Case Study Jet Airways
The Case of Jet Airways
Jet Airways: Background
Jet Airways (India) Private Limited was a reputed private airline in India having an average fleet age of 4.45 years. Jet Airways covers 63 destinations spanning the length and breadth of India and beyond, including New York (both JFK and Newark), Toronto, Brussels, London (Heathrow), Singapore, Hong Kong, Kuala Lumpur, Colombo, Bangkok, Katmandu, Dhaka, Kuwait, Bahrain, Muscat, Doha, Riyadh, Jeddah, Abu Dhabi and Dubai. The Airline carried 1.28 million passengers out of 408 million passengers carried by the whole airlines industry. It has a reputation for punctuality and outstanding service and consequently attracted a large proportion of business travelers. It operates with a fleet of 97 aircrafts, which includes 12 Airbus 330-200; 20 ATR 72-500 aircraft;11 Boeing 737-700;42 Boeing 737-800; 2 Boeing 737-900 and 10 Boeing 777-300 ER. The management had ambitious plans to develop its own hangers for maintenance and pilot training centers
Jet Airways: Competing with the Rivals.
On March 22, 2004 Jet Airways and rival private airlines in India were free to begin flying outside the country. Jet Airways had borrowed about $800 million to finance a new fleet of aircrafts. Jet Airways was poised to profit from an expected extension of flying rights throughout Asia. Colombo, Sri Lanka, was the first such international destination. Flights to Bangladesh and Nepal followed soon after. Over the next few years Jet Airways established itself as a leading player in India, becoming a case study for in-flight excellence. Possibly excited by this euphoria, industry insiders say, the management made its first big gamble by buying Air Sahara in 2006.
Apart from Jet Airways and Air India, Air Sahara was among the only three Indian carriers that flew abroad during that period. Naresh Goyal moved in to buy Sahara a year later for Rs 1,450 crores. Jet Airways fulfilled its desire to be the only “private” Indian carrier
Jet Airways: Background
Jet Airways (India) Private Limited was a reputed private airline in India having an average fleet age of 4.45 years. Jet Airways covers 63 destinations spanning the length and breadth of India and beyond, including New York (both JFK and Newark), Toronto, Brussels, London (Heathrow), Singapore, Hong Kong, Kuala Lumpur, Colombo, Bangkok, Katmandu, Dhaka, Kuwait, Bahrain, Muscat, Doha, Riyadh, Jeddah, Abu Dhabi and Dubai. The Airline carried 1.28 million passengers out of 408 million passengers carried by the whole airlines industry. It has a reputation for punctuality and outstanding service and consequently attracted a large proportion of business travelers. It operates with a fleet of 97 aircrafts, which includes 12 Airbus 330-200; 20 ATR 72-500 aircraft;11 Boeing 737-700;42 Boeing 737-800; 2 Boeing 737-900 and 10 Boeing 777-300 ER. The management had ambitious plans to develop its own hangers for maintenance and pilot training centers
Jet Airways: Competing with the Rivals.
On March 22, 2004 Jet Airways and rival private airlines in India were free to begin flying outside the country. Jet Airways had borrowed about $800 million to finance a new fleet of aircrafts. Jet Airways was poised to profit from an expected extension of flying rights throughout Asia. Colombo, Sri Lanka, was the first such international destination. Flights to Bangladesh and Nepal followed soon after. Over the next few years Jet Airways established itself as a leading player in India, becoming a case study for in-flight excellence. Possibly excited by this euphoria, industry insiders say, the management made its first big gamble by buying Air Sahara in 2006.
Apart from Jet Airways and Air India, Air Sahara was among the only three Indian carriers that flew abroad during that period. Naresh Goyal moved in to buy Sahara a year later for Rs 1,450 crores. Jet Airways fulfilled its desire to be the only “private” Indian carrier
References: 11. Tassell, Tony, "Jet Airways Leaves Its Indian Rivals Standing: Newer Aircraft Have Given Naresh Goyal 's Carrier a Private-Sector Lead," Financial Times (London), Companies and Finance, January 4, 1997, p. 13. accessed July 2010 12