Jet Airways: Can it Fly Again?
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Case Code: BSTR606 Case Length: 25 Pages Period: 1992-2019 Pub Date: 2020 Teaching Note: Available |
Price: Rs.500 Organization: Jet Airways Industry: Aviation Countries: India Themes: Aviation Business in India, Indian aviation industry |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
The case discusses the downfall of Jet Airways, India’s oldest private airline, in April 2019 following a refusal by lenders to extend emergency funding. The case opens with the origin of the aviation industry in India and its growth until 1991. The case then provides a detailed discussion about the inception of Jet Airways. Naresh Goyal (Naresh) launched Jet Airways in 1992 with an investment of about $20 million. From the outset, Naresh had the vision to fly international and compete with much-admired companies like Singapore Airlines and British Airways. It then assesses Naresh’s leadership style and his personality as an aviation icon. Next, the case addresses the scenario of the Indian aviation market from 2000–2010. The year 2003 marked a watershed moment in the history of civil aviation in India with the entry of low-cost carriers (LCCs). The case then explores Jet Airways’ journey from 2000–2010. To retain its position in the market, Jet Airways purchased minor rival Air Sahara, which was later converted into low-cost sub-brand JetLite. But the deal backfired as the complications of operating two airlines of completely different models, combined with high oil prices, took a toll. Further, the case discusses Naresh’s role in the growth of Jet Airways. Naresh led the company as its solitary sculptor and allowed no argument. Until the early 2000s, things went successfully. Furthermore, the case traces the development in the Indian aviation market from 2010–2019.The early 2010s were not easy for the Indian aviation industry. The case then discusses the journey of Jet Airways from 2010-2019. Though the aviation industry, both globally and in India, was facing challenges, Jet Airways created history in the Indian aviation industry by flying a record 2 million guests in the month of May 2011. By August of 2018, it became known that Jet Airways was in serious financial trouble. A combination of external and internal factors saw the company default on the payment of salaries to its staff. On April 17, 2019, the company announced that it was temporarily shutting down. Lastly, the case examines the road ahead for Jet Airways.The case study can be used to analyze market structure and competition in airline markets and discuss important reasons for failures of airline companies.
Issues
The case is structured to achieve the following teaching objectives:
- Analyze the competitive structure of the Indian aviation industry
- Identify the critical success factors for an airline company in India
- Understand the leadership style of the Jet Airways founder
- Examine the reasons for the debacle of Jet Airways
Contents
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Introduction
Indian Aviation Market– Pre-Liberalization (Until 1991)
Inception of Jet Airways
Naresh Goyal – Birth of an Aviation Icon
Indian Aviation Market 2000 – 2010
Jet Airways From 2000 – 2010
Going International
Naresh Goyal Turning into Martinet Leader
Indian Aviation Market 2010 – 2019
Jet Airways from 2010- 2019
Naresh – Fall from Grace
The Beginning of the End?
Road Ahead – More Challenges Ahead for Jet Airways?
Exhibits
Keywords
Aviation Business; India; Jet Airways; Indian international airline; Private airline; Naresh Goyal; Low-cost carriers; full-service carriers; Business Model of Airline Companies; Leadership Style; Bankruptcy and cessation of services
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