India's leading private carrier Jet Airways handed over pink slips to 110 employees on the eve of May Day, the company said Friday.
'Jet Airways undertakes additional measures to streamline costs to improve the financial health of the company under the challenging economic environment. The airline has issued notices of termination to identified employees on contract, who have superannuated,' a company spokesperson said.
'The termination is in accordance with the law and their (employees') service conditions,' he added.
Of these employees, 50 were on contract basis, while the remaining 60 were probationary cabin-crew.
Last year, the airline had given termination notice to around 19,00 employees, but revoked the decision after the government's intervention and workers' protest.
Last week, Jet had cut the salaries of its employees drawing a gross monthly salary of over Rs.75,000 by up to 25 percent.
The airline faces losses as its revenue has been falling since early last year.
Air India has started a new fare war in the skies both on the domestic and international sectors. It has also launched a daily Delhi-Chicago flight via Frankfurt on Sunday.
Air India has started summer special fares at four levels starting at Rs1,891 (all inclusive) and the highest fare would be Rs 2,901 and will be valid for 148 domestic sectors. However, for flights originating from Delhi or Mumbai, passengers will have to pay an airport development fee of Rs 200 per ticket.
Under the new structure, a Delhi-Mumbai one-way ticket would cost Rs 2,611, while the normal fare on this sector on a full fare airline would cost between Rs 5,500 and Rs 6,000. Special fares will be available for tickets purchased 30 days in advance and the tickets will be available till June 30.
However, journey on the advance tickets can be undertaken after June 30 as well. For the Delhi-Chicago sector, the ticket would be at least 30 per cent cheaper in comparison to other airlines flying that route and has been priced at Rs 46,000 for a return ticket (including taxes).
"We would like to offer these promotional fares till March next year. Summer being the peak travel season and with very competitive fares on offer, we hope 80 per cent passenger load factors," said Lalit Kapoor, sales and marketing general manager, Air India.
The airline is also offering tickets that are nearly 30 per cent cheaper than other airlines on other international routes, including London, Frankfurt, Paris, New York, Chicago and Toronto. Kapoor said the airline would also start a service to San Francisco in October, after Air India gets new aircraft in July.
Low cost carriers SpiceJet, Indigo and JetLite have also come up with special fares in the 30-day advance purchase scheme to corner the summer traffic.
Bahrain's state-owned carrier Gulf Air said it has walked away from a deal to lease four Boeing 777 aircraft from Jet Airways, citing economic conditions.
Loss-making Gulf Air said on Thursday it had an option to lease the aircraft after an existing six-month contract expires, but has decided not to go ahead.
"After careful analysis of various commercial and other business considerations, Gulf Air has decided not to pursue the dry-lease option for the foreseeable future," the company said.
Dry leases are contracts where airlines lease planes without staff.
Gulf Air said in February it had agreed to lease four Boeing 777s as part of its efforts to replace its fleet.
The existing six-month contract is a wet lease agreement, which typically includes staff. A Gulf Air spokeswoman said the airline had received the fourth plane under that deal on Thursday.
In March, Gulf Air director of corporate development Siah Joo Tan said the airline was poised to break even next year despite the financial downturn.