JET AIRWAYS AND HANDOUT PINK SLIPS

 Jet Airways, India's biggest and most-

established private airline, had sacked
1,900 employees from its 13,000-strong
workforce on 15th Nov. ,a move it says
is necessary to stave off collapse given
the "exceptional" pressures
confronting the airline industry.
EFFECT OF US RECESSION ON INDIAN
ECONOMY

 slowdown in the US economy is bad news for

India.
 Indian companies have major outsourcing deals
from the US. India's exports to the US have also
grown substantially over the years. The India
economy is likely to lose between 1 to 2
percentage points in GDP growth in the next
fiscal year. Indian companies with big tickets
deals in the US would see their profit margins
shrinking.
Recession

 A recession is a contraction phase of the

business cycle. The U.S. based
National Bureau of Economic Research (NBER)
defines a recession more broadly as "a
significant decline in economic activity spread
across the economy, lasting more than a few
months, normally visible in real GDP, real
income, employment, industrial production, and
wholesale-retail sales."A sustained recession
may become a depression.
 Causes of recessions:
Currency crises
Inflation
National debt
Speculation
War
 Effects of recessions:
 Bankruptcies
 Banks lend less money
 Deflation
 Foreclosures
 Reduced sales
 Stock market crash
 Unemployment
EFFECTS OF SACKING EMPLOYEES

 Shares of leading private carrier Jet Airways fell

over 6 per cent on concerns of an additional
cost burden after it reinstated 1900 sacked flight
attendants, following protests and demand for a
probe by politicians.

At noon, Jet Airways shares trimmed early

losses but were still down 3.09 per cent at Rs
251.
 India's Jet Airways reinstates fired staff
Jet Airways, announced it has dropped plans to sack hundreds
of staff following angry protests.
Jet chairman Naresh Goyal also apologised to the 800 people laid
off earlier in the week as part of a bigger cost-cutting plan
involving the shedding of 1,900 jobs.
"I could not sleep at night. I was mentally disturbed when I saw
tears in their eyes. I apologise for all the agony you went through,
Goyal said at a press conference in Mumbai late Thursday.
million dollars) and has defaulted on payment of fuel bills worth
2.59 billion rupees to the state-run Indian Oil Corporation.
Shocked employees, a number in uniform, took to the
streets this week, many crying at the unexpected
sackings two weeks ahead of the major Hindu festival
Diwali -- a time when many in India spend heavily on
gifts.
Several politicians also expressed displeasure and surprise
at the firings.
Thank you….