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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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...
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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)...
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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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