Özet:

The case deals with the evolution and structure of the Indian aviation sector since its inception. It also provides a detailed view of the transformation of the Indian aviation sector due to the liberalization of the Indian economy. The opening of the privately-owned full-service airlines (FSA) and low-cost airlines (LCA) led to major changes in the market share of the airlines. The focus of this case study is to evaluate the journey of Jet Airways (India) Ltd. (JA) since its inception in 1991, its collaboration with South African Airways and subsequent conversion from a private limited to a public limited company. The case documents the existence of JA as the only privately-owned profitable airline operator in India till its cessation in 2019. After merging with Sahara Airlines at a valuation considered critically high for an already loss-making airline, JA’s losses continued mounting. Further, the case critically evaluates various other factors: rebranding of Sahara Airlines (JetLite), mismanagement by the board, high operating leverage, continuing losses and high debt-equity ratio which eventually lead to JA’s financial crash landing. This case can also serve as a tool for investors and other stakeholders for fundamentally analyzing stocks of Aviation sector.

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