CENTRE FOR CONTINUING EDUCATION

WILL JET AIRWAYS 2.0 BE SUCCESSFUL?

BY:
TEETIKSHA SHEORAN
500089641

GUIDED BY:
CAPT. MAHENDER SINGH
DE and TRI-A ON B737

A DISSERTATION REPORT SUBMITTED IN PARTIAL FULLFILMENT OF THE

REQUIREM ENT FOR
BBA AVIATION OPERATIONS
OF
CENTRE FOR CONTINUING EDUCATION
UNIVERSITY OF PETROLEUM & ENERGY STUDIES,
DEHRADUN, INDIA

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 ACKNOWLEDGEMENT

This is to acknowledge with thanks the help, guidance and support that I have received during

the Dissertation.

I have no words to express a deep sense of gratitude to the management of U.P.E.S. Dehradun

for giving me an opportunity to pursue my Dissertation.

I humbly thank Capt. Mahender Singh for his able guidance and support throughout the completion

of this dissertation.

I must also thank my family members for their constant support throughout and their valuable

inputs that helped me through the several stages of writing this report.

TEETIKSHA SHEORAN

Address: 500-A, Bellevue, Central Park-2

Sector-48, Gurgaon-122018

Mobile: +91 8800804678

Email: [email protected]

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 TABLE OF CONTENTS
S.NO. TOPIC PAGE NO.
1 INTRODUCTION 8
1.1. PROBLEM STATEMENT 8
1.2. NEED FOR RESEARCH 8
1.3. OBJECTIVES OF STUDY 9
1.4. BRIEF HISTORY OF INDIAN AVIATION 9
1.5. MARKET SIZE 10
1.6. ABOUT JET AIRWAYS 11
2 STARTING OF JET AIRWAYS ( INDIA ) LTD [ JAIL ] 12
2.1. JET AIRWAYS CUSTOMER SERVICE 13
2.2. STRATEGIES ADOPTED 13
2.3. RISE OF JET AIRWAYS 17
2.4. JET AIRWAYS ACQUIRING AIR SAHARA 21
3 FALL OF JET AIRWAYS 22
3.1. REASONS FOR DOWNFALL 29
4 JET AIRWAYS REVIVAL ( JET AIRWAYS 2.0 ) 34
4.1. WILL JET AIRWAYS 2.0 SUCCEED? 36
4.2. INDIAN AVIATION MARKET NOW 39
5 LITERATURE REVIEW 40
6 RESEARCH METHODOLOGY 48
6.1. RESEARCH METHODOLOGY 48
6.2. SOURCES OF DATA 48
6.3. SAMPLING 49
7 DATA ANALYSIS AND RESULTS 50
8 CONCLUSION 69
BIBLIOGRAPHY 72

LIST OF TABLES
S.NO. TABLE TITLE PAGE NO.
1 AIRCRAFT INFORMATION 14

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 DURATION,FUEL,INCOME AND PROFIT FOR DIFFERENT
2 16
AIRCRAFTS
3 YEARWISE COMPARISON OF PROFIT AND LOAD FACTOR 25
4 LITERATURE REVIEW LIST 40
5 PEOPLE TRAVELLED WITH JET AIRWAYS 50
6 CLASS PREFERRED 52
7 HAPPINESS? 53
8 TYPE OF SERVICES PROVIDED 54
9 PREFERANCE FOR DOMESTIC/INTERNATIONAL/BOTH 55
10 REASONABILITY OF FARES 56
11 PREFERRENCE DOMESTIC/INTERNATIONAL/BOTH 58
12 TYPE OF MEAL PREFERRED AS PER THE FLIGHT 59
13 CLASS PREFERENCE 61
14 FREE SERVICE PREFERENCE 63
15 IN-FLIGHT ENTERTAINMENT PREFERENCE 64
16 PURCHASING TICKETS PREFERENCE 66

LIST OF FIGURES
S.NO. FIGURE TITLE PAGE NO.
1 PERCENTAGE OF SHARES HELD 12
2 CRUISING SPEED AND FUEL EFFICIENCY 14
3 FUEL AND DURATION COMPARISON 15
4 PROFIT AND FUEL CHART 16
5 FUNDS GENERATED 20
6 JETLITE LOGO 22
7 B777 PHOTO 23
8 FIRST CLASS JET AIRWAYS 23
9 JET KONNECT LOGO 24
10 LOAD FACTOR COMPARISON 26
11 CASH TO DEBT COMPARISON 28
12 FISH BORN DIAGRAM FOR JET AIRWAYS FAILURE 29

13 MARKET SHARE COMPARISON TO INDIGO 30

14 MARKET SHARE IN FY 2018 31
15 MARKET SHARE IN FY 2019 31
16 BOEING 737 MAX 35
17 GROWTH OF AIR TRAFFIC 36
18 PDCA CHART 38
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 19 AGE RESPONSE GRAPH 50
20 PEOPLE TRAVELLED WITH JET AIRWAYS PERCENTAGE 51
21 CLASS TRAVELLED 52
22 PERCENTAGE OF PEOPLE OPTING FOR A PARTICULAR CLASS 52
23 PERCENTAGE OF PEOPLE HAPPY WITH JET AIRWAYS 53
24 SERVICES % 55
25 PREFERENCE FOR DOMESTIC/INTERNATIONAL/BOTH 56
26 REASONABILITY OF FARES 57
PERCENTAGE OF PREFERRENCE
27 58
DOMESTIC/INTERNATIONAL/BOTH
28 TYPE OF MEAL PREFFERED GRAPH 60
29 CLASS PREFERENCE PERCENTAGE 62
30 FREE SERVICE PREFERENCE GRAPH 63
31 IN-FLIGHT ENTERTAINMENT PREFERENCE GRAPH 64
32 PERCENTAGE OF PURCHASING TICKETS 67

ABSTRACT

Jet Airways was founded on 1 st April, 1992 by Mr. Naresh Goyal .Jet Airways started with 4
aircrafts and expanding their reach gradually. Air India monopoly was destroyed by Jet Airways
and overtook them in all aspects becoming the best domestic airlines in India. Jet Airways main

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motive was to provide the best customer service and they did so creating a lot of loyal customers.
But, the aviation sector never remains the same and Airlines have to adapt to the changes as
quickly as possible. In an attempt to become a monopoly themselves they hurried their decision
to acquire Air Sahara who were their main competitors .But the next year, Jet Airways found a
lot of competition arriving with the arrival of 5 new airlines and all of them were Low Cost
Carriers thus adding a lot of pressure on Jet Airways to compete for the market share. A year
later, with dropping market share Jet Airways tried to compete in the Low Cost Carrier segment
of Indian market by making their acquired Air Sahara as JetLite and converting them into the
Low Cost Carrier segment but the market share was already won by their new competitors. Jet
Airways even brought up Jet Konnect which was a n all economy No-frills service which would
operate on short haul routes with higher passenger payload thus getting more market share
becoming the largest airline in India . But, later this turned out to be a futile attempt as Indigo
was capturing their market and overtook them becoming the best airline in India. Jet Airways
started going under heavy losses due to rising Aviation Turbine Fuel costs and turbulence in
passenger demand. Tata Sons wanted to takeover Jet Airways business and get the ailing airways
out of this situation but the deal couldn’t progress due to some actions by founder chairman of
Jet Airways Mr. Naresh Goyal. Ultimately in 2019, Mr. Naresh Goyal and his wife stepped down
from their position in Board of Directors and Jet Airways had to shut down due to debt. But, all
is not lost as Jet Airways could again start flying in the Indian skies as revival project is in plan
as British firm Kalrock Capital and UAE based entrepreneur Murari Lal Jalan has taken over Jet
Airways. Jet Airways 2.0 is expected to operating from summer, 2022.

1. INTRODUCTION

1.1. PROBLEM STATEMENT

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Jet Airways was a privately based airline, its main hub was in Mumbai Chhatrapati Shivaji
(VABB). It was founded on 1st April, 1992 by Mr. Naresh Goyal who was the founder chairman
of Jet Airways. Jet airways started its operation from 5 th May 1993 with four leased BOEING
737 aircrafts and with their rise its fleet size increased to up to 202 aircrafts serving over 1000
destinations becoming one of the most successful and recognized airline in India winning several
awards along the way . Buying their competitors Air Sahara along the way and starting a Low
Cost carrier to give other low cost carriers some tough time. But, on 17 th April 2019, it flew its
last flight from Amritsar to Mumbai. So, what were the reasons for the downfall of Jet Airways?
Can the new owner’s Mr. Murari Lal Jalan and Kalrock Capital Management Ltd. Revive the Jet
Airways and bring them back on top?

1.2. NEED FOR THE RESEARCH

Jet Airways was one of the most successful airlines registering an unprecedented growth during
mid-1990s to first decade of the new century controlling nearly half of the sky . But some
decisions were taken which turned out to be decisive which led to Jet Airways to lose its solid
hold in the aviation sector and ultimately led to their ceasing of operations in April 2019. So, we
have to carry out some research to study the growing Aviation market in India which has
recently become the 3rd largest domestic aviation market in the world. But, this industry has been
majorly affected by Covid-19 and major airlines have also faced some tough time trying to solve
it. Hence, it becomes very important for us to study the factors like fuel, ticket pricing, fleet
management, etc. that are responsible and also learn about them by reviewing the decisions made
by Jet Airways. We can use them to develop techniques to stay alive in this ever growing
industry.

1.3. OBJECTIVES OF STUDY

• What were the core reason(s) for the failure of Jet Airways?
• What are the variables for the success of an airline?
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 • Will JET 2.0 be a successful Airline?

1.4. BRIEF HISTORY OF INDIAN AVIATION

Indian Aviation started in 1932 when the first airline Tata Air Services came up, founded by
J.R.D. Tata. Tata Air Services started as an airmail carrier within India after getting a contract
with Imperial Airways which was British commercial long range airline serving British Empire
routes to India, South Africa, Australia, Malaysia and Hong Kong. It progressed from a small
freight airline to a commercial passenger airline .The airline was then renamed to Tata Airlines
flying number of domestic flights to a number of destinations.

In 1947, after India’s independence, Government took a 49% stake in Tata Airways and was
renamed as Air India. They began first International flights Mumbai to London in the following
year under the name Air India International. This international service was among the first public
private partnership in India.

By 1950s, India had a number of small airlines operating in different parts of the country like
Deccan Airways in Hyderabad and Kalinga Airlines based in Kolkata .But, Air India remained
the national carrier, flying multiple domestic and international routes occupying Indian airspace .

In 1953, The Indian government nationalized the aviation industry and took control of all 8
major airlines which were merged into two airlines Air India and Indian Airlines. These
remained India’s prized possession controlling the majority of the domestic airspace.

The two government run airlines were simplified for maintaining efficiency. Indian Airlines
operated domestic flights and Air India operated on international routes hence, streamlining
operations .Air India International was India's flag carrier and became a major international
carrier. Air India came to be known for its superior service and profitable business model, led by
J.R.D Tata, who stayed on as Chairman of the airline post-privatization. The airline also became
of the first few to purchase the 747, hoping to keep its status as a premier airline.

During 1970s, Air India and Indian Airlines struggled due to war and domestic disputes.
At the same time they were flying a number of unprofitable routes and had to manage
their aging fleet.

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During the early 1990s, India’s financial crisis was at its peak. India reversed its stance
on regulations and allowed private airlines to enter this market. This gave opportunity
for establishing airlines and marked the birth of Jet Airways , Sahara , Modiluft ,
Damania and East West .This laid the groundwork for the current Indian Aviation
Industry becoming the world’s 3rd largest aviation market behind US and China and is
growing fastest among all.

The history of Indian Aviation is closely linked to that of Air India and state control, with its
roots in the 1930s.

1.5. MARKET SIZE

India is the world's third-largest domestic and overall civil aviation market (c. January
2018). The number of air passengers grew 16.3% annually from 14 million (1.40 crores
in 2000–01) to 135 million (13.5 crores in 2015-16, both domestic and international). It
recorded an air traffic of 131 million passengers in 2016, estimated to be 60 million
international passengers by 2017. The market is also estimated to have 800 aircraft by
2020. In 2015, Boeing projected India's demand for aircraft to touch 1,740 or 4.3% of
global volume, valued at $240 billion, over the next 20 years in India.

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1.6. ABOUT JET AIRWAYS

FOUNDED : 1ST APRIL 1992

FOUNDER CHAIRMAN : NARESH GOYAL

STARTED OPERATIONS : 5TH MAY 1993

STARTING FLEET SIZE : 4 LEASED BOEING 737-400 AIRCRAFTS

BASE (MAIN HUB) : MUMBAI CHHATRAPATI SHIVAJI ( BOM / VABB )

OTHER BASES : DELHI INDIRA GANDHI ( DEL / VIDP )

MADRAS CHENNAI INTERNATIONAL ( MAA / VOMM )

AMSTERDAM SCHIPHOL ( AMS / EHAM )

AIRPORT LOUNGE : JET LOUNGE

COMPANY SLOGAN : THE JOY OF FLYING

IATA CODE : 9W

ICAO CODE : JAI

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2. STARTING OF JET AIRWAYS ( INDIA ) LTD [ JAIL ]

Jet Airways (INDIA) Ltd. was incorporated on 1 st April 1992 as a private company with limited
liability under the companies act. They commenced operations as an Air Taxi Operator on 5 th
May 1993 which meant their aircrafts carried operations with 30 or fewer passenger seats and a
payload capacity of 7500 lbs or less for hire/compensation and operated on-demand basis hence
it didn’t meet the Scheduled flight qualification.

At the time of incorporation, its shareholders were Mr. P.V.V. Chalam and Mrs. Anita Goyal.
Initial investment was $ 20 million and these shares were transferred to Tail Winds on 12th May,
1994 which Mr. Naresh Goyal held on behalf of Tail Winds as per RBI approval letter ( dated
30th December 1993). An application dated 12th March 1993 was given by Jet Airways for
approval for foreign collaboration proposal for investment in Tail Winds in proportion of 60 %
by Naresh Goyal, 20 % by Gulf Air and rest 20 % by Kuwait Airways. The Foreign Investment
Promotion Board ( FIPB ) granted this proposal on 28 th June ,1993. Tail Winds then held 100%
of the Equity Share Capital of Jet Airways.

SHARE

20
20 60 NARESH GOYAL
GULF AIR
KUWAIT

FIGURE 1: PERCENTAGE OF SHARES HELD

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2.1. JET AIRWAYS CUSTOMER SERVICE

Jet Airways were known for their above par customer services.

Jet Airways had 3 classes of service ->

 FIRST CLASS: only available in Boeing 777-300 ER aircraft offering private

suites. Seats were convertible to a fully flat bed, personal LCD TV’s and in seat
power supply.
 PREMIERE CLASS : only available on long-haul international flights by Airbus
A330-200 and Boeing 777-300 ER aircraft featuring recliner seats , fully flat beds
with personal LCD TV’s and in-seat power supply . Premiere class in domestic
flights offered recliner seats with larger leg room in 2-2 configuration.
 ECONOMY CLASS: on long-haul aircraft had a 32 inch seat pitch with a footrest
and the cabin was configured 2-4-2 in Airbus A330 and Boeing777 had a personal
10.6 inches touchscreen LCD TV. Domestic flights operated by Boeing 737
aircraft had Premiere and Economy classes and the ATR-72 aircraft was an all
economy class configuration. Economy class on Boeing 737 had a 30 inches seat
pitch with personal LCD behind each seat , Meals were also served in economy
class but later were made buy-on-board named as Jet Bistro .

On 1st February 2016, Jet Airways also introduced in-flight entertainment service for streaming
of entertainment content directly to WIFI enabled personal devices of the passengers.

2.2. STRATEGIES ADOPTED:

• Jet Airways leased aircraft’s rather than buying an aircraft. Buying and aircraft in 1990s
would be around $ 40 - $ 50 million whereas a monthly lease had cost them $ 0.4 million
( about $ 4.8 million per year ).

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 • Jet Airways also used new Boeing 737-400 and not the older version of Boeing 737-
200 .The new version were very fuel efficient and cheaper to maintain.

CRUISING
MAX.RANGE FUEL EFFICIENCY
TYPE OF AIRCRAFT MADE SEATS SPEED
( KM) ( KG / KM )
( KM/H)

B 737-200 1967 130 2960 780 3.59

B 737-300 1984 126 4176 780 3.49

B 737-400 1985 171 4398 795 3.27

TABLE 1: AIRCRAFT
INFORMATION

800 3.7

795

FUEL EFFICIENCY ( KG/KM )

3.59
CRUIISING SPEED ( KM/HR)

795 3.6

790 3.49 3.5

785 3.4

780 780 3.27

780 3.3

775 3.2

770 3.1
B 737-200 B 737-300 B 737-400
TYPES OF AIRCRAFT

CRUISING SPEED ( KM/H) FUEL EFFICIENCY ( KG / KM )

FIGURE 2: CRUISING SPEED AND FUEL EFFICIENCY

As we see in the above chart, The cruising speed of the aircrafts are increasing with more fuel
efficiency ( less fuel consumption ) which makes new generation aircrafts better in most areas .

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ILLUSTRATION 1

we have to travel from point A to point B B

Distance = 1000 km

Speed: ** as per the aircraft **

A Fuel efficiency: ** as per aircraft **

1 HR 17 1 HR 17 ILLUSTRATION
1.285 MINS MINS 3700

FUEL USED FOR THE TRIP ( KG )

1.28
3590 KG 3600
1.275

1.27 3490 KG 3500

TIME ( HR )

1.265 1 HR 15
3400
1.26 MINS
1.255 3300

1.25
3270 KG 3200
1.245

1.24 3100
B 737-200 B 737-300 B 737-400
TYPES OF AIRCRAFT

TIME TAKEN TRIP FUEL

FIGURE 3: FUEL AND DURATION COMPARISON

After the calculations we found out that Fuel required for the trip reduced considerably and the
time taken was also less. But, Speed will matter in the long term as saving time will help in
increasing the frequency of flights for acquiring more revenue or use them for maintenance .

Using the same ex.

Let turnaround time be 30 minutes.

First flight at 0000 UTC

Income per Passenger: Rs. 10,000

Fuel Cost: Rs. 5/ kg

Salaries: Rs. 50,000 per day

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 Seats: **as per aircraft**

NO. OF
TYPE OF
TRIPS IN 72 TIME LEFT ( mins) FUEL COST ( Rs ) INCOME ( Rs ) PROFIT ( Rs )
AIRCRAFT
HRS

B 737-200 40 22 7,18,000 13,00,000 4,32,000

B 737-300 40 22 6,98,000 12,60,000 4,12,000

B 737-400 41 9 6,70,350 17,10,350 8,89,650

TABLE 2: DURATION, FUEL, INCOME AND PROFIT FOR DIFFERENT AIRCRAFTS

PROFIT AND FUEL CHART

1000000 146000
889650
900000 144000
143600
800000 142000
700000
139600 140000
600000
138000
RS

RS
500000 432000 412000 136000
400000
134070 134000
300000
200000 132000

100000 130000
0 128000
B 737-200 B 737-300 B 737-400
PROFIT ( Rs ) 432000 412000 889650
FUEL USED 143600 139600 134070
AIRCRAFT

FIGURE 4: PROFIT AND FUEL CHART

So, as we can see that comparing the three aircraft we get to know that Boeing 737-400 is far
better than Boeing 737-200 or Boeing 737-300 in the case of fuel efficiency, speed, payload,
Range which helps generating far more revenue for the company .The profit made was nearly
doubled using less fuel and more seating capacity by Boeing 737-400. Hence, it was a good
decision to lease this aircraft than the other two.

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 • Jet Airways had one type of aircraft (Boeing 737) in its fleet which insured that
maintenance and flight crew training was simpler. This in turn ensured aircraft utilization
was maximum. Number of flights per day was way more than Indian Airlines.
• Jet Airways used a lean structure creating more customer value using fewer resources.
Indian Airlines had 397 employees per aircraft
Jet Airways had 163 employees per aircraft

2.3. RISE OF JET AIRWAYS

The Indian Aviation sector was completely dominated by Air India owning all the market shares
and controlling prices before Mr. Naresh Goyal seized the opportunity and launched Jet Airways
in 1993 when aviation sector was nationalized .There were 5 more airlines launched in the same
period namely Sahara, Modiluft , Damania and East West.

Jet Airways had the first-mover advantage to establish strong brand recognition and customer
loyalty before their competitors entered their field of service. Right from the start, Jet Airways
focused more on customer service and because of its superior customer service they had become
the most popular airlines in India.

Jet Airways built a strong and reputed image in the aviation market and was a preferred airline in
the country. Air India started losing its market share gradually.

The company dealt with all the major activities in the aviation sector which include carriage of
passengers & transportation of goods and other related services. In its first financial year, Jet
airways served 12 destinations in India and carried 663,000 passengers and had a 6.6% market
share.

By the next year, it was India's second largest private airline, having carried 1.7 million
passengers in 1994.

On 1st July 1996, Jet Airways became a deemed public company. In the financial year 1996–97,
the airline carried 2.4 million passengers and had a market share of 20 % which was the second
highest after state-owned Indian Airlines. At the end of the year Jet Airways had a fleet of 12
Boeing 737 aircrafts and was operating 83 flights to 23 domestic destinations. In the same year
they ordered 4 Boeing 737-400 and 6 Boeing 737-800 aircrafts from Boeing for $ 375 million.
Jet Airways became the first airline in Southeast Asia to order B 737-800.

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In 1997, 4 of the 6 operators were shut down .Jet Airways and Sahara continued their
operations .On 17th April 1997 MOCA released a letter directing the company for disinvestment
of Equity Shares held, directly/indirectly by foreign airlines (i.e. Gulf Air and Kuwait Airways)
pursuant to the government of India’s policy on foreign equity and NRI/OCB Equity
participation in the domestic air transport sector. On 15th October 1997 Mr. Naresh Goyal
acquired 20 % Equity shares from both Gulf Air and Kuwait Airways becoming 100 % owner of
Tailwinds Ltd.

In June 1999, Jet Airways ordered 10 Boeing 737-800 aircrafts worth $550 million and even
purchased its first Boeing 737-400 simulator from Canadian Aviation Electronics (CAE).

By April 2001, Jet Airways fleet had grown to 30 aircrafts operating over 195 flights daily to 37
destinations within India .The same year the Aviation Turbine Fuel ( ATF ) prices were
decontrolled which meant fuel providers could set the prices as per their requirements . Jet
Airways improved its market share from 6.6% ( 1993-1994 ) to 42% (2000-2001 ) The Company
even bagged the prestigious Air Transport World Award 2001 for Market Development and the
TTG Travel Award 2002 for Best domestic airline .

Jet Airways suffered losses for the first time in financial year 2001-2002 as the costs increased
and demands fell. The primary reason of reduced demand was terrorism. After the terrorist attack
of 09/11, numerous airlines experienced financial crisis both in U.S. and other parts of the world.
Due to these losses deal worth $ 520 million for 10 aircrafts with Embraer for Embraer 175 was
postponed.

In 2003, Jet Airways began preparing to launch International Services as Indian Government
decided to allow private operators to operate international services to countries in South Asia
(Bangladesh, Sri Lanka and Nepal).

On March 2004, Jet Airways launched its first international flight from Chennai (India) to
Colombo (Sri Lanka).Jet Airways also tied up with South African Airways (SAA) to operate
Nonstop flight between Mumbai and Johannesburg. Under this agreement, Jet Airways would
code share on SAA flights between Mumbai and Johannesburg and beyond to Cape Town and
Durban. While SAA would code share on Jet Airways operations between and Delhi, Bangalore,

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Hyderabad, Chennai and Thiruvananthapuram .On 28th December 2004, Jet Airways was listed
on the Bombay Stock Exchange and became a public company.

Jet Airways also launched ‘CHECK FARES’ scheme withdrawing it’s 15/21/30 days Advance
Purchase ( APEX ) fare scheme making tickets more cheap and affordable ( tickets are sold on
first come first serve basis .

SLAB A SLAB B SLAB C

50 TICKETS 40 TICKETS 10 TICKETS
RS 1000 RS 1500 RS 2000

Suppose an aircraft has 100 seats .So now, first slab A (50 tickets) has to fill then automatically
ticket prices will fall into slab B (40 tickets) . Similarly once slab B has filled then slab C (10
tickets) will start filling.

At the end of 2004, government announced that privately owned scheduled carriers meeting
certain criteria could operate to all countries apart from those in Middle East .So, In January
2005 MOCA granted rights to Jet Airways to operate services to London Heathrow. Jet Airways
signed a lease agreement with South African Airways (SAA). Jet Airways on 23 rd May 2005,
started its first international long haul flight to London Heathrow using two-class Airbus 340-
300 which was subleased from South African Airlines (SAA).

The Indian government lifted the foreign ownership limit on Indian Airlines from 40% to 49%.
So, Jet Airways moved to raise funds via an IPO. In February 2005, Jet Airways offered 20 % of
its stock 17,266,801 (1.72 crore shares) Equity shares of Rs.10 each for cash at a price which
was decided through book building process. The funds generated were mainly for its
international expansion plans. On the 1st day itself Jet Airways received 7.32 crore bids where
FIIs accounted for 69.93% of the total issue, Mutual funds 28.69% of the total ,Insurance
companies 0.61% of the total and FIs for 0.36 % of the total.

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 0.61 0.36

28.69

69.93

FI Mutual funds Insurance companies FIs

I

FIGURE 5: FUNDS GENERATED

Jet Airways raised Rs. 18.9 billion which made Mr. Naresh Goyal a paper billionaire. Jet
Airways even signed a purchase agreement with The Boeing Company, USA and also signed a
pact with Gulf Air. Jet Airways ensured its customer service for everyone by introducing an
inflight safety manual in Braille. Their customer services were above par which won them the
Avaya Global
Connect Customer Responsiveness Award. Jet Airways also received ‘Pride in Excellence’
award from Boeing Company for maintaining 'Best Technical Dispatch Reliability' in 2003 and
2004.

During 2005-2006 the company completed the construction of hangar complex at a cost of $15
million with workshop and allied facilities in Mumbai becoming the first private airline to
establish its own hangar in Mumbai. Major and line maintenance checks would be carried out by
300 employees from engineering department for its fleet of Boeing and ATR aircraft. Jet
Airways signed a special code sharing ( SPA ) agreement with American Airlines for India-US
flights and a contract with CAE for Boeing 777 and Airbus A330 simulators . Jet Airways
maintained its reputation for its superior customer service and won 3 Avion Global Awards for
in-flight Entertainment. Jet Airways was judged the best overall airline for in-flight
entertainment in the small fleet category based on its fleet size.

Jet Airways till now didn’t face much competition from any other private player i.e. Air Sahara.
So, to make Jet Airways King of the Indian skies they planned to acquire Air Sahara for US $
500 million but this news had mixed emotions amongst the investors in the market and analyst
suggested that Jet had overvalued Air Sahara.

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2.4. JET AIRWAYS ACQUIRING AIR SAHARA

In 2005, marked the birth of 5 new airlines namely,

• Kingfisher ( May , 2005 )

• Spice jet ( May , 2005)
• Indigo ( August , 2005 )
• Paramount ( October , 2005 )
• Go Air ( November , 2005 )

At the time of the deal, Jet had about 62 aircrafts operating 320 flights to 44 domestic
destinations and 6 international destinations. Jet Airways had to gear up for intense competition
ahead

Motives behind the deal:

 Jet Airways would get access to the entire leased fleet of 27 aircrafts of Air Sahara
including its infrastructure and logistics.
 More routes to fly connecting places where Air Sahara did and Jet didn’t.
 Air Sahara operated to neighboring countries such as Nepal, Thailand and Sri Lanka
hence more international arena.
 Gaining access of Sahara’s parking slots in London Heathrow airport, Delhi and Mumbai.
 Utilizing Air Sahara’s pilots due huge shortage of airline pilots.
 More market share as Jet Airways market share had dropped from 40% to 27%.
 Compete with Low Cost Carriers in terms of price

The first attempt to takeover was made on 19 January 2006, when Jet offered US $500 million in
cash but despite of getting a go ahead from the Indian Civil Aviation Ministry, the deal fell apart
due to disagreement on the price. The terms of transfer of the infrastructure of the airports was
quite unclear in the policy related to M&A in the Indian civil aviation industry. The guidelines
were clear in terms of parking bays and landing slots, but didn’t mention anything about the
status of aircraft hangars, check-in counters, cargo warehouses, passenger lounges and other

20 | P a g e
airport facilities after acquisition. Jet Airways rushed into the deal and overvalued Sahara due to
their eagerness to become the best. But Jet Airways realized it and wanted a discount on the deal
of the order of 20-25% on the original bid. Lawsuits were filed by both the companies seeking
damages from each other.

The 2nd attempt was made on 12th April 2007 and Jet Airways managed to buy Air Sahara for
$340 million. Air Sahara proved to be a very good buy as its financial status was better than most
of its competitors. The debt equity breakup of Air Sahara was about Rs.500 Crore funded by
promoters which comprised of Rs.236 Crore of equity, Rs.50 Crore in preferential shares and
loans taken by the group amounting to Rs. 250 Crore ( Liability ). Other promoters contributed
around Rs. 40 -50 Crore.

The combined Jet Sahara entity would achieve economies of scale and drive the market
economies. But monopoly was far from reach due to the growth in passenger traffic which was
predicted at 40 percent which was far less than available seat capacity.

Air India and Indian Airlines also due to be merged together in 2007 which would account for
one third of the domestic market was a big threat and direct competition to the merged Jet Sahara
entity. According to the policy issued by the government in April 2006, only parking rights and
slots for flying time were transferable in an acquisition of an airline. Which meant that Jet would
not automatically get the maintenance facilities of Sahara and the commercial spaces at airports
such as airport counters and lounges which belonged to AAI/ GMR and GVK group in Delhi and
Mumbai airports. Hence, Jet would have to renegotiate for the same. Also, these airport operators
were planning huge capEX so Jet Airways had to pay up more for the same facilities.

3. FALL OF JET AIRWAYS

The uncertainty over the airline's fate due to acquisition caused its share of the domestic Indian
air transport market to go down from approximately 11% in January 2006 to a reported 8.5% in
April 2007. On 16th April 2007, Jet Airways announced that Air Sahara will be renamed as Jetlite
and was marketed between a low-cost carrier and a full-service airline.

21 | P a g e
 FIGURE 6: JETLITE LOGO

Jet Airways operated a fleet of 8 ATR 72-500s but they wanted to open new routes and increase
frequencies across the Indian subcontinent .So, Jet Airways signed an aircraft lease agreement
worth $238 million for 13 new ATR 72-500 aircraft with the latest technological innovations in
passenger comfort, communications and navigation aid tools, these aircrafts will primarily be
used for regional operations. Expected Deliveries was from 2007 and continue through 2010. In
the same year, Jet Airways announced about its first flight from Chennai to Toronto (via its hub
in
Brussels). Jet Airways even won the ‘ Most Innovative Product Launch’ Award for its ‘First
Class’ Suites onboard it’s Boeing 777-300ER .

FIGURE 7: B777 PHOTO FIGURE 8: FIRST CLASS JET AIRWAYS

In 2008, Jet Airways also launched daily direct flights between Mumbai and Bangkok with effect
from 14th May. It was the third service to Bangkok from the country. The air-carrier already
operated daily services to Bangkok from Delhi and Kolkata respectively.

Jet Lite was like a hole in Jet Airways balloon because it lost them customers as people would
buy their tickets expecting good service but when they found out that customer service was poor
and food would be only available at extra cost, Jet Airways lost some loyal customer there.

22 | P a g e
In August 2008, Jet Airways announced its plans to integrate JetLite into Jet Airways. Jet
Airways was seeing its losses grow as a result of rising costs and a drop in demand for travel due
to global recession in 2008. In October, Jet Airways laid off 1,900 of its employees (15% of its
workforce), who were later re-instated due to intervention from the Ministry of Civil Aviation
(MOCA).

There was widespread speculation in India for which civil aviation Minister Praful Patel stepped
in to express his disappointment to Goyal regarding the layoffs. Ms. Monica Chopra was
appointed as the Company Secretary of Jet Airways with effect from October 01, 2008. In this
turbulent year, Jet Airways managed to win the 2008 Galileo Express Travelworld Best
Domestic Full service
Airline Award for the 6th time in a row. They also won the ‘Best Cargo Airline of Central Asia’
Award.

On 8 May 2009, Jet Airways launched another low-cost brand All Economy No-Frills services,
Jet Konnect which operated a fleet of Boeing 737 next generation and ATR 72 aircraft operating
on profitable short-haul routes with higher passenger payload.

FIGURE 9: JET KONNECT LOGO

In 2010, IBM also signed a 10-year business transformation and information technology (IT)
services deal worth $62 million with Jet Airways. In the third quarter of 2010, Jet Airways
became the largest airline in India with a passenger market share of 22.6%

Jet Airways was talking to leasing companies to acquire more than 10 Airbus A320 through a
sale and leaseback option at a time when the aviation industry was going through a turbulent
phase due to increase in aviation fuel prices and a depreciating rupee. Jet Airways wanted to
replace its ageing fleet and wanted to seize the opportunity of gaining the market share as
Kingfisher were planning to phase out its low cost airline Kingfisher Red which accounted for
50%-60% of Kingfisher Airlines.

23 | P a g e
In June 2011, Jet Airways became the first domestic airline in India to ban meat products and
liquids in check-in baggage.

Jet Airways won several awards in 2011 and 2012:

• Best Domestic Airline 2011

• Jet Airways won the prestigious customer and brand loyalty award 2011
• Air Cargo Award of Excellence 2011

• NDTV profit Business Leadership Award 2011

• Favorite Full service Airline 2012
• Customer and Brand Loyalty in domestic commercial airlines sector 2012
• Best On time Performer amongst scheduled Domestic Airlines sector 2012

Kingfisher Airlines ceased its operations on 20th October 2012 which gave Jet Airways an
advantage of gathering some market share.

JetLite merged with Jet Konnect on 25th March 2012 so as to operate under one brand. On 1 st
December 2014, Jet Konnect itself was integrated into Jet Airways ending its own operations and
flew for them under the codeshare.

TABLE 3: YEARWISE COMPARISON OF PROFIT AND LOAD FACTOR

2010 2011 2012 2013 2014

REVENUE ( INR LAKHS) 157,947 178,615 190,386 201,136 176,364

PROFITS ( INR LAKHS) 4,619 −10,747 −18,403 −29,523 −42,931

DEPARTURES 39,602 39,003 41,992 38,160 31,986

LOAD FACTOR (%) 75 79.2 77.9 74.8 72.7

NO. OF AIRCRAFT 25 19 19 15 12

24 | P a g e
 79.2
77.9
80

LOAD FACTOR (%)

78 75 74.8
76 72.7
74

72

70

68
1
YEARS

2010 2011 2012 2013 2014

FIGURE 10: LOAD FACTOR COMPARISON

Load Factor = (Number of seats filled / Number of seats available) x 100

Here, we can see that the load factor started decreasing from 2012.

Jet Airways launched Daily Direct Service from Mumbai to Paris, France. Jet Airways started
The Jet Privilege loyalty Programme, it was a loyalty Programme of an airline, meant to provide
benefits to the customers of the airline. Jet Airways won several awards in 2014:

 ICC Supply Chain and Logistics Excellence Awards

 Jetprivilege Programme won double honors at the prestigious CNN Flyertalk Awards
2014  Best Domestic Airline award 2014.

In 2015, Jet Launched daily flights from Mumbai, Delhi and Toronto to Amsterdam. Jet Airways
became the Official Airline Partner for the Vibrant Gujarat Summit 2015. Jet Airways bagged
The Henry Spira Humane Corporate Progress Award.

In 2016, Jet Airways introduced pre-paid pass for travelers and even joined hands with Uber to
provide first and last mile connectivity for air travelers. Jet Airways even signed a cooperation
agreement with Air France – KLM to:

 Offer an extended network and increased capacity between Paris, Amsterdam and
India.
 Improve connecting opportunities through adapted flight times via Paris-Charles de
Gaulle, Amsterdam-Schiphol as well as Mumbai, Delhi, Bengaluru and Chennai

25 | P a g e
  Offer guests, a seamless travel experience between the networks of Jet Airways, Air
France and KLM
 Benefits of the Flying Blue and JetPrivilege loyalty programmes on the three airlines’
networks worldwide.
 Coordinating sales and services to provide the best possible offer for customers.

During 2016-17, Aviation industry was going through a tough time. The industry was facing
major challenges.

FARE WARS WERE LOOMING

MAJOR CHALLENGES

RISING OPERATIONAL COSTS

MANAGEMENT OF MARKET EXPECTATIONS

HIGH TAX RATE ON GST

HIGHER COST OF FUEL IN INDIA

NEO INDUCTION CITED AS A CHALLENGE

GOING FORWARD NEW REGULATIONS TO INCREASE THE

REVENU
E

In November 2018, Jet Airways had a negative financial outlook due increasing losses. The Total
enterprise value was about Rs. 12,000 crores with the total debt being Rs. 8,000 crores and
market value at Rs. 3,940 crores.

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 FIGURE 11: CASH TO DEBT COMPARISON

In order to revive the losses of the company, Tata Group offered to acquire a stake in Jet
Airways minus Goyal .But, even after the suggestions of the Independent directors and other
board members, Naresh Goyal did not consider the offer made by Tata’s relating to the infusion
of capital in Jet Airways. In March 2019, nearly a fourth of Jet Airway’s aircraft were grounded
due to unpaid lease rates. On 25 th March 2019, Chairman of Jet Airways Mr. Naresh Goyal and
his wife Mrs. Anita Goyal stepped down from the board of directors. Jet Airways suspended all
its flight operations due to lenders rejecting Rs. 4 billion of emergency funding and Jet Airways
membership in the International Air Transport Association (IATA) was also suspended on 17 th
April, 2019.

On 17th June, Jet Airways got no acceptable offers from Etihad Airways and Hinduja Group
lenders so Jet Airways decided to refer the company to National Company Law Tribunal
(NCLT) for bankruptcy with a debt of $ 1.2 billion, thus ending Jet Airways reign in the aviation
industry.

27 | P a g e
 3.1. REASONS FOR DOWNFALL

HIGH OPERATIONAL COSTS ENVIRONMENT

HIGH TAXES
FUEL COSTS
HIGH AIRPORT CHARGES

FAILURE
POWER TO PROMOTERS
LOW COST
INDEPENDENT DIRECTORS CARRIERS

PROTECTION OF
STAKEHOLDERS
POOR MANAGEMENT COMPETITORS

FIGURE 12: FISH BORN DIAGRAM FOR JET AIRWAYS FAILURE

1. Fuel Costs

The government deregulated prices of aviation turbine fuel (ATF) in 2002 and refiners
were given pricing freedom on paper, but government would recalibrate prices of the fuel
periodically to market prices according to price of crude oil ( Raw materials) .

Jet Fuel price are soaring to record high levels across the country with the rise in
international oil prices. The ATF price was hiked to Rs. 90,519.79 per Kl in Delhi which
was the highest ever from Rs. 71,028.26 per Kl in August, 2008 when international crude
oil prices touched USD 147 per barrel.

28 | P a g e
 2. Entry of Low Cost Carriers

With Low cost carriers entering the aviation sector in 2005 and fuel price increasing
gradually. Cutting off fuel expenses and increasing payload would be the best possible
solution.

With Indian market generally comprising of rich and middle class people who wish to
travel by air. Majority of population is of middle class people who wish to travel with
those airlines who offers them the lowest price and if possible better service.

Low cost carriers used to play on the economy class and attracted lot of interest of the
passengers thus slowly and gradually acquiring market share.

45
37.5 38.5
40
35
MARKET SHARE (%)

30
25 22.6
21.2
19.8
20
20
15
10
5
0
2010 2016 2017
YEARS

JET AIRWAYS INDIGO

FIGURE 13: MARKET SHARE COMPARISON TO INDIGO

As we can see from the graph that Indigo’s market share was gradually increasing from
its start and that’s because slowly people did not care much about the services that were
being offered to them but wanted the fare to be as low as possible .

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 FIGURE 14: MARKET SHARE IN FY 2018

Getting more market share meant more revenue would be generated thus covering up for
the fuel costs. Jet Airways tried to incorporate low-cost and customer-friendly airlines
through Jet Lite but had to halt its operations after some time as other competitors had
already captured the market.

FIGURE 15: MARKET SHARE IN FY 2019

3. High taxes, steep airport charges contribute to high operational costs

Taxes and airport charges are increased so as to make up for all the latest technological
investments made for the infrastructure of the airport. Thus, Airlines either have to pay

30 | P a g e
 for them or they have to find an alternate destination which also comes at a cost thus they
are put into a state of dilemma.

The same issue happened with Jet Airways when they acquired Air Sahara thinking that
they would automatically get the maintenance facilities of Sahara and the commercial
spaces at airports such as airport counters and lounges which belonged to AAI/ GMR and
GVK group in Delhi and Mumbai airports. Hence, they had to renegotiate for the same as
the airport operators were planning huge capital expenditure ( capEx ) and Jet Airways
would have to pay up more for the same facilities.

4. Poor Management

There was a lot of mismanagement and unfettered powers were given to the promoters.
Some were:-

 Unfettered powers given to the promoters :

To oversee the day to day functioning of the company Board of Directors are
formed but Board’s independence is questioned as the board acts in the interest of
the promoter led board. Jet Airways was a family business and the promoter held
more than 50% of shareholding. Hence, they had a dominant power in the
decision making. The promoter disregarded the interests of other shareholders and
took decisions violating Regulation 4 ( 2 ) ( c ) of the SEBI ( Listing Obligations
and Disclosure Requirement ) Regulations , 2015 which ensures equitable
treatment of all shareholders ( including minority and foreign shareholders ) .

In the acquisition of Air Sahara 2006, experts had suggested acquiring a loss
making company is not a right decision but the same was not even considered by
the promoters.

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  Independent Directors :

Independent Directors assist a company in implementing corporate governance

policies. As per section 149 of the companies act, 2013 -> every company must
have at least 1/3 of the total no. of directors as independent directors. These
independent directors perform a crucial role in overseeing the affairs of the
company. In 2018-19, When Jet Airways was facing severe losses and TATA had
offered a deal to acquire Jet Airways. Independent Directors suggested that the
deal was a must for the company but the board disregarded the same. Many
Independent directors resigned due to the approach of Jet Airways as the deal did
not reach its conclusion stage.

 Protection of other stakeholders :

Stakeholders aid in the business activities and impact organizations overall

growth. The Board and majority shareholders of the company are therefore
responsible to protect the interest of other stakeholders. But, the promoter led
board by Mr. Naresh Goyal did not consider the interests of other stakeholders
involved in the business operations of Jet Airways. When Jet Airways was near
bankruptcy and the board had the chance to revive Jet Airways, the same was
ignored.

The failure to protect the employees and other stakeholders could have been stopped if the
promoter instead of protecting his interests & the Board instead of being “Yes Sir” would have
considered the collective interests of all the other stakeholders. And Jet Airways might be still
flying and competing in the aviation market.

32 | P a g e
4. JET AIRWAYS REVIVAL ( JET AIRWAYS 2.0 )

Jet Airways was acquired on June, 2021 by:

• British firm Kalrock Capital and

• UAE-based entrepreneur Murari Lal Jalan

Jet Airways will now be headquartered in Delhi NCR and senior management would work from
Gurugram. But, Jet will continue to have strong and significant presence in Mumbai where it will
work from its ‘Global One’ office in Kurla. Jet Airways also have a state of the art training
facility located in global one to be used for in-house training for the Jet Airways team.

Jet Airways has hired 150+ full time employees on its payroll and will add another 1000+
employees in Financial Year 2021-22 across categories .The hiring will be according to needs of
Jet Airways and in a phased manner.

Jet Airways plans to restart its operations from Q1 2022 with its first flight from New Delhi to
Mumbai .Jet Airways (India) Ltd will restart operations at the earliest with six narrow-body
planes in 2022 after the revalidation of its air operator permit.

Fleet: ( Average fleet Age -> 14.8 years )

 Boeing 777-300 ER ( 5 )

 Boeing 737-800 ( 2 )

 Boeing 737-900 ( 1 )

33 | P a g e
Jet Airways will also look to target short-haul international operations by Q3-Q4 of 2022. Jet
Airways have a plan to acquire 50 plus aircraft and over 100 aircraft in 5 years which would
perfectly fit with short and long term business plans of the consortium. The decision of the
perfect aircraft for the operations would be key in this revival.

Last June, The insolvency resolution plan submitted by Kalrock Capital and Jalan were approved
by National Company Law Tribunal (NCLT).

The consortium proposed to pay Rs. 1,183 crore to creditors over 5 years from the proceeds of
the sale of assets and cash flow.

They will also invest Rs. 600 crore for the 1 st two years to repay creditors. The new owners have
also planned to pay Rs. 131 crore, Rs. 193 crore and Rs. 259 crore to financial creditors at the
end of 3rd, 4th, and 5th year respectively, from the airlines cash flow.

Jet Airways will focus on metro-to-metro routes only after this they will link with non-metro
routes .For this, Jet Airways were in talks with Mumbai and Delhi for night parking slots . Jet
Airways will start international operations after one year of domestic operations.As listed above
Jet Airways will use Boeing 737 Max for its domestic and international routes as they are fuel
efficient and
Directorate General of Civil Aviation ( DGCA ) has approved it after India’s Air Safety
Regulator had cleared Boeing 737 max as safe .

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FIGURE 16: BOEING 737 MAX

4.1. WILL JET AIRWAYS 2.0 SUCCEED?

The path of Jet’s revival would be long and an arduous one which will require a fresh business
plan with

 Low Costs

 Capital Infusion

 Efficient Management

Jet Airways would need to acquire airport slots and flying rights. The passenger traffic in India is
increasing at a good pace but there was a drop in traffic in both domestic and international
passengers due COVID 19 pandemic since the 2 nd half of March 2020. But in 2021 Passenger
traffic amounted to 115 million at airports across India in the financial year 2021, out of which
10 million were international passengers. So, Jet has to tackle with Covid-19 pandemic and the
uncertainty on aviation demand in the future.

35 | P a g e
 DOMESTIC INTERNATIONAL

300 275.22 274.51

NO. OF PASSENGERS ( MILLIONS )

243.28
250
205.68
200
169.29

139.33
150
122.3
105.25
100
65.47 69.48 66.54
54.66 59.28
46.62 50.8
50
10.13

0
2014 2015 2016 2017 2018 2019 2020 2021
YEARS

FIGURE 17: GROWTH OF AIR TRAFFIC

New Aircrafts and network with old brand would be the best path forward as the aviation
industry has changed a lot. Aviation industry pre Covid 19 and Post Covid 19 has a massive
difference and it would be better to monetize and dispose of the remaining fleet and go for
aircrafts which are economical and generate maximum revenues.

Due to Covid 19 there have been reduction of flights and network and many airlines have failed,
due to which availability of fresh slots and rights would not be a big problem.

Business model of Jet 2.0 would be crucial and it would be expected of the airline to achieve the
lowest possible cost per seat whilst maintaining its yield premium, leveraging its brand and
product/ service proposition. Lowest cost is a must because Indian Aviation Market mainly
consists of middle class people and Rich people, and nearly 99 million people belonged to the
global middle class. During the pandemic India plunged into its deepest recession in more than
40 years as it led to massive job losses and India’s middle class population shrunk by 32 million
leaving behind only 66 million people. Thus, the Indian aviation market has shrunk considerably

36 | P a g e
and fares must be kept as low as possible to attract customers otherwise there are alternatives for
traveling such as railways and roadways.

Smart management team needs to be appointed who can execute all the needs and keep the costs
as low as practicable as the increase in fuel prices in itself has strained balance sheets of airlines
that are yet to resume full operations due to pandemic related restrictions .

But, there’s a positive side for Jet Airways as well. Due to the current situation where all the
airlines are hemorrhaging cash and people trying to save their money. The re-emergence of Jet
Airways could be the perfect timing for a disruption in the Indian airline space and they even
have an option to start fresh ( debt free ) in this changing industry. Factors like low rentals of
aircrafts, reduced fuel prices, growing airport infrastructure in India will also aid Jet Airways.

Jet airways success depends on how smartly they get low and technology enabled costs along
with a well thought out risk mitigation strategy as right now Covid19 is a major risk which can
bring down your load factor from 80% to 0% in just one day. Jet Airways will have to establish a
lot to negotiate new contracts and re-establishing the operational front. As the owners are new
they will need to gain consumer and industry confidence to sustain.

But, with accelerated pace of vaccine and easing of travel restrictions globally, Indian aviation
sector has bounced back .Even though travel restrictions prevailed in October 2021 the total
number of passengers carried were 99.58 lakh ( 68% of the pre Covid level of 146.25 lakhs )

Some surveys also suggest that Indian government took some steps to boost Indian aviation
sector like disinvestment of Air India, privatization, modernization, expansion of airports,
UDAN and incentivisation of maintenance, repair and overhaul operations (MRO).

MRO’s in aviation is the repair, service, or inspection of an aircraft or aircraft component and
perform all of the maintenance activities .MRO’s play a crucial role for driving productivity and
maintaining safety of the aircrafts. MRO’s are like friends of the airlines and they must be helped
by the government for their initial setup.

37 | P a g e
 PLAN

CONTINUAL
ACT
DO
IMPROVEMENT

CHECK

FIGURE 18: PDCA CHART

Jet Airways must follow the technique of PDCA to ensure that they remain in the Indian aviation
market as with time Indian aviation market will change a lot as only 40% of the Indian market
has been targeted and used. So, it becomes extremely crucial to build the airline slowly and
target more customers through this method.

Different category of population if targeted must be done using this formula as tremendous
amount of planning would be required. Then implement the plan and then check whether the
plan is working or not. If the plan isn’t working then take action to resolve the issue and if the
plan works then generate a new plan to make it even better. As, continual improvement in the
company is a must to become the best airline.

4.2. INDIAN AVIATION MARKET NOW

India’s passenger traffic was 115.37 million in FY21. Domestic passenger and International
passenger traffic declined at a Compound Annual Growth Rate ( CAGR ) of -9.02% and -
28.64% respectively from FY16 to FY21 due to the covid-19 restrictions in FY21.In October
2021 , the average daily domestic passenger flight departures stood at > 2,300 with average daily
domestic traffic being > 283,000 air passengers .

38 | P a g e
 Freight traffic also declined at a CAGR of -1.77% between FY16 to FY21 that is 2.70 million
tons to 2.47 million tons .But, freight traffic in India has the potential to reach 17 million tons by
FY40. Further, the rising demand in the sector has pushed the number of airplanes operating in
the sector. The number of airplanes is expected to reach 1,100 planes by 2027.
To cater to the rising air traffic, the Government of India has been working towards increasing the
number of airports. As of 2020, India had 153 operational airports. India has envisaged increasing
the number of operational airports to 190-200 by FY40.
Rare Enterprises are planning to start an ultra-low-cost airline to capitalize on the domestic air
travel demand in 2021 making use of travel demands from tier 2 /tier 3 cities with the help of
Ude Desh Ka Aam Nagrik ( UDAN ) Scheme which helps to connect these small cities from one
another at a low cost of Rs.5/km whereas by road this would cost Rs.10/km. Thus, helping
people to reach at their destination early and at a cheaper rate than roadways.
The Ministry of Civil Aviation (MOCA) also announced that airlines could operate domestic
flights without any capacity restriction from October 18, 2021. Under the Union Budget Scheme
2021-22 , the government lowered the custom duty from 2.5% to 0% on components/ parts
including engines, for manufacturing aircrafts by public sector units of the ministry of defense.
So, the Indian market is very open now and it might be the best time for Jet Airways to start its
operations.

5. LITERATURE REVIEW

S.NO. TITLE AUTHOR JOURNAL DETAILS

JET AIRWAYS It mentions about the start of Jet Airways and it's
1 SANJIB DUTTA
STORY journey till it faces competition from LCC
JET AIRWAYS THE ECONOMIC It mentions about how Jet Airways was founded
2
HISTORY TIMES and year wise details of Jet Airways journey.
JET AIRWAYS WAS
NARESH GOYAL’S It mentions about how Jet Airways climbed it's
3 CHALLENGE TO ARSHAD KHAN way to the top and mentions about Naresh
AIR INDIA Goyal as a person
MONOPOLY
It mentions how the Jet Airways established itself
WHY JET AIRWAYS TARIF
4 and the key decisions that Jet Airways
FAILED MOHAMMED founder Mr. Naresh Goyal made which resulted
39 | P a g e
 KHAN in the ultimate demise of Jet Airways .
JET AIRWAYS,
JETLITE AND JET
The case mainly focuses on the differences
KONNECT – IS
5 ASEEM RASTOGI between JETLITE and JET KONNECT . Their
THERE REALLY working and effectiveness
ANY
DIFFERENCES?
MANAGEMENT
RAJEEV
AND REGULATORS mentions the reasons for the failure of Jet
6 KUMAR
FAILED JET Airways due to management
UPADHYAY
AIRWAYS
Jet Airways was one of the top companies in the
FALL OF JET
aviation sector which later became bankrupt.
AIRWAYS DUE TO
7 TEJAS GEETEY Jet Airways’ failure can be attributed to the
POOR CORPORATE
mismanagement and irregularities that
GOVERNANCE
occurred in a promoter-centric company.
JET AIRWAYS 2.0 :
BOARDING
NEHA LM
8 CLEARED , Revival of Jet Airways plan
TRIPATHI
TAKEOFF TO BE
SCHEDULED
ECONOMIC
Economic survey after Covid 19 and the
SURVEY 2022: ZEE MEDIA
9 government initiatives for the betterment of
AVIATION SECTOR BUREAU
Indian aviation sector
RECOVERY
REVIVAL MODE:
THE NEW
JET AIRWAYS IN Resumption of Jet Airways and their plans for
10 INDIAN
TALKS WITH the future
EXPRESS
CHENNAI AIRPORT
INDIAN BRAND
INDIAN AVAITION Detailed report about Indian Aviation sector
11 EQUITY
INDUSTRY REPORT growth and opportunities.
FOUNDATION
TABLE 4: LITERATURE REVIEW LIST
SUMMARY

JET AIRWAYS STORY

BY SANJIB DUTTA
It gives an overview of Jet Airways success in domestic industry and its performance as a whole
from 1992. Jet Airways focused more on its customer service than anything else and had become
the most popular airlines in India .It states about the fleet used initially and how it turns out to be
beneficial in both short and long term. The case specifies many variables that were taken care of

40 | P a g e
during its initial phase such as Jet Airways lean structure, type of aircraft, Number of employees
per aircraft and more. Jet Airways was the only private player in the Indian aviation industry
but later on LCC such as Indigo , SpiceJet came up and Jet Airways had to gear up for some stiff
competition .The company was also embroiled in controversy regarding its ownership where
Naresh Goyal claiming that he owns the company .

JET AIRWAYS HISTORY

BY THE ECONOMIC TIMES
It states how Jet Airways came into existence as a private company with limited liabilities under
the companies act .Jet Airways started as an air taxi operator and was granted scheduled airline
status on 14th January, 1996. On28th December, it became a public company .It mentions about
the shareholder’s and how the shares were transferred to Tail Winds. And how the shares were
transferred as per the letter of Ministry Of Civil Aviation ( MOCA ).

Afterwards the case gives details of its year wise journey from 2004 till 2017. It mentions all the
deals that were done, all the awards that Jet Airways won along its way, all the schemes that Jet
Airways started, new and affordable routes used by Jet Airways.

JET AIRWAYS WAS NARESH GOYAL’S CHALLENGE TO AIR INDIA

MONOPOLY

BY ARSHAD KHAN

Naresh Goyal used to work as a cashier in his uncle’s travel firm in early 1960s and made his
way up and worked in number of airlines. When Indian Economy was liberalized, Goyal seized
the opportunity and launched Jet Airways in 1993 to challenge the monopoly of Air India .From
mid 1990s Jet Airways had unprecedented growth controlling nearly half of the sky becoming
the largest carrier by passenger market share in India by 2010 which they held till 2012. But,
with its growth there were few links of Naresh Goyal with the underworld but he remained
unharmed. The case also states the kind of a man Naresh Goyal was which helped Jet Airways
survive for some more time by bringing in Etihad on board and with them an investment of $379
million for 24% stake. But, when the crude oil prices shot up in 2018 and Indian currency lost

41 | P a g e
nearly 20% of its value the airline’s cash flow was severely dented and Jet Airways couldn’t
recover from there.

WHY JET AIRWAYS FAILED

BY TARIF MOHAMMED KHAN
The article mainly focused on the reasons for the failure of the most reputed airline in India. In
the article, it was stated that purchasing of Air Sahara in 2006 for $500 million was the key
reason and that this decision was made by Naresh Goyal (Non-resident Indian businessman and
founder chairman of Jet Airways) even though experts suggested that the price was set too high.
Jet Airways had underestimated their competitors. With the entry of LCC and financial crisis
also, it impacted traveler numbers leading to LCC dominating the market but Jet Airways
neglected the same .Jet Airways launched JetLite but instead of making profits it started to incur
more costs in terms of aircrafts, routes and parking slots. The article focused on management
style of the Chairman where the company only had one management team led by Naresh himself
and he made terrible decisions and even fired close to 2000 employees which brought visible
protests. Experts believed that there should have been 2 separate management teams – one for
full service and the other for LCC .Jet Airways spent more and more than what they were
earning hence resulting in accumulation of debts.

The increasing costs of oil also played a crucial role as all Indian airlines are very sensitive to the
global fluctuation of crude oil prices.
The chairman even failed to attract any strategic investors for money thus leading to financial
crisis. The talks with Tata also went in vain and Etihad themselves refused to increase their
volume of shares hence there was no hope of light for finances and was on its way to be the 1 st
Indian airline to collapse after Kingfisher.

JET AIRWAYS, JETLITE AND JET KONNECT – IS THERE REALLY ANY

DIFFERENCES?

42 | P a g e
 BY ASEEM RASTOGI

Jet Airways was incurring losses for some time and these problems started from 09/11 attacks.
Even SARS, Recession, Fuel Prices, Terrorism, Human Capital, strikes everything affected
Indian Aviation. Jet Airways operates JetLite and Jet Konnect under itself .Air Sahara was
rebranded to JetLite to move into LCC segment. But, takeover was not smooth as has been the
case in Indian Aviation Industry (Air India and Indian Airlines).

Then Indian Aviation Sector was hit hard by the recession and Jet Airways wanted to shift some
of its own aircrafts into JetLite but they couldn’t do so due legal hassles. So, Jet Airways brought
another brand – Jet Konnect offering no-frill services under the same logo, imagery and
uniforms. Through this Jet Airways wanted to reduce costs and generate profits by bringing in
more customers but it proved to be a disaster because it gave customers a wrong impression of
Jet Airways as he / she had booked a ticket for Jet Airways but services offered were below
expectations. Jet Konnect’s presence created confusion in the minds of people and an alternative
name should have been used which would show that customer services would be limited.

MANAGEMENT AND REGULATORS FAILED JET AIRWAYS

BY RAJEEV KUMAR UPADHYAY

Jet Airways was an open secret to everyone that it was a debt ridden company and unable to even
service debt both in short and long term. Jet Airways was a full service carrier and had very high
operational costs in comparison to many other airlines operating in India. No pilots or crew
members could help fly it’s aircrafts in the air because Jet Airways even failed to pay the salaries
to its staff for a long time. And even the lenders declined to provide any relief by lending with
emergency fund of Rs. 1,200 crores even after giving assurance for the same. Even the
employees were planning to go to court to recover their dues. Hence, it makes it very difficult for
Jet Airways to hit back in the air. The bids of 2019 were not accepted by lenders, they would
move to National Company Law Tribunal (NCLT) for insolvency proceedings under Insolvency
and Bankruptcy Code (IBC) 2016. Coming back from that point would be if not completely but
almost impossible for Jet Airways.

Indian aviation industry is going through a transition period as it is not sure which model (low
cost or full-fledged) of operation should be opted. Recently even the profits of a few profitable

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carriers like Spice Jet and Indigo are continuously falling and the remaining carriers are already
in losses which shows that the aviation sector is not in good health.

The reasons for the problems in aviation sector are not only limited to the operational strategies
of these carriers but also the government’s policies on fuel pricing and maintenance charges
imposed by the Airport Authority of India (AAI) . Even the roles and responsibilities of
independent directors in the affairs of these companies has played a crucial role for fall of many
companies.

There is a need to check the way financing is done in the industry as well. Debt restructuring has
been a common practice in banking and financial industry to deal with NPAs or converting debt
into equity mostly in case of stressed assets have caused problems. It has been witnessed that
debt restructuring is done a number of times which eventually increases the debt amount on the
books of account of these distressed companies. This practice cleans the books of banks and
financial institutions in short term but in long term gravitates the problem as the unsustainable
debt on books of the firms forces the firms to fail on servicing debt.

Banks and financial institutions convert debt into equity of distressed firms which cleans the
books of banks and distressed firms. As a result, the liabilities of these firms fall in short term but
does not provide a long term solution as these financial institutions are efficient in running those
businesses. Rather these financial institutions end up artificial layers in operations of these
businesses

FALL OF JET AIRWAYS DUE TO POOR CORPORATE GOVERNANCE

BY TEJAS GEETEY

A corporation is managed by the Board of Directors to see the working of the company. These
activities performed involve many stakeholders, promoter, shareholders, employees, consumers
and any other community and a corporation has to protect the rights of every stakeholder but in a
promoter centric corporation these rights are ignored if it affects the interest of the promoter and
majority shareholders.

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The fall of Jet Airways was attributed to mismanagement and unfettered powers that were given
to the promoters. Jet Airways was fully controlled by Mr. Naresh Goyal and often disregarded
interests of other board member’s .The Board violated the rights of the stakeholders given under
regulation 4(2) of the Securities and Exchange Board Of India ( Listing Obligations and
Disclosure Requirement ) Regulations ,2015 .

These management issues caused many Independent Directors of Jet Airways company to resign
after the collapse of the TATA SONS deal which was deemed by many as a crucial deal which
could help Jet Airways with their finances. Even the decision to acquire Air Sahara was deemed
by many experts as the one which should not be made but Mr. Naresh Goyal acted on his own
interests.

JET AIRWAYS 2.0: BOARDING CLEARED, TAKEOFF TO BE SCHEDULED

BY NEHA LM TRIPATHI

Bankruptcy court in Mumbai approved the revival plan for Jet Airways under the new owners
Kalrock – Jalan consortium after protracted quasi-judicial proceedings. It was going to be the 1 st
time in country’s aviation industry that an airline was going to be revived after shutting down.
After 2 years of proceedings at National Company Law Tribunal (NCLT), the revival plan by
Kalrock-Jalan consortium got ahead. But, National Company Law Tribunal (NCLT) has made it
clear that Jet Airway’s has no rights over the slots which were given to various airlines and
further decisions regarding it will be with Directorate General of Civil Aviation ( DGCA ).

The consortium will infuse Rs. 1,375 crores out of which Rs. 475 crores will be as payment to
stakeholders including financial creditors. The rest of Rs. 900 crores would be invested for
capital requirements for Jet Airways smooth functioning .For managing day-to-day affairs till
resolution process is complete Jet Airways has appointed a 7 member monitoring committee.

The pandemic has altered every business plan and strategy of airlines globally and it is an
important question whether operations of Jet Airways 2.0 be sustainable as passenger demand is
at the lowest and it’s difficult to predict a definite time when industry be the same as pre Covid.
Jet Airways need to be alert and take sensible decisions as it is not going to be easy and would
need to adhere to all the needs of a changing environment.

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But, Jet Airways 2.0 will start with a clean slate and debt free. Factors like low rentals of
aircrafts, reduced fuel prices, growing airport infrastructure in India will aid Jet Airways.

An expert said, ‘one can’t set up an organization based on legacy and traditional cost-structure as
it will not allow you to survive in the present situation. At a time when airport charges and fuel
costs are increasing with less passengers, anyone who is brave enough in this period to start
would have to be smart and maintain very low cost structure by way of smart negotiations on all
cost fronts. Success would be defined on how smartly one gets low and technology enabled costs
along with a well thought out risk mitigation strategy.’

Right now Covid 19 is also a major risk which can bring down your load factor from 80% to 0%
in just one day and is a big business risk. Jet Airways will have to establish a lot to negotiate new
contracts and re-establishing the operational front. As the owners are new they will need to gain
consumer and industry confidence to sustain.

The slot issue is also not going to be an issue as slots remain unutilized in covid19 situation and
with the arrival of new airports this problem could be resolved easily. The whole industry has
gone through a reboot and every airline has been pushed back to the starting line hence giving Jet
Airways a level playing field.

ECONOMIC SURVEY 2022: AVIATION SECTOR RECOVERY

BY ZEE MEDIA BUREAU
Due to increasing rollout of Covid 19 vaccine and easing of travel restrictions worldwide, Indian
aviation sector has started to rise and it was due to the government initiatives. The domestic
traffic had doubled from around 61 million in 2013-14 to around 137 million in 2019-20 (growth
of 14% per annum).Introduction of RCS-UDAN scheme was a great initiative conducting 4
rounds of bidding and identifying 153 airports including 12 runways on water and 36 helipads.

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 REVIVAL MODE: JET AIRWAYS IN TALKS WITH CHENNAI AIRPORT
BY THE NEW INDIAN EXPRESS

Jet Airways planning to resume operations from summer of 2022 resuming talks with Chennai,
Mumbai and Delhi. Jet Airways has planned 14 destinations initially and the focus would be
metroto-metro connectivity and then non-metro connections. Jet Airways plans to have 20
aircrafts in the domestic market due to regulations and then internationally. Jet Airways will use
Boeing 737 max as they are fuel efficient and DGCA has approved it .Jalan Kalrock Consortium
has been in the process of reviving the grounded carrier with the existing Air Operator
Certificate (AOC).

INDIAN AVIATION INDUSTRY REPORT

BY INDIAN BRAND EQUITY FOUNDATION

The civil aviation industry in India has emerged as one of the fastest growing industries in the
country during the last three years becoming the third largest domestic aviation market in the
world and is expected to overtake UK to become the third largest air passenger market by 2024.
It states about the current market situation comparing to FY16 to FY21 in both domestic and
international passenger market. Then, it states about the foreign investment and the future
investment predictions for the airlines. It also investigates for the possibility of using sustainable
fuel planes and that rare enterprises are planning to move towards ultra-low cost carriers to
capture domestic demand. It also states that Indian government are planning to invest US $1.83
billion for development of airport infrastructure along with aviation navigation services by 2026.
It also mentioned about the various government schemes to help airport operators and airlines to
capture small markets.

6. RESEARCH METHODOLOGY

6.1. RESEARCH METHODOLOGY

Research is the search for knowledge in a scientific and systematic way for gaining information
for our topic ‘Will Jet Airways 2.0 be successful’. We found our research objective of knowing
the reasons for the failure of Jet Airways and what new steps that must be taken by the new
owners of Jet Airways. Once, we found our objective we have to collect data relevant to our
research problem and then analyze the collected data to find the reasons and solutions to our

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problem. Descriptive research was used as surveys and case studies were used to clarify the facts
and get data.

Data can be of two types:

a) Primary – it is original in nature and collected first hand. This can be done in various
ways which are as follows :
Observation
Interview
Questionnaire
b) Secondary – it is general in nature and includes information from national population
census and other government information. One type of secondary data used is
administrative data which is the data collected routinely as part of day-to-day operations.
Administrative data is readily available, inexpensive, have large samples as data
collection is comprehensive and routine. It allows us to detect changes over time.

The data collected by a person is primary data and used by others is secondary data.

6.2. SOURCES OF DATA

For data collection we used both primary and secondary data. Primary data was collected in the
form of a Questionnaire ( Google form ) which was circulated as much as possible to gain some
information on their previous experience in Jet Airways , their preferences regarding services ,
class, meals and about their expectations with Jet Airways in the future. Secondary data was
easily accumulated via newspaper report and articles but the results may not be very accurate as
there can be influence of people in some surveys.

6.3. SAMPLING

Non-Probability Sampling was used where not every member of the population will be included
as one must have some knowledge about aviation industry and should prefer airways as a mode
of transport to provide us valuable and correct data. Under Non-Probability sampling we used
Snowball sampling as we needed to collect data from maximum number of people and people
from different parts of the country to get accurate results. Different parts of the country was

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required as people’s preference changes from region to region and we wanted to generate results
which would be collectively accepted and proper results can be extracted from the primary data
collected.

7. DATA ANALYSIS AND RESULTS

We collected primary data from 100 people from different age groups using Google Forms

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 30

NUMBER OF RESPONSES
25

20

15
RESPONSE
10

0
0 10 20 30 40 50 60 70
AGE ( YEARS )

FIGURE 19: AGE RESPONSE GRAPH

Maximum Number of respondents were from the age group between 21 – 25 years.

The Google form was circulated as much as possible to find out relevant data regarding Jet
Airways services and about their expectations from airlines in general so that we know How to
attract more customers towards Jet Airways.

Below is the figure of how many people travelled in Jet Airways before:

RESPONDENTS: 100
TABLE 5: PEOPLE TRAVELLED WITH JET AIRWAYS
YES 67
NO 33

NO
33%

YES
67%

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 FIGURE 20: PEOPLE TRAVELLED WITH JET AIRWAYS PERCENTAGE
So, we can say majority of the people had travelled with Jet Airways before thus reinstating their
hold of market share in the Indian Aviation market.

From this point, The Questionnaire was made in such a way that every answer would lead to a
different set of Questions as this would help us get relevant data by asking the right set of
questions from every individual.

WHETHER THEY
TRAVELLED WITH JET
AIRWAYS
YES/NO

YES NO
CLASS TRAVELLED IN?

FIRST PREMIERE ECONOMY

Responses: 3 Responses: 1 Responses : 63

RESPONDENTS: 67
FIRST 3
PREMIERE 1
ECONOMY 63

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 TABLE 6: CLASS PREFERRED
63
70

60

50

NUMBER OF PEOPLE
40

30

20
3
1
10

0
FIRST PREMIERE ECONOMY
CLASS THEY TRAVELLED IN

FIGURE 21: CLASS TRAVELLED

4% 2%
So, as per the pie chart 94%
of the
People had preferred
FIRST
Economy class
PREMIERE
ECONOMY Over First and Premiere
class .

94%

FIGURE 22: PERCENTAGE OF PEOPLE OPTING FOR A PARTICULAR CLASS Those 67

respondents were then asked about their Happiness regarding the services of Jet Airways

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 RESPONDENTS: 67
YES 65
NO 2
TABLE 7: HAPPINESS?

2, 3%

YES
NO

65, 97%

FIGURE 23: PERCENTAGE OF PEOPLE HAPPY WITH JET AIRWAYS

Majority were happy with the services of Jet Airways

Those, who answered No were asked to mention where Jet Airways lacked in their services

They had the same problem:

1. No food
2. Not much leg space

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Then they were asked regarding the services that they were offered by Jet Airways

**Multiple answers could be selected in this question**

RESPONDENTS: 67
FREE MEAL+IN-FLIGHT SERVICES 15

FREE MEAL+IN-FLIGHT SERVICES+OTHER SERVICES 2

FREE MEALS ONLY 30

IN-FLIGHT ENTERTAINMENT ONLY 10

OTHER SERVICES ONLY 1

NO SERVICES 9
TABLE 8: TYPE OF SERVICES PROVIDED

13%
As we see, approx. 13% people got no
services and 87% people were offered
services that shows how much Jet
SERVICES Airways focused on customer satisfaction.
NO SERVICES

87%

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 FIGURE 24: SERVICES %

RESPONDENTS: 67
DOMESTIC 41
INTERNATIONAL 12

DOMESTIC+INTERNATIONAL 14
TABLE 9: PREFERANCE FOR DOMESTIC/INTERNATIONAL/BOTH

28, 28%

47, 47 %

25, 25%
DOMESTIC

INTERNATIONAL

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 FIGURE 25: PREFERENCE FOR DOMESTIC/INTERNATIONAL/BOTH
As per the pie chart, people preferred Jet Airways for domestic travel

RESPONDENTS: 67
YES 40
NO 6

DON'T REMEMBER 21
TABLE 10: REASONABILITY OF FARES

REASONABILITY OF FARE
21, 31%
40, 60%
YES
NO
DON'T REMEMBER
6, 9%

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 FIGURE 26: REASONABILITY OF FARES
60% of the people were satisfied with the fare prices set by Jet Airways whereas 30% people
were slightly dissatisfied with the prices. Thus, we can say pricing was pretty decent.

After asking all about Jet Airways, our main motive was to know the preferences of the people as
we want to find solution for Jet Airways 2.0 survival in these hard times when market is
undergoing a tremendous change. So, we have to find where Jet Airways must focus considering
its main motive of Customer satisfaction and make profits from the same.

Q1. JET AIRWAYS PREFERENCE:

JET AIRWAYS
PREFERENCE

DOMESTIC INTERNATIONAL

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 **multiple options can be selected**
RESPONDENTS: 100
DOMESTIC 47
INTERNATIONAL 25
DOMESTIC+INTERNATIONAL 28
TABLE 11: PREFERRENCE DOMESTIC/INTERNATIONAL/BOTH

28, 28%

47, 47%

DOMESTIC
25, 25%
INTERNATIONAL

DOMESTIC+INTERNATIONAL

FIGURE 27: PERCENTAGE OF PREFERRENCE DOMESTIC/INTERNATIONAL/BOTH

So, the results were almost same as for people’s preference with Jet Airways for their domestic
routes earlier.

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Q2 AND Q3 . TYPE OF MEAL PREFERRED?

• SNACK AND/OR BEVERAGES

• FAST PREPARED FOODS
SHORT HAUL ( • PROPER MEALS
FLIGHT DURATION
< 3 HRS ) • GOURMET MEALS

• SNACK AND/OR BEVERAGES

• FAST PREPARED FOODS
MEDIUM AND
LONG HAUL ( • PROPER MEALS
FLIGHT DURATION
> 3 HRS )
• GOURMET MEALS

**multiple options can be selected**

RESPONDENTS: 100

SHORT HAUL MEDIUM AND LONG HAUL

FLIGHTS FLIGHTS

SNACK AND/OR BEVERAGES 64 9

FAST PREPARED FOODS 29 21
PROPER MEALS 31 74
GOURMET MEALS 8 26
TABLE 12: TYPE OF MEAL PREFERRED AS PER THE FLIGHT

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 SNACK AND/OR
BEVERAGES
80
64
70
60
50
40
30
20
10
FAST PREPARED
GOURMET MEALS 0 9 29
26
8
FOODS
21

31

74
PROPER MEALS
SHORT HAUL FLIGHTS MEDIUM AND LONG HAUL FLIGHTS

FIGURE 28: TYPE OF MEAL PREFFERED GRAPH

As per the graph above we can see the preferences for:

A) SHORT HAUL FLIGHTS ( FLIGHT DURATION < 3HRS ) –

 Snacks and Beverages
 Fast prepared Foods
B) MEDIUM AND LONG HAUL FLIGHTS ( FLIGHT DURATION > 3 HRS ) –
 Proper meals
 Gourmet meals

Meals for a particular flight must be shortlisted because each food provided to a customer in
flight bears a lot of cost in this modern era because of the packaging costs, transportation cost,
sorting costs, etc.

Like for every Coca-Cola can served on the flight–

 Firstly, the cans have to be sorted into the trolleys in the catering unit at the airport.
 Then they need to be driven by the high-loaders of the caterer at the airport  Then
loaded on the airplane.
Cost of the high-loader itself is around $200,000
Average meal cost: $10.50

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Gourmet meal cost: $33.00

So, it becomes very important to shortlist some meals for a particular flight to save some extra
costs.

Q4. CLASS PREFERENCE NOW:

** Answer to this question would decide the next set of questions **

RESPONDENTS: 100
FIRST CLASS 11
PREMIERE CLASS 12
ECONOMY CLASS WITH FREE MEAL / IN-FLIGHT
45
ENTERTAINMENT
ECONOMY CLASS WITH IN-FLIGHT
16
ENTERTAINMENT BUT BUY-ON-BOARD SERVICES
ECONOMY CLASS WITH BUY-ON-BOARD SERVICES 16

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 TABLE 13: CLASS PREFERENCE

45.00%

16.00% 16.00%

11.00% 12.00%

FIRST CLASS PREMIERE CLASS ECONOMY CLASS ECONOMY CLASS ECONOMY CLASS
WITH FREE MEAL WITH IN-FLIGHT WITH BUY-ON-
/ IN-FLIGHT ENTERTAINMENT BOARD SERVICES
ENTERTAINMENT BUT BUY-ON-
BOARD SERVICES

FIGURE 29: CLASS PREFERENCE PERCENTAGE

As per the graph, around 61% people prefer some kind of in-flight service

16% people preferred In-flight entertainment with buy-on-board services.

45% people preferred some kind of service either In-flight entertainment or free meals.

So, to shortlist which kind of In-flight entertainment and services they would prefer we had to
ask a few more questions regarding the same to narrow down the most preferred services.

But, for every service there must be some additional cost as its important to let the customers
know that each service must come at a specific price and this price must be kept as low as
possible for Jet Airways to make profit or else they will again fall into the ditch they had gone in
2019 .

Jet Airways being a Full service airline must include First class, premiere class and economy
class.
But focus on attracting economy class passengers as there’s where a lot of competition and scope
is. Jet Airways must keep the services for First and premiere classes same as earlier but just
tweak in some places for economy class to attract customers.

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 RESPONDENTS: 45
IN-FLIGHT
FREE MEAL
ENTERTAINMENT
SHORT HAUL FLIGHTS ( < 3 HRS ) 29 16
MEDIUM HAUL FLIGHTS ( 3 - 6 HRS ) 36 9
LONG HAUL FLIGHTS ( > 6 HRS ) 33 12
TABLE 14: FREE SERVICE PREFERENCE

FREE MEAL IN-FLIGHT ENTERTAINMENT

36
33
29 As per the graph,
most people prefer

16 free meal in flights

12
9 than entertainment
services.

SHORT HAUL MEDIUM HAUL LONG HAUL FLIGHTS

FLIGHTS ( < 3 HRS ) FLIGHTS ( 3 - 6 HRS ) ( > 6 HRS)

FIGURE 30: FREE SERVICE PREFERENCE GRAPH

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 RESPONDENTS: 16
WIFI 13
PERSONAL LCD SCREEN 3
TABLE 15: IN-FLIGHT ENTERTAINMENT PREFERENCE

TYPE OF IN-FLIGHT
ENTERTAINMENT PREFERRED

PERSONAL LCD SCREEN 19%

WIFI 81%

NUMBER OF PEOPLE

FIGURE 31: IN-FLIGHT ENTERTAINMENT PREFERENCE GRAPH

Around 81% people preferred Wi-Fi over personal LCD screen. Wi-Fi seems to be a good option
as it will enhance Jet Airways reputation of best service providers. Even though, installation of
Wi-Fi onboard would be quite expensive but this would attract a lot of customers and would help
retain customers thus enhancing customer loyalty.

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 FIRST CLASS

PREMIER CLASS

ECONOMY CLASS WITH FREE MEAL

/ IN-FLIGHT ENTERTAINMENT
FREE SERVICES GENERAL QUESTIONS

IN-FLIGHT
ENTERTAINMENT
ECONOMY CLASS WITH IN-FLIGHT
ENTERTAINMENT BUT BUY
-ON-BOARD
SERVICES
ECONOMY CLASS
WITH BUY
-ON-BOARD
SERVICES

GENERAL
QUESTIONS

WHEN DOES EXPECTATIONS ANY SERVICE

ONE PREFER TO FROM JET FOR
BUY TICKETS ? AIRWAYS SUGGESTION
1- 3 DAY'S BEFORE SPECIFY SPECIFY
4- 7 DAY'S BEFORE
7-14 DAY'S BEFOR E
14-30 DAY'S BEFOR E
MORE THAN A MON TH

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 RESPONSES: 100
1-3 DAYS BEFORE 9
4-7 DAYS BEFORE 19
7-14 DAYS BEFORE 31
14-30 DAYS BEFORE 29
MORE THAN A MONTH 12
TABLE 16: PURCHASING TICKETS PREFERENCE
PERCENTAGE

35 31 %
29 %
30
25
19 %
20
15 12 %
9%
10
5
0
1-3 DAYS 4-7 DAYS 7-14 DAYS 14 -30 DAYS MORE THAN
BEFORE BEFORE BEFORE BEFORE A MONTH

FIGURE 32: PERCENTAGE OF PURCHASING TICKETS

From the graph, we can see that majority of people prefer to buy tickets 7 to 30 days before the
flight date and time.

Jet Airways should sell the tickets using a mix of both Check Fares scheme and the 7/21/30 days
advance purchase ( APEX ) fare scheme to attract customers at the right time. There could be 4
slabs with prices increasing in each slab . Slab 1 ( > 30th day ) : 30% seats

Slab 2 ( 14th – 30th day ) : 30% seats

Slab 3 ( 7th – 13th day ) : 35% seats

Slab 4 ( before 7th day ) : 5% seats

If every previous slab with the lower price and having x% of the seats of the aircraft assigned to
it reaches its date with more than 60% of that particular slabs capacity at the specified date then
the next slab would be automatically activated . For next slab to be activated at least 60% of the
seats assigned to that particular slab must be sold before the assigned date or if that particular
slab

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has not achieved 60% of its seats before the date assigned then the duration for that slab can be
further extended to half the number of days available for the next slab.

If the slab has achieved its maximum number of assigned seats then a maximum of 50% of the
seats from the next slab can be transferred to the current slab. If those 50% of seats are also filled
then automatically the next slab would be activated before its assigned date but if there are any
remaining seats in the slab before the date assigned to the current slab then they would be
automatically put into the next slab. This method would insure that seats are cheaper at the time
of maximum demand and ensure that rates are changed as per the demand available. This
approach could help tackle the negatives of both Check fares scheme and advance purchase
( APEX ) fare scheme .

EXPECTATIONS FROM JET AIRWAYS:

• Punctuality
• Lower Airfare
• Better and economical service
• Provide safety
• Focus on customer feedback
• No frills
• Same services as before
• Direct flights to major destinations domestic and International
• Regain position as India’s leading airline
SUGGESTIONS REGARDING SERVICES:

• Upgrade frequent flyers to business class if it’s going empty

• Free decent snacks
• Wi-Fi
• More front seat space

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 8. CONCLUSION
Before the entry of Jet Airways in 1992, Air India had a monopoly over the Indian aviation
market. This certainly changed by the arrival of Jet Airways and a few other airlines but it was
Jet Airways which stood its ground for maximum amount of time comparing to their
competitors. Jet Airways birth was due to the governments new policy of airline privatization in
1992 but some new policies such as deregulation of prices of aviation turbine fuel ( ATF ) in
2002 had caused a lot of problems because of its certain conditions which were not mentioned
clearly when they were made. As per our study we also found out that some of the problems
were due to the high operational costs due to the increase in prices for most of the services
provided by the airports for their own expansion which stressed out Jet Airways and other
airlines pocket further more. And as we know, other budding airlines hit Jet Airways at the right
spot and at the right time, these airlines started emerging in 2005 focusing on making air travel
cheaper to attract major market of India consisting of the upper middle class and middle class
people. Jet Airways focused on customer service right from the start and in their attempt to catch
up with other LCC airlines by introducing sub parts such as Jetlite and Jet Konnect they
completely downgraded their own reputation thus losing their loyal customers which was proved
by the reviews we received in our questionnaire. Jet Airways was tackling with the changing
environment but it was its own business approach that was causing most of the problems. Mr.
Naresh Goyal the founder chairman would take decision in his own hands and would neglect the
interests of others in the board which resulted in bad decision making resulting in losses and
inappropriate solution being chosen for a problem. And ultimately, Jet Airways had to shut down
due to their increasing losses and debt.

Jet Airways has now been acquired by British firm Kalrock Capital and UAE based entrepreneur
Murari Lal Jalan on June, 2021. They are planning to bring Jet Airways back into the Indian
skies as early as summer of 2022 with its first flight from New Delhi to Mumbai. They would
initially focus on metro-to-metro routes which are profitable as their demands are high. Under
new management, the headquarters of Jet Airways is now going to shift from Mumbai to Delhi
NCR.
Jet Airways would be operating with six narrow body aircrafts comprising of mainly Boeing
737’s.

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Indian aviation market has changed tremendously because of effects of Covid-19. Millions of
people were trapped in their homes and companies made losses day after day. Due to which
thousands of people lost their jobs as companies were making losses and some lost their only

earning member of their families to Covid-19. All these reasons caused the tremendous change in
Indian market hence it becomes mandatory to monitor the Indian aviation market and have an
approach that would benefit both the customers and the airlines.

Covid-19 actually has helped Jet Airways because all the major airlines are under losses and Jet
Airways are going to start fresh as new in this market. The market has changed quite a lot in the
past few years where everyone wants the cost to be as low as possible and expecting good
services as well. So, Jet Airways has an advantage over other airlines in terms of their reputation
for customer service. Hence best possible path forward for Jet Airways would be to continue
providing service but also keeping their cost incurred as low as possible so that people would be
willing to travel with Jet Airways than their main competitors like Indigo.

Jet Airways can keep their cost incurred as low as possible being a Full service airline by
customizing their aircrafts as per the route and this won’t be cheap but it will give good results in
the future. Jet Airways must target the upper middle and middle class people along with the
upper class people by providing services as per the amount one has paid but at the same time all
must be provided some kind of services as we Jet Airways must show their customers that one
will get services and better service if paid more.

Jet Airways should keep First class, premiere class and economy class for medium and long haul
flights as they did before they were shutdown .First and premiere class services should be the
same as provided earlier. Most number of people who are travelling on medium haul / Long haul
flights in economy class must be given in-flight entertainment as this would occupy most of their
time thus supporting their stance for providing free services. The best form of in-flight
entertainment would be Wi-Fi rather than personal LCD screen as LCD screen would limit their
selection of shows and personal LCD Screen installation and maintenance would be high.
Providing Wi-Fi would help in selectivity of shows thus making passengers to choose their
preferred shows and it would attract customers. Jet Airways should provide free proper meals
and beverages for medium and long haul flights but keeping gourmet meals as buy-on-board.

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Jet Airways must keep the First class and economy class for Short haul operations as adding a
premier class will reduce the overall number of seats in the aircraft thus reducing the payload
which means less profit. Jet Airways must keep free meal services for short haul routes and the
meals served to economy passengers should be snacks and beverages only to keep the costs

incurred low. Some amount of proper meals can be put on the list but only to be served at extra
costs. First class service to be the same as provided earlier.

Now the main part is attractive prices which must be kept for a certain period of time and the
right time only. The time period to be focused should be between 7 – 30 days before the flight
time because most of the people buy tickets during this time. Jet Airways should use the mix of
the CHECK FARES scheme and the 7/14/30 days advance purchase ( APEX ) fare scheme to
maintain a decent price for their tickets to attract customers to create revenue .

Our study on this subject would help us to analyze the current market scenario and help to
determine where the Indian Aviation market is tilting towards whether it is LCC or Full service
airline. And according to that Jet Airways could act in the future and currently they could use the
PDCA technique to ensure that the plan is working or not. If yes then they can continually grow
and get better and if not doing well then they might have to change their approach and analyze its
outcome.

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 BIBLIOGRAPHY

1. SANJIB DUTTA ( 2002 ), JET AIRWAYS STORY

2. THE ECONOMIC TIMES, JET AIRWAYS HISTORY
3. TARIF MOHAMMED KHAN (20TH AUGUST 2019 ), WHY JET AIRWAYS FAILED
4. ARSHAD KHAN ( 26TH MARCH 2019 ), JET AIRWAYS WAS NARESH GOYAL’S
CHALLENGE TO AIR INDIA MONOPOLY
5. ASEEM RASTOGI ( 15TH NOVEMBER 2014 ), JET AIRWAYS , JETLITE AND JET
KONNECT – IS THERE REALLY ANY DIFFERENCES ?
6. RAJEEV KUMAR UPADHYAY ( 6TH JANUARY 2020 ) ,MANAGEMENT AND
REGULATORS FAILED JET AIRWAYS
7. TEJAS GEETEY ( 2ND AUGUST 2021 ) FALL OF JET AIRWAYS DUE TO POOR
CORPORATE GOVERNANCE
8. NEHA LM TRIPATHI ( 7TH JULY 2021 ), JET AIRWAYS 2.0 : BOARDING
CLEARED , TAKEOFF TO BE SCHEDULED
9. PLANESPOTTER ( 17TH FEBRUARY 2022 ) ,JET AIRWAYS FLEET DETAILS AND
HISTORY
10. ASISH K BHATTACHARYYA ( 13TH MAY 2019 ) , GROUNDING OF JET AIRWAYS :
MISGOVERNANCE OF FAMILY BUSINESS
11. PRAGYA BISHT ( 2020 ) DOWNWARD TREND FACED JET AIRWAYS BECAUSE
OF FINANCIAL DISTURBANCES
12. JET WINGS MAGAZINE ( MAY 2003 ),10 YEARS OF SERVICE AND GROWTH
13. VALARIE A. ZEITHAML AND MARY JO BITNER ( 2003 ) , SERVICE MARKETING:
INTEGRATING CUSTOMER FOCUS ACROSS THE FIRM.

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 14. PRESS TRUST OF INDIA ( 1ST JANUARY 2022 ) , THE ECONOMIC SURVEY
15. THE HINDU ( 3RD AUGUST 2021 ) , TO TAKEOFF AGAIN JET AIRWAYS
LOOKING FOR EXPERIENCED PILOTS

WEBSITES:

• https://www.jetairways.com
• https://www.jetair-ways-marketingservices.com
• https://en.wikipedia.org/wiki/Jet_Airways
• https://www.quora.com/How-much-do-airlines-spend-on-meals-per-passenger
• https://www.ibef.org/industry/indian-aviation.aspx
• https://zeenews.india.com/aviation/economic-survey-2022-aviation-sector-
recoveryheaded-in-the-right-direction-2432384.html
• https://www.chetu.com/blogs/aviation/future-of-mrosoftware.php#:~:text=Airline
%20operators%20depend%20on%20MRO,production%2C %20and%20not%20the
%20aftermarket
• https://www.ndtv.com/business/at-half-way-mark-governments-udan-scheme-is-work-
inprogress-2625125
• https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/wontrest-
till-taxes-on-fuel-go-down-aviation-minister-jyotiradityascindia/articleshow/
89901915.cms

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