NEW DELHI: Though Jet Airways, after a 26-year run, has shut shop temporarily, airline analysts believe there is still hope that it would resume operations after lenders bring in an investor. But they also believe that the task ahead for the new-management in reviving the operations would be enormous.
Industry experts feel it would be an uphill task. “Jet was the market leader. Till last year, it had a handsome market share. Going by the present scenario, it would be very difficult for it to regain its past glory,” former Air India director Jitendra Bhargava told TNIE. He said that when Jet would resume operations, it would face a dearth of staff as currently, the employees are looking for ways to quit.
On Jet losing its slots at airports and deregistration of its grounded planes, analysts said that the former is unlikely to be a big headache for the airline. Authorities have ensured Jet that it would have the first right on the slots after the initial re-deployment of slots for three months to other airlines. However, this means that if a bidder were to take over within the next few weeks, it would not be able to re-access these slots for the next three months. Government officials have said that after Jet’s suspension of operations, 440 slots are vacant at Delhi and Mumbai airports, which will be allocated to other airlines temporarily.
Mark Martin, CEO, Martin Consulting, says it will take at least 12-24 months for Jet to get back their operation network in order. As of now, the most important part will be to get an investor on board who see value in Jet Airways. “We are talking of Rs 14,000-15,000 crore investment. There is servicing of loans, payment to contractors, lessors, employees and more. Only someone who is foolish or passionate about aviation will invest that much,” Martin said.
Bhargava said it will be an uphill task for Jet to rebuild confidence among passengers. “It will be highly unlikely they would be flying international with Jet in the initial days. There would be domestic bookings because it’s a growing market, but they would have to get the goodwill back,” Bhargava said.
Pitching in
SpiceJet, which plans to induct over 30 planes in the next few days, said the company has provided jobs to more than 100 pilots, 200 cabin crew and 200 technical and airport staff.