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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Rough Weather Ahead

The purchase of 10 Boeing 737s would help JA to operate flights to neighboring countries. It had already applied for permission to fly countries such as Malaysia, Singapore and UAE.

However, analysts felt that JA would face a new kind of competition in the international arena. Apart from Air India and IA, which deployed 22% of their capacity on international routes to get 30% of the revenue, JA would face competition from international players such as United Airlines, Singapore Airlines, Lufthansa, British Airways and Cathay Pacific. Also, JA's overwhelming dependence on passenger business could prove fatal. JA's immediate goal was to consolidate its market share by improving its service levels further and adding more routes to its network. By early 2002, JA planned to include three more Boeing 737 in its fleet. Steve Forte, CEO, Jet Airways said, "We feel that a satisfied customer is the best defence against the threat of new entrants..."

Exhibits

Exhibit I: Jet Airways - Revenues
Exhibit II: Losses of Indian Airlines
Exhibit III: Jet Airways Vs Indian Airlines
Exhibit IV: Jet Airways - Milestones

 

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