Jet Airways’ challenges roll into 2009

Premium Analysis

The nightmares of 2008 will be long remembered by Jet Airways' management, but many of them are unfortunately lingering into 2009. The first is pressure on yields, as competition intensifies. After much persuasion from the Indian Civil Aviation Ministry, Air India announced on 30-Dec-08 it would greet the New Year with a range of fare discounts across its network. Kingfisher and Jet Airways quickly matched the state-owned carrier, with Kingfisher dropping its earlier refusal to reduce its fares until jet fuel was made a 'declared good' (thereby attracting lower taxation).

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