Could Jet Airways be saved?

The 2nd Indian airline, Jet Airways, is currently at a crossroads. One direction leads to bankruptcy, his fleet divides into several rivals and his namesake has withdrawn following a long list of deaths in winter.

The other, much more difficult challenge is its financial turnaround and victory, beating competitors from low-cost carriers and positioning itself as the first airline on the subcontinent.

What is the current situation of Jet Airways?

We had previously written an in-depth look at the history of the airline to better understand its situation. At present, most of their fleet is immobilized, they have failed to repay their loans and their benefactor Etihad said they would not save them. It got so bad that the airline's CEO and founder, Naresh Goyal, was forced to resign

Essentially, these key factors are:

1. The price war on the market. Currently, domestic flights in India are available for only 2 cents.
2. Grounding on the fleet of the 737 MAX (Jet counts 5 to date, but 217 in order in the air)
3. Lack of cash while the airline is struggling to make sales.

Should Jet Airways be saved?

Before we get into ideas on how to save the airline, we should explain why it is worth saving.

The first reason is the fleet. Jet Airways already has a huge fleet in India and has mbadive access to the market. With 115 aircraft operating throughout the country (and 227 others ordered), Jet Airways is easy to take to conquer the region quickly and have a much higher capacity than any other operating airline.

The second reason is the brand. Jet Airways has been in business for almost 30 years and has created a climate of trust with the local population. Their name and their brand have a lot of weight on the territory.

So, how can we save the airline? Here are some ideas

Focus on international routes. Currently, Jet Airways focuses solely on domestic routes. They were almost at their maximum capacity and are very popular (with their upscale cabins too) as many expatriate communities return home and tourists set off to explore the country. However, this is not easy, as they have recently abandoned their landing slots at Heathrow and have since blocked all the roads taking routes overseas (they took the plane to Amsterdam, Paris and London).

Cancellation of future orders 737 MAX. We do not recommend that Jet Airways simply cancel 737 MAX orders due to device issues (this is another discussion), but they are overused and could use this time to recover some of their money or of their "debt". That would put them at odds with Boeing, who came to defend the airline.

Reduce operations. Essentially, Jet Airways must become as thin as possible and reduce its services. They are already doing what they can, but they should stop all that is totally uneconomic.

Raise prices and focus on the high-end market. To compete, Jet Airways should differentiate itself from the competition (by actually increasing prices) and bring value to customers beyond end-to-end transportation. This could be the Southwestern model (free transfer of tickets, two bags, etc.) or offers outside airspace (offers with hotels, membership programs).

Wait, they do not owe more than a billion dollars?

Yes, it is true that Jet Airways owes more than a billion dollars and it would be almost impossible to find a benefactor willing to badume this charge. But to help, they took the following steps:

• Opening of 51% of the company to the private investment in stock market (shares previously held by the founder)
• Shop with airline partners like Etihad (another company may use this opportunity to penetrate the popular Indian market).
• The Indian government recently asked local banks to help bail out the airline. Maybe they can help.

What do you think? Do you have any ideas?