1. Ishpreet Singh – 12P139 Karan Jaidka – 12P141
Lucky Sharma – 12P145 Prabhat Singh– 12P154
Vignesh Patil – 12P177 Viswanath Kuppa – 12P180
PGPM – Section C – Group 9 1

2. Introduction

 Founder: Naresh Goyal
Timeline:-
 April1,1992 - Jet Airways is formed & operator license for
air taxi
 May 5,1993 - Commenced operations
 1995 - Gets a scheduled airline status
 March,2004 - Jet Airways goes International
 March,2005 - Jet Airways goes public
 April,2007 - Acquires Air Sahara - Jetlite
2

3. Problems being faced in 2003

 Turbulence: 50% of ground-staff has quit; Jet losing
cabin crew and ground staff to foreign carriers
 Fall in number of passengers post 9/11
 Load factors suffering
 Increase in fuel prices decreasing margins
 Sahara taking on Jet’s dominance
3

4. The Stalwart named Naresh Goyal

 Very successful GSA
 Manages most of the operations himself
 Is energetic, rustic, bold and impatient
 Made Jet a world class airline by 2000
 Built a vast network of contacts, attended every IATA
meeting
 These relations helped in setting up Jet Airways
 Best decision – To hire expatriates for critical functions
 Audacious decision – To buy 10 Boeing aircraft, with 10
more in the pipeline, given the poor condition of the
industry after 9/11
4

5. Problems with Goyal’s style
of Leadership

 This style of leadership is now causing problems as
the airline grows (stifling growth; facing problems of
retaining managers)
 Persistent instability in the top management –
clueless shifting of people around, based on personal
appraisal
 Unfamiliar with processes and standards
 Ad-hoc style of functioning
5

6. The Rise of Sahara – at the
cost of Jet

 Jet had to prune costs an bring down break-even levels
 Jet cut down salary hikes, refresher training, released 6
expats and leased out 2 aircraft
 Jet stopped innovating, focussed on cutting costs
 Sahara took centre-stage as Jet began to stagnate
 Poor timing for Jet to stop innovating (possibly due to
Goyal’s failure to have a decision-making structure at the
top)
 Jet did not alter its pricing strategies during the price war
6

7. Forces for and against Change
at Jet Airways

Forces for change Forces against change
Competitive pressure Lack of delegation of authority
Hire external expertise Founder too involved in daily
activities
Foreign alliances Cost reduction & layoffs
Bold investments Informal power structure
7

8. Consequence of change/no
change at Jet Airways

 Failed to keep customers satisfied
 Loss of competitive advantage
 Vulnerable to attack from competition
 Lost “Innovative” brand identity
8

9. Jet Airways’ Rise in 2008

 Fleet size = 81, average fleet age = 4.2 years (among the
lowest globally at that time)
 Massive international expansion plan
 Goyal’s mission, focus and experience came in very
handy
 International strategy included tying up with the region’s
domestic carrier; as many as 120 code-sharing agreements
globally
 Goyal planned to fly to Dubai and on the Mumbai-
Shanghai-San Francisco route
 Jet’s aircraft preference = 787-9 Dreamliners and Boeing
737-400s
9

10. 
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