Jet Airways Crisis

As it is already known to us that Jet Airways recently declared that the temporary shutdown of its services in April 2019. They are unable to operate the company due to a lack of funds. The airline is under a debt of Rs 8500 crores. So banks are not ready to release more funds to the company. Since January 2019, Airlines has not paid salaries for the staff since January 2019. 

Jet Airways was the second-largest airline in India till recently now in a crisis.

REASONS BEHIND THE CRISIS:

• To get a position in the tough competition, they started offering tickets at a low price to cope up with the competition. Jet Airways is a full-service airline, it offers meals and other comforts in the ticket price. Since 2000, low-cost airlines have come to market. These low-cost carriers will charge customers for meals and extra services. Some low-cost airlines have a second source of income such as advertising. 

• In the year 2007, when Air Sahara was in crisis, Jet airways bought it and rebranded it as JetLite. But unfortunately, this didn't work out well with Jet airways. This is also the main reason behind the Jet Airways crisis.

• High fuel charges and low ticket prices disable airlines gradually.

• Poor management is also another reason for this crisis.

HOW CAN BE REVIVED?:

• It can be revived with the help of some investors with whom the company can get back on track.

• Keep ticket prices suitable to avoid any extreme situations.

• Banks should release funds to pay at least one month of salaries for Jet Airways employees as per the demands. 

CONCLUSION:

Let's hope that the oldest Private airlines of India will be able to revive in the coming days. Jet Airways crisis is like a wake-up call for the industry of India. Some steps should be taken towards making airlines a profitable and sustainable business.

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