jet airways - case study
Post on 29-Nov-2014
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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 !!!
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