First I would like to start with a short history of Jet Airways. Jet Airways, started more than 25 years ago by Naresh Goyal, Jet Airways was formed at a time when air travel in India was only for the upper class and upper middle class. Thus cost control wasn’t something to be concerned about. Jet Airways did extremely well and won the hearts of passengers till 2005. Quality service was the main point of jet’s business model. Not to mention it’s the only private airline of the 90s era which is alive today but temporary shutdown.
Dozens of others are dead. Jet Airways has been the country’s largest and long-serving airline ever since it took off 27 years ago in 1992. At its peak, Jet operated 650 flights a day.
- In 1994, the Jet was the first Indian airline to operate a fleet of Boeing 737-400 aircraft. It also won the coveted Air Transport World Award in 2001 and TTG Travel Award in 2002.
- By 2008, Jet airline was operating two non-stop international flights between Mumbai and London, Chennai and Toronto, Dubai and Delhi and Mumbai, and a daily Mumbai-Shanghai-San Francisco flight. It was the first Indian airline to fly in China.
- By the end of 2010, Jet Airways became the largest airline in India, with a market share of 22.6%. However, the airline was still loss-making in the 2010 financial year posting a loss of ₹16.4 million. This was achieved while averaging a load factor of 77.4%.
- It was also the first and only airline to fly between Mumbai and Colombo, Kathmandu, and Hong Kong. Prior to its downfall, Jet was the country’s largest full-service carrier.
Some Reasons of Jet Airways Shutdown
- Despite aircraft increasing in size and passenger count, their yield suffers because of fluctuating fuel prices.
- A third problem is a price war. No Indian airline owns enough of the market share to unilaterally raise prices without losing customers. So, each airline competes with the other to offer the best price, making yields flatline.
- Almost 40% of an airline’s expenses are related to fuel expenses. So, when oil prices rise, the revenue of an airline decreases swiftly.
- As Indian airlines fly to overseas destination, they must pay rent, maintenance fees, and refuelling costs to international airports. If the rupee falls in value, those expenses increase as well because payments are made in the dollar.
- From an average of Rs 75-80 per kg, the latest freight rates are in excess of Rs 100/kg. As a result, exporters are unable to fulfil their volume and price commitments with their customers,
- India is also the world’s largest consumer of oil and even increased its oil imported by 4.37 million barrels per day.
After 25 years of sharing the Joy of Flying with Indian and International guests, Jet Airways and its Board of Directors have been forced to take this extreme measure, as prolonged and sustained efforts with lenders and authorities to ensure the sustainability of the airline did not yield the desired results.
Here’s what Bollywood stars tweeted about Jet Airways temporary shuts down:
1. Sonal Chauhan: Breaks my heart to see that my favorite airline is no longer operational. I grew up with you Jet Airways and you will forever hold a special place in my heart. Thank you for all the fond memories and great service. PS. Still hoping for a miracle.
2. Anupam Kher: This is such a sad news. I really loved the professionalism, the service and the people of Jet Airways. Hope things change for this airlines soon. Jet Airways temporarily shuts down operations.
3. Shekhar Kapur: Once we proudly showed it off as how India could be the best in the world. For Jet Airways was a truly a world beating airline in its quality, service, staff, in everything. Naresh Goyal was committed to make it so. Sad to see it finally grounded today.
4. Rishi Kapoor: My heartfelt wishes for the Jet Airways people. You have served us with utmost love and care. Thank you. Sorry for this chaos. All will be good!
I am Sahil Kashyap, a young entrepreneur, Digital Marketing, and a Social Media Expert as well as a consultant and a trainer. I am a graduate and got motivated to get into the Digital Marketing world after going through the success stories of some Digital Marketing experts like Neil Patel, Anil Agarwal, Sorav Jain etc. I’ve started my career at the age of 19 as an SEO executive and this fact encouraged me to achieve some extraordinary goals which I have always dreamt of.