Jet Airways' Strategy, Operations and Competitive Position


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Case Details:

Case Code : BSTR172
Case Length : 18 Pages
Period : 1993-05
Organization : Jet Airways
Pub Date : 2005
Teaching Note : Available
Countries : India
Themes: Business Strategy
Industry : Aviation

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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.

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Excerpts

Jet Airways' Strategy and Operations

Jet Airways' strategy in the 1990s was to position itself differently from Indian Airlines, which was then the dominant player in Indian aviation. Indian Airlines had a wide network of destinations across India, along with a large and varied fleet of aircraft, the pick of flying slots at airports, and the valuable backing of the national government. Despite these advantages, the airline's performance was far from satisfactory. The airports and planes were badly maintained, the staff was indifferent (and sometimes rude) to passengers, and operations were ridden with inordinate delays and cancellations. Despite this, the airline was profitable, as passengers wishing to fly had no other choice until the early 1990s...

Jet Airways Vs. Competition

The early 2000s saw a tremendous increase in competition in the Indian airline industry. By the end of the 1990s, the less efficient private airlines had exited the industry and only Jet Airways and Air Sahara were left to compete with Indian Airlines. Considering that the aviation market in India was very small with an extremely low penetration rate (as of 2004, the average air travel in India was 0.014 trips per person every year; in the US it was 2.02 trips per person per year), the competition for a share in the small market became stiff. (Refer Exhibit III for a brief profile of Jet Airways' competitors)...

International Prospects

Jet Airways' prospects improved further when, after years of lobbying on the part of private domestic airlines, the GoI permitted the airline and Air Sahara to fly international routes in early 2005...

Possible Turbulence

Jet Airways was also on the verge of launching flights to the US when its plans were stymied by allegations that the airline was linked to terrorist groups.

Exhibits

Exhibit I: Jet Airways Income Statement and Quarterly Financials
Exhibit Ii: Jet Airways' Mission Statement
Exhibit Iii: Profiles of Jet Airways Competitors
Exhibit Iv: Proposed Airlines in India
Exhibit V: A Comparison of Fares on the Delhi-Mumbai Sector in June-July 2005

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