The Fall of Jet Airways

Jet Airways and Air India lose competition to low-cost carriers IndiGo, SpiceJet and GoAir, and obviously will continue to lose market share. The increase in the number of flights per capita is proportional to the growth rate of the middle class share, but does not lead to an increase in costs. This is characteristic of developed and emerging markets to the same extent. When flights have become the norm of life, the passenger begins to save, choosing between the available options and does not want to overpay. In the eyes of the passenger, the plane begins to compete with road and rail transport and wins the competition only because of speed. This is an irreversible and natural process that does not need to be fought. The industry will move in this direction until the flights from New York to Shanghai in 39 minutes on Big Falcon Rockets, proposed by Musk will not become a reality. Technical progress changes the form of behavior and preferences of passengers. It is necessary to understand and have time to transform in order not to become relic of the passing era. No matter how much money you have, if you don't feel the market - you lose.

Evgeny Mitelev, CEO