Jet Airways, India’s one of the most successful airlines company. Which was started by Naresh Goyal, the person who managed many problems by himself in Jet Airways. And recently Jet airways have shut down its operations. What are the mistakes lead Jet airways to down? What are the Jet airways crisis reasons?
Reasons for Jet airways Crisis:-
One of the Jet Airways crisis reasons is overpriced or expensive purchases. Jet airways always buying assets on original rates or much higher. Where they can go it for a discounted price. Which happened in 2007 where jet airways brought Sahara Airlines is one of the expensive purchase has been stated. Then purchase of the Boeing 777 and Airbus A330 which are not needed by the time. And using them in a not profitable way. Which creates a more operational cost to the company.
Naresh Goyal was one of the most successful businessmen. But when it comes to decision making he listens to only himself. When his subordinates share their ideas, these ideas will be accepted by Naresh Goyal when he likes even if the idea is good or bad. There were many analysts recommended about to not buy Boeing 777 planes still, he listens to himself.
Loss of investors confidence
During the crisis, there are companies which came to save Jet. Like Delta Air Lines which came to buy the shares for 300 rs, but Goyal Asked about 400 rs later share value fell from the 300 to 200 rs. Later the Tata groups came to help but jet declined it. Whereas Naresh Goyal knows many VIP’s, VVIP’s from India but instead of asking help from them, he went back to Etihad Airways. Which lead to loss of upcoming investor’s confidence.
Jet Airways crisis reasons are not just these three. But there are many other reasons, whereas these are one of the most important reasons. In the case of Jet Airways, Naresh Goyal dictatorship which leads to the downfall of Jet Airways.