Mounting losses are now forcing airlines to cut down on staff. Airlines say this is bound to happen since they have started cutting down on routes.

Nusli Wadia-owned GoAir was the first to downsize its staff by 15% i.e. 150 people. Now other airlines like SpiceJet and Deccan are likely to follow. With crude showing no signs of cooling down, airlines are doing all they can to cut costs. 

Edgardo Badiali, CEO, GoAir said, “We cannot just complain about high fuel costs. We have to act and do whatever is in our influence in order to get all the other costs down and a more efficient organistaion in place. And that is what we are doing. If we close a station it is unavoidable to reduce the staff.”

GoAir has cut down its operations by almost 40%. The airline has completely pulled out its flights from Jaipur, Bangalore, Cochin and Chennai. SpiceJet has cut 20% of its daily flights and so has Jet and Kingfisher. This also means that many pilots, especially expatriates, will be asked to go back.

GR Gopinath, Vice Chairman, Deccan Aviation, said “We will be sending them back, they are costly.”