SINGAPORE: The airline business has long had a glamorous mystique. Promotional images of globe-trotting travellers, exotic destinations, jet-setting flight crews and the sleek lines of modern aircraft have helped underpin this impression.
For the first decade, the new airline seemed to do remarkably well. It focused on the corporate market and quickly grew fans and market share domestically before expanding to serve international routes to Asia, Europe and beyond. As the race to the bottom intensified, base airfares plunged to as low as a few cents, pushing several airlines over the brink.
Airlines such as Qatar, Emirates and Etihad as well as Turkish Airlines chipped away at Jet’s international routes, undercutting prices while offering better service and a greater network – two key differentiators that usually sway passenger choice on long-haul routes. Passengers are more than likely to choose a low-price air ticket one day, while easily switching to another that offers an even better price the next day – especially if they, rather than their employers, are paying for the ticket.