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Case
-
Reference no. 302-158-1
Published by: IBS Center for Management Research
Published in: 2002
Length: 11 pages
Data source: Published sources

Abstract

The case gives an overview of Jet Airways success in the domestic airlines industry. The case talks about the performance of Jet Airways since its formation in 1992. Over the years, Jet Airways improved its market share significantly from 6.6% in 1993-1994 to 42% in 2000-2001. Right from the start, Jet Airways focused more on customer service than anything else. It was because of its superior customer service that Jet Airways had become the most popular airlines in India. The case makes a point about the strategy adopted by Jet Airways. Jet Airways started its operations in India with leased aircraft''s because buying an aircraft would have cost Jet Airways around $40-$50 million whereas a monthly lease was as low as $0.4 million. Jet Airways also started its operations with the new Boeing 737-300s and not the older Boeing 737-200s. This was because the new aircraft''s were fuel-efficient and cheaper to maintain. Jet Airways also had only one type of aircraft - the 737 - in its fleet. This ensured that maintenance and flight crew training was simpler. Because of the above factors, Jet Airways aircraft utilisation and number of flights per day was more than that of Indian Airlines. Another reason for the success of Jet Airways was its lean structure. Compared to Indian Airlines 397 employees per aircraft, Jet Airways had only 163 employees per aircraft. The case also highlights the fact that Jet Airways was virtually the only private player in the aviation industry. It did not face any competition from the other private player, Sahara Airlines. With more private players planning to enter the Indian sky, Jet Airways has to gear up for the competition ahead. The company is also embroiled in a controversy regarding its ownership, with Naresh Goyal, Chairman of Jet Airways claiming that he owns Jet Airways. The case is expected to help students understand and analyse the following points: (1) how Jet Airways has emerged as the most popular airline in India; (2) the importance of customer service in a service industry; (3) the areas where Jet Airways is weak compared to Indian Airlines; (4) is the ownership controversy going to affect Jet Airway''s performance?; and (5) competition in the domestic aviation industry in India. The case is intended for MBA/PGDBM level students as a part of the strategy and general management curriculum.
Location:
Industry:
Size:
Large
Other setting(s):
1992-2001

About

Abstract

The case gives an overview of Jet Airways success in the domestic airlines industry. The case talks about the performance of Jet Airways since its formation in 1992. Over the years, Jet Airways improved its market share significantly from 6.6% in 1993-1994 to 42% in 2000-2001. Right from the start, Jet Airways focused more on customer service than anything else. It was because of its superior customer service that Jet Airways had become the most popular airlines in India. The case makes a point about the strategy adopted by Jet Airways. Jet Airways started its operations in India with leased aircraft''s because buying an aircraft would have cost Jet Airways around $40-$50 million whereas a monthly lease was as low as $0.4 million. Jet Airways also started its operations with the new Boeing 737-300s and not the older Boeing 737-200s. This was because the new aircraft''s were fuel-efficient and cheaper to maintain. Jet Airways also had only one type of aircraft - the 737 - in its fleet. This ensured that maintenance and flight crew training was simpler. Because of the above factors, Jet Airways aircraft utilisation and number of flights per day was more than that of Indian Airlines. Another reason for the success of Jet Airways was its lean structure. Compared to Indian Airlines 397 employees per aircraft, Jet Airways had only 163 employees per aircraft. The case also highlights the fact that Jet Airways was virtually the only private player in the aviation industry. It did not face any competition from the other private player, Sahara Airlines. With more private players planning to enter the Indian sky, Jet Airways has to gear up for the competition ahead. The company is also embroiled in a controversy regarding its ownership, with Naresh Goyal, Chairman of Jet Airways claiming that he owns Jet Airways. The case is expected to help students understand and analyse the following points: (1) how Jet Airways has emerged as the most popular airline in India; (2) the importance of customer service in a service industry; (3) the areas where Jet Airways is weak compared to Indian Airlines; (4) is the ownership controversy going to affect Jet Airway''s performance?; and (5) competition in the domestic aviation industry in India. The case is intended for MBA/PGDBM level students as a part of the strategy and general management curriculum.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1992-2001

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