Speaking on the sidelines of the IATA’s general meeting in Seoul, Ajay Singh, CEO of low-cost Indian airline SpiceJet said that the failure of Jet Airways was a “wake up call” for the aviation industry.
Jet Airways grounding is something which is very sad and it should be a wake up for all of us in the aviation sector and the policymakers. I think Jet Airways was an iconic brand, and at least part of the blame for its failure has to be at the door step of the policymakers
Singh attributed the failure of Jet Airways to internal factors, and high cost structure that made it uncompetitive in the Indian airline market.
SpiceJet benefiting from Jet Airways’s failure
While Jet Airway’s aircraft have been grounded since April, low-cost carrier SpiceJet has taken advantage of higher yields to expand its operations and is about to lease 30 Jet Airways planes once, increasing its fleet size by 30%. SpiceJet has also hired 1100 of Jet Airways’s staff and plans to hire even more of the troubled company’s staff.
The grounding of Jet Airways’s planes has has resulted in an increase in more than 30% in airfares on Indian flights, due to a reduction in a number of available flights.
The future of Jet Airways is still unclear.
Based in Barcelona when she’s not traveling, Jen is a travel blogger and photographer. She loves inspiring people to travel and discover the world. An ex-flight attendant, Jen has expertise in the airline industry.
