Tuesday, July 24, 2007

Building of Jet Airways by Naresh Goyal - Case Study

Naresh Goyal started working in the airline industry right after college in his great uncle's marketing agency for Lebanese International Airlines. His salary was so low -- $40 per month -- that he had to sleep on the floor of his office.

But he moved up the ranks quickly, becoming a publicist for the airline and from there, moving on to other international airlines.

After a few years, he started Jet Air, a marketing organization that represented several international airlines in India. His mother sold her own jewelry to give him money to start the business.

In the early '90s, he looked into buying an airline in Scotland since there was no "national" carrier there, but his plan came to nothing. At home, though, things were changing.

From 1953 until 1992, the only airlines allowed to be based in India were owned and operated by the government. They were less than hospitable -- there were no printed schedules, and service was abominable.

But when the government opened the airline industry to private competition, Goyal jumped at the opportunity. Naresh realised that there was a huge market for good value and a high level of service in a marketplace that had never seen that before.

Goyal now runs an airline that flies from India to 50 destinations. Starting in August, Jet Airways will have a European hub in Brussels.

Goyal still remains true to his marketing roots, which were showcased in a lavish press conference recently. He might not be able to bring one of the airline's Boeing 777s into the Grand Ballroom of the Waldorf-Astoria to show off the upgraded cabins of Jet Airlines, but he did the next best thing: He brought life-size replicas of the cabins and showed off the flight attendants' newly designed mustard-colored ensembles.

Goyal markets service and comfort as the keys to his airline. For about $10,000, passengers in first class get a private suite, complete with closing doors; a full bed; a flat-screen television; and a meal that might be served at a top restaurant in any city. Business and coach offer levels of comfort too, with televisions and ergonomically designed chairs.

With globalization and India's economy opening up, Goyal is counting not only on the Indian diaspora looking to travel around the world, but businesspeople who increasingly need to go to the Indian subcontinent for work.

Referenced from Rediff and Forbes.com

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