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Jet Airways thwarted Tata plan to float private airline

 
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avbuff
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PostPosted: Sun Apr 29, 2012 12:50 pm    Post subject: Jet Airways thwarted Tata plan to float private airline Reply with quote

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/jet-airways-thwarted-tata-plan-to-float-private-airline-in-1997-book/articleshow/12920412.cms

NEW DELHI: India's civil aviation history would have taken a different trajectory had the Tata group and Singapore Airlines been allowed to float a private airline 15 years ago, says former bureaucrat M K Kaw in his tell-all book.

"The Tatas had mooted a proposal for a private airline with 40 per cent equity contribution from Singapore Airlines. As this would have been a formidable competitor, Jet tried hard to upset rules regarding foreign equity contribution," the former civilian aviation secretary in the I K Gujral government writes in "An Outsider Everywhere - Revelations by an Insider", published by Konark.

Kaw, who was in the IAS for 37 years, says he advocated a rule in the policy related to allowing of 40 per cent equity contribution by foreign airlines even in new proposals.

"This was seen by Jet as a victory for the Tatas. If approached as policy, it would enable favourable consideration of the Tata proposal. (Then civil aviation minister Chand Mahal) Ibrahim was not happy... He was not convinced. Jet people had told him that I was trying to show undue favour to the Tatas," he writes.

"The minister did not clear the file, despite several attempts on my part. The history of civil aviation in this country would have taken a different trajectory, if Tata Singapore Airlines had been allowed to float an airline."

On a civil aviation policy, he writes, "The country does not have a civil aviation policy even today. It is of the considered view of many experts in civil aviation that FDI investment will not be allowed in India till this is permitted by the powerful owners of Jet Airways."

According to Kaw, the Tatas also wanted to set up an international airport at Bangalore.


Last edited by avbuff on Sun Apr 29, 2012 12:58 pm; edited 1 time in total
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avbuff
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PostPosted: Sun Apr 29, 2012 12:56 pm    Post subject: Reply with quote

So there you go, an example of 9W wasting its energy in cutting down competition rather than improving themselves and becoming a world class airline. Air India/GOI did the same thing by blocking competition and so has 9W by maneuvering policy decisions in their favour. Jet is nothing but the Air India of yesteryears with a slightly streamlined operation. Overall, 9W too today are equally clueless, service standards deteriorating and the flights to the Gulf becoming shoddier by the day, similar to the erstwhile AI/IC standards. Many a times when we see "Air India blocking foreign Carriers" it is mostly 9W pulling the strings from behind.

It is because of this shitty attitude that 9W can never grow and improve as an airline.

An extremely sad situation.


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PlaneLover
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PostPosted: Sun Apr 29, 2012 7:18 pm    Post subject: Reply with quote

It is sad to see many posts about deteriorating quality at Jet Airways. Hope someone from the airline with major decision making authority is watching these posts. We cannot afford to have one more major player go down. Jet needs to put an end to their service decline quickly and come up with clear plans to improve. They should also show more imagination when coming up with new routes. I agree with the posts about extending the new flight from BLR to BRU all the way to SFO. A new service from another city, may be HYD/AMD to ORD/IAH, through Brussels could work and add to the number of scissors connections between India and USA. When will they announce to the world what their intention is with regard to expanding at Brussels versus starting a new hub at Munich? Are they just playing one against another to draw more concessions out of the Belgium government?

If you play dirty politics ( instead of providing superior service to differentiate yourself ) to kill your competitors, sooner or later it will come to bite you in your rear end.
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abhijith16
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PostPosted: Sun Apr 29, 2012 7:37 pm    Post subject: Reply with quote

9W is no longer the stellar star of India. It needs to brought back down to earth and needs to be given a kick in the butt.
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iah87
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PostPosted: Sun Apr 29, 2012 8:26 pm    Post subject: Reply with quote

Jet airways needs to get its house in order in India before they go on about expansion to USA. They cant even make MAA-DXB work. They can forget about IAH and SFO, too far and too much competition. ORD is a possibility, ever since AA pulled out.

First why would anyone want to fly Jet ? They are usually the most expensive, have a horrible frequent flyer redemption program and do not belong to any alliance. May be the inflight service is slightly better than US carriers, but beyond that they have nothing.
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The_Goat
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PostPosted: Mon Apr 30, 2012 11:59 am    Post subject: Reply with quote

This incident supposedly happened in 1997 when Naresh Goyal was a mere small player, while the Tatas were already giants with decades of experience in dealing with politicians. Isn't it interesting then, how a non-entity like NG could have so much clout with the politicos, that he could undermine someone as powerful as the Tatas?

I wonder if the Tatas realised what future the Indian Aviation scene had, and quite willingly dropped the idea of starting an airline right then.
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Nimish
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PostPosted: Mon Apr 30, 2012 12:53 pm    Post subject: Reply with quote

The_Goat wrote:
This incident supposedly happened in 1997 when Naresh Goyal was a mere small player, while the Tatas were already giants with decades of experience in dealing with politicians. Isn't it interesting then, how a non-entity like NG could have so much clout with the politicos, that he could undermine someone as powerful as the Tatas?

I wonder if the Tatas realised what future the Indian Aviation scene had, and quite willingly dropped the idea of starting an airline right then.


Probably simply answered by the word "ethics". Perhaps the tatas were unwilling to bribe the minister, while NG was happy to?
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jasepl
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PostPosted: Mon Apr 30, 2012 2:36 pm    Post subject: Reply with quote

avbuff wrote:
So there you go, an example of 9W wasting its energy in cutting down competition rather than improving themselves and becoming a world class airline. Air India/GOI did the same thing by blocking competition and so has 9W by maneuvering policy decisions in their favour. Jet is nothing but the Air India of yesteryears with a slightly streamlined operation. Overall, 9W too today are equally clueless, service standards deteriorating and the flights to the Gulf becoming shoddier by the day, similar to the erstwhile AI/IC standards. Many a times when we see "Air India blocking foreign Carriers" it is mostly 9W pulling the strings from behind.

It is because of this shitty attitude that 9W can never grow and improve as an airline.

Well, nearly all our businesses have used political connectivity to their advantage. It's nothing new and not specific to Jet. Wielding said influence at the cost of competition, and, ultimately, taxpayer funds hasn't been as common, but that's happened too.

Jet though, in their blinkered quest towards a goal that they themselves don't know, have not stopped at harming the competition. Jet's latest target to inflict damage upon is Jet itself. And it doesn't appear that they even realise what they're doing. They've already cut off their nose and an ear to spite their face.

Self-sabotage. Lovely strategy indeed. Combine that with Jetuna Matata and we're well on our way to hara kiri.

The_Goat wrote:
This incident supposedly happened in 1997 when Naresh Goyal was a mere small player, while the Tatas were already giants with decades of experience in dealing with politicians. Isn't it interesting then, how a non-entity like NG could have so much clout with the politicos, that he could undermine someone as powerful as the Tatas?

I wonder if the Tatas realised what future the Indian Aviation scene had, and quite willingly dropped the idea of starting an airline right then.


I don't remember exactly, but the names Goyal, Shahnawaz, Shourie and Yadav spring to mind. And I want to say that Ratan & co simply walked away in disgust, rather than out up with the drama, bribe or no bribe.
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me111993
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PostPosted: Mon Apr 30, 2012 6:44 pm    Post subject: Reply with quote

abhijith16 wrote:
9W is no longer the stellar star of India. It needs to brought back down to earth and needs to be given a kick in the butt.


They're no longer what they used to be, but they're still the best full service carrier in India.

Thats the thing, back in the 2000's in the pre-kingfisher era, they were IC+1, thats all, now they'd be AI/IT+1.
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abhijith16
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PostPosted: Mon Apr 30, 2012 8:29 pm    Post subject: Reply with quote

me111993 wrote:
abhijith16 wrote:
9W is no longer the stellar star of India. It needs to brought back down to earth and needs to be given a kick in the butt.


They're no longer what they used to be, but they're still the best full service carrier in India.

Thats the thing, back in the 2000's in the pre-kingfisher era, they were IC+1, thats all, now they'd be AI/IT+1.


Having had a bad experience from them, I'd rather try IX over 9W...
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PostPosted: Mon Apr 30, 2012 8:37 pm    Post subject: Reply with quote

abhijith16 wrote:
me111993 wrote:
abhijith16 wrote:
9W is no longer the stellar star of India. It needs to brought back down to earth and needs to be given a kick in the butt.


They're no longer what they used to be, but they're still the best full service carrier in India.

Thats the thing, back in the 2000's in the pre-kingfisher era, they were IC+1, thats all, now they'd be AI/IT+1.


Having had a bad experience from them, I'd rather try IX over 9W...


yeah, "a"bad experience dude.
I don't get it, everyone just wants to bitch and bitch; no circumstancial sense what so ever.
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aeroblogger
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PostPosted: Mon Apr 30, 2012 10:37 pm    Post subject: Reply with quote

me111993 wrote:


They're no longer what they used to be, but they're still the best full service carrier in India.

Thats the thing, back in the 2000's in the pre-kingfisher era, they were IC+1, thats all, now they'd be AI/IT+1.


At 9W's peak, they were IC+1. At IT's peak, IT was IC+1 (9W was probably ~IC+.Cool. In the last couple years, IC has been consistently better than both IT and 9W on domestic hops, and internationally, AI productwise is superior to 9W as well.

AI is now the best full service carrier in India. If you had told me 4 or 5 years ago that I'd be saying this ever, I would have laughed. Hard. But it's become more and more of the truth recently.

And with this change, the LCCs are becoming increasingly attractive as well.
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me111993
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PostPosted: Mon Apr 30, 2012 11:31 pm    Post subject: Reply with quote

Quote:
AI is now the best full service carrier in India.


Well, we can agree to disagree on this.

9W has been cutting costs front and back to improve their balance sheet, i don't think AIs done anything at all on that front.
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jasepl
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PostPosted: Mon Apr 30, 2012 11:59 pm    Post subject: Reply with quote

You have got to love the predictable "but they're not as bad as Air Burkina" defence.

abhijith16 wrote:
Having had a bad experience from them, I'd rather try IX over 9W...

I'll pick IC over Jet now. And this is after having flown both airlines more times than I can count. Things are coming full circle [cue Lion King parody here].

And that's not because IC have improved; it's because of Jet's freefall in quality.

Come to think of it, I've never flown Indigo. Perhaps next time I should try them out. From what I've heard, it's a much more professional experience. And at least my eyes and eardrums will be safe. I won't be JetAttacked by the adverts of everything under the sun or by the clueless children squawking and hawking non-stop at the top of their lungs.

But that's for domestic; no way I'll take AI over Jet on long-haul. And Jet only if they were the most convenient. Not that that's a given anymore. I need to go to Brussels and Jet's the only non-stop, so I am booked on them. But part of me would rather fly another airline, for several reasons, including quality.

Haven't made up my mind yet, so let's see. I will say though, Jet recently made me feel 'I don't want to fly this airline." It's been a while since I felt that about any airline; not since the NorthWorst days.

me111993 wrote:
I don't get it, everyone just wants to bitch and bitch; no circumstancial sense what so ever.


So someone bitched. Someone else pointed and laughed. Everyone ridiculed. So what? Boo hoo.

It's a business, run by people who have nothing to do with anyone. Let anyone say what they want, how does it mean anything.

And all the bitching, even if based on just the one flight, is better than the vomit-worthy declarations of amazingness, based on never having experienced what is being praised (ie: nothing).

me111993 wrote:
9W has been cutting costs front and back to improve their balance sheet, i don't think AIs done anything at all on that front.

Yes, quite. And whilst that clueless cost cutting has gotten them nowhere, the simultaneous deterioration in quality (of spectacular proportions) has been going double-quick. Which brings Jet to where they are today: The Old Air India in Roberto Capucci clothing.

Of course, Jet will deny this. And then blame Prafull. And now Ratan Tata too I suppose.
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PostPosted: Tue May 01, 2012 12:32 am    Post subject: Reply with quote

Quote:
And all the bitching, even if based on just the one flight, is better than the vomit-worthy declarations of amazingness, based on never having experienced what is being praised (ie: nothing).


Thats wierd, when exactly in the recent past did I go gaga over 9w's service? I've had about 12 odd flights with them over the past 8 months, ups and down's obviously yes, but horrendous -- pathetic -- bullc**p -- useless -- crappy -- nope, i don't think so.

Its about having a bit of perspective, towards the damn airline, and towards the damn airline industry. Even if you don't care about any other factors, simply consider competition? Brain dead airlines on ventilators on one end one raw hungry powerful T-Rex on the other hand.

Quote:
Yes, quite. And whilst that clueless cost cutting has gotten them nowhere, the simultaneous deterioration in quality (of spectacular proportions) has been going double-quick. Which brings Jet to where they are today


Again, why exactly do you say that cost cutting is useless? Its just simple normal blah - blah - vent - vent on your part, it was AI 6 months ago, 9W right now.

Do you realize, over the period of the past 6 months, cost of ATF has continuously risen, which is perhaps why these cost cutting moves havn't shown clear results.

Also, have you realized, in Feb, their international operations clogged 87% of average load factors? Its just that the break even load factors touch 90% because of the damn fuel prices, which for your pyyara Delta or Cathay are almost 20-30% cheaper than what 9W pays.

How different is a DEL-MAA flight from a DEL-DXB flight? Not very, only that they pay the fuel company in DXB around 30% lesser price per KiloLitre of ATF than they do in DEL or MAA and charge around 13-15k per return flight on DEL-DXB, while that number stays ar 8k for DEL-MAA-DEL

If you can comfortably speak about yields and profits and shit when a comparison is involved, i'd expect that you can comfortably justify a lot of the moves that have been taking place lately at 9W.
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jasepl
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PostPosted: Tue May 01, 2012 10:31 am    Post subject: Reply with quote

That's just sentimental twaddle.

Whoever thinks of the airline? Except the airline and it's people (and in Jet's case even that isn't a guarantee).

Jet can cut costs to their heart's content, no one will give a crap one way or the other. But when that gets translated into even poorer quality standards than existed before, people do care. Their hearts do not bleed for a business they have no stake in and they simply go elsewhere.

Like me.

Jet got nasty, so it's bye by time.

I certainly won't miss them. They should miss me, but seeing as how we've been told time and again that paying J/F passengers don't matter to Jet, they won't care. The trash transportation business is so much better after all.

The vast majority of people do not see Jet - or any other business they have no involvement in - as just that. Peoples' hearts do not bleed the way fan clubs' hearts do. And given that Jet have built almost zero loyalty over the years, plus nearly decimated what litte loyalty there was after the recent spree of devaluations, there's even less support they can count on. They will learn that by continuing their freefall; something they should have always known, but they're champs at looking reality in the eye and denying it.

Hell, even the fan club happily abandon the precious Jet on a routine basis.

Full service is now largely fiction, with so many flights being turned into (even more loss-making) Konnect / Lite / Delite / Fright / Whatever. And even with so much competition, the airline's offering gets nastier by the day. I shudder to think where we as consumers would be if Jet had their wish and got a lot of the competition out of the way.

Actually, I know where we'd be.
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PostPosted: Wed May 02, 2012 1:29 pm    Post subject: Reply with quote

Tata Airlines.....time to return......
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