- Naresh Goyal- founder- 1992 gov open sky policy- Operations- 1993 started

1996-7 2nd largest airline

2002- largest airline

 Business Model- Full-Service Airline- Not concrete- couldn’t sustain in market for long as this
model was not appropriate to compete in Indian market and so the competition took over,
along with this failed to generate finance and also attract investors.
 Acquisition of Sahara- In order to overcome the LCC issue- purchase of air Sahara wrongly taken-
lack in decision-making- no need to rebrand it with “JetLite”
 2004, Government undertook 5/20 rule in which airways who worked for more than 5 years and
owns more than 20 aircrafts were allowed to fly international boundaries- so major operations
focused there
 Lack in studying domestic market competition and future forecasts
 When major stake of IPO invested in purchasing air Sahara, also purchase another higher cost
purchase of white bodied planes so with remaining stakes company failed to expansion in
operations-
 Lack in capturing Investors- delta airlines, tata sons, Etihad, banks.
 Lack in management – delegation of authority was absent- CEO-vinay dubey- didn’t had the
power to make strategic decisions- founder naresh goyal constantly undertook strategies that
lead the company in the shadows of debts and losses. -Poor Leadership
 Employee Engagement- fired 1900 employess

17th April 2019 shut down

20,000 un

60,000 economy indirectly affected

Conclusion

This report on “The case study analysis of the downfall of Jet Airways” is a novel attempt to find out the
reasons for the failure of India’s one of the finest and biggest airline company. This study analysed the
causes that led to the downfall of the airlines and the mismanagement that resulted in ceasing of all
operations. It has been over a year since the airline is grounded and yet it failed to garner any buyer. The
interest and increasing and the claim has mounted to around INR 37,000 cr. More than 20,000
employees have been affected by the debacle of the company and the founder has been made to step
down from the company. The airline that ruled the sky has been grounded at it has lost its glory. The
company sold out its slots at major international airports to foreign airlines and the government of India
temporarily reallocated Jet’s slots to keep a check on the reducing capacity in the sector. The pilots
union NAG (National Aviator’s Guild) appealed to the PMO and Civil Aviation Minister to help the
company and the employees. The government on other hand has asked the banks to save the airlines.
Many employees have been absorbed by various competitors. The hope for revival of the airlines solely
depends on the fact that someone buys the Airlines then only can the exemployees can get their dues
from the bankrupt airlines. Spice Jet and Etihad Airlines has shown interest in buying Jet however the
Indian Government’s role is pivotal in deciding the course this crisis ultimately takes.

The most evident limitation of the research concerns the use of secondary data for understanding the
possible reasons of failure of the company under investigation, while naturally business environment,
competition, and ‘struggle’ are much more complex than a document containing financial information.
Thus, empirical investigation through interviews of qualified stakeholders would constitute a further
step for the progress of the research. From a scientific point of view, the study has confirmed validity
and reliability of Altman’s Z score and Piotroski’s F score, since both were clearly indicating potential
bankruptcy for Jet Airways in the period under observation, while Beneish’s M score revealed the
absence of manipulation. From a managerial point of view, it seems evident that the failure of Jet
Airways was not due to a malfunctioning of the commercial model, but most probably to the incapacity
of managers about making the finance model work. At the last, financial structure instability is an
evident failure symptom, also in the aviation industry, as emerged from the Jet Airways bankruptcy case.
Application of most used scores for bankruptcy prediction is then absolutely required, at least for
alerting the managers responsible in charge for taking into careful and continuous consideration both
parts of the business model, i.e. the commercial one and the financial one.

Recommendation:

The airline has been grounded since April 2019 and as of March 2020 the grounded airline did not find
any buyer. To revive the airlines the government has to play a pivotal role. Civil Aviation is the least
reformed sector. GOI previously has increased the FDI in aviation sector from 40 to 49% and it must
increase it to 75% so that foreign players can also invest in jet Airways. The banks should waive of the
bad debt to revive the airlines. The regulatory mechanism for airlines must be made transparent. The
regulator should invite bids to allocate the routes. Waive the heavy taxation on civil aviation. The taxes
on fuel tax and collection by Airport Authority must be reduced.

Strengthening of company by equity base rather than excessive

.Debt over Equity.

 Low cost model should be implemented

 Foreign Direct Investment can also be promoted