The news of Jet Airways revival has drawn a huge number of interested investors. Early this month, Synergy group, that owns majority shares of airlines like Colombian airline Avianca, had filed a new bid (EoI) to invest in the defunct Jet Airways. The venture was one of the many that have come forward to invest money in a company that is now looking for a saviour. But, how much of an impact is it likely to have?
As per the latest market survey, almost 70% of daily fliers want to see Jet Airways revival in the present market scenario. Jet Airways is also said to be on a steep competition with other airlines of similar size. Thus, the present scenario would not be the best time for them to pull out and look for other ways to expand. The Jet Airways story has so far been – an airline that brought ‘joy to flying’ eventually got grounded on April 17, 2019 – leaving its followers in the lurch.
So, what exactly does Jet Airways revival mean for all stakeholders? How would the sector react if Jet Airways is really able to revive and emerge as a stronger force in the aviation industry? Well, it still has a lot of scope for growth and expansion. However, this can only happen if the management responsible for Jet Airways revival are able to successfully start from scratch, develop new products for their existing customers, attract new customers and regain the market share. They must have the capability to make optimum use of available resources in terms of men and machines. Besides, in order to survive, they must sell new products or services at competitive rates.
What’s more, if Jet Airways is able to successfully build a strong and long-term customer base, this will help them expand further in the future. The key for them here is to convince their existing customers to stay loyal to them rather than migrate to another airline. The Jet Airways revival plan and its execution will definitely take some time. There will certainly be some setbacks as well, but in most cases, people would realize the benefits of their investment after the company emerges from the turmoil of the current situation.
In the process, it is also important for new investors to understand the working of the airline properly. They must be clear about the routes of the airline, the type of aeroplanes, the number of aircraft and all other important details related to the operation. It is therefore important to understand the functioning of the airline before investing in any company. Since the newly born Jet Airways is quite new, the complete operational mechanism of the airline has not been fully understood and is not established in the market yet, especially during covid times. Thus, it will be very difficult for Jet Airways to make itself acceptable to the public.
However, the investors may find it easy to understand the plans and goals of Jet Airways if they can take a look at the history of the company. If the airline is in a stable financial position, then this will surely benefit the investors to a great extent. and it will give them the scope to gain a lot of insight into the workings of the organization.