estranged soul

Jet Airways to sack 72 expats to take locals on board - The Economic Times


MUMBAI: In an attempt to prune costs and navigate itself out of the turbulence in the Indian aviation sector, the nation's largest private airline, Jet Airways, has decided to terminate contracts of 72 of its high-cost expatriate pilots.

The Naresh Goyal-promoted airline sent notices to a section of its expat pilots last week. Nikos Kardassis, CEO, Jet Airways, confirmed the development to ETand said this was necessitated by a curtailed monsoon schedule and also the availability of pilots to tap from the local pool.

"We are reducing the level of operations for the monsoon season (as we do every year) and speeding up the process of training qualified Indian pilots from co-pilots to captains. We are also looking to recruit qualified Indian pilots available in the market at the moment," Kardassis said in a response to a query from ET.

The sacking of expat pilots, who till recently were a coveted resource for domestic airlines, is said to be the first and the biggest in Indian aviation. However, the firing exercise is unlikely to create a political storm as it involves only expats.

There are about 500 foreign pilots employed by Indian airlines, Civil Aviation Minister Ajit Singh said in a recent statement based on government data. He said Jet Airways employed the highest number of expats, with 183 pilots working for it. The number of expats hired by domestic airlines has gone up considerably from 384 in 2010. Jet topped the list even then with 111 expat pilots.

The government had allowed airlines to hire foreign air crew to meet the shortage of pilots, especially commanders. But due to agitation by Indian pilots for higher emoluments, it asked domestic airlines to phase out expats by July 31, 2011. It later extended the deadline to December 31, 2013.

Budget carrier SpiceJet relies heavily on expat pilots, who are said to enjoy a much higher compensation compared with Indian pilots for flying its Bombardier Q400 aircraft. There are hardly any Indian commanders available for flying these aircraft

Jet Airways' move to do away with such a large number of expat pilots stems from the surplus of pilots in the market, courtesy its one-time rival Kingfisher Airlines.

Huge No. of KF Pilots Available

The Vijay Mallya-promoted airline has drastically curtailed operations since November last year and is down to a fleet of 20 aircraft compared with 64 around nine months ago.


As a result, more than 50% of its pilot force has been rendered redundant. Kingfisher has lost almost 300 pilots to competing domestic as well as international airlines in a span of six to eight weeks.

According to sources in the airline, of the 72 expat pilots Jet has asked to leave, 17 are on the ATR fleet. In a communication to its pilots, Jet said a turboprop pilot would no longer get an extra allowance of over Rs 1 lakh per month being offered till now and there would be pay parity for pilots of its Boeing fleet as well as ATRs.

Industry experts see Jet's move necessitated not only by market dynamics and route rationalisation, but, more importantly, the pressing urgency to curtail costs. The airline has seen losses mounting due to volatile oil prices and the depreciating rupee.

"It is a fact that financially Jet is not doing too well and is looking to cut costs. There is a perception that expat pilots are more expensive than Indian pilots, and when an airline is looking to bring down expenses, it would surely look at doing away with a resource that is costing higher," an industry person related to pilot recruitment said on condition of anonymity.

According to a Jet pilot, a senior expat pilot takes home a salary of Rs 6-7 lakh per month compared with an Indian senior pilot who gets a gross salary of Rs 4 lakh per month. Such exorbitant pay packets and better facilities (accommodation, leave and taxes paid by the airline) offered to expat pilots have always been a source of discontent for its Indian pilots, who had gone on strike in 2009 over the same issue.

Jet Airways surprised the Street by posting a first-ever third-quarter loss of Rs 101.22 crore this financial year while it also recorded its highest-ever loss of more than Rs 700 crore in the second quarter.

"There is a mail from the management every now and then warning of tough costcutting measures and of bad times staring at the industry and the airline. Most of these communications also refer to how despite good loads, the yields are not holding up," said a Jet employee not wanting to be identified.

The Naresh Goyal-promoted airline has stated in the past that selling below cost by some Indian carriers, particularly Air India earlier and Kingfisher more recently, has bled the airline heavily. It also said the rupee's free fall hurt the airline more than fuel costs, and more than Rs 250 crore of its losses in the second quarter was on account of the depreciating rupee.

Aeronotix

All businessmen are opportunists, Goyal is no exception. With yields not improving in spite of increasing load factors cost cutting becomes vital. With the dollar soaring, expat pilots are now burning a hole in his pocket. Right time to hack with the sword, since he has a ready pool of sacked, unemployed & dissatisfied Indian rated pilots to draw from.

In one stroke he has also put paid to the disparity between ATR & Ng pilots in his company's fleets. With ATR commanders making a lakh more a month, the 737 commanders were a disgruntled lot and wanted parity in pay. Instead, the company has pruned ATR pay packets to match Boeing jockeys. Now that there are many pilots available in the open market from KF & AI. he expects them to take it lying down, and this leaves the 737 pilots with no pay parity issue, expect with their wide-body counterparts. Shri Goyal, the smart cookie has already killed 2 birds with one stone.

There is also a move to cut upgrade QRs for F/Os, so more pilots are available for the left hand seat from within.

And with the ongoing strike at AI & KFs financial mess leading to fleet reduction, Jet is soaring on the international front too. Expect its next quarter financial results to improve. There is also news of it placing orders for 100 new narrow body aircraft this fiscal, though its still not clear in what permutation/combination these would be.

Whats next on the Goyal menu??

Aeronotix

PT6A

Goyal.....

It is not Goyal that is doing it... He put people in place to run it for him and thats what they are doing.

Sure he checks in from his house in London from time to time.

Mr.CB

Jet Airways likely to order 100 planes for $ 3.75 bn - Business News - IBNLive

captjns

Generally, expat flying in many locations is a temporary job with a presence for the duration of the contractual period is wishful thinking at best.

At the end of the day, the purpose of the contract pilot is to fulfill a need for an airline during an expansion period until their local talent becomes qualified to assume the duties and responsibilities of said position.

That said, as Jet prepares to park either 4 or 5 baby Boeings, there will an over staffing of at least 20 to 25 captains.

Strictly business... nothing personal.

PT6A

More a case of poor planning than anything else! Not to mention the environment they have to operate in.

The Indian government force the expats to be unproductive for vast amounts of time costing the airlines a fortune.

Elsewhere the government departments would be brought before the courts to compensate the airlines.

Aeronotix

PT6A, make no mistake. Nothing & I mean Nothing policy wise, moves without the Chairmans consent at Jet, whether decided from London or Mumbai. Yes he has advisers at his behest, but final decisions are his. He has, is and will overule board and senior management decisions, good or bad ones, if he feels otherwise. He controls Jet.

drive73

6-7 lacs? Only time you see those kinds of numbers is when you fly 125 hours a month. And I don't remember the strike in 09 being about expats? As I recall it started with pilots being sacked.. Another accurate well written article...

aamandani

Hey Guys. Been reading quite alot bout Jet now. Myself I am an indian national with an ATR type rating about 1200 on the atr and 1700 total time. I have been working in Tanzania for about 2 years flying with precision air after getting my own type. I want to come back to india and work for jet. What are my options like in jet and what is the process like? Some advice will help ur fellow aviator. Happy landings!

Cactus225

@ aamandani

wouldnt that experience pay better on Spice Q400?

aamandani

@cactus

Don't know much bout spice need to check their website and maybe think about it. I wouldnt mind the q400. What do I need to do for jet airways can u shed some light. Don't have an Indian Licence nor medical. Have an FAA and Tanzanian cpl only soon to get an ATPL.

Happy landings.

PT6A

You would need to get an Indian Licence, Indian Nationals are not to be flying on a FATA even though many do (technically this is illegal from what I understand)

It is not a quick process to get the Indian ATPL as many on here will attest, I'm not sure what you need to do to carry your type rating across.

HAWK21M

whats the DGCA deadline on Expats working for Indian operators.....

PT6A

HAWK, that would assume the DGCA have a plan... They don't.

The ministry just told AI to get more expats so they can sack the striking locals, they are fast tracking expats from Jet Airways into AI.

captjns

Under the current plan, the DGCA has placed the latest deadline for expats to leave India as 31st Dec., 2013.

Rishworth has been in communication with those in their data base announcing AI EX hiring plan. Jet Airways will provide "No Contest Letters" to those seeking a job opportunity with AI EX. However, AI EX is not hiring directly. One desiring employment with AI EX must go through Rishworth, as currently they have exclusivity.

fullforward

Jet to lead overseas charge as Kingfisher, AI falter: CAPA
HT Correspondent, Hindustan Times
New Delhi, May 25, 2012 Email to Author

First Published: 20:39 IST(25/5/2012)
Last Updated: 20:41 IST(25/5/2012)Share Share on facebookShare on linkedinShare on googleShare on emailmore...Comments Email print

Naresh Goyal-owned Jet Airways will lead Indian airline companies in long-haul international expansion this year, aviation consultancy firm Centre for Asia Pacific Aviation (CAPA) has said in its India International Outlook report for 2012-13.
With Kingfisher Airlines’ international
operations suspended and Air India’s (AI) long-haul services likely to be subject to ongoing industrial action, Jet is expected to seize the opportunity and aggressively expand international operations, CAPA said.

Jet Airways, India’s largest domestic carrier by passengers carried, could become a member of the Star Alliance, making it the first Indian carrier to join a global alliance. “Its plans to service Frankfurt and Munich are linked to this strategic development. SkyTeam is understood to have shown some interest in IndiGo,” the report said.

The CAPA report projected international passenger traffic to grow by 8-10% to reach 44 million. The year could also see the Airbus A380, the largest commercial airplane, make its debut in India.

“The current crisis in Indian aviation could create an environment in which previously difficult decisions could move ahead. If foreign airline investment of up to 49% was permitted and bilaterals increased, Gulf carriers such as Emirates, Etihad and Qatar Airways could establish a critical advantage in the Indian market, creating a quasi-domestic market to feed their hubs,” the report said.

PT6A

I can't see Star Alliance (Lufthansa) Wanting Jet to service two of their hubs which they already service on the India routes.

That is simply removing money from Lufthansa (founding member of star)

SA want an Indian Airline to increase their network, not copy flying that is already in place.

vagabond 47

I find it mesmeric at times reading the "Mumbai Times" (expat version) on the Prune as few contract pilots actually realise that they are contracted and that the piece of paper that has their signature is a stick for the Airline/Contracting company and a noose for yourself.......no Union no security. ...and I have worked for Ryanair.
Very recently I waited 3mths and 3 days for my security clearance for Jet, it arrived with the "sorry don't want expats", not the contractor version, but I ha ve done 4 years in India and expected anything so am not crying......could use the money as wife having chemotherapy with no medical.
A friend recently was given his 30 days notice at Spice after being there only a few months."..........
My message is take it or leave it......don't expect the "rishworths" to cry for you.......they still owe me USD1200.
We are Mops that absorb the unplanned spillages and are wrung out to dry at their behest.
We have all had the good times, enjoyed the " OMG" so you are an International Pilot" times but Aviation is cylical. My personal defense was to always have another "job" on standby.
Smell the wind shift and move on........China awaits, practice your hurling.

Geebz

I flew contracts for years at various airlines around the world, Jet included, whenever my airline would offer leaves. The 2008 GFC changed the landscape forever in terms of contract pilots. Airlines around the world slashed expat pilot T&Cs without any notice or negotiation. The crew leasing companies, Parc, Rishworth, et al, folded like a wet noodle when it came to upholding the T&Cs of the pilot's contract. Not one of them put up a fight for the expat pilot. The writing was on the wall to never do a contract again. I made it though that period in tact, working for Jet the whole time, but when my airline called me back I left with no interest of ever returning to contract flying. I'm done with it for good. But then I'm fortunate to have a position with a large global carrier.

IMO, anyone interested in a contract gig needs to go into it with the right severely-lowered expectations. That is, it is highly likely that at some point during your contract your pay and benefits will be cut without notice, or, you will simply be terminated. As long as you expect that and nothing more, and have a backup plan for income, the gig is palatable. But to expect these airline to uphold their agreements, is foolhardy and naive.

I get that local pilots don't like expats. But their approach is myopic at times. If an airline needs, say 100 commanders to man incoming aircraft deliveries, that will create 100 or more First Officer jobs. Without the commanders those aircraft can't fly, hence jobs are not created and more can be eliminated altogether. Now if there are qualified pilots awaiting the upgrade, then by all means the locals should have first crack. However, 2500 hrs is hardly qualified. Indian pilots would beg to differ with me but the upgrade standards at Indian carriers are extremely low.

What is ironic about hating expat pilots, as most Indians do, a majority of Indians themselves go overseas as expats when they join SQ, QR, EY, CX, and EK (most of which have Desi-heavy pilot rosters). So when it's convenient for them to whine about expats, they do. But as soon as an Indian gets an opportunity to move overseas and take a job from a local, be it a doctor, engineer, or pilot, they are the first out of any population to jump at the opportunity and sometimes act as though it's their God-given right. It's a bit of a hypocrisy, isn't it?

India needs to wake up. We live in a global village. There are millions of Indians working in white-collar jobs America and Europe, there are far less working on their shores. Sure the local should have first access to a national carrier job but the most-qualified for the job should prevail in the interest of safety.

rdr

a very good post geebz, you're right on the money here. the problem is the Indian culture of everyman for himself. the notion of an international fellow professional, does not click, until like you said, one moves overseas and has to behave by international standards.

"I" first, "Me" second, "You" last, thats the national mantra.