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Jet Airways

Jet Airways






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  • in 1993-94, JA had a market share of 6.6 % by 2000-01, it had gone up to 42%. analysts feel that jet airways was successful beacuse of its superior customer service. however, there are some areas where JA is weak compared to IA.
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  • BlueBlue PlusSilverGold Exclusive Platinum
  • King FisherIndian AirlinesIndigoGo AirSpice JetBritish AirwaysSouth West AirlinesEmirates AirlinesLufthansa AirwaysSingapore AirlinesMany others

Jet Airways Jet Airways Presentation Transcript

  • Submitted To:Prof. Sachin KharePrepared By:Sneha Varma (193)Mayank Shah (202)Ritu Singh (59)Swatanu Mohan Satpathy ( 108 ) December 1, 2011 1
  • Introduction• Started by Naresh Goyal as Air Taxi Operator in April 1992• Started Indian commercial airline operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft• Scheduled airline status was granted on 4 January 1995• Initial investment of US$10 million• 80%of its stake controlled by Naresh Goyal• Jet’s parent company, Tail Winds Ltd.• Began international operations to Sri Lanka in March 2004.• Jet, is headquarters in Mumbai, IndiaDecember 1, 2011 2
  • Introduction• Operates over 370 daily flights to about 68 destinations both in India and international (abroad)• Listed in the NSE in the year 2005• Includes major cities like Mumbai, Delhi, Chennai, Jaipur, etc.• Second Leg cities like Aurangabad, Patna, Nagpur, etc.• 21 international destinations in 17 countries across Asia, Europe & North America• International destination includes cities like San-Francisco, New York, Singapore, London (Heathrow), Hong Kong, Colombo, Abu Dhabi, Dubai, etc.December 1, 2011 3
  • Financials• Annual Revenues Rs 9481.5 crores (2009-10) Rs 7401.3 crores (2010-11)• Profit After Tax (PAT) - Rs 253 crores (2009-10) Rs 27 crores (2010-11)• Average Passenger Load 69.1% (2009-10) 84.3% (2010-11)December 1, 2011 4
  • Fleets Of Aircrafts98 Airplanes in total• Airbus330--200--(12)• ATR72 --500--(14)• Boeing737--700--(11)• Boeing737--800--(42) Airbus330• Boeing737--900--(2)• Boeing777—300ER*--(11)*Includes aircraft that have been leased to other airlines Boeing 737-700December 1, 2011 5
  • Current Service OfferingsJet PrivilegeBlue Silver Platinum Blue Plus Gold JPMiles – The number of Base JPMiles earned is the direct travelled distance between the origin and destination city-pair. JPMiles earned are based on the fare and cabin travelled.December 1, 2011 6
  • Current Service OfferingsJet Konnect• Launched on 8 May 2009 to close down loss making routes• Divert planes to more profitable routes with higher passenger load factors.• Started 54 flights a week, rose to 125 flights, target of 160 flights a weekJet Escapes• A holiday package to a particular destination• Option to earn JPMiles on each holiday availedDecember 1, 2011 7
  • Current Service OfferingsJet Mobile• Access information such as flight status, schedules, set alerts or automatically receive flight delay messages• Request for your JetPrivilege account details• Search for the lowest fares on Jet AirwaysJet Viva• Interaction forum for women travelers• Modern fashion trends, spa getaways, high end cosmeticsDecember 1, 2011 8
  • Current Service OfferingsJet Lite• Acquisition of Sahara Airlines• Low cost carrier• Wider reachJet Kerala/ Jet2IncredibleMP• Tourism packages to Kerala and Madhya Pradesh• Special offers during summer vacations and new yearDecember 1, 2011 9
  • On-board Services• Check-In options• Airport lounges• Bus Services• Cuisines• EntertainmentDecember 1, 2011 10
  • Market ShareDecember 1, 2011 11
  • Competitor Analysis Domestic Market International MarketDecember 1, 2011 12
  • Porters 5 ForcesDecember 1, 2011 13
  • Bargaining power of Buyer - High• Standard product and services• Several options available to customers• No switching cost – customer need a reason to stay• Customer can research easily using the internet• Customer incentives such as JPMiles which allow customers to earn rewards, book flight in an easier/faster manner, and stay on top of the upcoming event/sales• Customer loyalty does not come cheaply – the average Indian flier expects more by paying less.December 1, 2011 14
  • Bargaining power of Supplier - High• Cost of fuel has risen in the years• Airplanes are mostly created by 2 manufacturers : Boeing and Air-Bus• Aviation personnel are very few in number. The pay demanded are very high.December 1, 2011 15
  • Threat from substitutes - High• Numerous other low-cost airlines• Switching costs among other transportation option are high for everything but short distance (Train, bus etc)• High exiting barriers – regulated by ministry of civil aviation• Trains are the most preferred modes of transport when it comes to domestic travelDecember 1, 2011 16
  • Threat from new entrants - Low• Very high cost or capital required for entry• Low profit margin• Difficult to differentiate product & services• Brand image and loyalty is important• New airlines must be seen as safe and reliable• Large airlines are very aggressive• Premature domestic marketDecember 1, 2011 17
  • Competitive rivalry - High• Competitors like Kingfisher, Indian Airlines, Indigo• In times of low or moderate industry growth, the competition gets fiercer as each one tries to nab customers from the other in order to keep their capacity utilizations at acceptable levels• The industry is extremely sensitive to economic cycles• Ambush marketing campaignsDecember 1, 2011 18
  • The 7 P’sProduct• Airline service – travelPrice• Discounted fare for senior citizens, defense personnel• Economy & Club Premiere Fare• Advance Passenger ExcursionPlace• Place of Service – Aircraft• Various Airports – Jet loungeDecember 1, 2011 19
  • The 7 P’sPromotion• Companion Free Offer, Concessional fares• Jet Privilege frequent-flier programme• Jet Airways Citibank Credit Cards• Corporate Deal Offers• Festival specials, Student specials• Advertising and Branding Hoardings and advertisements Brand Ambassadors Sponsorships Event OrganizationDecember 1, 2011 20
  • The 7 P’sProcessPeople Processing• Greeting method and standard procedure of treatment for customers for each class• Booking tickets made online and in counters• Flights sticking to schedules• In flight service – baby care, disabled care• Travelling with petsPossession Processing• Cargo• LuggageDecember 1, 2011 21
  • The 7 P’sPhysical Evidence• Cuisine• In-flight entertainment facilities• Kiosks – check-in counters• Jet boutique – in flight fashion apparel• Jet kids – in flight kids programme• Jet mall – in flight shoppingPeople• Trained cabin crew• Immigration & transportationDecember 1, 2011 22
  • SWOT Analysis Strengths WeaknessesExperience exceeding 14 years Losing domestic market shareInternational operations Old fleet with average age - 4.79 yearsLarge fleet size Need improvement in in-flight serviceAmong top 3 in India Weak brand promotion Opportunities ThreatsUntapped air cargo market Strong competitorsScope in global service and tourism Fuel price hikeIncreasing salaries of people Overseas market competition RegulationsDecember 1, 2011 23
  • Gap ModelDecember 1, 2011 24
  • Gap – 1 Customer Expectation – Management Perception• Seat allotment• More variety in harder productsDecember 1, 2011 25
  • Gap – 2 Management Perception – Service Quality Specification• Reclining Feature• Check-In baggageDecember 1, 2011 26
  • Gap – 3 Service Quality Specification – Services Delivered• Unfriendly Check-In• Unhygienic conditionsDecember 1, 2011 27
  • Gap – 4 Service Delivered – External Communication• Time delay in Flights• Emergency servicesDecember 1, 2011 28
  • Recommendations• Concentrate on the gaps created• Improvise on branding strategies• Look into newer geographical regions• Improving technology to overcome unfavorable weather conditionsDecember 1, 2011 30
  • Thank YouDecember 1, 2011 31