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So, Jet Airways, once the pride of Indian aviation, is in the process of
recorded in history. Lenders have rejected a lifeline in terms of interim financing
to the airliner and left it with no other option than for ground operations. the
The airline failed to pay, forcing its backers to resume almost
all his planes and operated about six aircraft until lenders refused to
provide financial support.
The airline owes a total of Rs.7,251 crores to the national airline
banks, 1,400 crore from Mashreq Bank and 9,000 crore from HSBC. In addition, he had
raised non-convertible debentures worth Rs.700 crore in 2015 and unpaid
interest of about 1,000 crore.
Failure of a strong aviation brand such as Jet Airways after 27 years
years of reputation makes sense to deliberate and learn from this
history of failure.
We have big brands of Indian airlines wandering in the skies that
took the world by storm. Make a brand name popular in the true sense is not
easy feat. It takes a lot of vision, marketing and perfection
executing strategies to achieve such goals.
But the kind of air that envelops our airways for quite some time
the weather is now polluted. Most of our
airlines are struggling to stay in flight. They struggle because they
was not afraid to spend more than they earned and accumulated losses
for a long time.
In other words, it's a unique competition here among
airlines. Each of them wants to conquer a larger market share. Everyone is
intentionally incurring losses. They are, in fact, in a mad rush of
record losses in the hope that a competitor would suffer even
greater losses and become unsustainable and end up closing operations.
Exactly, they sacrifice their financial health to oust their competitors. And
Aviation experts rightly call this a dog-eat-dog environment.
When we talk about powerful Indian brands with international relations
recognition, Jet Airways was among the top 20 Indian brands in a few
from years ago. It offered significant global competition to foreign brands
its category and is supposed to have disrupted the markets in many countries
through his services.
Now, his "fall from grace" is a lesson to learn and a perfect
case study to adapt the successful management strategies of an airliner. A summary
watch the collapse of this brand once powerful reveals that the airways
invested in building a brand name only to accomplish the fall. The airliner has won
height in the heavens with the speed that to end up without fuel to stay in the air.
We now hear a lot of reasons for the fall
of this giant airliner. The most popular reasons are "because of the rise
the price of jet fuels, the depreciation of the rupee and competition
ticket prices ". But the reasons given also apply to other airlines.
and if we believe the reports, not a single airline in India wins more
that is to spend. It is thought that the losses are in thousands of
crores of rupees.
Industry experts describe the difficult situation in which lies the Indian
aviation as a high-cost sector. Stay in the air, suffer losses
it does not make sense. This deficient strategy of staying in flight is something
suicidal. Aiming for breakeven or marginal benefits is the basis of a business
strategy, otherwise you are in a charity operation.
The collapse of the Jet, among other things, strongly indicates that if
your business is a loss proposal from the start, better would not be
to start it. In this way, you are already on the ground, why fly to do it?
Developments leading to the collapse of Jet Airways reveal
this lack of investors in the airline also contributed to its downfall. Here we
no need to rely on scientific research to find the reason. Who will be
Ready to invest in a company where profitability is not the goal? Why should I
investors put money into the company to lose it? Running a business means your
income should be more than your expenses.
Last be the least. Today, traveling by plane is no longer a privilege.
It's just a means of transport. People using this mode of transport must
Be careful when choosing an airline. A few months ago, pbadengers
traveling in Jet's stressed airliner were injured by "forgotten" pilots to light
a switch regulating the pressure of the cabin. An airline in financial difficulty should be
avoided because its employees, especially the pilots, remain stressed. His
extremely high proportion of the risk.
(The views are those of the author and not those of the institution for which he works)
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