| Carrier: | Jet Airways
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| Headquarters: | INDIA
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| Founded: | 1993
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| Destinations: | 50
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| Bases: | Mumbai
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| Owners: | Tail Winds Limited 80%
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| Listed: | Yes
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| Online Booking: | Yes
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| Website: | www.jetairways.com
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| Fleet | B737-400 6 plus A330s - A340s X 4, ATR-72 X 8
B737-800 10 plus B777-300ER X 20 and A330-200 X 10 on order
B737-800 26 plus B737-900 X 2,B737-700 X 13
| Overview - Jet Airways Jet Airways launched services in 1993, initially as an air taxi operator, during the first phase of deregulation of the country's aviation sector. The carrier received its scheduled licence in 1995 and subsequently grew to become the country's largest domestic airline, with an excellent reputation for service and product. By 2003, its domestic market share had exceeded 45%, however since the influx of new competition in the last couple of years, Jet Airways’ domestic market share has fallen to 22.3% (Apr-07).
In 2004, the airline was granted permission to operate to SAARC destinations, and in the following year this authority was extended to all international routes except for the Gulf. The airline currently operates to the following overseas destinations: London, Singapore, Kuala Lumpur, Bangkok, Colombo and Kathmandu. Jet Airways will launch Mumbai-Brussels-Newark service on 05-Aug-07 and Delhi-Brussels-Toronto service a month later. The carrier has selected Brussels as its European hub for traffic between India and North America (particularly East Coast cities). Service to the West Coast may operate via Asia, with Shanghai being one of the cities under consideration.
In 2005, the airline conducted a successful IPO which was heavily oversubscribed, although its share price has since struggled and remains significantly below the issue price. In January 2006, it announced plans to acquire its largest private competitor, Air Sahara, which would have given the combined entity a market share of approximately 50%. The deal subsequently soured, entered arbitration, and was finally concluded in April 2007 at a price 35% less than originally agreed. During the same period however, the combined market share of the two carriers declined to just under 30%. Jet Airways plans to rebrand Air Sahara as JetLite, to be operated as a single-class, value-based subsidiary.
Jet Airways has traditionally catered to a strong corporate base, and until recently up to 80% of its passengers were estimated to be travelling for business. However, the carrier is now facing strong competition at the leisure end of the market from low cost carriers (the need to compete has seen a significant reduction in the proportion of high yield fares), but is also seeing a serious competitor in Kingfisher Airlines for the premium segment.
The domestic situation has forced Jet to seek alternatives to safeguard its market position in the long term, namely an aggressive international expansion plan, which will gear up significantly in the months ahead. Jet Airways plans to increase the contribution of international services to total revenue from 22% in Q3 2006/07 to 50% by Mar-09. Despite the new challenges, Jet Airways remains a formidable player in the Indian aviation market.
Last updated: 23 July 2007
Copyright Centre for Asia Pacific Aviation
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