 5,000 jobs to be cut at this Covid-19 hit airlines
IndiGo posts Rs 870.8 cr Q4 net loss, 1st ever FY net loss IndiGo posts Rs 870.8 cr Q4 net loss, 1st ever FY net loss
Domestic flights take-off, but passengers harried as many cancelled Domestic flights take-off, but passengers harried as many cancelled
COVID-19 lockdown: Domestic flights resume after two months COVID-19 lockdown: Domestic flights resume after two months
Pakistan plane crash in Karachi: 107 passengers on board PIA Airbus A320 jet WATCH! Pakistan plane crash in Karachi: 107 passengers on board PIA Airbus A320 jet WATCH!

Slashing salaries is a "lesser evil" than pink slips in the domestic aviation sector, feel HR experts against the backdrop of a leading airline asking junior pilots to take ten days off every month as part of cost balancing effort.

While the domestic aviation sector has been registering double-digit growth continuously for over two years, Jet Airways' move to reduce junior pilots' pay and disinvestment proposal of Air India have thrown the spot light on the prevailing tough business conditions amid stiff competition.

The sector might be one of the fastest growing in the world but most airlines have wafer-thin margins as deeply discounted fares and rise in aviation fuel prices along with staff costs take a toll on their overall profitability.

Against the backdrop of Jet Airways' decision, HR experts opined that the move seems to be a case of "organisational stress" even though cost optimisation is a major concern for most of the sectors.

Staffing firm TeamLease Services co-founder and executive vice president Rituparna Chakraborty said it is a specific situation of "organisational stress".

"... Between letting go off employees and salary cut of employees, any day, salary cut is a lesser evil," she told PTI, adding that it is important to take any such decision in a complete transparency and openness with the employees.

Recently, Jet Airways asked many of its junior pilots to take 10 days off every month, a move that would result in up to 30 per cent pay cut, saying the move is aimed at "balancing our cost structure".

"As an interim measure, we shall be offering you a Lifestyle Work Pattern which entails 10 days block off per month with the appropriate remuneration... This will be effective from August 1, 2017," the airline said in a letter to many junior pilots.

Executive search organisation GlobalHunt's Managing Director Sunil Goel said the number of jobs may not get impacted much in the aviation sector as it is constantly growing but "compensation and benefits will (see) an impact".

"Since government is also talking about privatising the government control in Air India that will also bring a lot of job opportunities and realignment of work force," he added.

Professional services firm Judge Group's Senior Vice President (Global Delivery) Abhishek Agarwal said slowdown in the industry is due to various macroeconomic factors. It is not the choice of employers because "they know that reduction in salaries may affect the performance of both employees and the business", he added.

HR experts also believe that job scenario in the aviation sector would be good but there might not too many jobs at high premium.

In June, domestic air traffic grew 20 per cent as carriers ferried 95.86 lakh passengers. Many local carriers have also prepared ambitious expansion plans, as reflected in aircraft orders.

Last month, aviation think tank CAPA said the order book of Indian carriers is expected to touch 1,123 aircraft in the coming weeks.

Dominated by narrow-body planes, the order book would be the third largest for any country after the US and China, it had said in a report.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Airlinessalary cut in domestic aviation sectorJet AirwaysJet Airways' to salary cutAir India disinvestmentdomestic air trafficAir IndiaAviationair india privatisation
RELATED NEWS
Massive layoffs! Up to 5,000 jobs to be cut at this Covid-19 hit airlines Massive layoffs! Up to 5,000 jobs to be cut at this Covid-19 hit airlines
IndiGo posts Rs 870.8 cr Q4 net loss, 1st ever FY net loss IndiGo posts Rs 870.8 cr Q4 net loss, 1st ever FY net loss
Domestic flights take-off, but passengers harried as many cancelled Domestic flights take-off, but passengers harried as many cancelled
COVID-19 lockdown: Domestic flights resume after two months COVID-19 lockdown: Domestic flights resume after two months
Pakistan plane crash in Karachi: 107 passengers on board PIA Airbus A320 jet WATCH! Pakistan plane crash in Karachi: 107 passengers on board PIA Airbus A320 jet WATCH!

LATEST NEWS

Bharti Airtel vs Reliance Jio vs Vodafone Idea - check who is gaining market share across parameters

Vi vs Jio vs Airtel: Check some of the best cheap prepaid recharge plans for you | Full details here

''See you at your trial'': Big decision looms for Kamala Harris on Trump impeachment trial

PUBG Mobile India launch: Important notification issued by govt | Check reason for BIG Trouble here

Budget 2021 Stocks With Anil Singhvi – HUL is a TOP stock from budget standpoint, says Expert Rahul Arora

Reliance Industries (RIL) share price declines 5 pct today

How to check IRFC IPO Allotment Status Online: All you need to know in one place

Republic Day Parade 2021: When and where to watch live telecast of R-Day Parade - timing to traffic routes, all details here

SBI share price NSE: Trends positive but stock riding on VOLATILITY before Budget 2021; See short term, positional strategy here!

Kannada actress Jayashree Ramaiah found dead

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved