Wednesday Wisdom: 4 Takeaways From the Jet Airways' Downfall
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The recent crisis of Jet Airways and the stepping down of its CEO, Naresh Goyal has caused a dilemma that is going to haunt the business world for long. Here are 4 key takeaways from the airlines crisis.
Manage Your Debt
Large enterprises often take loans to invest in business expansion but it is the right management of debts that makes the difference. A trendsetter in itself, India’s oldest private sector airlines, Jet Airways failed to acknowledge and is now saddled in debts running in crores.
Despite the competition with major airline players like Spicejet and Indigo, Jet Airways did not scale up its operations or place its pricing in a way that could tackle competition. Incompetency in tackling the rivals efficiently became the key aspect for the downfall of Naresh Goyal.
With passing time, authorities change and so do the policies. Even after incurring enormous losses, Jet Airways was unable to make any major policy changes and hence, the debt kept getting piled, shutting major doors of revival.
Destroying the USPs
Jet Airways consistently eliminated the USPs that made them the preferable choice over other LCCs and Air India. Their ill-advised cost-cutting measures battered the benefits they offered over their competition.
Here's the "news that entrepreneurs can use". Know what's trending in the Indian business world in 60 seconds.