Jet Airways 'facing jobs threat'

Up to 4,000 Jet Airways staff - or two-thirds of the company's workforce - could face redundancy because of new ground staffing rules, according to a report.

The Times of India has said up to 4,000 Jet Airways employees are "staring at potential job loss" thanks to the recent ruling to allow only government agencies to handle ground activities in Indian airports.

The controversy has arisen after the Cabinet announced that only state airlines would be allowed ground handling positions to tighten security.

The report comes a day after Jet, India's largest private airline, said it would try to extend its reach by using the untapped aviation rights of state-run Indian Airlines and Air India.

Better hosts?

Jet's chairman Naresh Goyal said the airline wanted the government to relax rules which currently do not allow private airlines to fly outside the country.

He also wants private airlines to be allowed to carry out their own ground handling.

"We have urged the government to allow us use of the unutilised bilateral air traffic rights and declare us designated carriers," said Mr Goyal.

"We can speak with conviction that we will be able to provide better services than even the foreign airlines."

Mr Goyal said Indians had a natural strength in the hospitality industry and could be truly competitive if they were not held back by government regulations.

Optimistic

According to The Times of India, Jet Airways has 4,000 staff employed in ground activities such as ticketing, ushering passengers, cleaning and even towing aircraft.

The report suggests that the government's decision would only allow India Airways, Air-India or the Airport Authority of India to be employed in ground handling - meaning the loss of a large proportion of these 4,000 jobs.

But Mr Goyal has told reporters he was "optimistic" that the government will not allow this to happen.

"Otherwise, how can we give the product which we promise to the customers?" he asked.

Jet Airways began operating 10 years ago and now has 46% of the domestic aviation market, second only to Indian Airlines.

It currently employs almost 6,000 people.