Click to play videoNew Delhi: The Indian aviation industry is feeling the pinch of the global financial crisis. Jet Airways has terminated the services of 850 employees and announced that a total of 1,900 staff would lose their jobs.
So will the aviation sector also follow the US and UK where bailout packages worth $750 billion and ₤37 billion respectively, and seek a bailout package?
India, too, is getting a Rs 90,000 crore package after the Reserve Bank of India on Wednesday cut the cash reserve ratio for the third time in two weeks.
Civil Aviation Minister Praful Patel has come out in full support of the bleeding airlines.
"Given the present circumstances we would certainly like to see Indian aviation on a much more sound financial footing," Patel said.
As Indian skies prepared for one of the biggest aviation alliances between Jet Airways and Kingfisher, the news of job cuts by Jet dampened the spirits.
Kingfisher Chairman Vijay Mallya said the airlines need to be efficient and cut costs.
"I have laid off staff. They have laid off staff. Where ever we need to cut our costs and be more efficient we would do whatever it takes," Mallya said.
But as the retrenched Jet employees took to the streets, Mallya said that there would be no job cuts in Kingfisher.
"We have no surplus cabin crew in Kingfisher and therefore their will be no redundancy in our cabin crew staff," he said.
But analysts say that this might just be the beginning.
"Our assessment is that in the next 12-18 months or next two years we will see very, very difficult times, turbulent times especially from the financial perspective for the entire industry," Kapil Kaul, CEO, Centre for Asia-Pacific Aviation, said.
So even as the Aviation Minister cries hoarse, India skies might have to wait for some time before the much anticipated bailout.
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