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

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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