Every question that has been bothering you about the rise and fall of the airlines...answered
Jet Airways, the premium aviation company founded 26 years ago by Naresh Goyal, is today on the verge of bankruptcy. the company has grounded all its 119 aircraft and suspended all domestic and international operations. Its 14,500 employees, unpaid for the past three months, are staring at an uncertain future and the lenders are clueless about recovering over Rs. 8,000 crore given in separate installments to meet the airline’s operational costs. the State Bank of India-led consortium of banks, which took control of the carrier, couldn’t get a potential investor to pump in fresh money to start operations. We piece together the complex Jet story, with its many twists and turns.
Why did it go bust
There are many reasons. Some experts believe that Jet’s acquisition of Air Sahara in April 2007 for Rs 1,450 crore was the beginning of its downfall. Not only was the acquisition expensive, Jet Lite, the rebranded Air Sahara, suffered losses in the first year of its operations. In the financial year 2007-08, the company showed a loss of over Rs. 600 crore for the first time in the company’s history.
Rising fuel costs and ruthless competition, mainly from low-cost carriers, continued to deteriorate Jet’s financial health as it had no option but to offer seats below operational costs. Reports also suggest that Naresh Goyal’s autocratic functioning resulted in some unrealistic business decisions. For instance, Jet paid 12 per cent commission to its agents against the sale of tickets while the global practice was of less than 2 per cent.
Who can come to rescue
Diese Geschichte stammt aus der May 06, 2019-Ausgabe von Outlook.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der May 06, 2019-Ausgabe von Outlook.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Pillars of Viksit Bharat 2024
The Hon'ble Prime Minister Narendra Modi's vision of Viksit Bharat 2047' represents a complete blueprint for the country’s prosperity during its Amrit Kaal towards attaining resolutions made for Aatmanirbhar Bharat’
Innovation in Healthcare Products
Vatsal Desai pioneering the path to healthier living in a growing India
A Master Weaver of Heart Health
In the intricate tapestry of interventional cardiology, Dr Vashisth Das stands out as a master weaver, deftly navigating the delicate threads of life and technology to mend hearts and restore hope
Viksit Bharat 2047: Empowering India through Education & Self-Reliance
As India approaches 2047, the centenary of its independence, the dream of a “Viksit Bharat” – a fully developed, selfsufficient, and inclusive nation – is steadily turning into reality.
Revolutionising New Age Learning
A visionary leader and an educationist par excellence, GS Patnaik shares with the Outlook Group his approach towards driving Value-based and holistic learning initiatives
Pioneering Social Transformation
Achyuta Samanta dedicated to bringing about social change through education and social services for people at the grassroots level
A Vision for Developed India
The concept of Viksit Bharat” Developed India) embodies the aspiration for a prosperous, inclusive, and sustainable India. The framework for achieving this ambitious but achievable goal, in my opinion, can be articulated through some key pillars that serve as the foundation for national progress
Chasing Dreams Relentlessly
For the young and aspiring youth, Manu Bhaker is a fine example of how hard work and perseverance can help achieve set targets
Standing Tall as a Pillar in Healthcare Sector
As technology is advancing and there is an upsurge in medical sciences, Yashoda Hospital is keeping up to its promise of providing top tier healthcare services using specialised and advanced medical technologies and equipment.
Upholding/Strengthening India's 'Viksit Bharat' Dreams
Landmark Crafts Pvt. Ltd., Ghaziabad, Delhi-NCR, is a flourishing enterprise where necessity, keen identification of agap and the right timing of launching HP Self-Drilling Screws in 1995, backed by grit, is a perfect recipe of a success story that pioneered an industry. Mr Pankaj Lidoo and MrVipin Lidoo, Directors of the company, hailing from Kashmir, have set their target to achieve India's dream of a Viksit Bharat by 2047 with visionary zeal