JET AIRWAYS: Business Strategy

 The business strategy of Jet Airways, one of India’s prominent airlines before its operations were halted in 2019, evolved significantly over its years of operation. Here's an outline of the key aspects of its strategy:

1. Full-Service Carrier Model

Jet Airways positioned itself as a full-service airline catering to both business and leisure travelers. This model focused on providing premium services such as in-flight entertainment, meals, and comfortable seating across economy and business class segments.

2. Hub-and-Spoke Model

Jet Airways followed the hub-and-spoke model for its domestic and international operations. It operated hubs primarily out of Mumbai, Delhi, and Bengaluru to connect passengers across its network, allowing seamless transfers between domestic and international flights.

3. International Expansion

The airline expanded aggressively into international markets, especially the Middle East, Europe, and North America. Key international routes included London, Singapore, Dubai, and New York. By building partnerships with other airlines, Jet Airways increased its global reach.

4. Alliance with Etihad Airways

In 2013, Etihad Airways acquired a 24% stake in Jet Airways, marking a strategic partnership. This allowed Jet Airways to expand its international presence and benefit from Etihad’s global network, while Etihad gained a foothold in the Indian market.

5. Fleet Expansion and Modernization

Jet Airways invested in fleet modernization to compete with both Indian and international airlines. It operated a mix of Boeing and Airbus aircraft to cover both domestic and international routes efficiently. The introduction of newer aircraft was aimed at reducing fuel costs and enhancing the customer experience.

6. Differentiated Service Offering

Jet Airways sought to differentiate itself from low-cost carriers (LCCs) like Indigo by offering premium services such as JetPrivilege (frequent flyer program), JetLounge services at airports, and a more comfortable flying experience. This helped them cater to high-end customers and business travelers.

7. Acquisition of Air Sahara

In 2007, Jet Airways acquired Air Sahara, rebranding it as JetLite, which operated as a low-cost subsidiary. This allowed Jet Airways to tap into the budget-conscious segment of the market and compete with the growing LCCs in India.

8. Cost-Cutting Measures

As competition from low-cost carriers intensified, Jet Airways implemented cost-cutting measures to improve profitability. This included restructuring its operations, reducing unprofitable routes, and optimising staffing and fuel efficiency.

9. Challenges

Despite its strong brand and global presence, Jet Airways faced financial difficulties due to high operational costs, intense competition from low-cost carriers, rising fuel prices, and poor management decisions. These factors contributed to its eventual suspension of operations in 2019.

10. Focus on Network and Customer Experience

Throughout its existence, Jet Airways focused on providing superior customer service and maintaining an extensive network of both domestic and international destinations. It built strong brand loyalty, particularly through its Jet Privilege loyalty program.

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