Can Naresh Goyal keep his smile?

In the dog-eat-dog world of Indian aviation, Naresh Goyal’s Jet Airways has survived against the odds for more than two decades when others have fallen by the wayside. Jet’s survival is thanks to Goyal’s adaptability. He might have opposed foreign direct investment (FDI) in Indian carriers, but when the policy changed he was the first off the block, and sold 24 per cent stake in Jet to the UAE-based Etihad Airways.
Goyal’s flexibility was again in display when Jet jettisoned its low cost service JetKonnect and became a complete full-service carrier (FSC). From December 1, all of Jet’s flights have a two-class, business and economy, offering.
This was a bold move. The Indian aviation market is price-sensitive. Low cost carriers (LCCs) have increased their market share at the expense of the FSCs. Past precedent is not encouraging either. Vijay Mallya’s gambit in Kingfisher Airlines to go full-service had fallen flat and hastened its demise.
So, what is Goyal and Jet Airways betting on?

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