Stability at the top management level is the need of the hour for Jet Airways in the financial slump
However, if we consider the way things have been going on at Jet, it seems difficult to believe that Chaturvedi’s exit was due to personal reasons. In July 2008, the chief executive of its low cost arm JetLite, Maunuv on Lueders had also packed his bags and bid adieu. In the last couple of years, Goyal has witnessed exits of several top management personnel including its CFO Carl Saldanah, thus throwing the management of the company in shambles. “Chaturvedi took on a newly created role and was there for only four months before the announcement of his resignation. His departure will return the company to the experienced management structure that existed prior to his arrival. Thus the current resignation is unlikely to have much impact,” states Binit Somaia, Regional Director, CAPA.
By leaving early, Chaturvedi has done what many leaders would fail to do; he has left little scope to judge his performance! Losses increased by 135% yoy for the quarter ending December 2008, despite revenues increasing by 24.6% during the same period. But this can be attributed to increase in employee remunerations, fuel expenses et al. And Aggarwal did not stay long enough to judge whether he was good or bad for Jet. Problems for Goyal, meanwhile, have only compounded. Goyal also plans to lay off employees from different verticals in the name of cost cutting. Despite the failed experience in October 2008, Jet Airways plans to discharge the services of 50 foreign pilots and maintenance engineers over the next six months. “Stability in the top management is important at this time due to the need to ensure continuity of strategy,” avers Somaia of CAPA. And the current financial cyclone that has hit the sector hard is here to stay; thus the aviation major should hold on to its management team. It has been aptly said that all vision is futile if you do not have, or are unable to retain the right people on board. It’s time that Goyal pays heed to this advice, and soon!
By leaving early, Chaturvedi has done what many leaders would fail to do; he has left little scope to judge his performance! Losses increased by 135% yoy for the quarter ending December 2008, despite revenues increasing by 24.6% during the same period. But this can be attributed to increase in employee remunerations, fuel expenses et al. And Aggarwal did not stay long enough to judge whether he was good or bad for Jet. Problems for Goyal, meanwhile, have only compounded. Goyal also plans to lay off employees from different verticals in the name of cost cutting. Despite the failed experience in October 2008, Jet Airways plans to discharge the services of 50 foreign pilots and maintenance engineers over the next six months. “Stability in the top management is important at this time due to the need to ensure continuity of strategy,” avers Somaia of CAPA. And the current financial cyclone that has hit the sector hard is here to stay; thus the aviation major should hold on to its management team. It has been aptly said that all vision is futile if you do not have, or are unable to retain the right people on board. It’s time that Goyal pays heed to this advice, and soon!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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