Tuesday, December 4, 2007

Jet flying in turbulent weather...

The problems for Jet Airways are incresing just like the taxes n surcharges on air tickets... it all started when Kingfisher changed its business model from being a LCC to a full service premium airline & started taking on Jet... Then came its IPO & the Jet sahres were listed above Rs. 1000 per share. But, only then its decision to acquire Air Sahara came. The market & even the department heads of Jet reacted to it very sharply (agianst the deal). Share prices tumbled by nearly 50%, which till now have not been able to touch its listed prices, many of the department heads left Jet . Every body knows the end result of the deal... Air Sahara becoming Jetlite. By that time there were so many entrants & tough competition from LCC's started eating up its profit. In the mean time, International routes were opened for Indian private carriers & Jet tried to capitalise on this oppurtunity. Jet purchased new aircrafts...exactly the same time competition came from Air India with its new image, services, planes, etc... Jet just trying to handle this situation, Kingfisher announced its acquisition of Air Deccan to directly take Jet Airways head on. As of now Jet & Kingfisher have equal market share of nearly 29% (with thier combined entities respectively). As of now, all the decisions taken by it are going against Jet's favour... but, if Jet is able to survive this turbulance, I believe that Jet will return to its earlier position not only in Indian Aviation but, it will show the same performance internationally.

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