As Jet Airways marks a year of its closure, who would have thought that on the first anniversary, all airlines would be grounded in India? As the flight from Amritsar landed in Mumbai, it marked the curtains on Jet Airways. There was hope back then that the shutdown was temporary, but that has slowly but surely vanished. Repeated attempts to revive the airline, once India’s largest, have fallen flat despite multiple extensions and groups from as far as South America and Russia joining in. History suggests that Jet Airways won't fly again.
Things have never been the same in the Indian market since then. What was largely expected to be a correction in capacity, turned out to be return to normalcy due to the government linking allocation of new slots to increase in capacity. While the growth remained low, it was realistic.
With one airline down, airlines still were finding the going tough and the two listed airlines ended up with losses in Q2, every other airline benefitted from the fall of Jet Airways. However, Vistara, AirAsia India, IndiGo and GoAir punched above its weight and carried more passengers than the additional capacity deployed, while Air India and Spicejet deployed incremental capacity without flying proportional passengers.
While the collapse of Jet Airways had a significant impact on the Indian aviation sector, two things stand out. One, the status of the aircraft that belonged to the airline and two, the evolution of the domestic market itself.
Getting a plane out of India has long been a challenge for the lessor. Several aircraft of the grounded Kingfisher Airlines can be seen still at airports in India. But in Jet’s case, there were customers panting for planes and they were in India at that. Spicejet and Vistara decided to add planes.
It was easy for Spicejet because it already operated the B737 series and had its B737 MAX grounded a month before the Jet Airways saga unfolded. For Vistara, it was complicated because it meant adding a new type of aircraft. Spicejet inducted 31 aircraft while Vistara took 9, two of which are now re-delivered.
Jet Airways continues to have 12 aircraft in its fleet – comprising six B777s which it has on a financial lease, four B737s and two A330s. One of the six B777s remains impounded in Amsterdam.
The erstwhile aircraft of Jet Airways are now flying in 16 countries, including India and they include countries as rare as Togo, Mongolia and as far as Argentina and Brazil. Interestingly, one of the aircraft also got converted to a freighter and became part of Amazon in the United States.
16/04/20 Ameya Joshi/Moneycontrol.com
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Things have never been the same in the Indian market since then. What was largely expected to be a correction in capacity, turned out to be return to normalcy due to the government linking allocation of new slots to increase in capacity. While the growth remained low, it was realistic.
With one airline down, airlines still were finding the going tough and the two listed airlines ended up with losses in Q2, every other airline benefitted from the fall of Jet Airways. However, Vistara, AirAsia India, IndiGo and GoAir punched above its weight and carried more passengers than the additional capacity deployed, while Air India and Spicejet deployed incremental capacity without flying proportional passengers.
While the collapse of Jet Airways had a significant impact on the Indian aviation sector, two things stand out. One, the status of the aircraft that belonged to the airline and two, the evolution of the domestic market itself.
Getting a plane out of India has long been a challenge for the lessor. Several aircraft of the grounded Kingfisher Airlines can be seen still at airports in India. But in Jet’s case, there were customers panting for planes and they were in India at that. Spicejet and Vistara decided to add planes.
It was easy for Spicejet because it already operated the B737 series and had its B737 MAX grounded a month before the Jet Airways saga unfolded. For Vistara, it was complicated because it meant adding a new type of aircraft. Spicejet inducted 31 aircraft while Vistara took 9, two of which are now re-delivered.
Jet Airways continues to have 12 aircraft in its fleet – comprising six B777s which it has on a financial lease, four B737s and two A330s. One of the six B777s remains impounded in Amsterdam.
The erstwhile aircraft of Jet Airways are now flying in 16 countries, including India and they include countries as rare as Togo, Mongolia and as far as Argentina and Brazil. Interestingly, one of the aircraft also got converted to a freighter and became part of Amazon in the United States.
16/04/20 Ameya Joshi/Moneycontrol.com
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