The Jet Airways conundrum: Who said what on the airline and its impact on tourism

April 24, 2019 | Bureau | Airports & Airlines

The media has been abuzz with speculation on the fate of the beleaguered airline. Having stopped its operations, a dwindled supply has caused a considerable spike in airfares on key routes. It has raised doubts on business prospects in the peak tourist season. Media reports have indicated that fares have soared as much as 50 to 60 per cent on key domestic routes, such as Delhi and Mumbai.

Many have advocated government intervention to address the situation. MoCA too has suggested that it is keeping an eye on the unfolding drama and addressing consumer’s concern. The situation remains fluid and there is an intense chatter on when and how, and if, Jet Airways makes a comeback.

These are some reactions from stakeholders in industry and government, mentioned in the media, issues involving the airline: 

Suresh Prabhu, Minister of Civil Aviation, Government of India (on Twitter)

“Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares, flight cancellations etc. Asked him to take necessary steps to protect passenger rights and safety; to work with all stakeholders for their well being.” 

Ministry of Civil Aviation (in a press release)

“To reduce inconvenience to passengers and facilitate induction of additional capacity, it has been decided to allot some of the slots vacated by Jet to other airlines purely on a temporary basis, for a period of three months. The historic rights of Jet Airways, in keeping with the extent ministry guidelines for slot allocation, will be protected. These slots will be made available to Jet as and when they revive their operations.”

Vinay Dube, CEO, Jet Airways (in an interview to ET)

“We are in constant touch with the lenders on how to get it (debt resolution) done in a manner that makes sense for them and makes sense for us. But I would like to think that a flying Jet Airways makes definite sense for them (banks) because it preserves their value as well. So we are not talking about anything that does not make good economic sense for the lenders, this is not charity for the sake of it.”

Sunil Kumar, President, TAAI

“The impact of grounding of Jet Airways is not only restricted to the airlines’ sector as tourism has taken a severe beating due to the massive surge in airfares during the peak demand season. The impact is unlikely to fade away anytime soon and may continue into the rest of the year.”

Karan Anand, Head (Relationships and suppliers management),  Cox & Kings

“This is the peak travel season and the airfares for the next 10-12 days are up by at least 25% as the capacity has fallen massively dissuading last-minute travellers.”

Nishant Pitti, CEO & Co-founder, EaseMyTrip.com

“It is true that passengers are in panic now but going forward there will not be much impact as other airlines like Spicejet and Indigo are adding more planes into their fleet which will help balance demand-supply gap.”