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<ul><li><keyword id="6358200" type="General" weightage="20" keywordseo="jet-airways" source="Orion">Jet Airways</keyword> is set to make a comeback into the aviation industry around July-September quarter with a new promoter, funding and even competitors.</li><li>The airline was grounded in April 2019 after it went into bankruptcy and is now owned by -- UK-based Kalrock Capital Partners and UAE-based businessman Murari Lal Jalan.</li><li>Shares of Jet Airways have surged 47% in the last one month on excitement to fly again while Indian and global markets have been reeling under inflation concerns.</li></ul>Three years after it was grounded, Jet Airways is all set to fly again in July-September with a new promoter in tow. Unlike Kingfisher which closed down for good, Jet Airways is able to make a comeback after going bankrupt. It received an Air Operator Certificate (AOC) from the aviation regulator DGCA this month. Its new owners – UK-based Kalrock Capital Partners and UAE-based businessman Murari Lal Jalan, took over the airline in June 2021. As expected, the shares of Jet Airways surged 47% in a month, even as the broader markets have been reeling under the stress of growing inflation and rising interest rates. Jet will make a comeback into the sky after three years Jet however will fly into an aviation market that’s starkly different from how it left it. Far from the numero uno status it once occupied, Jet will be a newcomer with many promising newcomers like <keyword id="2467342" type="General" weightage="20" keywordseo="vistara" source="Orion">Vistara</keyword>, a much stronger <keyword id="2573" type="General" weightage="20" keywordseo="air-india" source="Orion">Air India</keyword> which is acquired by Tata Sons. Jet will also have to fight off established players like IndiGo and SpiceJet which have taken over a substantial chunk of the market. Then there is a flurry of new players like True Air, <keyword id="6924336" type="General" weightage="20" keywordseo="star-air" source="Orion">Star Air</keyword> and <keyword id="60136" type="General" weightage="20" keywordseo="alliance-air" source="Orion">Alliance Air</keyword> which will be where Jet will be landing in its initial months. Unlike most new airlines, Jet will not be able to gain an entry with price cuts since the sector itself is in recovery mode after being badly hit by the Covid-19 pandemic. “Let’s say from Delhi to Bomday if they offer a ₹3,000 to ₹4,000 fare they will get market share but then they will never make money because they will later on increase prices. In an already price sensitive market segment, such measures will not help. Also, you are going to make it more difficult for the entire industry to come back to full recovery,” said Amrit Pandurangi, an aviation expert. Even the airlines which are performing well are hit by the rising cost of fuel. Aviation turbine fuel has doubled in the last one year, and since its costs account for 40% of operating costs - their margins are already under stress. Price points, hence, will not be the fighting turf this time around - once a popular strategy. “Anybody losing price to gain market share will end up making a lot more losses. And oil prices are not going to come back to low levels in the next year or so at least,” added Pandurangi. <div type="image" title="airline market share" height="900" width="1200" msid="91765903" hostid="261"></div> Indian aviation industry is about to get more crowded Though Jet Airways has new funding, management and promoters it is going to be tougher to gain market share in the industry with a rising number of new airlines. Newer participants will also stress out a sector where airline traffic growth is slightly below pre-covid levels at around 10.5 million in April 2022 as compared to around 11 million in April 2019 - which was when lockdowns were at their peak. Apart from Tatas, marquee investor Rakesh Jhunjhunwala’s budget airlines <keyword id="11911527" type="General" weightage="20" keywordseo="akasa-air" source="Orion">Akasa Air</keyword> is also likely to debut the market in June - taking the wind off Jet’s second coming. In all it will be a tough ride for Jet Airways, and even with its pared debt, it will have to play it slow and safe to ensure a soft landing into a market where its brand still holds value. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/an-indian-credit-card-user-spends-14500-a-month-on-average-20x-more-than-debit-card-users/articleshow/91759657.cms">An Indian credit card user spends ₹14,500 a month on average – 20x more than debit card users</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/how-cyrus-poonawalla-became-one-of-the-worlds-richest-billionaires/articleshow/91763784.cms">The success story of Cyrus Poonawalla: The vaccine king who is one of the world’s richest billionaires</a>

Jet Airways stock soars 47% as it’s all set to fly, but fuel costs, new players indicate turbulence ahead

<a href="http://www.businessinsider.in/topic/indigo-airlines">IndiGo</a>, India’s largest airline in terms of market share, plans to introduce 50 smaller aircraft to ply on regional routes, thus giving a major boost to government's <a href="http://www.businessinsider.in/Heres-everything-you-need-to-know-about-UDAN-flight-scheme/articleshow/58399593.cms">'UDAN' initiative</a>. The new turboprop aircraft for <a href="http://www.businessinsider.in/India-to-launch-regional-flights-at-Rs-2500-to-boost-air-travel/articleshow/54975550.cms">regional operations</a> would be run by a separate division, as announced by <keyword id="6354706" type="CITY" weightage="100" keywordseo="Indigo">IndiGo</keyword>. <keyword id="6366656" type="UNKNOWN" weightage="100" keywordseo="udan">UDAN</keyword>, Indian government’s regional connectivity scheme, has got good response from both passengers and operators. Under the scheme, <keyword id="60136" type="COMPANY" weightage="100" keywordseo="Alliance-Air">Alliance Air</keyword>, a subsidiary of Air India, has started flights between Delhi and Shimla; while Hyderabad-based <keyword id="6701882" type="UNKNOWN" weightage="100" keywordseo="TruJet">TruJet</keyword> has connected Hyderabad to Cuddapa and Nanded. Also read: <a href="http://www.businessinsider.in/Starting-local-airline-in-India-would-be-a-misadventure-says-Lufthansa/articleshow/58237331.cms">Starting local airline in India would be a misadventure, says Lufthansa</a> As per IndiGo plans, turboprop aircraft operation will start this year and 20 planes will be inducted by the end of 2017. "In support of our Honourable <a href="http://www.businessinsider.in/topic/narendra-modi">Prime Minister</a> Narendra Modi's UDAN vision, we are embarking on a journey to build a nationwide regional network and connect cities that have not benefited from the growth in Indian aviation," said a statement from IndiGo president <keyword id="229263" type="PERSON" weightage="100" keywordseo="Aditya-Ghosh">Aditya Ghosh</keyword>. Travel industry insiders expect that the UDAN scheme will give at least 3-4%p push to India’s aviation growth. "With domestic aviation growing at around 20% y-o-y, we expect that UDAN rollout across the country, and entry of new players (Qatar at national level, and regional carriers at state level) will help aviation grow faster in the country," Aloke Bajpai, CEO at travel search engine ixigo.com, told <a href="http://economictimes.indiatimes.com/news/industry/transportation/airlines-/-aviation/indigo-to-induct-50-more-aircraft-giving-major-boost-to-udan-initiative/articleshow/58595356.cms">ET</a>. (Image source Bangalore Aviation)

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Jet Airways stock soars 47% as it’s all set to fly, but fuel costs, new players indicate turbulence ahead

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IndiGo to induct 50 smaller aircraft; UDAN initiative set to benefit

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