Aviation formula gone sour

The recent marriage between Kingfisher and Jet Airways has not produced the kind of euphoria that the owners of the two airlines had expected. On the contrary, the share values have dropped and their frequent flip-flops on decisions have done immense damage to the management’s credibility.
Let us look at what the Kingfisher Airlines Chairman and CEO, Vijay Mallya said at the CII Innovation Summit in Bangalore.
“The Indian consumer is evolving — he is willing to pay more for better quality and for better luxuries. That motivated us to launch Kingfisher Business Class — the absolute finest in the sky! And the best campaign that we can ever launch is that I endorse the product myself, when I put my own signature, I put my own credibility on line.”
At a regional aviation conference in June 2005, he had said that Kingfisher Airlines expected to “break even in the first year of operations, if we are lucky; if not, most certainly next year. We’ll begin with the Airbus A330, which is a great aircraft and already in widespread service, and then we will create a sensation when we become the first Indian carrier with the 21st Century flagship A-380, before adding the world’s newest airliner, the A350. Imagine flying the good times — not just in India, but worldwide!”
Jet Airways, which had built up a very good image and world-class service, did immense damage by over-reaching its limits. Its foray into international operations was not done judiciously. Instead of feeling the pulse of the industry and progressing slowly, it was gung-ho over its projections.
While the airlines placed orders for a very large number of aircraft, they ignored an important aspect — motivation of their staff. Over the past 4-5 years, the morale of the Indian staff has been declining.
In just the last few months, especially with the sacking of the Jet Airways staff, and the immediate backtracking, the two airlines and the Civil Aviation Ministry, have little credibility left. Every forward step they take is followed by two backward steps for damage control.
29/10/08 A. Ranganatahn/Business Line/Sify

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Categories: Jet Airways Oct 2008, Kingfisher Oct 2008