Jet Airways is counted among the largest airlines in the country. Now the property worth Rs 538 crore of its founder Naresh Goyal has been confiscated by ED. In fact, the story of the failure of Jet Airways is hidden in the arrogance of that 1 rupee and Naresh Goyal’s ‘I’. Which proved costly for both Naresh Goyal and the company. In 2015, to compete with Indigo, Naresh Goyal reduced the fare by Rs 1 per kilometer. But this method proved costly for Jet and the company started incurring losses, after this the company started investing more capital to beat its competition, from here the process of ruin of Jet Airways started. Let us also tell you in detail. Let us tell you how the downfall of Jet Airways and Naresh Goyal started?
When and how did JET start?
The dream of Jet Airways was seen together by Naresh Goyal and his wife. But who could have imagined that a person from Punjab, who started with an earning of Rs 300, would take his dreams so high. Naresh Goyal, who started his career as a travel agent in Connaught Place, Delhi, started Jet Airways. Provided cheap air travel to the people of the country. After which the success achieved by Jet has been recorded in the pages of history. After that it is said that one decision makes a person stand at a great height compared to other people and that very decision brings you to the verge of ruin. To compete with Indigo, the owner of Jet Airways took such a decision. For which Naresh Goyal is still having to compensate.
what was that decision
If we tell you that one rupee ruined Jet Airways and Naresh Goyal, you will not believe it. But this is completely correct. About 8 years ago in 2015, Jet Airways was at its peak. Now his eyes were on defeating Indigo and increasing the market share of Jet. This was the moment when he had to take a decision as to what the future of Jet Airways would be like. Then they decided to reduce air fares to attract air passengers. At that time they reduced it by one rupee per kilometer. This means that the air journey from Delhi to Mumbai is 2000 kilometers, so Indigo was charging Rs 5,000 for the economy class fare, while Jet Airways’ air fare was Rs 3,000. After that there was a big earthquake in the entire aviation industry. Which also affected Jet Airways only.
Jet’s downfall begins again
The decision to reduce fares may not have been wrong at that time, but the formula used by Naresh Goyal proved to be very dangerous for the airline. After that, Naresh Goyal and Jet were never able to get out of the debt trap to run the company. Of which Indigo took full advantage. IndiGo increased its operations by 2 to 3 times to leave Jet behind. Also given offers and discounts to common people. After which the dominance of Jet Airways started coming to an end. The debt was hurting. After that, due to increase in crude oil, the price of air fuel started increasing. After that, it seemed as if all the hopes that Jet Airways was pinning were destroyed.
That’s why it is said that pride is not good
It is not just said that too much pride is not good. But Naresh Goyal did not understand this. This became the real reason for the downfall of him and Jet Airways. He did not listen to anyone during his time. Before he decided on the air fare formula, his close employees and officers had made a lot of efforts to convince him. It was said that the fare should not be reduced with this formula. Naresh Goyal did not listen to anyone and in his arrogance brought Jet Airways to the brink of destruction. In the year 2019, when he had completely lost, he closed it. The airline applied for insolvency. The airline was given time till February 2022 but the jet could not fly again.
Source: www.tv9hindi.com
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