ROME – Jet Airways 2.0 is preparing to take flight with a new business model that will hopefully rejuvenate its position in the Indian airline market.
The struggle of Indian competition…
The Indian aviation market has always been particularly competitive, and several airlines have seen a very short life inside the country because of business models not prepared enough for the difficulties that would have faced even just after being launched in the country.
Jet Airways India started to feel the difficulties of operating in India in early 2018 when it showed up that the airline was facing far high operation costs despite having limited and scarce revenues compared to other airlines operating in similar conditions.
In truth, the airline had begun suffering heavy losses from 2010 to 2011 when it hardly stayed afloat with losses going from 16.4 billion Indian rupees in 2010 to 36.7 billion in 2014.
The company started to gain back some positions in 2016 and 2017 when it earned an overall of about 16 billion but then, in early 2018, it rapidly restarted to face heavy and constant losses.
The airline, after certain disputes with aircraft lessors, the Indian Oil company, and the trade unions of the airline’s employees, decided to definitively put the aircraft on the ground and cease all operations on April 12th of 2019, after previously ceasing all international services on April 5th.
A new start
Now the bankrupt airline is preparing for a new start, with a business plan totally free of frills and stranded costs.
The airline’s aircraft will be now configured with a two-class configuration, where the business class will have a wide range of services free of charge, just as other business-class services around the globe.
The economy class will be instead similar to low-cost carriers where passengers will have to pay for extra services such as meals and other benefits.
One of the main difficulties of operating in the Indian market is that the passengers that will fly on domestic routes will be concerned mostly about fares than offered services, so any business model for the economy class that is not focused on offering the lowest price possible to passengers will absolutely and with no doubts be short-lived.
The only way Jet Airways can restart operating in the Indian domestic market is by cutting extra costs for not explicitly requested or necessary services for economy class customers.
Sanjiv Kapoor, the new chief executive, released some of the details just mentioned here and stated that the airline is confident about being very close to a proving flight, probably made by a Boeing 737.
The airline is expected to be back on the market not just to die quickly, the former flag airline will take flight with very strong business plans for the season, which seems to be the first facing a deep and effective recovery after the last two years of the pandemic.
Despite everything, some doubts remain about the airline’s choice of the aircraft that will be used in its operations, the airline is currently in talks with Boeing, Airbus, and Embraer but has yet to decide on a model, in particular, Mr. Kapoor said.
Just time will give us the possibility to see Jet Airways planes back in the skies, hoping they’ll not be put on the ground again.