Jet Airways problems

Back to Forum

This topic contains 9 replies, has 8 voices, and was last updated by  AMcWhirter 14 Aug 2018
at 11:05
.

Viewing 10 posts - 1 through 10 (of 10 total)

  • Tom Otley
    Keymaster

    Report in Reuters today

    India’s Jet Airways warns staff time and funds are running out – source

    India’s biggest full-service carrier Jet Airways Ltd (JET.NS) has told its pilots the airline may be grounded in 60 days unless cost-cutting measures including pay cuts are put in place, a senior company executive told Reuters on Friday.

    The company, part owned by Etihad Airways, had net debt of 81.5 billion rupees (£910.85 million) as of end-March with the bulk of it being U.S. dollar denominated.


    travelworld2
    Participant

    Everything Etihad touches seems to end up in a mess…


    EUFlyer
    Participant

    Suspect everyone (Etihad included) never thought the money would run out. Previous management’s strategy was good in theory but perhaps naive in how easy (and expensive) it would be to turn airlines like Air Berlin and Alitalia around. Jet Airways seems to be bleeding like they did – not a good sign.


    MarkivJ
    Participant

    Very sad. I like Jet. And I thought they were doing well what with the Skyteam and VS codeshares and all.


    GivingupBA
    Participant

    Anyone got tickets on Jet Airways? Sorry to say this but if I did, I would immediately cash them in after reading that report. I have seen too many airlines go bust. When Hong Kong Oasis Airlines went bust, a family I knew were holding more than HK$40,000 worth of tickets on Oasis for a family holiday. They never got the money back. What really got me was that THE DAY OASIS WENT BUST, they were STILL taking bookings – and money – as investigated by the Hong Kong media shortly afterwards.

    Too bad about Jet, I heard good things about them.


    AMcWhirter
    Participant

    Better news from Reuters today is reporting that “Jet Airways confident in prospects …”

    https://in.reuters.com/article/jet-airways-costs/jet-airways-confident-in-prospects-despite-reports-cash-running-out-idINKBN1KO0EB

    In any case Jet Airways intends to go ahead with its new Mumbai-Manchester service from November 5. There will be five weekly flights. The route remains subject to govt approval but I can hardly see the UK govt refusing.


    rferguson
    Participant

    I’m pretty sure there was a period a few years ago when Jet was in dispute with their staff in India as they hadn’t been paid for months?

    It’s a shame really. Jet had an excellent reputation for onboard service – hard and soft product – which reading reviews online seems to have been cut back to the bone.

    They had lofty ambitions for an extensive long haul network too with a european hub (Brussels originally) between India and North America.

    Unfortunately many of their services eastbound from India that were being operated by very comfortable A330’s ended up being downgraded to B737 aircraft with more traditional J seating and the A330’s were then leased out (I flew one LHR-IST on TK recently).

    Will be interesting to see what happens. Surely there is room for two full service international airlines based in India, especially as Air India despite it’s never ending supply of government bail outs still has a rather limited international network.

    It wasn’t all that long ago that another indian carrier offering an excellent onboard service went bust. Kingfisher was great. I flew them once and they were truly excellent.

    I guess the Indian carriers just cannot compete with the Middle Eastern mega carriers. The Indian carriers are in the exact same situation many other airlines around the world are in – the homebase carriers offer little competitive advantage in serving the ‘non hub’ airports. For example, if someone wants to fly from Cochin or Chennai to Seattle with EK they can do it one stop. A home grown carrier would require two. No different to someone in the UK wanting to fly NCL – BKK. Or someone in Australia flying ADL – LHR.


    AMcWhirter
    Participant

    rferguson – Jet Airways is fighting back against the Gulfies. It has JVs with AF/DL/KL/VS via Europe which provides pax with many routings to Europe itself and to N America.

    Delta, Virgin Atlantic and Jet Airways announce new codeshare agreement

    With the payment of staff salaries I wonder if you mean Kingfisher (rather than Jet).

    https://www.businesstoday.in/sectors/aviation/how-vijay-mallya-plans-to-pay-pending-salaries-to-former-kingfisher-airlines-employees/story/279573.html

    https://www.business-standard.com/article/companies/mallya-s-kingfisher-airlines-owes-rs-300-cr-to-3-000-unpaid-employees-117042100067_1.html


    MarkCymru
    Participant

    Jet’s problems are that it is getting squeezed on all sides. Vistara (the new SQ – Tata joint venture) is a better full-service domestic carrier and, being co-owned by one of India’s biggest companies, gets lots of guaranteed traffic. (It will soon have been trading long enough to get international rights). Indigo is an excellent LCC (albeit that I hate the sexist way they treat flight attendants) and GoAir is a highly-competitive ULCC. Then Jet has the Gulf carriers taking most of their westbound international business. Finally, Air India gets forkfuls of government money and I know it’s a miniority view, but I find it quite good and excellent value.


    AMcWhirter
    Participant
Viewing 10 posts - 1 through 10 (of 10 total)
You must be logged in to reply to this topic.
Be up-to-date
Magazine Subscription
To see our latest subscription offers for Business Traveller editions worldwide, click on the Subscribe & Save link below
Polls