Since the past few years, Jet airways has gone through a rough patch. 'Take a cut, or we shut down' was definitely not the most recommended way to deal with its employees. The entire airlines industry in India is making losses because of rising fuel costs, the falling rupee etc. Despite this, Low Cost Carriers (LCC's) like Indigo and Spicejet have stayed in a safer place than Jet airways and Emirates. The disadvantage of not being an LCC made Jet airways incur losses with more gravity. Due to consecutive losses the carrier has defaulted salary payments and delayed lease payments. In September, it posted a net loss of Rs 1261 crores. Losses being incurred for the third time in a row, they've had to revoke certain services including lounge facilities for platinum and gold members travelling in economy class. This step too was taken the hard way as due to non-payment of dues the TFS stopped providing lounge facilities to the passengers of Jet airways in Mumbai airport. However, the carrier stands a chance of revival as Tata Sons are in talks to acquire a majority stake in Jet airways including its Etihad shares to merge with Vistara. After Tata showed an interest in Jet's stake, Jet's shares increased by 8%. But even if the acquisition settles all debt, will that be enough for the company to revive?
After this move, the most crucial step in to gain the lost customer confidence.
Negligence of the staff has allegedly been the reason behind the cabin pressure loss mishap. Several booking cancellation rumors have also added to the mess.
Exceptional game changing steps will have to be taken to resurrect the services.
Thank You
Regards
Maria James
Maria James
Kautilya,
IBS Mumbai
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