Grounded three years ago and currently entangled in a long legal battle, Jet Airways is struggling to take to the skies again . While the new owner, Jalan Kalrock consortium, awaits the handover of ownership, the airline’s CEO, Sanjiv Kapoor, gives Swaraj Baggonkar a view of Jet Airways 2.0. Edited excerpts.
You have been vocal about having a ‘game-changing business plan; a plan that breaks the mould for Indian carriers’. What do you precisely mean to offer?
It will not be a copy-paste of other Indian airline business models, whether FSC (full-service carrier) or LCC (low-cost carrier). It breaks the mould and addresses key gaps in terms of both strategy and customer value proposition, as well as in terms of customer experience. Some of the ideas I have brought over from my stint as president of Oberoi Hotels, and others from my experience and frustrations as an air traveller myself, also drawing from my experiences driving customer experience at SpiceJet and Vistara.
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More than half of the Indian aviation space is controlled by just one player. This leaves little space for experimenting. How would you make sure that you have something markedly different to offer?
Our approach to running Jet Airways will address the majority of the pain points of Indian air travellers by challenging and changing the status quo. Customers will not be viewed as cash machines, where they are charged every time they move. We will break the mould completely, while creating value for all stakeholders. Our vision for Jet Airways 2.0 is to build the most people-focused and customer-friendly airline that is in tune with the demands of the digital age. We cannot wait to reveal what we have planned. We will need for the ownership transfer process to be completed before we can reveal and execute on our plans.
How different and yet how similar would Jet 2.0 be than Jet 1.0?
Jet Airways was known for its understated elegance, customer focus, and warmth in service delivery for more than 25 years. It will continue to be known for these qualities in its new avatar. We have taken what was most loved about Jet 1.0, the best of Jet 1.0, and have built on that while taking out unproductive costs and inefficiencies that had crept in over time. There is no need to fix what is not broken.
Under the Tata umbrella, Air India has some aggressive plans. Indigo will not let go of its space. Building from scratch, how do you think Jet Airways will succeed considering that your operations will be much smaller than your rivals?
In a market-driven business, there are two primary ways to compete: through scale or through differentiation. We will naturally not have the scale when we start up. We will have lots of meaningful innovation and differentiation and that will be the foundation of our success.
Indian skies are dominated by Airbus A320. What would be an ideal type for Jet 2.0? Would a highly efficient A220 be worthy of your bet?
We are working on small, medium, and large narrow bodies. Our fleet strategy is not a ‘copy paste’ one either. Apart from allowing us to reimagine the network that an airline in India can build over time, it is also designed to positively alter how travellers in India think of flying.
What about the aircraft class configuration? Domestic routes are largely split between economy and premium economy, with the latter proven to be a game changer for some foreign airlines.
We have a very innovative plan for the cabin configuration too. As a modern or new-generation full-service carrier, we will not simply follow what has conventionally been done by airlines in India.
What is the most practical time frame for Jet Airways to fly again? Give us a sense of the airline’s preparedness?
We are ready to re-launch within 60-90 days of the transfer of ownership of Jet Airways. In terms of preparedness, we have put into place a highly experienced, professional management team, and negotiated excellent terms for our various supplier contracts that can often be critical in this industry. We have letters of intent in place for aircraft, engines, IT systems, ground handling services, catering, call centre, and all of the other services required to run an airline. The terms we have negotiated, drawing on the collective experience of Jet Airways of the past, as well as the experience of our talented team drawn from multiple Indian and foreign airlines, will help Jet Airways in its revived form to be one of the most cost-effective airlines in the country.
The share of LCCs is growing globally, while FSCs struggles with their model. What is the future of the Indian aviation market, which is currently dominated by LCCs?
This is a false notion. Globally, seven of the top 10 airlines in terms of economic profit (profit above the cost of capital) in the period 2012-2019 were FSCs, four of which were FSCs that restructured after bankruptcy. There is space for both FSCs and LCCs in a market like India. In fact, there is a need for both, and for more than one player in each segment. While some consolidation is good, consolidation should not lead to a duopoly in the market, or a monopoly in either of the segments, as that would be bad for consumers.
You have always been very active on social media, often addressing customer questions directly and also provoking discussion on numerous issues. What is your philosophy behind this kind of visibility and access on social media?
Today one can get, from simply browsing social media, a very effective sense of how your company is perceived by customers, what are the gaps, where it is repeatedly falling short. And I believe it is important that this is tracked not just by a customer service department, but by operational department heads right up to the CEO. And it is important at times for senior management, even the CEO, to step in to address issues before they snowball, or to make amends for egregious failures.
I also believe that initiating the right discussions on social media can generate a lot of ideas and potential solutions, as well as get the attention of other key stakeholders who can influence solutions. An example is the recent surge in customer feedback about long queues and excessive time taken for security, immigration, etc at some of our airports. A lot of practical solutions were also presented by frequent flyers and others, which can be acted upon fairly quickly without having to wait for lengthy and expensive investigative committees to find solutions.
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At both SpiceJet and Vistara, you were credited with sharpening focus on the customer. At SpiceJet, customer complaint rates fell from the worst in the industry to the least during your tenure. What is the single most impactful thing you did that made a difference? How would you implement this at Jet?
There are a number of things that go into transforming customer experience, from effective training and role-playing, improvement in frontline morale through greater communication and engagement, attention to detail, effective feedback mechanisms, and zero tolerance for chalta hai attitudes — essentially a complete culture change.
I would often show up at the airport at various times or on the ramp at night unannounced, and observe things and take photos quietly. We would discuss our observations and travel experiences at our weekly department head meetings, and address gaps there and then. This, I believe, was the foundation on which SpiceJet’s customer experience transformation was based at that time.
At Jet, I intend to build on what Jet had which was loved by travellers, by injecting some of these practices and following the simple philosophy of putting yourself in the customer’s shoes.