One of the key criticisms of Jets strategy is that it failed to see new domestic markets beyond those operated by Indian Airlines. Captain Gopinath,the founder of Air Deccan (acquired by Kingfisher it 2007-end) said his airline connected 63 cities compared with just 42-43 by IA and Jet. When we launched operations,0.5 per cent of the population travelled by air. We quadrupled this to 2 per cent, he said. With Deccan and other low-cost carriers,the market grew exponentially it was not just about low fares,but also penetrating new markets. A senior executive with Jets closest rival in the international circuit,Air India,says despite the fact that Jet did not carry any sarkari baggage,it failed to spot new destinations where Air India did not venture. Jet was short-sighted in following only Air Indias routes. For instance,it never explored Rome and Amsterdam in Europe,or for that matter,newer destinations in the US, the executive said. Further,Jet never really got beyond competing with Indian Airlines on the quality front till of course Kingfisher came and changed the game. Jet continued to attract foreign travellers only on the strength of lower fares and not on the quality of travel. Especially,on the India-UK sector,it could have charged a premium for its services and taken on British Airways, said another Air India executive. In the five years since Jet got permission to fly abroad,revenues from international operations scaled up to touch 56 per cent in April-June 2009. But besides Gulf,most of its long-haul international flights are under tremendous stress,admits a senior Jet executive. We expanded aggressively on international routes in the last 2-3 years, the executive added. Kaul says Jets rapid expansion was not ill-timed since the economy was buoyant then and the airline did build a formidable global network. Jet itself says the international expansion made it one of the worlds fastest growing airlines. But the global economic crisis spooked Jets strategy. Given that it takes 12-18 months for any new route to break-even,Jets aggression over the last 2-3 years should have helped it rake in the moolah now. This,however,backfired, concedes a senior Jet executive,who is part of the international operations team. In hindsight,network building should be undertaken in a steady manner, the executive adds. As much 35-40 per cent of Jets total capacity comprising 84 aircraft is deployed along international routes. Some others also question such an aggressive strategy at a time when its domestic operations are incurring losses of almost $1 million a day. To build an international network,or to take on British Airways,it takes a long time. You do this only if your domestic flights are breaking even,not when they are losing money, said Gopinath. As fuel prices peaked July 2008,touching $148 per barrel,Jets woes compounded because of its insistence to continue flying on loss-making overseas routes. A civil aviation ministry official says,Indian aviation is scarred today by ego tussle between the owners. By expanding operations internationally,they have unleashed a bloodbath in the skies, the official said,not willing to be quoted. Kingfisher recently launched daily non-stop Mumbai-Hong Kong and Jet impromptu followed suit,launching Delhi-Hong Kong in September.
