Why Jet Airways couldn’t manage downturn

New Delhi: One of the key criticisms of Jet’s strategy is that it failed to see new domestic markets beyond those operated by Indian Airlines. Captain Gopinath, the founder of Air Deccan (acquired by Kingfisher it 2007-end) said his airline connected 63 cities compared with just 42-43 by IA and Jet. “When we launched operations, 0.5 per cent of the population travelled by air. We quadrupled this to 2 per cent,” he said. With Deccan and other low-cost carriers, the market grew exponentially – it was not just about low fares, but also penetrating new markets.
A senior executive with Jet’s closest rival in the international circuit, Air India, says despite the fact that Jet did not carry any “sarkari” baggage, it failed to spot new destinations where Air India did not venture. “Jet was short-sighted in following only Air India’s routes. For instance, it never explored Rome and Amsterdam in Europe, or for that matter, newer destinations in the US,” the executive said. Further, Jet never really got beyond competing with Indian Airlines on the quality front — till of course Kingfisher came and changed the game.
09/10/09 Smita Aggarwal/Indian Express

To Read the News in full at Source, Click the Headline

Categories: Jet Airways Oct 2009