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It'?s on one piano and one prayer: At Jet Airways, we are suffering from declining aircraft shares, increasing cost and flight delay.
Jet Airways' top executives, under the leadership of Chairman Naresh Goyal, have been trying to clarify the airline's poor financials in their discussions with staff. Quoting an unanticipated rise in aviation costs, a decline in business shares and operating problems for the present state of the business, managers have asked drivers and technicians to make a 15 per cent pay slash.
As a result, Jet Airways has lost significant shares of the markets to its competitors. Jet Airways' penetration of the home markets has fallen to 15, according to the Civil Aviaiton Directorate-General. Four per cent by the end of 2017, from 15. 6% at the beginning of the year.
There may have been a slight decline, but in 2018 the decline was more marked. Jet Airways' German business had dropped to 13.9 per cent by the end of June this year. His inexpensive Jet Lite also saw its branch rate drop to 1.6 per cent at the end of June, from 2.4 per cent at the end of December.
However, the decrease in sales volume was associated with an increase in cost and operating problems. The labor cost of Jet Airways is among the highest in the business, although IndiGo now has the largest workforce. Whereas the airline's labour cost rose to 2,801 rd in GJ18, up from 2,604 rd a year ago, IndiGo's was at 2,366 rd in GJ17, up from 1,947 rd in GJ17.
Naresh Goyal's advertised carrier had 16,558 employees as of March 31, 2018, while IndiGo had 18,060 employees. "Jet Airways flight attendants receive on aggregate more than twice what their colleagues pay on other airlines," Martin said. In addition to higher labor costs, Jet Airways also spends more on gas.
Although this may be due to the wide-body jet that the carrier is flying, the higher rise in propellant prices will be a cause for worry, despite the fact that the size of the fleets remains the same. Year-on-year, the airline's propellant prices rose by 27 per cent to 6,953 rubles in fiscal year 18.
IndiGo's propellant costs increased by 22% in contrast. 7,760, although the carrier expanded its total fleets from 131 to 159 in the year under review. The Jet Airways portfolio stayed the same with 112 jets. Carriers are proud to provide a good punctuality service (OTP), but Jet Airways has left both IndiGo and SpiceJet behind in this respect.
The OTP of Jet Airways and that of its cheap Jet Lite was 78. 8% in June, just above Vistara (78. 2%) and well below IndiGo (84. 1%) and SpiceJet (81. 2%). It also lagged behind its competitors on other important issues, such as the occupancy rate of passengers, with higher cancellations and a higher frequency of passengers' grievances added to the issues.
However, specialists like Martin believe that the recent introduction of the Boeing 737 Max into the Jet Airways family will have an effect. "Aeroplanes are slimmer, burn less propellant, require less servicing and have longer service intervals," Martin said. "Jet Airways is dedicated to creating a growth-oriented, sustained tomorrow and a renewed customer experiences with 225 fuel-efficient B737 MAX planes to join its squadron over the next ten years, 11 of which are scheduled to join this fiscal year," Jet Airways said in a Thursday evening comment.