Kingfisher vs Jet Airways

Jet's Strengths

• A phenomenal and well-developed network both of the airline and the chairman

• Goyal's knowledge of the sector

• A massive pool of loyal customers

• Excellent lobbying skills and ability to leverage connections within government

• Ability to survive downturns earlier

• Financing raised on strength of own balance sheet

• Has built a professional organisation

Jet's Weaknesses

• A perceived drop in service standards when pitted against Kingfisher

• Struggling with the carcass of Air Sahara

• Poor people management skills of chairman

• Inability to raise money for the last two years

Kingfisher's Strengths

• Superior product on ground; in the air Jet business class is being equated with Kingfisher's economy

• UB group backing for raising financing

• Well capitalised airline, prepared to take losses

• Better handling of employees and staff; less centralised style of functioning

• Chairman Mallya's grand vision where it is looking to be among the best in the world

• The Deccan deal - which gives it market share, a new market segment and was cheap

Kingfisher's Weaknesses

• Kingfisher is yet to build itself into an organisation; structures yet to fall in place

• Not as professionally run as Jet; yet to build a professionally competent team

• Mallya's knowledge of the sector does not parallel Goyal's

• Chairman's people skills are better but employees have to work very erratic hours

• Unable to leverage connections to the same extent while lobbying

• Kingfisher's loads are lower than Jet's, which could be a reflection of its marketing and sales ability

In Mallya, Goyal appears to have found his first worthy opponent. If Goyal is well connected and knows how to keep the politicians beaming, Mallya is "not exactly an orphan".

If Goyal has managed to hire professionals and build a brand, Mallya is a past-master at building brands. And if Jet has never had a problem raising money before, Mallya has group...