JET AIRWAYS – CASE STUDY

JET AIRWAYS : -About Jet Airways : - Jet Airways (India) Private Limited is

India's leading private airline.

Naresh Goyal is the founder and

Chairman of Jet Airways, India's

largest domestic airline.

In May 1974, Naresh Goyal founded

Jet air (Private) Limited to look after

Sales and Marketing operations of

foreign airlines in India.

It boasts a market share of about 29

percent.

JET AIRWAYS : -About Jet Airways : - Jet operates a relatively young fleet

of Boeing 737 jets and ATR72

turboprops.

It carries about seven million

passengers a year.

Its reputation for punctuality and

outstanding service attracts a large.

Provides services in :

• 44 domestic destinations in India.

• 21 international destinations in 17

countries across Asia, Europe &

North America.  

JET AIRWAYS : -Jet Airways – Case : - In Oct 2008 around 1900 employees

were fired out of which 800 were laid

off.

It started voice from politicians , staff

, senas , public.

Later in the same week they were

taken back.

N.A.G( NATIONAL AVIATORS GUILD )

formed on 10th June claiming a

membership of 680 ,President Girish

Kaushik , Joint.Sec.Captain Sam

Thomas.

JET AIRWAYS : -Jet Airways – Case : - Due to which two senior pilot were

fired

• Captain Sam Thomas (J.S)

• Captain D Balaraman (G.S)

On Aug. 23rd the Guild (NAG)

warned that they would go on strike

from Sep. 7th if both the pilots are not

reinstated.

But on 8th sep. 432/1056 pilots

reported sick in violation of Bombay

high court orders a day earlier

restraining them against any kind of

strike in countries largest pvt. Carrier.

JET AIRWAYS : -Jet Airways – Case : - Pilots were demanding the

reinstatement of their colleagues.

Situation created huge problems for

passengers . 80% of them were

accommodated to other airlines for

rest entire fare was refunded.

Chief justice Swatanter Kumar and

Justice AM Khanwilkar issued a notice

against NAG seaking a reply in 2

weeks.

Later 2 more pilots were sacked.

JET AIRWAYS : -Jet Airways – Case : - Civil aviation secretory Madhavan

Nambiar said govt. has nothing to do

between both, but they has taken

serious view of the inconvenience to

public and asked DGCA to take

action.

CEO told he is open for talk but he

told company does not recognize

NAG. and pilots are behaving like

terrorists.

JET AIRWAYS : -Jet Airways – Case : - Fortunately after “loss of crores and

goodwill” on 13th sep. strike ended

after 5 days when Naresh Goyal

reinstated the sacked pilots and

paved the way for possible

recognition of a pilots union.

JET AIRWAYS : -Strike : A Huge Loss :

- From 8 to 13 September : -

• Jet Airways lost 200 crores in just

five days.

• Cancellation of 134 domestic and 32

international Flights.

• Average passenger per day dropped

from 23000/day to 14000/day.

• Jet had to accommodate 80% of the

passenger on the other carriers.

JET AIRWAYS : -Strike : A Huge Loss :

- From 8 to 13 September : -

• For the rest entire fare has been

refunded.

• Loss of goodwill is not measurable.

JET AIRWAYS : -

Advantage Of Jet Airways

Crisis For Other Airlines :

- Jet Airways transferred as many as

60 percent of the passengers booked

on its flights to Air India, the national

carrier, and other airlines during the

strike.

Rival carriers began to charge fares

at almost double the usual rates after

the strike hampered Jet Airways

operations.

A big competitor was out, therefore it

was a big advantage to other airlines.

JET AIRWAYS : -Consequences Of

Strike: - The standoff between the airline and

its pilots ended after the company

agreed to reinstate four pilots who

were fired for trying to form a pilot’s

union.

Jet airways has reduced its fares to

50%.With discounts, the cost of air

tickets dropped close to air-

conditioned II tier Rajdhani Express

fares.

Jet airways witnessed a 10 per cent

switch from low-cost carriers to jet.

JET AIRWAYS : -Consequences Of

Strike: - The airline is operating on full

schedule of services on its domestic

and international flights with all crew

reporting for duty.

Jet offered a full refund to passengers

whose flights were cancelled.

Jet Airways suffered a loss of nearly

US$8 million a day during the strike.

and the number of passengers came

down from 23,000 per day to 7,500.

JET AIRWAYS : -Consequences Of

Strike: - No punitive action against any one

who participated in the agitation.

A consultative group is being formed

comprising representatives of the

company and pilots to continue the

process of dialogue to resolve all

their problems.

THANK YOU !!!