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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Private airlines in India, competition between private and government airlines.

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