Jet Airways- Business Ethics Case Study

1. Business Ethics
-Case Study Presentation
ISHITA PAL- 17PGDM092
JIGISHA CHATURVEDI- 17PGDM093
KOMAL BOTHRA- 17PGDM095
MAYANK AGARWAL- 17PGDM096
MD IMROZ- 17PGDM097
MD AZHAR IMAM-17PGDM098
MOHIT ARORA- 17PGDM100
NABARUN GHOSH- 17PGDM101
NAKERIKANTI HARISH- 17PGDM102
NEERAJ CHOUDHARY- 17PGDM103
TEAM 10

2. About
 Jet Airways is a major Indian international airline based in Mumbai
 In July 2017, it was the second largest airline in India after IndiGo with an 18.2%
passenger market share.
 Operates over 300 flights daily to 68 destinations worldwide from its main hub
at Chhatrapati Shivaji International Airport and secondary hubs at Amsterdam
Airport Schiphol, Chennai International Airport, Indira Gandhi International
Airport, Kempegowda International Airport and Netaji Subhash Chandra Bose
International Airport.
 Naresh Goyal is the Founder & Chairman

3. Case Overview
 The case is about the retrenchment drama that unfolded in October 2008, as the 1st
phase of retrenchment to streamline it’s operations 850 employees were sacked by Jet
Airways and followed by 2nd phase of 1100 employees belonging to various
departments on the next day.
 This was undertaken without giving prior notice and was given only a month’s
remuneration.
 This action was taken only against lower grade staff.
 It was a part of major Cost-cutting exercise to tackle Global slowdown and price hike of
Aviation fuel
 Jet was faced with immense criticism and opposition by various organizations and
political parties

4. Retrenchment drama continues…..
 Amidst great furor and opposition by
various organizations and political parties,
Naresh Goyal , chairman of Jet, reinstated
the employees
 The problems started taking a new turn
with serious salary cuts of 20% in
November 2008 of pilots ,engineers and
staffs due to bad phase of aviation sector
 Fuel price rise made financial crisis much
worst by the end of 2008

5. Protests

6. Ethical Questions raised
 Why actions were taken only on lower grade staffs?
 Where would these 1900 employees go?
 What would be the future of students who were taken courses to
become cabin crew , etc.?

7. Ethical Issues
 The existence of the company is because of its employees but the
company keeps on focusing on customer satisfaction when their
own employees are dissatisfied.
 Employees were considered to be just a resource which could be
thrown away anytime after usage
 Unethical discrimination against lower grade staff who are equally
responsible for the operations and success of the company

8. Recommendations
 Employees, their satisfaction and their future should be the first priority for the
company since they are sculptors of company
 No company would know of a risk over night, its built over a period and there
should not be any drastic decision which may endanger its
 The role of HR executive is important to ensure that people’s interests are not
left aside in the race for profits
 The HR executive to ensure no discrimination in pay cut and lay off
 More accountability from top management
 Before reaching to decision, make environment conducive to acceptance of
decision