Jet Airways faced major financial troubles due to debts of Rs. 8,000 crore owed to lessors, suppliers, pilots and oil companies. This led the airline to ground its remaining five planes as it was denied emergency funds of Rs. 400 crore from lenders. Some key issues that plagued Jet Airways included the 2006 acquisition of Air Sahara for $500 million against advice, fluctuations in global crude prices that increased fuel costs, and Naresh Goyal's failure to find a strategic investor to inject funds into the struggling airline.
Jet Airways faced major financial troubles due to debts of Rs. 8,000 crore owed to lessors, suppliers, pilots and oil companies. This led the airline to ground its remaining five planes as it was denied emergency funds of Rs. 400 crore from lenders. Some key issues that plagued Jet Airways included the 2006 acquisition of Air Sahara for $500 million against advice, fluctuations in global crude prices that increased fuel costs, and Naresh Goyal's failure to find a strategic investor to inject funds into the struggling airline.
Jet Airways faced major financial troubles due to debts of Rs. 8,000 crore owed to lessors, suppliers, pilots and oil companies. This led the airline to ground its remaining five planes as it was denied emergency funds of Rs. 400 crore from lenders. Some key issues that plagued Jet Airways included the 2006 acquisition of Air Sahara for $500 million against advice, fluctuations in global crude prices that increased fuel costs, and Naresh Goyal's failure to find a strategic investor to inject funds into the struggling airline.
1)How to measure service operations for an airline industry?
In today’s competitive aviation environment, development of route networks is a top priority.
There should be proven guidance to develop passenger and cargo route networks at airports around the globe. Industry should have the expertise and industry contacts to help the airport to identify gaps, reduce leakage, and build new air links to high-potential markets. Services: Air service development Route network development Safety & security
Operation of flights Financial aspects Fast Travel
2) What is critical to excellence in airlines operations? how to drive operations excellence?
Passengers perceive baggage handling as a major contributor to airport and airline quality and with increasing competition in the air transport industry this means continuous pressure to improve the baggage handling process. Apart from baggage handling aircrafts in the fleet, utilization rate of flight daily, technical reliability and the number of delays caused due to flights for operations reasons. Key Success Factors (KSFs) in the global airline industry in relation to the challenges that carriers face to drive operations excellence. These strategic factors include structure, culture, strategic alliances, planning and forecasting, technology, marketing and branding and outsourcing. 3)Analyse operational metrics for Jet for the last three FYs, and comment on key issues which have plagued Jet Airways fall? Key Issues: 1. Jet Airways owes Rs. 8,000 crore to lessors, suppliers, pilots and oil companies. The airline had only five jets left after dozens of others were seized by creditors in recent weeks. The lenders were reportedly searching for prospective buyers for the beleaguered company. The carrier had asked for Rs. 400 crore as emergency fund. After it was denied, the decision to ground the remaining planes was taken. 2. Many aviation experts believe the start of Jet's financial troubles can be traced back to the 2006 purchase of Air Sahara for $500 million in cash, news agency AFP reported. 3. Naresh Goyal reportedly went ahead with the purchase despite being advised against it by his associates 4. The fluctuations in global crude prices might have also contributed to its collapse. The situation was made worse by the weak rupee, which ensured higher fuel costs for the airlines. Soaring oil costs and the Indian rupee hitting record lows last year affected all Indian carriers. 5. Mr Goyal's failure to find a strategic investor to pump money into Jet extended the airline's losses.