Jet Airways' Strategy, Operations and Competitive Position

As of late 2004, Jet Airways was the leader in the Indian airline industry with a market share of nearly 46 percent (in terms of passengers carried). Indian Airlines, India's national airline, followed at around 38.5 percent, and Air Sahara, another private operator, was fast catching up with a market share of 14.5 percent in 2004.

The positions of all three, however, were under threat from Air Deccan and a slew of other LCAs that promised to change the dynamics of the industry completely. (By the end of 2004, Air Deccan, which started operations in late 2003, had managed to capture a market share of one percent in terms of passengers carried.)

In 1991, as a part of the economic liberalization program, the GoI opened the civil aviation sector to private investment. This was considered to be a boon for the sector and was welcomed by investors and passengers alike. The general opinion was that civil aviation would benefit considerably with the entry of private airlines, which would compete with the increasingly apathetic national airlines and improve the overall standards of service. Following liberalization, several new private airlines began operations in India. Some of the prominent ones were: ModiLuft, Damania Airways, East West Airlines, NEPC, Air Sahara, and Jet Airways. Of these airlines, only Jet Airways and Air Sahara managed to survive the 1990s.