Sunday, April 22, 2007

CUT-THROAT COMPETITION BETWEEN JET AND AIR-INDIA! WHO WILL SURVIVE??

What Is the common goal Of Air-India (A-I) and Jet Airways? Its undoubtedly, to reach among Asia's top five by 2010 in terms of size and service.

Yes, now they are in a great competition against each other after their big deals. Air India will merge with Indian, while Sahara will be now Jet-lite after its takeover by Jet.

Air India LogoJet Airways Logo
If we have a close look at the numbers, it will be difficult to predict the leader in true terms. The competition will be one of size versus efficiencies. They will have almost same number of fleet size(around 120) and number of daily flights(around 450) by the next year or the year after that. Air-India and Indian has 68 Boeing aircraft and 43 airbus aircraft which might be received by them by 2011. Jet, meanwhile, is acquiring 20 wide-bodied aircraft and 10 narrow-bodied Boeings that will complete delivery by 2011. Jetlite will acquire 10 more aircraft with delivery due to be completed by 2011.The turnover of Both Air-India and Indian and Jet-Jetlite will be approx. $4 billion and $2.5 billion respectively.. The number of destinations covered by them will also be more or less equal, but the number of employees in the later will be quite less.

From January 2008, Jet-Jetlite will be allowed to operate on Gulf routes (Dubai, Muscat, Kuwait, Bahrain and Doha), which is now operated only by AI and Indian. Tough competition can be seen not only in the domestic market but also in south-east Asian routes. The rates of the flights are expected to come down. A-I has medium and long aircraft while Jet Airways is having small and medium aircraft. Who knows that the competition between them will also give quality services to people and they will compete in International markets with the giants!!
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