The Jet Airways Story


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR022 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Differentiation
Case Length : 9 Pages
Period : 1992 - 2002
Pub. Date : 2002
Teaching Note : Available
Organization : Jet Airways
Industry : Airlines
Countries : India

Abstract:

The case gives an overview of Jet Airways' success in the domestic airlines industry. The case talks about the performance of Jet Airways since its formation in 1992. Over the years, Jet Airways improved its market share significantly from 6.6% in 1993-94 to 42% in 2000-01. Right from the start, Jet Airways focused more on customer service than anything else. It was because of its superior customer service that Jet Airways had become the most popular airlines in India. The case makes a point about the strategy adopted by Jet Airways. Jet Airways started its operations in India with leased aircrafts because buying an aircraft would have cost Jet Airways around $ 40-$ 50 whereas a monthly lease was as low as $ 0.4 million. Jet Airways also started its operations with the new Boeing 737-300s and not the older Boeing 737-200s.

This was because the new aircrafts were fuel-efficient and cheaper to maintain. Jet Airways also had only one type of aircraft'the 737--in its fleet. This ensured that maintenance and flight crew training was simpler. Because of the above factors, Jet Airways' aircraft utilisation and number of flights per day was more than that of Indian Airlines. Another reason for the success of Jet Airways was its lean structure. Compared to Indian Airlines' 397 employees per aircraft, Jet Airways had only 163 employees per aircraft. The case also highlights the fact that Jet Airways was virtually the only private player in the aviation industry. It did not face any competition from the other private player-Sahara Airlines. With more private players planning to enter the Indian sky, Jet Airways has to gear up for competition ahead. The company was also embroiled in a controversy regarding its ownership, with Naresh Goyal, chairman of Jet Airways claiming that he owns Jet Airways.

Issues:

» How Jet Airways has emerged as the most popular airline in India

Contents:

  Page No.
Flying High in the Indian Sky 1
Domestic Airlines Industry 2
The Takeoff 3
The Success Formula 3
Rough Weather Ahead 5
Exhibits 7

Keywords:

Jet Airways, domestic airlines industry, 1992, market share, 6.6% ,1993-94 ,42% , 2000-01, customer service, airlines, India, leased aircrafts, buying, aircraft, $ 40-$ 50, million, Boeing 737-300s, Boeing 737-200s, cheaper, 737, fleet, Indian Airlines, lean structure, 397, 163 employees per aircraft, Sahara Airlines, Indian sky, Naresh Goyal, chairman

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