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Jet Airways: witness the rise and fall of the former king of airlines, who's now struggling for funds to carry on general operations...

Image credit: Jet Airways

India has produced some of the best serving as well as affordable airline services in the world like Jet Airways, Indigo, Jet Airways, Spice Jet, JetLite, etc. But in the competition, Jet Airways was the winner.

Founded by Naresh Goyal in 1993 as an air taxi service company and began its operations in 1993 on the capital investments from Tail Winds by the first flight from Bombay to Ahmedabad on 5th May 1993.

They had leased four Boeings from Ansett Worldwide and was the first one in India to do so. And in a brief timespan [1994 year] they became the second largest private airline In India.

Followingly they leased three Boeings from Malaysian Airlines so they had in total 7 Boeings in operation.

They didn't look back anymore. Goyal acquired a 60% share from Tail Winds in 1994 and rest to other foreign companies.

In the following years, Jet Airways ordered many aircraft in 1996 after gaining the scheduled airline status in 1995. By the year 2000, they had a fleet of twelve Boeing 737 aircraft.

And by the year 2001, the airline's company had in total 30 Boeing aircraft [10 were ordered in 1999 Paris Air Show]. Till then they provided 195 daily flights to 37 destinations in India.

Image credit: Livemint
In the year 2003, The Govt. of India allowed private airlines to launch air operations in South Asia. Jet Airlines, therefore, started their international operations in 2004 March by Chennai-Colombo flight. While in the same year they were listed in Bombay Stock exchange.

Their IPO offered 20% of the stock in 2005 saw a huge uprise in drawing investments and Rs 18.9 billion to Goyal.

And 2005 they stepped outside south Asia too by starting flight operations to London.

Then they acquired Air Sahara in the year 2006-07 and renamed it JetLite which served as a low-cost airline service which was later merged in Jet Airways in 2008.

Image credit: IGI Airport Delhi

They allied with Mallya's Kingfisher Airlines in 2008 by agreeing on domestic-international flight share. Jet launched Jet Konnect in 2009 a low-cost airline service.

Jet became number one in the year 2010. They were the first to ban meat & liquid products in the check-in luggage.

They sold out 24% share to Etihad Airways in 2013 with 51% share in Goyal's pocket. Jet saw dips in 2013 but strengthened in the market by 2014.

They competed with IndiGo & Spice Jet by lowering their prices. In 2014 they merged Jet Konnect fully in Jet Airways.

Image credit: IndiaMART

But Jet faced the massive financial crisis by the year 2018. They decreased the operation costs and started talks with the investors as they were running out of money.

There were several reasons and mistakes which led the company dragged in the well of debt. On the 31st March, Jet had a debt of 72 hundred crores.

Its lenders, as well as Etihad, are in the fray to take over it.

Jet is not able to pay salaries to its employees for three months. Over 54 Jet Aeroplanes are grounded.

One reason for the downfall was the decrease of rupee value compared to dollars, which led to a huge increment of international costs.

And another factor responsible for the dip was the increment in Aircraft Fuel Prices. So due to above all factors, Jet has faced a loss of over Rs 3,620 crore in 2018.

There was a rapid decrement in the number of operational flights as they were no more able to cope up with the costs.

March 2019 was the month when Goyal and his wife had to resign from their own company.

On 12th April 2019, they suspended all the international and eastern India operations. Soon their Rs 400 crore immediate funding was rejected.

The last jet flight took off from Amritsar & landed Mumbai on 18th April 2019, followingly their membership in IATA [International Air Transportation Association] suspended.

This was the journey of Naresh Goyal who came from Patiala to Delhi in 1968 aged 18 years. He worked and learned the travelling business just in a job offering a salary of Rs 300.

His contacts helped him to start a travel agency "Jet Air" in 1973.

Image credit: Forbes

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