Cost Reduction And Revenue Growth

1458 Words Dec 17th, 2016 6 Pages
4.4 Operational Considerations
Ideally, Jet2(b) will undertake a strategic combination of cost reduction and revenue growth, however the former is easier and quicker to implement in the short-term.

Jet2 and Monarch employs 5,200 (About Us, 2016) and 3,000 (Corporate - Facts & Figures, 2016) staff respectively. With a high ratio of employee costs to total costs, combining this workforce will cause thousands of job losses, triggering immediate cost benefits. Jet2(b) will develop a common set of terms of employment and determine redundancy packages which overall will create staff morale issues.

Monarch’s Luton headquarters will be shut down, and all administrational functions will be transferred to Jet2’s headquarters in Leeds.

Staff training costs will increase significantly as Jet2(b) will look to Jet2-ify Monarch or new staff under Jet2’s existing successful “Take Me There” training programme. According to Amiot et al, employees who are actively involved during times of organisational change experience higher job satisfaction and lower psychosomatic health complaints (Amiot et al, 2006). As a Commitment Organisation, Jet2 management already consults employees regularly and allows increased discretion within their individual roles. It also recognises employee happiness as a key component in customer happiness, so will make boosting staff morale a priority too. All Jet2(b) staff, including crew and ground staff, will adopt the old Jet2 uniform. The Monarch website will be…
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