Jet Airways: Power Wings
Jet Airways’s long history of over two decades of uninterrupted service and unaffected expansion despite financial turbulence and a host of other challenges have been among the key elements that have made it to the top of most respected airlines in India as per the BW Businessworld Most Respected Companies survey 2017. The survey has ranked the country’s second largest airline with a domestic market share of over 17.5 per cent as of June, at the top in the aviation sector.
“We have faced tough challenges and been tested by extraordinary circumstances in our 23-year history. Yet, our resilience has never been more apparent, as we emerged from it all to fly higher than ever before,” said Naresh Goyal, chairman, Jet Airways, addressing investors after the airline’s financial turnaround in 2016, a year before its three-year turnaround plan.
Launched 24 years ago, it would not be farfetched to state that Jet Airways has been able to transform the air travel experience for Indian flyers at a time when the State-owned airline Air India ruled the Indian sky. In 2016, Jet Airways posted its first annual net profit after eight years of financial turbulence. For 2016-17, the airline saw its total income increasing to Rs 23,669.91 crore from Rs 22,906.06 crore the year before. However, there was also an increase in expenses to Rs 23,279.71 crore from Rs 21,852.13 crore, the year before.
Commenting on the trust of its patrons, Jet Airways’ CFO and acting CEO Amit Agarwal says, “Jet Airways has always been guided by its service philosophy that puts guests and their interests at its core.”
Etihad Airways holds 24 per cent stake in Jet Airways. According to Agarwal, the partnership has helped Jet Airways return to profitability within two years.
“Today, the two partners together offer more flights to / from India than any other airline accounting for a significant share of the market,” says Agarwal. Together with Etihad Airways, Jet Airways now operates over 5,100 international flights a month. The growth of Jet Airways’s gateways at Abu Dhabi, Amsterdam, Paris, and London has helped the airline in expansion and providing seamless connectivity across the globe. “In fact, Abu Dhabi has emerged as one of the important international gateways for Jet Airways, helping Jet Airways connect our guests seamlessly to over 140 international destinations,” adds Agarwal.
Going forward, the market is anticipating an increase in the fleet size of Jet Airways. Aviation consulting firm CAPA said in a recent report, “Jet Airways is expected to place an order for a further 100 narrow body aircraft (this may include options), taking its total of the type to 175.”
The airline currently operates over 300 flights daily to 68 destinations worldwide from its main hub at Chhatrapati Shivaji International Airport, Mumbai. It also has secondary hubs at Amsterdam Airport, Chennai International Airport, Indira Gandhi International Airport at Delhi, Kempegowda International Airport at Bengaluru and the Netaji Subhash Chandra Bose International Airport at Kolkata. It has recently announced adding over 90 routes this monsoon in the domestic sector.
With India poised to become the world’s third largest aviation market by 2020 and perhaps the largest by 2030, there is a clear opportunity for a full-service carrier like Jet Airways to create new paradigms by providing guests with the experience of great service and hospitality that India is renowned for.
