October 18, 2008

Jet Airways Rescinds 1,900 Layoffs

The chairman of India's Jet Airways says he's rescinding a move to cut 1,900 jobs because he couldn't stand to see his mostly young employees suffer.

Naresh Goyal told reporters in New Delhi Friday that even though India's low-cost airline industry will lose a record $2 billion this year, he will attempt to save money other than by laying off the employees, many of whom are young women who flocked to the start-up airline, The Washington Post reported.

"This was the most emotional day in my life," Goyal said. "My daughter is 19 years old. (The employees) are 20 or so. I cannot stand to see their trauma."

Jet Airways formed a $307 million alliance this week with rival Kingfisher Airlines, but Goyal warned he will have to find additional ways to slash costs. He also denied his decision to rescind the layoffs was prompted by protests and pressure from local politicians who promised they would prevent Jet from operating in Mumbai, the newspaper said.