Jet Airways brings new business plan to escape crisis; 7 key decisions

New Delhi, September 17, 2018: It’s not just common citizens who are facing headwinds from rising fuel prices. Notably, airlines too are suffering from a similar nightmare. With the ongoing rise in fuel rates, the premium carrier Jet Airways, which is cash strapped currently, has now come up with a plan to soar over its crisis according to the reports published in

Gilbert George vice-president of Jet Airways said, that in the domestic market, presence of overcapacity of seats was one of the problems affecting the sector, reported by The Indian Express.

With that in mind, George revealed that Jet Airways was working towards increasing its ancillary revenues by de-bundling offerings from its fares. further added that on its website, Jet Airways has announced major triggers and initiatives taken for cost cutting, debt reduction and funding options. The airline also stated intention of a capital infusion, monetization of assets along with stake sale in its Loyalty programme.

Key decisions of Turnaround strategy from the airlines:

1. Comprehensive cost reduction programme: Will result in an excess of INR 2,000 crores of cost reduction over the next two years. The cost reduction programme covers various facets of the company’s operations including Maintenance costs, Selling and Distribution costs, Fuel rate and optimization, Debt and Interest cost reduction and enhancement of Crew and manpower productivity.

2. Induction of fuel and cost-efficient B737 MAX aircraft:Contributing to the stated 8-10% growth plan.

3. Revenue enhancement programme: Delivering 3-4% growth in RASK through tactical and strategic initiatives around network, pricing, inventory management and sales.

4. Product and service improvements: Provide choice and flexibility to guests in line with global best practices and standards

5. Leveraging the well-established 8.5 mn member JetPrivilege programme

6. Balance sheet restructuring: Capital infusion and debt reduction to result in significant reduction in the interest cost.

7. Fleet simplification: Wet lease of excess ATR aircraft and simplification of sub-fleet complexity of B737s to result in further improvements to the bottom line.

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