What’s remarkable is not that low-cost carriers in India turned the tables on one-time upstart Jet, but rather how swiftly. Globally, Jet’s grounding sounds a warning that incumbent carriers in a number of countries are also vulnerable.
Air Sahara and converting it into a new JetLite LCC, while still operating traditional service on parallel flights. It took another two years for Jet to begin converting some of its mainline aircraft into high-density LCC aircraft under the name JetKonnect. By that time, LCCs in India carried roughly 60% of all domestic traffic, up from nothing just 15 years earlier.
While the Indian LCCs were opening new domestic routes — 100 new city-pairs between 2005 and 2015 — Jet Airways was instead expanding into long-haul routes with an onboard product aimed at the upper end of the market. Many successful young airlines underestimate the risk and complexity of international widebody operations.
In India, however, the LCCs rose twice as fast as they did in Europe, Australia or North America. They reached 30% market share in just four years and owned half the market in just eight. The legacy carriers could not respond fast enough, resulting in failure at Jet Airways and Kingfisher, and government-subsidized losses for Air India. What’s remarkable in India is not the nature of the transformation, which is now a well-established pattern, but rather its speed.
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