Jet Airways: Tale of Their Takeoff and Crash Landing

The case, set in April 2019, follows the managing director of an investment firm that is deliberating whether to invest in Jet Airways. It is the day after the airline halted their operations, and our protagonist, Surjit Trivedi, Managing Director of a Mumbai-based private equity firm, the Agile Group, is headed for a meeting where his team of analysts and strategists are presenting their evaluation of Jet Airways. Trivedi must decide whether to invest in the airline or not as he is due to present the proposal to the board of the private equity firm he works for. He does not want to make a wrong investment and jeopardize the firm's future and his forthcoming promotion. The case follows the rise and fall of Jet Airways. Civil aviation in India has changed tremendously over the past 20 years, both from the consumer and service provider standpoints. This change was due to factors such as globalization, the higher disposable income of Indians, government initiatives, travel enthusiasm among millennials, and so on. With India expected to become third-biggest aviation market by the year 2025, the number of players in the market increased, with both indigenous and global competitors in the fray. Despite positive industry indicators, two major airlines were forced to halt operations in the last decade, Jet Airways being one of them. The case can be used to scrutinize the reasons for Jet Airways' downfall such as their acquisitions and alliances, the decisions of their founder Naresh Goyal, and Jet Airways' response to the challenge posed by low-cost carriers (LCCs) in India. Moreover, the case can be utilized to analyze how the consortium of banks led by the State Bank of India (SBI) handled the Jet Airways crisis.

Learning Objectives:

Analyze and evaluate the rationale for and implications of alliances and acquisitions. Understand the concept of Porter's Five Force model and SWOT analysis. Analyze and evaluate various types of leadership styles. Calculate liquidity, profitability, and solvency ratios with an emphasis on the return on common equity ratio and DuPont analysis. Discuss the Insolvency and Bankruptcy Code of India