Jet Airways

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  • Jet Airways

    1. 1. Presented by : Sujeet Kumar
    2. 2. <ul><li>Commenced operations effective may 1993 </li></ul><ul><li>Current operations </li></ul><ul><ul><li>51 aircraft (40 B737 + A340-300E +8ATR) </li></ul></ul><ul><ul><li>48 (43 Indian + 5 International ) </li></ul></ul>Company Profile
    3. 3. Key Highlights Particulars FY06 +/-% Q1 vs FY05 FY07 +/-% vs Q1 FY06 Turnover (in USD bn) 1.4 39% 0.4 25% Profit After Tax (in USD mn) 101 15% -154% Passengers 9.6 17% 2.8 25% Average employees (Gross) 8,285 17% 13% Seat Factor 72.0% 0.7 pts 72.9% -2.3 pts
    4. 4. Domestic market: current scenario Market share as of Q1 FY 2006 Indian 21% Air Sahara 9% Air Deccan 19% Jet Airways Kingfisher Others 34% Go Air SpiceJet Airlines 1% 2% 6% 8% Full-service carriers: 72% share (Jet Airways, Indian, Air Sahara, Kingfisher Airlines) No-frills carriers: 28% share (Air Deccan, SpiceJet, Go Air) 6 6
    5. 5. <ul><li>Multiple periodic cycle </li></ul><ul><ul><li>Vary by Day </li></ul></ul><ul><ul><li>Months </li></ul></ul><ul><li>Causes for these cyclical changes </li></ul><ul><ul><li>Employment Schedule & tie-ups </li></ul></ul><ul><ul><li>Wages and Salary </li></ul></ul><ul><ul><li>Seasonal Changes in Climate </li></ul></ul><ul><ul><li>School Hours and Vacations </li></ul></ul><ul><ul><li>Occurrences of public or religious Holidays </li></ul></ul>Pattern & Determinants of Demand in Airline Industry
    6. 6. Strategies to manage Capacity and Demand
    7. 7. Strategies to manage Capacity and Demand <ul><li>The company has come up with 'check fares' to sell spare capacity to low-budget travelers. These tickets are priced slightly higher than those being offered by Air Deccan. Jet's yield management system (YMS) allocates the low-fare seats according to the demand in a sector. It is a flexible system that ensures maximum utilization of capacity. </li></ul><ul><li>It's using an automated rostering system to increase the utilization of pilots. As the system improves, it could actually cut down on the number of pilots and lower the cost of operation. </li></ul><ul><li>Planning and Scheduling Systems </li></ul>
    8. 8. Strategies to manage Capacity and Demand <ul><li>The company is outsourcing ramp handling, passenger handling, ticket checking, cargo, and loading and unloading in Delhi and Mumbai, and plans to do so in other cities as well. </li></ul><ul><li>Jet is relies on automation to drive efficiency and improve response time. </li></ul><ul><li>Jet Airways focuses on faster page and application download times for its site </li></ul><ul><li>Over the next three years, Jet Airways would add 12 Boeing 737-800/900 and 22 wide bodied aircraft to its existing fleet of 51. </li></ul>
    9. 9. Major Expansion Program Ahead <ul><li>Sustaining leadership in domestic market </li></ul><ul><ul><li>13 additional B-737s (through to Oct 2007) </li></ul></ul><ul><ul><li>Locking in. our loyal customer base </li></ul></ul><ul><ul><li>Deployment on high density routes </li></ul></ul><ul><li>Expanding international operations </li></ul><ul><ul><li>12 additional A-330s </li></ul></ul><ul><ul><li>10 additional B-777s </li></ul></ul><ul><ul><li>Consolidating on UK / ASEAN markets </li></ul></ul><ul><ul><li>Stepwise expansion into other markets (USA /Europe / China / Africa, etc.) </li></ul></ul><ul><li>Combining a strong domestic with a growing international network </li></ul><ul><li>Strengthening infrastructure and human resources build-up </li></ul>
    10. 10. Fleet plan 100 84 90 79 80 10 10 63 70 10 53 8 60 6 8 8 8 3 50 8 40 30 56 53 49 42 20 10 0 Mar '06 Mar '07 Mar '08 Mar '09 BOEING 737s ATR A340-300/A330s B777-300ER 17 17
    11. 11. <ul><li>Cabotage </li></ul><ul><li>Offer more transparent pricing </li></ul><ul><li>Stop chasing market share </li></ul><ul><li>A new model for premium pricing </li></ul><ul><li>Focus on other collateral revenue streams </li></ul><ul><li>Increased focus on cargo revenue potential </li></ul>Recommendations
    12. 12. Thank You 20 20

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