The Jet Airways Story

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Case Details:

Case Code : BSTR022
Case Length : 9 Pages
Period : 1992 - 2002
Organization : Jet Airways
Pub Date : 2002
Teaching Note : Available
Countries : India
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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Domestic Airlines Industry

In 2000-01, Indian Airlines, Jet Airways and Sahara Airlines were the major players in the Indian domestic market. Till the early 1990s, IA had a monopoly in the sector.

However in 1993 the Government of India (GoI) under its open skies policy allowed private participation and 8 new airlines were allowed to commence operations. Of these, only two survived - Jet Airways and Sahara Airlines (Refer Table III for market share of IA vis--vis private players in 2000-01). IA's network covered Kuwait in the west to Singapore in the east and included 75 destinations - 59 within India and 16 abroad. IA's international network covered Kuwait, Oman, UAE, Qatar and Bahrain in West Asia, Thailand, Singapore, Yangon (Rangoon) and Malaysia in South East Asia and Pakistan, Nepal, Bangladesh, Myanmar, Sri Lanka and Maldives in the South Asian subcontinent.

In 2001, IA had a fleet strength of 57 aircrafts, JA had 33 and Sahara 9.

In 2000, GoI announced that private sector participation would be a major thrust area in the airlines industry.

Private participation was expected to increase investment, improve quality and efficiency, and increase competition. A competitive regulatory framework with minimal controls was to be created to encourage entry and operation of private airlines.

The GoI would gradually reduce its equity in Indian Airlines.

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