Jet Airways problemsBack to Forum
Report in Reuters today
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.3 Aug 2018
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.3 Aug 2018
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.4 Aug 2018
Better news from Reuters today is reporting that “Jet Airways confident in prospects …”
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.4 Aug 2018
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.6 Aug 2018
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.
With the payment of staff salaries I wonder if you mean Kingfisher (rather than Jet).6 Aug 2018
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.10 Aug 2018
“Jet Airways to seek US$400m in fresh capital” via CH Aviation.14 Aug 2018