Jet Airways fights for space in the skies

On the surface, Jet Airways’ determination to conquer the international airline market looks premature.
The number of Indians taking domestic flights has increased at least 25 per cent a year in recent years and this growth is expected to continue, seemingly offering plenty of scope for Jet Airways to boost its profits at home.
Yet the market, once confined to Air India and Indian Airlines, the state-owned international and domestic carriers, has become increasingly competitive as the success of airlines such as Jet Airways has spurred a flurry of new entrants. Many of the new players are low-cost carriers, which have forced Jet Airways to lower its prices and, in turn, its profitability.
As a result of this, Jet Airways’ market share, which stood at 45.9 per cent in the year to April 2003, had fallen to 36 per cent by January this year — albeit it in a bigger market.
The acquisition of Air Sahara will boost Jet Airways’ market share by 12 percentage points to 48 per cent.
17/04/06 Tom Bawden/Times Online, UK

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