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Jet Airways


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  • AAI – Airports Authority of Indiap.a – per annum
  • Open Skies means unrestricted access by any carrier into the sovereign territory of a country without any written agreement specifying capacity, ports of call or schedule of services. In other words an Open Skies policy would allow the foreign airline of any country or ownership to land at any port on any number of occasions and with unlimited seat capacity. There would be no restriction on the type of aircraft used, no demand for certification, no regularity of service and no need to specify at which airports they would land. Defined in this manner, it is not surprising that Open Skies policies are adopted only by a handful of countries, most commonly those that have no national carriers of their own and that have only one or two airports. No sovereign country of any eminence practices Open Skies least of all the European Union, UK, USA, Japan, Australia or countries in South East Asia.
  • Low Cost Carrier:A single Passenger class A single type of airplane reducing training and service cost No frills such as free food/drinks, lounges etc.Emphasis on direct sale of ticket through Internet avoiding fee and commission paid to travel agents.Employees working in multiple rolesUnbundling of ancillary charges to make the Headline fare lowerRegional AirlinesRegional airlines commonly called commuter airlines or feeder airlines, when they provide service to smaller communities that do not generate sufficient passengers to support service with larger aircraft, are passenger airlines that provides "short haulaircraft" service to smaller communities, frequently connecting to larger cities, and is generally intended to feed a larger airline with larger aircraft. They are also used to increase the frequency of service to some destinations that are also served by mainline aircraft.Charter AirlinesA charter airline, also sometimes referred to as an air taxi, operates aircraft on a charter basis, that is flights that take place outside normal schedules, by a hiring arrangement with a particular customer.Cargo AirlinesCargo airlines (or airfreight carriers, and derivatives of these names) are airlines dedicated to the transport of cargo. Some cargo airlines are divisions or subsidiaries of larger passenger airlines.
  • Transcript

    • 1. Jet Airways
    • 2. Airline Industry in India
      454 airports and airstrips
      (includes Operational, Non Operational, Abandoned and Disused Airports)
      127 are owned & operated by AAI
      16 - international, 7 custom airports, 28 civil enclaves
      Scheduled domestic air services - available from 82 airports
      May 2007- May 2008
      25.5 million domestic & 22.4 million international passengers
      20% growth – highest in the world
      Growth Rate Projections (for next 5 yrs)
      15% p.a (Passenger Traffic)
      11.4% p.a (Cargo Traffic)
    • 3. History
      First commercial flight
      Airmails from Allahabad to Naini(10 km)
      The Aviation Department of Tata Sons Ltd. Established
      Tata Airlines (successor to aviation division of Tata Sons)
      Tata Air Lines converted into a public Company and renamed Air India Limited
      Air India International incorporated
      Nationalization of Aircraft Industry
      Air India (serving the international sectors)
      Indian Airlines (serving domestic sectors)
      Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Services of India
    • 4. History
      Private Sector Players permitted as Air
      taxi operators
      Players including Jet, Air Sahara, NEPC, East West, Modiluft,etc started service
      Open Sky Policy
      Private Carriers permitted to operate scheduled services
      Entry of low-cost carriers
      Merger of Indian Airlines into Air India
      Acquisition of Air Sahara by Jet Airways
      Kingfisher acquired 49% stake in Deccan Aviation
    • 5. Regulatory Authorities
      Ministry of Civil Aviation
      Responsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing airport facilities, air traffic services and carriage of passengers and goods by air
      Other Attached/Autonomous Organizations:
      Directorate General of Civil Aviation (DGCA)
      Promote safe and efficient Air Transportation through regulation and proactive safety oversight system
      Bureau of Civil Aviation Security(BCAS)
      Regulatory authority for civil aviation security in India
      Airport Authority of India (AAI)
      Accelerate the integrated development, expansion and modernization of the operational, terminal and cargo facilities at the airports
    • 6. Policies
      Open Sky Policy
      100% for green field operations
      74% for existing airports - 100% with special permissions
      100% tax exemptions for 10 yrs.
      49% in domestic airlines - 100% for NRI’s
      74% in cargo & non-scheduled airlines
    • 7.
    • 8. Market Share in Domestic Market
      In Post Consolidation Jet includes Air Sahara & Kingfisher includes Air Deccan
      • Market Share is based on their Capacity Source: B&K Securities
    • Service vs. Price
      Jet Airways
      Indian Airlines
      Air Deccan
      Go Air
      Source :
    • 9. Cost Structure
      Source :
    • 10. Jet Airways
      Founded in 1993, Chairman - Mr.NareshGoyal
      HQ in Mumbai
      Country’s second largest international airline
      Largest domestic airline - 31%
      Primary base - Mumbai's ChaatrapathiShivaji Airport Secondary hubs - Bangalore, Brussels, Chennai, Delhi, Hyderabad, Kolkata and Pune.
      April,2007 - Acquired Air Sahara - JetLite
      Now JetLite integrated into Jet Airways
    • 11. International Network
    • 12. Domestic Network
    • 13. Fleet Plan
    • 14. Jet Airways - Performance
      Annual Revenues - Rs.9481.5 crores (2007-08)
      Rs.7401 crores (2006-07)
      Profit(Loss) After Tax - Rs.253 crores loss (2007-08)
      Rs.27 crores profit (2006-07)
      - All Other Domestic Players showed loss(2006-07)
    • 15. Operational Highlights
    • 16. Revenues & Expenditure Split-up
    • 17. Jet Airways vs. Domestic Players (2006)
    • 18. Jet Airways vs. International Players (2006)
    • 19. STP
      Primary Segments (Geographic) - Domestic & International
      Customer Segments
      First class, Premiere(Business) class & Economy class
      Target Segments
      Premiere(Business) class
      Business travelers, contribute 48% of passengers & 66% of revenues,
      ready to pay higher prices, last time booking, don’t like transit
      Economy class
      Leisure travelers, prefer low cost airlines, ready for transit if there is cost advantage, large % of passengers
      Seat Allocation – Yield Management Technique
      Positioning – High value for High price
      Unique Selling Price – Customer relationship and Punctuality
    • 20. Seating in flights for Segments
    • 21. Fleet Size
    • 22. Flower of Services
    • 23. Information - Reg. the org., flight schedules, ticket fares, promotion schemes etc.
      Through website, call service, sms, employees etc.
      Consultation - Reg. the choices of class, routes to a destination & special menus for frequent fliers
      Order taking - Booking - through phones, fax and internet
      - Ticket Office, Call Centres, Company Website & Agents
      Hospitality - Most important differentiating factor (from ticket booking to post flight help)
      Safe keeping - Luggage & Children
      Exceptions - Special requests reg. meal preferences, special amenities for elderly people or children, medical needs etc.
      Billing - Charges split, E-mail bills etc.
      Payment - Credit card, Travellers cheque, Special payment privileges for frequent fliers
    • 24. Impact of IT on Ticket Booking
    • 25. Levels of Product
    • 26. Product - Service
      On Ground Services
      Check in options - Airport check-in, Tele Check-in, Web Check-in,
      Kiosk Check-in, SMS Check-in, Check-in while walk-in,
      One Time Check-in on Return Journey, Through Check-in
      Airport Lounges
      Coach Services
      In-flight Services
      Classes of Service - First class, Premiere class & Economy class
      Convenience & Safety -Towels, Pillows & Blankets, Reading material,
      First Aid, Smoke detectors, Bassinets, Child Care, life jackets & seat cushion
      Entertainment - Jetscreen – Movies, TV programmes, Games, Music, In-flight communicator, Online magazines etc.
      JetWings (in-flight magazine), JetBoutique (in-flight shopping catalogue)
    • 27. Product - Service
      Special Services
      • Infant and child care, wheel chair assistance, expectant mothers, unaccompanied minors, medical emergencies, travelling with animals & carriage of stretchers
    • 28. JetPrivilege – Frequent Flyer Program
      Membership tiers – Blue, Blue Plus, Silver, Gold & Platinum
      Personalized web access
      JP Miles - 13 quarters validity
      Bonus JPMiles on e-Services
      Additional baggage allowance
      Guaranteed reservations up to 24 hrs. prior to departure
      Waiver on cancellation fees
      Membership Tier Bonus
      Earning & Redeeming JP Miles
      Eg: Chennai to Thiruvananthapuram (Earn Mile-383 & Redeem Mile-6894)
      Airline Partners - Air France, American Airlines, ANA, Austrian Airlines, Brussels Airlines, Cathay Pacific, Dragonair, Etihad Airways, Gulf Air, JetLite, KLM, Lufthansa, Northwest Airlines , Qantas, South African Airways, SWISS, United Airlines and Virgin Atlantic.
    • 29. Price
      Economy & Club Premiere Fare
      Discounted fare for senior citizens & defense personnel
      Advance Passenger Excursion/ APEX Fares
      One Fare
      Night Saver Fares
      Check Fares
      US Dollar Fares & Visit India Fares
    • 30. Place
      Place of Service - Aircraft
      Various Destinations
    • 31. Promotion
      Companion Free Offer, One Fare, Concessional fares, JetPrivilege Offers,
      Jet Airways Citibank Credit Cards, Corporate Deal Offers, International Specials, Camp Rock contest, Festival specials, Student specials, Surprises etc.
      Advertising and Branding
      Brand Ambassadors
      Event Organization
    • 32. People
      Pilot, Cabin Attendants, Engineers, Customer Service Agents, Securities, Marketing, Sales & Reservation employees
    • 33. Partners
      Airline Partners - Air France, American Airlines, ANA, Austrian Airlines, Brussels Airlines, Cathay Pacific, Dragonair, Etihad Airways, Gulf Air, JetLite, KLM, Lufthansa, Northwest Airlines , Qantas, South African Airways, SWISS, United Airlines and Virgin Atlantic.
      Code Share Partners - Air Canada, All Nippon Airways, American Airways, Brussels Airlines, Etihad Airways and Qantas
      Co-Brand Cards - CitiBank
      Conversion Partners - BarclayCard, CitiBank, Deutsche Bank AG, HDFC Bank, HSBC, ICICI Bank, SBI Card & Tata Cards
      Car Rental Partners - Avis, Hertz
      Hotel Partners - Global Hotel Alliance, Hilton Family Hotels, Hyatt Hotels & Resorts, InterContinental Hotel Groups, ITC etc.
      Lifestyle Partners - Globus and Golf Fee Card International
      Publishing Partners -Fortune, The Economist and TIME
      Retail Partners -Ferns n Petals
      Telecommunication - Matrix Cellular Services
    • 34. Competitors
      International market - British Airways & South West Airlines
      Domestic market - King fisher, Indian Airlines, GoAir, Spicejet & Indigo
    • 35. Process
      People Processing
      People physically enter the service system to receive the service. Aircraft is the service factory where service is delivered.
      Possession Processing
      Luggage & Courier
    • 36. Physical Evidence
      Servicescape usage - Interpersonal
      Complexity of Servicescape - Elaborate
      Offices - Org. & Ticket Booking Agents
      Virtual Servicescape
    • 37. Service Quality
      Source :
    • 38. Service Quality
      Source :
    • 39. Strategies to manage the Capacity & Demand
      Check Fares
      Automated Rostering System
      Planning and Scheduling Systems
      Code Sharing
      Outsourcing ramp handling, passenger handling, ticket checking, cargo and loading and unloading in Delhi and Mumbai
      Automation to drive efficiency and improve response time
      Faster page and application download times for its site
    • 40. Corporate Social Resposibility
      Magic Box
      Fund raising inside the flight for disaster relief, education & healthcare for poor and programmes to prevent exploitation of women
      Flights of Fantasy
      Underprivileged children and children with special needs are taken on specially organized flights (on Children’s Day)
    • 41. PEST Analysis
      Political Issue
      License issue for international operation
      Infrastructural constraint
      ATF price policy
      Economic Effects
      Rising income level
      Reduced fare but yet not enough
      Social Effects
      Sound Pollution
      Plane hijacking
      9/11 Incident
      Technology Effects
      Modernization of aircrafts
      Modern technology like CAT3 and ILS
    • 42. SWOT Analysis
      Market driver
      Experience exceeding 14 year
      Only private airline with international operation
      Market leader
      Largest fleet size
      Loosing domestic market share
      Old fleet with average age around 4.79 years
      Scope for improvement in
      in-flight service
      Weak brand promotion
      Untapped air cargo market
      Scope in international service and tourism
      Strong competitors
      Fuel price hike
      Overseas market competition
    • 43. Thank ‘u’