THE MAN WITH RISE AND FALL
NARESH GOYAL
In class today, while researching famous people and their social media posts about the country, I came across the name Naresh Goyal. Then I started reading some news about him and was intrigued and wanted to know more about how he became one of the most successful businessmen of all time.
Naresh Goyal, Founder and Chairman of Jet Airways, was born on July 29, 1949 in India, but is a Non-Resident Indian (NRI). He founded Jet Airways in his 1993 with a small amount of seed capital provided by Tail Winds Inc. of the Isle of Man. With a net worth of 19 billion.
Forbes magazine ranked him as the 16th richest person in India after Jet Airways went public in 2005.
Naresh Goyal was born in 1949 in a family of jewelers in Sangululu, Punjab. He lost his father when he was young. he visited the government. He graduated from Raj High School for Boys, where he graduated from 6th grade.
When he was eleven years old, his family was in trouble and his house was put up for auction. After that, he lived with his mother’s uncle. Goyal graduated from government. Bikram College of Commerce in Patiala where he has a degree in Commerce.
Goyal started working as a cashier for his maternal uncle Seth Charan Das Ram Lal in his 1967, earning a starting salary of Rs 300 per month in East-West Agencies.
Goyal entered the travel industry after graduating from Lebanese International Airlines GSA.
He underwent extensive training in the travel industry from 1967 to 1974 as a result of his partnerships with many foreign airlines. During this time, he made many overseas business trips.
He was hired as Public Relations Manager for Iraqi Airways in 1969, and from 1971 until 1974 he was Regional Manager for Royal Jordanian Airways where he served as ALIA. He also worked for Middle East Airlines (MEA) in India where he gained experience in various areas such as sales, booking, And ticketing.
In 1974, his mother gave him £500 to start a company called Jetair, representing airlines such as Air France, Austrian Airlines and Cathay Pacific. In 1975, he was elected Regional Manager for India at Philippine Airlines.
On March 25, 2019, Naresh Goyal and his wife Anita resigned due to the airline’s financial crisis and the grounding of his two-thirds of the aircraft. He was prevented from escaping.
Goyal was questioned by the Bureau of Enforcement in September 2019 as part of an investigation into allegations that he violated foreign exchange laws. In 2020, the ED arrested him and questioned him about possible money laundering.
Goyal, who founded Jet Airways in 1993 and at the time, operated scheduled domestic flights as a result of the opening up of the country’s economy by a parliamentary government led by P.V. Narasimha Rao. Jet Airways began commercial operations on May 5, 1993.
Goyal served on the International Air Transport Association (IATA) board. He was re-elected in 2008, and his current term runs through June 2016. On March 25, 2019, Naresh Goyal and his wife left the Jet Airways board. HE WAS AWARDED VARIOUS AWARDS WITH FOR HIS CONTRIBUTION.
Entrepreneur of the Year Award for Services from Ernst & Young September 2010 Distinguished Alumni Award-2000 for meritorious and distinguished performance as an entrepreneur October 2000 Outstanding Asian-Indian award for leadership and contribution to the global community given by the Indian American Centre for Political Awareness November 2003 Aerospace Laurels for outstanding contribution in the field of Commercial Air Transport
April 2000 and February 2004 His After five quarters of losses, Jet Airways reported a slight profit in the most recent period, capitalising on Kingfisher Airline’s decline as a competition.
By merging two low-cost carriers, JetLite and JetKonnect, and reducing international flights, the company saved money. However, Indigo lost the title of India’s largest domestic airline to Rahul Bhatia. He is rumored to be negotiating with Etihad Airways to sell his stake in Jet after the government allowed foreign airlines to invest up to 49% in Indian airlines in September II.
EXPERT SUGGESTION ON JET AIRWAYS FAILURE
The Indian aviation sector is highly competitive and Jet has been hit by several very successful low-cost carriers including IndiGo, SpiceJet and GoAir. Experts say the people who run Jet did not take these three companies seriously when they were founded between 2005 and 2006, offering discounted tickets and previously unsold routes. “Basically, Jet executives saw them as minor players,” industry analyst Amrit Pandurangi told . “Jet has always served businesses and didn’t understand that low-cost airlines were attracting price-conscious customers.” added.
Most of the responsibility, according to experts, is Goyal’s managerial style. They claim it was a critical error on his part to choose to have a single management team, led by himself, oversee all of Jet’s activities. Analysts contend that he ought to have divided the management of the budget flyer and the full-service carrier into two teams. According to Agarwal, who thinks the company’s decisions lacked clarity, Jet lacked a clear business plan and frequently changed it, confusing investors and customers alike. Goyal has additionally been charged with making poor investment decisions and
neglecting to address the company’s deteriorating financial situation despite taking on significant debt. Simply put, Agarwal continued, “They spent more than they made and kept accumulating loans.
India is a big oil importer, so all of its carriers are especially vulnerable to changes in the price of petroleum internationally. Fuel is the main cost for airlines, and it increases in price when the rupee is weak, which it has been for the past year or two. All Indian carriers were impacted last year by the rising price of oil and the Indian rupee’s historic lows. Analysts claim that although IndiGo and SpiceJet posted significant losses, their books were strong enough to withstand the quarterly losses. Jet’s, however, had debts to pay. Ashutosh Datar, an economist based in Mumbai, told AFP that Jet Airways “failed to manage its financial sheets and was caught out by these cyclical swings in the business.”
SO THAT’S HOW THE MAN WITH SO MUCH FORTUNE LOST ALL HIS LIFETIME EARNINGS WITH HIS BAD MANAGEMENT DECISIONS AND HIS ACTIONS..