Goodbye Jet Airways
Jet Airways shut down its operations after 25 years
Jet Airways shut down its operations after 25 years
Brief:
Jet Airways shut down its operations on Thursday. It flew its last plane to Mumbai.
At its peak it owned 120 planes. It held 23% of the market share.
Why did it shut down?
Creative destruction is one of the key characteristics of market economy. As newer budget airlines gained marketshare lesser people flew with Jet Airways.
It bought Sahara Airlines for INR 1400 crore. It affected its profitability.
It did not bring down its costs, while the fuel prices and compensation rose.
It owes INR 9000 cr to banks.
What will happen to Jet Airways?
SBI and other creditors are looking for the new buyers, who will purchase the brand Jet Airways. It still owns planes and slots.
New buyers may revive the brand or decide to merge it with other existing airlines such as Vistara.
Why does it matter for Delhi-NCR?
Delhi is now the airline hub of the country.
Indigo, Spicejet and Vistara have their headquarters in Delhi-NCR.
The region has a huge potential to build travel brands.
The bigger picture:
Trend indicates Indian travellers will spend the most on air travel.
With Delhi-NCR as the travel and air travel hub, there will be opportunities for entrepreneurs to offer services such as trip planning, bookings and experiences.
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