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Ishpreet Singh – 12P139 Karan Jaidka – 12P141Lucky Sharma – 12P145 Prabhat Singh– 12P154Vignesh Patil – 12P177 Viswanath Kuppa – 12P180

PGPM – Section C – Group 9

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Founder: Naresh Goyal

Timeline:- April1,1992 - Jet Airways is formed & operator

license for air taxi May 5,1993 - Commenced operations 1995 - Gets a scheduled airline status March,2004 - Jet Airways goes International March,2005 - Jet Airways goes public April,2007 - Acquires Air Sahara - Jetlite

Introduction

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Turbulence: 50% of ground-staff has quit; Jet

losing cabin crew and ground staff to foreign carriers

Fall in number of passengers post 9/11 Load factors suffering Increase in fuel prices decreasing margins Sahara taking on Jet’s dominance

Problems being faced in 2003

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Very successful GSA Manages most of the operations himself Is energetic, rustic, bold and impatient Made Jet a world class airline by 2000 Built a vast network of contacts, attended every IATA

meeting These relations helped in setting up Jet Airways Best decision – To hire expatriates for critical functions Audacious decision – To buy 10 Boeing aircraft, with 10

more in the pipeline, given the poor condition of the industry after 9/11

The Stalwart named Naresh Goyal

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This style of leadership is now causing

problems as the airline grows (stifling growth; facing problems of retaining managers)

Persistent instability in the top management – clueless shifting of people around, based on personal appraisal

Unfamiliar with processes and standards Ad-hoc style of functioning

Problems with Goyal’s style of Leadership

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Jet had to prune costs an bring down break-even

levels Jet cut down salary hikes, refresher training, released

6 expats and leased out 2 aircraft Jet stopped innovating, focussed on cutting costs Sahara took centre-stage as Jet began to stagnate Poor timing for Jet to stop innovating (possibly due to

Goyal’s failure to have a decision-making structure at the top)

Jet did not alter its pricing strategies during the price war

The Rise of Sahara – at the cost of Jet

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Forces for change Forces against change

Competitive pressure Lack of delegation of authority

Hire external expertise Founder too involved in daily activities

Foreign alliances Cost reduction & layoffs

Bold investments Informal power structure

Forces for and against Change at Jet Airways

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Failed to keep customers satisfied

Loss of competitive advantage

Vulnerable to attack from competition

Lost “Innovative” brand identity

Consequence of change/no change at Jet Airways

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Fleet size = 81, average fleet age = 4.2 years (among

the lowest globally at that time) Massive international expansion plan Goyal’s mission, focus and experience came in very

handy International strategy included tying up with the region’s

domestic carrier; as many as 120 code-sharing agreements globally

Goyal planned to fly to Dubai and on the Mumbai-Shanghai-San Francisco route

Jet’s aircraft preference = 787-9 Dreamliners and Boeing 737-400s

Jet Airways’ Rise in 2008

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