JET AIRWAYS - MARKETING STRATEGIES & COMPETITORS

2. Background
 1974 – Goyal (founder and chairman) set up
JetAir Pvt. Ltd
 1990 – dominated by govt. of India
 1991 – entry of private airlines
 1993 – jet airways began to fly
 Lintas – corporate logo
 IMRB – consumer survey
 Andersen consulting – business plan

3.  2001 – terrorist attack affect Jet Airways
 2004 – net profit of Rs. 1.4 Billion
 Leader in Indian Airline industry with market
share of 46%
 2005 – International routes i.e. Kuala Lumpur,
Singapore, London and Colombo
 Issue shares to public – 18% gain over the
issue price.
Background

4. Jet Airways Successful IPO
 March 2005
 Raised Rs.1899 crore
 Rs.1300, gain of 18%
 Amount used for high cost debts & fund airline
expansion plans
 LCA found difficult to beat jet airways
 46% market share leader
 Indian airlines- 38.5%, Air Sahara- 14.5%
 Air Deccan- 1%

5. Marketing & Operation strategies
 Firstly jet airways positioned itself differently
from the Indian airlines
 They took advantage of the unsatisfactory
performance of Indian airlines
 Jet airways positioned itself as an airline for
the regular fliers i.e. business travelers
 Business travelers are less price conscious
 This helped them to charge corresponding to
the regular rise in the fuel charges

6. Marketing & Operation strategies
 First to introduce tele – check-in and on time
check-in
 Jet got its meals catered by TAJ SATS a five
star airline catering service
 Jet airways provided meals on all its flights no
matter what the duration was
 In flight entertainment with magazine “JET
WINGS”

7. Marketing & Operation strategies
 Jet airways had a young fleet of aircrafts
Leading to low maintenance and good
appearance of the aircrafts
 Its chose to fly to only tourists and business
destinations
 Concessional Apex fares were introduced for
booking 30 days, 21 and 15 days in advance
 Check fares – 30 to 40 % lower depending on
the availability of seats

8. Marketing & Operation strategies
 Night fares – 80 % cheaper
 By Jan 2004 Jet airways had outsourced
functions like –
 Ramp handling, cargo, passenger handling
and ticket checking
 They soon started looking to fly to foreign
countries

9. Cost Structure
 Fuel cost
 Employee cost
 Aircraft Maintenance expenses
 Landing, Navigation & Airport Charges
 Other expenses
 Selling & distribution expenses

10. Indian Airline & Jet Airways
 IA offered Metro shuffle- provided frequent
flights to busy routes like Mumbai to Delhi
 low prices
 IA had wide network and political clout

11. Jet airways & Air Sahara
 Same service and performance
 Air Sahara focused on budget travelers
 Schemes to attract
 More warmth and considerations by Air
Sahara
 Jet airways presence in southern sectors
 Smaller network of Air Sahara
 2005- launched flights to south and connecting
several northern cities

12. SpiceJet & Kingfisher
 Exemplary services
 In-flight entertainment
 Price
 Seat back television sets with wide menu and
swanky interiors
 Offered prices 10% lower then Jet Airways
 Major metro routes target

13. Jet Airways & Air Deccan
 Air Deccan –middle class
 Major cities and small cities
 Starting price-99
 Reduced operational costs-cabin attendant
 Sold food-Revenue
 Rented plane bodies, seat backs,rented space
for advertisement

14. Drawbacks
 Employee poaching
 High demand- Inflated salaries
 High staff costs
 Air Deccan- punctuality issue delays,
cancellations
 Secondary airports-landing and parking slots
 Fixed costs

15. International Prospects
 Started its international service after GoI’s
permission in 2005
 High rank officials were confident of breaking
even in the 1st year itself
 Jet airways was ready for the intense
competition
 It focused on values like hospitality and
courteousness for its overseas operations

16.  New communication strategy for its newly
launched services to Singapore
 Themed as “Spirit of New India”
 To change the mindset of the people towards
India
International Prospects

17. Financials