Question

Why did jet airways collapse

Answer 1

The growth of low-cost competition in India, a rise in fuel prices and an unfavorable exchange rate contributed to the $1.2 billion debt that the airline faces today. The crisis at Jet Airways has been allowed to go on too long, says aviation industry analyst Thomas Jaeger, CEO of ch-aviation GmbH.

Answer 2

Reasons why Jet Airways Collapsed:

• After doing a case study I came to the following conclusions for the reason why jet airways collapsed.

• Jet Airways was a luxury airline and the ticket price was usually high compared to other low cost airlines that are there like Indi Go, Go Air and Spice Jet which was a big competition for JetAirways since they offered tickets for a very low price compared to Jet Airways ticket.

• More people started thinking of avoiding luxuries and sacrifice these luxuries so that they can save the money of their ticket. Avoiding personal entertainment food for a flight of two hours, three hours most for a domestic flight. This mindset of the people made people from not travelling with Jet Airways.

• Fuel prices were rising and with less customers their expenses increased. Maintenance of the aircraft etc. If they have a lot number of customers only they can meet their expenses.

• Also their service was not very good the seats were not maintained the personal entertainment systems in the business class was not working.

• They used to spend a lot on the in flight food. Some employees tell that the mini after snack mint costed about 100 rupees which means that for such a small after meal mint they spend 100 rupees for each piece which is a lot of money that is wasted.

• The reviews were also bad in social media platforms like youtube instagram etc.

• Now they are stuck in debt of 1.2 billion dollars which they are unable to payback due to these reasons hence they collapsed.