vadodara wrote:lightsaber wrote:Mostly their purchase of almost a quarter of the airline resulted in zero cost cutting efforts. Jet was hurting for years and the fact I cannot point to significant restructuring after the initial EY investment tells us the current management is resistant to change.
Couldnt agree more. The rationale behind EY investment was to route long-haul thru Abu Dhabi. Let EY do the heavy 'capital' lifting whine 9W focuses on funneling long haul thru Abu Dhabi. Unfortunately, there are too many ego's in 9W. They (along with many posters here) saw this as benefitting EY but not 9W.
Except for a few non-stops to Europe like LHR and possibly a CDG/FRA/AMS, 9W could have moved their entire wide-body fleet to Abu Dhabi and focused on a single aircraft type to drive scale.
Even worse is to have your largest investor not benefitting from the investment, i.e. airline loosing money, not funneling pax, while the company you just bailed out found a new friends in DL/KLM.
Question to be seen, was this friendship with benefits?
Are you sure it was jet's ego or EY's ego? Before the stake sale , the plans were to refurbish the 777s and keep five of them with F for LHR flights while the other five without F , with 9 abreast Y for non stops to US . They had even planned BOM - EWR(daily) , JFK (4 weekly), BOS(3 weekly) and SFO once the 789s (planned to) come in 2017.
But what EY did .... neither helped 9W refurbish WBs (after all why would they let them , they have to show it to the public that only ME airlines can offer good products ) nor did they help 9W set up its own network and expand . They tried to hoard everything through AUH , forced 9W to cut domestic routes to use more 737s for AUH . Also they used 9W 77Ws to fly AUH- SFO,JFK etc and charged the same fare for both (their own product and also 9W's product) and no wonder that it led to negative perception of people about jet (of course who'll like to pay same fare for EY A380 F and 9W 777 F). With EY 9W was nothing but a feeder airline benefiting AUH .
Thus it was wise for jet to partner with AF-KL-DL . I wish after after this stake sale , the partnership with EY ends for good and all those loss making flights to AUH are withdrawn to increase domestic capacity.