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Jet Airways gets grounded, sword hanging on 23,000 jobs, Full List of shutdown Airlines

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For the very first time in 27 years, since its inception, Jet Airways has faced a complete shutdown. It comes as a shock to many. Even SBI’s decision of taking over the reins of the debt-ridden airlines, could not help much.  

The flight from Amritsar to Mumbai, flight no S2 3502, was the last flight of Jet Airways. Ironically, it landed much before its scheduled arrival and post this Jet Airways was completely grounded.  `  

So, what could be the possible reason behind its shutdown? The refusal by the lenders for an immediate funding of Rs. 400 Crore forced the airlines to ground all its operations. 

Obviously, this event triggered a lot of questions. The first and the foremost one is what about the staff who now have an uncertain future ahead? There are nearly 23000 Jet Airways staff members who have turned jobless post shutdown. Will the airways resume its operations ever? It is said that this shutdown is temporary and the lenders are hopeful of reviving the airlines post bidding. What about the unpaid salaries of the workers? 

This event will have many consequences. Many of us are unaware of the fact that India, in 2015, was ranked 8th in the list that mentions the countries with highest number of air passengers. Since then, the number of passengers has obviously increased. Increased flight rates can be seen as a repercussion to the grounding. The country is now left with 10 scheduled airlines only. 

It was in the year 2016 that Jet Airways was at its peak and had 21.2% market share. Therefore, a question arises as to what led to the fallout of the company within three years? The possible reasons could be: 

  • Although everything was going fine until 2017, the year 2018 turned out to be an unlucky year. Jet suffered three consecutive quarterly losses in the year 2018 starting from the month of January. This is possibly the prime reason that led to the grounding of Jet. 
  • Some of the flights of Jet Airways also flew overseas. The rising cost of Aviation Turbine Fuel, the fuel used in air crafts, is credited to be another reason for the company’s fallout.   
  • When someone sets up an airlines business, chances of airlines making profits are very less. Rising competition leads to low ticket costs which means that margins are less in this business. 
  •  Payment is to be made to numerous stakeholders like lenders/ vendors/ employees/ government and it is difficult for a company to meet payment commitments in view of low profits.   
  • In a bid to woo customers, the company initiated a low-cost model which obviously didn’t match up to the amount that the airlines had to pay in the form of their employees’ salary or the rising cost of Aviation Turbine Fuel, leading to company’s fallout.   

While Jet is the first case where there is a possibility of revival, our country has witnessed many airlines shutting down. So, let us just look at the airlines of India which have faced a complete shutdown.

The table below mentions that at least 64 airlines in India have shutdown till date.   

Serial Number Airlines Year Started Shutdown Year 
1 Zoom Air 2016 2018 
2 Easy Air 2015 2015 
3 Air Costa 2013 2017 
4 Air Mantra 2012 2013 
5 JetKonnect 2012 2014 
6 Deccan 360 2009 2011 
7 Kingfisher Red 2008 2012 
8 Air India Regional 2007 2017 
9 Air Pegasus 2007 2016 
10 Indian 2007 2011 
11 JetLite 2007 2012 
12 MDLR Airlines 2007 2009 
13 Indus Air 2006 2007 
14 Aryan Cargo Express 2005 2010 
15 Paramount Airways 2005 2010 
16 Air Dravida 2004 2008 
17 Kingfisher Airlines 2003 2012 
18 Simplifly Deccan 2003 2008 
19 Air Sahara 2000 2007 
20 Crescent Air Cargo 2000 2006 
21 Alliance Air (India) 1996 2007 
22 Hinduja Cargo Services 1996 2000 
23 Air Deccan 1995 2008 
24 Gujarat Airways 1995 2001 
25 Cosmos Airways 1994 1997 
26 Elbee Airlines 1994 1998 
27 ModiLuft 1994 1996 
28 Damania Airways 1993 1997 
29 Jet Airways 1993 2019 
30 NEPC Airlines 1993 1997 
31 RajAir 1993 1994 
32 Sahara Airlines 1993 2000 
33 VIF Airways 1993 1996 
34 CityLink Airways 1992 1993 
35 East-West Airlines 1992 1995 
36 Goa Way Aviation 1992 1993 
37 Archana Airways 1991 1999 
38 Air Asiatic 1990 1991 
39 Vayudoot 1981 1997 
40 Vijay Airlines 1981 1997 
41 Pushpaka Aviation 1979 1983 
42 Huns Air 1974 1980 
43 Safari Airways (India) 1971 1977 
44 Transportes Aéreos da Índia Portuguesa 1955 1961 
45 Air India Cargo 1954 2012 
46 Indian Airlines 1953 2007 
47 Darbhanga Aviations 1950 1962 
48 Himalayan Aviation 1948 1953 
49 Jupiter Airways 1948 1953 
50 Ambica Airlines 1947 1949 
51 Indian Overseas Airlines 1947 1950 
52 Air Services of India 1946 1953 
53 Air-India International 1946 1962 
54 Jamair 1946 1977 
55 Kalinga Airlines 1946 1965 
56 Orient Airways 1946 1955 
57 Airways (India) 1945 1955 
58 Deccan Airways 1945 1953 
59 Himalayan Air Transport & Survey 1934 1935 
60 Irawaddy Flotilla & Airways 1934 1939 
62 Indian Transcontinental Airlines 1933 1948 
63 Indian State Air Service 1929 1931 
64 Indian National Airways 1925 1945 

 

 To ensure the above number does not increase, it is expected that the government, the lenders and the other stakeholders devise policies to make airline operations a profitable business.  

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