Reason for the collapse of the Brand Jet

Reason for the collapse of the Brand Jet

Many of you wonder why the Branded Jet Airways collapsed within a year of celebrating its silver jubilee.

We have got a mixed reason for the collapse of Jet Airways. To point out, we can say that it started with the financial crisis and then the strategic mistakes by the management and along with that poor expectation of the management.

Though all the above said stood strong for the downfall the well renowned Jet Airways. On top of it, the main reason was because of the

 disputes between the promoter Naresh Goyal and their strategic partner Etihad Airways

More Tech news : infobuzzy

.

But one thing to be noted here is the airlines do not have any control over the pricing and that too when it comes to the fuel and the taxes that took around 30% to 40% of all expenses, which the airlines got nothing to do.  They have control only over the products and services offered.

On that note, as we all know, Jet Airways was well-known for its products and services and they have never compromised on it.

They were very clear on their moto on customer satisfaction. They never wanted the customer at the back of the plane to feel inferior as when compared to the customers who are in the front at Business class. These specific airlines have offered great services to customers like veg or non-veg meal options, pillows, blankets and so on.

K.V Sridhar the founder and the Chief Creative Officer of Hyper Collective and who was in the part of Linta’s team which designed Jet’s Logo of flying sun and its first campaign said that the Brand and the Brand experience of the Airlines remained successful but it failed in business management.

As per Ambi Parameswaran, the founder of the Brand-Building.com the downfall of the Jet Airways are due to the price wars and their inability to charge a premium.

The one who created a great brand image was not able to maintain a poor balance sheet.

In the last 10 years before getting collapsed, Jet Airways was able to make a profit only twice and they survived only by borrowing funds.

Kingfisher faced the same issue when they offered better service but not able to charge a premium.

Sridhar also said that the price wars were not an issue for the downfall, he blamed the entrepreneur’s ego and their strategic mistakes.

The main problem started with the purchase of Air Sahara in the year 2007.

it was not the first private domestic airline of that era but it was the only one which survived quite long.

Aviation Consultant Vishok Mansingh said over 30 scheduled, non-scheduled and cargo airlines have got shut down in India in the last three decades. Just because of the mismanagement, poor funding and the failure of making long term planning.

Shashank Nigam the CEO of Aviation brand says that both the Airlines Jet and the Kingfisher perished to please everyone but both got into a low-cost space which leads to the brand confusion. Though jet adopted the single brand strategy finally, it was too late by that time.

The key to being the successful airlines in India relies on building a strong brand promise and then standing to it said, Shashank Nigam.