Jet airways

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Jet airways

  1. 1. Good morning Vikas Kumar Tyagi
  2. 2. Vikas Kumar Tyagi
  3. 3. JET AIRWAYSJET AIRWAYS About Jet Airways :About Jet Airways : Jet Airways (India) Private Limited is India's leadingJet Airways (India) Private Limited is India's leading private airline.private airline. It boasts a market share of about 29 percent.It boasts a market share of about 29 percent. Jet operates a relatively young fleet of Boeing 737 jets andJet operates a relatively young fleet of Boeing 737 jets and ATR72 turboprops.ATR72 turboprops. It carries about seven million passengers a year.It carries about seven million passengers a year. Its reputation for punctuality and outstanding serviceIts reputation for punctuality and outstanding service attracts a largeattracts a large Vikas Kumar Tyagi
  4. 4. Light on Naresh Goyal: FounderLight on Naresh Goyal: Founder andCEOandCEO Naresh Goyal is the founder andNaresh Goyal is the founder and Chairman of Jet Airways, India's largestChairman of Jet Airways, India's largest domesticdomestic airline.airline. In May 1974, Naresh Goyal founded JetIn May 1974, Naresh Goyal founded Jet air (Private) Limited to look after Sales andair (Private) Limited to look after Sales and Marketing operations of foreign airlines inMarketing operations of foreign airlines in India.India. Naresh Goyal took advantage of OpenNaresh Goyal took advantage of Open Skies Policy of the Government of IndiaSkies Policy of the Government of India and set up Jet Airwaysand set up Jet Airways Vikas Kumar Tyagi
  5. 5. Key Dates:Key Dates: 1993:1993: Jet Airways begins domestic operations flyingJet Airways begins domestic operations flying Boeing 737 jets.Boeing 737 jets. 1997:1997: Kuwait Airways and Gulf Air sell their stakes inKuwait Airways and Gulf Air sell their stakes in Jet Airways.Jet Airways. 1999:1999: A regional network is launched with turbopropA regional network is launched with turboprop aircraft.aircraft. 2004:2004: The first international services are started.The first international services are started. 20072007: Acquired Air Sahara and re launched it as jet: Acquired Air Sahara and re launched it as jet lite.lite. Vikas Kumar Tyagi
  6. 6. Principal Competitors:Principal Competitors: International Market :International Market : - British Airways- British Airways - South West Airlines- South West Airlines Domestic Market :Domestic Market : - King Fisher- King Fisher - Indian Airlines- Indian Airlines - Go Air- Go Air - Spice jet- Spice jet - Indigo- Indigo Vikas Kumar Tyagi
  7. 7. Marketing Strategy:Marketing Strategy: STP for JetSTP for Jet airways.airways.  Market Segmentation:Market Segmentation:  Economic ClassEconomic Class  Business ClassBusiness Class  Premium classPremium class  Target customersTarget customers  Business ClassBusiness Class  Economic class (Jet lite)Economic class (Jet lite) Vikas Kumar Tyagi
  8. 8. Promotional ActivitiesPromotional Activities For promotions we use tactics likeFor promotions we use tactics like i) Offering free ticketsi) Offering free tickets ii) Concessional fares for studentsii) Concessional fares for students iii) Jet lite surprisesiii) Jet lite surprises iv) Corporate deal offersiv) Corporate deal offers Vikas Kumar Tyagi
  9. 9. FLIGHTS OF JET AIRWAYSFLIGHTS OF JET AIRWAYS    It operates over 400 daily flights to 65 destinationsIt operates over 400 daily flights to 65 destinations worldwide.worldwide.    Provides services in:Provides services in:  44 domestic destinations in India44 domestic destinations in India  21 international destinations in 17 countries21 international destinations in 17 countries across Asia, Europe & North America.  across Asia, Europe & North America.   International destinations include Colombo,International destinations include Colombo, New York, Toronto, Singapore etc.New York, Toronto, Singapore etc. Vikas Kumar Tyagi
  10. 10. FLEETS OF AIRCRAFTS IT INCLUDESFLEETS OF AIRCRAFTS IT INCLUDES   IT HAS 84 AIRCRAFTSIT HAS 84 AIRCRAFTS  Airbus330-200*   -  (12)Airbus330-200*   -  (12)    Atr72-500   -   (14)Atr72-500   -   (14)       Boeing737-700   -  (13)Boeing737-700   -  (13)       Boieng737-800  -  (33)Boieng737-800  -  (33)       Boeing737-900  -  (2)Boeing737-900  -  (2)       Boeing777-300er*  -  (10)Boeing777-300er*  -  (10)     * Includes aircraft that have been leased to other airlines * Includes aircraft that have been leased to other airlines     Vikas Kumar Tyagi
  11. 11. Annual results in briefAnnual results in brief Mar ' 09Mar ' 09 Mar ' 08Mar ' 08 Mar ' 07Mar ' 07 Mar ' 06Mar ' 06 Mar ' 05Mar ' 05 SalesSales 11,476.9811,476.98 8,811.108,811.10 7,057.787,057.78 5,693.735,693.73 4,338.014,338.01 OperatingOperating profitprofit -306.75-306.75 187.55187.55 362.08362.08 928.53928.53 1,210.661,210.66 InterestInterest 738.03738.03 492.75492.75 240.15240.15 241.60241.60 253.69253.69 GrossGross profitprofit -734.88-734.88 365.21365.21 465.46465.46 1,128.671,128.67 1,039.131,039.13 EPS (Rs)EPS (Rs) -46.60-46.60 -29.17-29.17 3.243.24 52.3652.36 45.4145.41 (Rs crore)Vikas Kumar Tyagi
  12. 12. Market ShareMarket Share Vikas Kumar Tyagi
  13. 13. Recent problems :Recent problems :  InIn oct 2008oct 2008 around 1900 employees were firedaround 1900 employees were fired out of which 800 were laid off.out of which 800 were laid off.  It started voice from politicians , staff , senas ,It started voice from politicians , staff , senas , public.public.  Later in the same week they were taken back.Later in the same week they were taken back.  N.A.G( NATIONAL AVIATORS GUILD )N.A.G( NATIONAL AVIATORS GUILD ) formed on 24formed on 24thth July claiming a membership ofJuly claiming a membership of 680 ,President Girish Kaushik , Gen.Sec.Captain680 ,President Girish Kaushik , Gen.Sec.Captain Sam Thomas.Sam Thomas. Vikas Kumar Tyagi
  14. 14.  Due to which two senior pilot were fired .Due to which two senior pilot were fired . Captain Sam Thomas(g.s)Captain Sam Thomas(g.s) Captain D Balaraman.Captain D Balaraman.  OnOn Aug. 23Aug. 23rdrd the Guild (NAG) warned that theythe Guild (NAG) warned that they would go on strike from Sep. 7would go on strike from Sep. 7thth if both theif both the pilots are not reinstated.pilots are not reinstated.  Matter reached to the regional laborMatter reached to the regional labor commissioner who held a meeting on Aug. 31commissioner who held a meeting on Aug. 31stst and told any strike till the process is over wouldand told any strike till the process is over would be illegal.be illegal. Vikas Kumar Tyagi
  15. 15.  But onBut on 88thth sep. 432/1056sep. 432/1056 pilotspilots reported sick in violation of Bombayreported sick in violation of Bombay high court orders a day earlierhigh court orders a day earlier restraining them against any kind ofrestraining them against any kind of strike in countries largest pvt. Carrier.strike in countries largest pvt. Carrier.  Pilots were demanding thePilots were demanding the reinstatement of their colleagues.reinstatement of their colleagues.  Situation created huge problems forSituation created huge problems for passengerspassengers .80% of them were.80% of them were accommodated to other airlines for restaccommodated to other airlines for rest entire fare was refunded.entire fare was refunded. Vikas Kumar Tyagi
  16. 16.  Chief justice Swatanter Kumar and JusticeChief justice Swatanter Kumar and Justice AM Khanwilkar issued aAM Khanwilkar issued a noticenotice againstagainst NAG seaking a reply in 2 weeks.NAG seaking a reply in 2 weeks.  Later 2 more pilots were sackedLater 2 more pilots were sacked  Civil aviation secretoryCivil aviation secretory MadhavanMadhavan NambiarNambiar said govt. has nothing to dosaid govt. has nothing to do between both, but they has taken seriousbetween both, but they has taken serious view of the inconvenience to public andview of the inconvenience to public and askedasked DGCADGCA to take action.to take action.  CEOCEO told he is open for talk but he toldtold he is open for talk but he told company does not recognize NAG. andcompany does not recognize NAG. and pilots are behaving like terrorists.pilots are behaving like terrorists. Vikas Kumar Tyagi
  17. 17.  Jets lawyer Harish Salve saidJets lawyer Harish Salve said ““Industrial Disputes ActsIndustrial Disputes Acts prohibits strike whileprohibits strike while conciliation proceedings areconciliation proceedings are underway”.underway”.  FortunatelyFortunately after “loss ofafter “loss of crores and goodwill”on 13crores and goodwill”on 13thth sep.sep. strike ended after 5 days whenstrike ended after 5 days when Naresh Goyal reinstated theNaresh Goyal reinstated the sacked pilots and paved the waysacked pilots and paved the way for possible recognition of afor possible recognition of a pilots union.pilots union. Back to work Vikas Kumar Tyagi
  18. 18. Consequences Of Strike:Consequences Of Strike: From 8 to 13 September:From 8 to 13 September:  Jet Airways lost 200 crores in just five days.Jet Airways lost 200 crores in just five days.  Cancellation of 134 domestic and 32 internationalCancellation of 134 domestic and 32 international FlightsFlights  Average passenger per day dropped from 23000/day toAverage passenger per day dropped from 23000/day to 14000/day.14000/day. Vikas Kumar Tyagi
  19. 19. Consequences Of Strike:Consequences Of Strike:  Jet has to accommodate 80% of the passenger on theJet has to accommodate 80% of the passenger on the other carriers.other carriers.  For the rest 20% entire fare has been refunded.For the rest 20% entire fare has been refunded.  Loss of goodwill is not measurable.Loss of goodwill is not measurable. Vikas Kumar Tyagi
  20. 20. Advantage of jet airways crisis for otherAdvantage of jet airways crisis for other airlinesairlines  Jet Airways transferred as many as 60 percent ofJet Airways transferred as many as 60 percent of the passengers booked on its flights to Air India,the passengers booked on its flights to Air India, the national carrier, and other airlines during thethe national carrier, and other airlines during the strike.strike.  Rival carriers began to charge fares at almostRival carriers began to charge fares at almost double the usual rates after the strike hampereddouble the usual rates after the strike hampered Jet Airways operations.Jet Airways operations.  A big competitor was out, therefore it was a bigA big competitor was out, therefore it was a big advantage to other airlinesadvantage to other airlines Vikas Kumar Tyagi
  21. 21. Current SituationCurrent Situation    1.1. The standoff between the airline and its pilots endedThe standoff between the airline and its pilots ended late Saturday after the company agreed to reinstatelate Saturday after the company agreed to reinstate four pilots who were fired for trying to form a pilot’sfour pilots who were fired for trying to form a pilot’s union.union. 2.2. Jet airways has reduced its fares to 50%.WithJet airways has reduced its fares to 50%.With discounts, the cost of air tickets dropped close todiscounts, the cost of air tickets dropped close to air-conditioned II tier Rajdhani Express fares.air-conditioned II tier Rajdhani Express fares. 3.3. Jet airways witnessed a 10 per cent switch from low-Jet airways witnessed a 10 per cent switch from low- cost carriers to jet.cost carriers to jet. 4.4. The airline is operating on full schedule of servicesThe airline is operating on full schedule of services on its domestic and international flights with all crewon its domestic and international flights with all crew reporting for dutyreporting for duty Vikas Kumar Tyagi
  22. 22. 5. Jet offered a full refund to passengers whose flights5. Jet offered a full refund to passengers whose flights were canceled.were canceled.  The sacked pilots are rehired and a consultative groupThe sacked pilots are rehired and a consultative group is being formed comprising representatives of theis being formed comprising representatives of the company and pilots to continue the process ofcompany and pilots to continue the process of dialogue to resolve all their problems.dialogue to resolve all their problems.  Jet Airways suffered a loss of nearly US$8 million aJet Airways suffered a loss of nearly US$8 million a day during the strike. and the number of passengersday during the strike. and the number of passengers came down from 23,000 per day to 7,500.came down from 23,000 per day to 7,500.  No punitive action against any one who participatedNo punitive action against any one who participated in the agitationin the agitation Vikas Kumar Tyagi
  23. 23. 9.9. Shares of Jet Airways rose as much as 4.6Shares of Jet Airways rose as much as 4.6 percent, the most in two weeks.percent, the most in two weeks. 10.10. Airline losses globally may total $9 billion thisAirline losses globally may total $9 billion this year, according to the International Airyear, according to the International Air Transport Association, almost double theTransport Association, almost double the group’s previous forecast.group’s previous forecast. Vikas Kumar Tyagi
  24. 24. THANK YOU Vikas Kumar Tyagi

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