- Jet Airways is a major Indian airline based in India that serves domestic and international routes. It started operations in 1993 and was granted scheduled airline status in 1995. - It operates over 320 daily flights connecting 49 destinations across India and 5 international destinations. - Jet Airways aims to provide high quality services through partnerships with other airlines and companies in transportation, hotels, banking, and telecommunications. - In addition to its main airline, Jet Airways also operates low-cost carriers Jet Konnect and Jet Lite to expand its customer base in India. However, it has been facing financial troubles in recent years.

1. 1
A MINOR PROJECT REPORT
ON
DOWNWARD TREND FACED JET AIRWAYS BECAUSE OF
FINANCIAL DISTURBANCES
Submitted in partial fulfilment of requirement of Bachelor
of Commerce (Hons.)
B. Com (H)-II Semester (Morning Shift)
Batch 2018-2021
Submitted to: Submitted by:
Dr Shradha Goyal Pragya
Bisht
Assistant Professor Enroll no.
41214188818
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
KALKAJI

2. 2
ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is no different.
Racing against time and fast approaching deadlines, the fact that I was able to
complete this project on time would not have been possible without the help and
support of many people. I thank all of them whose patience and support were very
instrumental. I also thank them for making me learn the ethics and culture of corporate
world. The kind of value addition that I have done to my existing knowledge base is
exceptional and I will cherish all these moments throughout my life. It gives me
immense pleasure in mentioning the name of my project guide Dr SHRADHA GOYAL
whose helping hand led to the completion of my project. I would also like to thank my
family and friends for providing me with monetary as well as non-monetary support,
as and when required. Their trust patience is now coming out in form of this. Last but
not the least; I would like to thank all of them who directly or indirectly helped me in
completing this project that will go a long way in my career, the project is really
knowledgeable and worth cherishing.

3. 3
CERTIFICATE
This is to certify that Pragya Bisht pursuing B COM (H) from Jagannath International
Management School, Kalkaji has completed his project on the topic “DOWNWARD
TREND FACED JET AIRWAYS BECAUSE OF FINANCIAL DISTURBANCES” under
my guidance and his work is appreciable.
Dr Shradha Goyal
Assistant Professor

4. 4
DECLARATION
I, Pragya Bisht, a student of commerce from JIMS, Kalkaji hereby declare that I have
completed MINOR PROJECT REPORT on “DOWNWARD TREND FACED JET
AIRWAYS BECAUSE OF FINANCIAL DISTURBANCES” as a part of the course
requirement.
I further declare that the information presented in this project is true and original to the
best of my knowledge.
Pragya Bisht

5. 5
CONTENTS
Particulars Page No
Executive Summary 6
Introduction 7
Objectives 10
Literature review 11
Company Profile 13
Research Methodology 39
Limitation of the Study 41
Analysis and Interpretation 42
Recommendations and Conclusion 64
Bibliography 67

6. 6
Executive Summary
The following project is made on the topic downward trend faced jet airways because
of financial disturbances.
In which You will get to know in detail about jet airways and why are they facing
downward trend, what was the whole History, background, Organizational Structure,
financial structure etc of Jet Airways.
The Different customer satisfaction tools present and which of them is used by Jet
Airways while its working and how do they used it. As this project is based on
secondary data, the already existing surveys and data were used as whole.
Analysing the whole customer satisfaction techniques and studying it on whole at the
end there we have the conclusion part with the findings part of the project and the
Bibliography.

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CHAPTER 1
INTRODUCTION

8. 8
INTRODUCTION
INDIAN AVIATION SECTOR
India remained the fastest growing domestic Aviation market inthe world in 2017. India
has 86 scheduled international airlines comprising of 5 Indian carriers and 81 foreign
carriers, which ensure that India is well connected with most major countries. Revenue
passenger kilometre (RPK) in domestic airline demand rose by 18.7% in 2017-18.
Indian carriers reported a combined profit of $ 122 Mn in 2015-16.
 India aims to become the third-largest aviation market globally by 2020.
 Indian carriers plan to increase their fleet size to 800 aircraft by 2020.
 Freight traffic on Indian airports is expected to cross 11.4 MT by 2032.
 Government agencies projects requirement of around 250 brownfield and
green-field airports by 2020.
 India has been projected to be the second fastest growing country in the world
for passenger traffic by the Airports Council International (ACI) in its traffic
forecasts between 2017-40.
Market size
India is the world's third-largest domestic and overall civil aviation market (c. January
2018). The number of air passengers grew 16.3% annually from 14 million (1.40 crores
in 2000–01) to 135 million (13.5 crores in 2015-16, both domestic and international). It
recorded an air traffic of 131 million passengers in 2016, estimated to be 60 million
international passengers by 2017. The market is also estimated to have 800 aircraft
by 2020. In 2015, Boeing projected India's demand for aircraft to touch 1,740 or 4.3%
of global volume, valued at $240 billion, over the next 20 years in India.
Management and regulation

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Ministry of Civil Aviation is responsible for civilian aviation and Ministry of Defence is
responsible for the Indian Air Force. Under the auspices of the Ministry of Civil
Aviation, the Directorate General of Civil Aviation (DGCA) is the regulatory body
responsible for safety oversight of all civil aviation in India. National Civil Aviation
Policy 2016 covers the broad policy areas, such as Regional connectivity, Safety, Air
Transport Operations, 5/20 Requirement for International Operations, Bilateral traffic
rights, Fiscal Support, Maintenance, Repair and Overhaul, Air-cargo,
Aeronautical Make in India. Under the UDAN scheme, the government is planning to
develop a sustainable air network in over 400 tier-2 cities across India with an
estimated expenditure of ₹50 crore(US$7.0 million).
Investment
According to data released by the Department of Industrial Policy and
Promotion (DIPP), FDI inflows in India’s air transport sector (including air
freight) reached US$ 1,658.23 million between April 2000 and June 2018.
The government has 100 per cent FDI under automatic route in scheduled air
transport service, regional air transport service and domestic scheduled
passenger airline. However, FDI over 49 per cent would require government
approval.
India’s aviation industry is expected to witness Rs 35,000 crores (US$ 4.99
billion) investment in the next four years. The Indian government is planning to
invest US$ 1.83 billion for development of airport infrastructure along with
aviation navigation services by 2026.
Key investments and developments in India’s aviation industry include:
AAI is going to invest Rs 15,000 crores (US$ 2.32 billion) in 2018-19 for
expanding existing terminals and constructing 15 new ones.
In June 2018, India has signed an open sky agreement with Australia allowing
airlines on either side to offer unlimited seats to six Indian metro cities and
various Australian cities.
11

10. 10
The AAI plans to develop Guwahati as an inter-regional hub and Agartala,
Imphal and Dibrugarh as intra-regional hubs.
Indian aircraft Manufacture, Repair and Overhaul (MRO) service providers are
exempted completely from customs and countervailing duties
Government Initiatives
Some major initiatives undertaken by the government are:
In February 2018, the Prime Minister of India launched the construction of Navi
Mumbai airport which is expected to be built at a cost of US$ 2.58 billion. The
first phase of the airport will be completed by end of 2019.
The Government of Andhra Pradesh is to develop Greenfield airports in six
cities-Nizamabad, Nellore, Kurnool, Ramagundam, Tadepalligudem and
Kothagudem under the PPP model.
Regional Connectivity Scheme (RCS) has been launched under the policy
As of October 2018, the Government of India has released a policy on biometric
digital processing of passengers at airports called ‘Digi Yatra’, The policy will
ensure uniform implementation and passenger experience across Indian
airports through a connected ecosystem.
Infrastructure
India was targeting 486 existing airports as potential airport for UDAN-RCS,
including 406 Unserved airports, 18 Underserved RCS airports (mostly tier-2
regional cities), and 62 NON-RCS airports participating in RCS, mostly tier-2
major city airports or customs airports in tier-2 cities (Dec 2017). In addition, AAI
granted in-principal approval to 19 new airports in December 2017.
In December 2017, total operational civil aviation airports in India increased 34%
to 131 airports (106 with scheduled civilian flights including some with dual
civilian and army use, 3 newly made operational) after the commencement
of UDAN-RCS Phase-I (Dec 2017), from the previous figure of 98 total
operational airports in 2016 (including 70 civilian airports and the rest army
airports with civilian enclaves).

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Among the busiest airports in India, the Indira Gandhi International Airport which
serves as the primary civilian aviation hub for the National Capital
Region of Delhi, is the busiest airport in the country in terms of passenger traffic
and international traffic busiest airport in Indiasince 2009 and the second busiest
airport in the country in terms of cargo traffic after Mumbai. With the
commencement of operations at Terminal 3 in 2010, it became India's and South
Asia's largest aviation hub, with a current capacity of handling more than 40
million passengers, which will go up to 100 million passengers by 2030 with the
planned expansion. It was 12th busiest airports in Asia (2014) and 21st busiest
airport in the world by passenger traffic (2016).
Several Integrated Aviation-industrial parks, for aerospace training, research,
manufacturing, Maintenance, repair, and operations (MRO) and Fixed-base
Operations (FBO) integrated international aviation hub and aerospace industrial
hub, are in the process of being setup, such as in Hisar and Gujarat.
There are a total of 22 airlines which are operational in India, including Air
India and Pawan Hans PSUs, listed companies (SpiceJet, IndiGo Airlines, Jet
Lite, Air India Express and Jet Airways) and private airlines (such as GoAir, Air
Asia, Vistara and IndiGo) (c. 2015). Number of civil aviation aircraft in operation
for the scheduled commercial flights jumped 38% to 548 in December 2017 from
395 in 2014 and 50 aircraft are being added every year.
In September 2018, Civil Aviation Minister said that as many as 100 new airports
would be built in the next 10 to 15 years for about $60 billion to meet the growing
domestic air travel demand.

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CHAPTER 2
OBJECTIVES
1. Study of financial system of jet airways in India
2. Why is jet airway is facing downward trend or incurring losses?
3. What methods were applied to overcome the downward trend.

13. 13
CHAPTER 3
LITERATURE REVIEW

14. 14
LITERATURE REVIEW
Anyone puzzled by how the Indian economy manages to grow swiftly while somehow
failing to be prosperous could do worse than look at the state of India’s airlines. Over
the past few years, passenger growth in India has been rapid: The number of flights
taken has increased between 15 and 20 percent per year. Demand growth this year
is likely to be the highest in the world. Yet the industry itself hasn’t benefited. Almost
every Indian airline is struggling. Another airline, Spice Jet Ltd.,
has been in the red for two quarters and is also delaying its payments to the Airports
Authority of India. And even the market leader, the much admired IndiGo NSE -0.70
%, declared a quarterly loss recently for the first time since going public in 2015. The
truth is that the sector has also been weakened thanks to a combination of errors by
both the private sector and, crucially, the government. Companies have lobbied as if
their lives depended on it; governments have intervened as if their re-elections
depended on it. The consequence is that, for decades now, market forces have been
stifled in the sector.
Government intervention is also stifling the future of the sector. Connecting smaller
Indian towns and making short-haul flights profitable is central to Indian aviation’s
hopes for the future. Yet Prime Minister Narendra Modi has insisted on a populist and
uneconomic $35 price cap for such flights
Few airlines have been interested — and those that were discovered that metropolitan
airports would prefer to give their scarce landing slots to bigger
and more remunerative jets. Unsurprisingly, the new scheme to connect smaller
airports seems to have crashed before it took off, with airline licenses being cancelled
left and right. And then, of course, there’s the elephant in the sky: the state-owned Air
India, which lumbers along adding to its losses. Every year, the overstaffed and
inefficient airline puts taxpayers deeper in debt. Worse is its malign influence on the
sector as a whole. After all, it’s tough for any private airline to raise fares when one of
its competitors seems to have no real budget constraint and can keep fares at
whatever seems politically acceptable. The troubles of its aviation business are a
microcosm of how the Indian economy works. From the outside, everything should be
going its way — strong demand, smart companies, sound fundamentals. But a
combination of private sector overconfidence and government intervention means that
it’s just too

15. 15
difficult to make sustained profits here.

16. 16
CHAPTER 4
COMPANY PROFILE

17. 17
COMPANY PROFILE: JET AIRWAYS
Company Background Jet Airways, an airline based in India, serves domestic as well
as international routes. It commenced its operations as an air taxi operator in 1993
with four aircraft; it was granted the scheduled airline status in January 1995. Jet
Airways, which started with 24 flights per day across 12 destinations, now operates
over 320 daily flights. The company was a 100-per cent subsidiary of Tail Winds
Limited till it listed its equity shares on the National Stock Exchange of India Limited
and the Stock Exchange, Mumbai, in March 2005. Jet Airways connects 49
destinations across the globe – 44 destinations within India and five international
destinations that include London, Kuala Lumpur, Singapore, Kathmandu and
Colombo. The company has multiple reservation and ticketing networks comprising
global distribution suppliers, travel agents and sales agents in India and 74 other
countries. It has a wide cross section of partnerships and alliances, some of with are,
with airlines such as British Airways, KLM Royal Dutch Airlines, Northwest Airlines,
Austrian, Lufthansa and Swiss International; Indian and international hotel groups
such as The Hyatt, Swissotel,
The Oberoi, ITC-Welcomgroup and Hilton; banks such as Citibank; car rental
companies such as AVIS and Hertz and telecommunication and other service
providers
Jet airways is one of India’s premier private airlines industries. The Company operates
in two segments: Air Transportation and Leasing of Aircraft and running under two
geographic segments: domestic and international.
It was incorporated as an ‘air taxi’ operator on April 1,1992. Jet Airways started its
commercial airline operations on 5 May 1993 with a fleet of four leased Boeing 737-
300 aircrafts and 24 daily flights serving 12 destinations with initial investment of US$
10 Million. In January 1994 a change in the law enabled Jet Airways to apply for

18. 18
scheduled airline status, which was granted on 4 January 1995. It began international
operations to Sri Lanka in March 2004 with inaugural flight from Chennai to Colombo.
In addition to all this, it has received the ISO 9001:2000 certification, for its in-Flight
services. Currently, Jet Lite (India) Limited operates a fleet of 25 having 18 Boeing
737 series and 7Canadian Regional Jets 200 series. The airline flies to 28 domestic
destinations and two international destinations (Kathmandu and Colombo), operating
over 110 flights a day, on an average.
In May 2009, Jet Airways introduced another low-cost airline Jet Konnect with spare
aircraft that were earlier discontinued due to low passenger load factors. Jet Airways
Konnect uses the same operator code as Jet Airways. Since then the same is running
successively all over India and abroad. It has also been witnessed that CRM acts
critical to the airline industry due to fierce competition; economics relating to customer
retention is unequivocal and lastly with the help of technology with directly affects its
profitability. Other ways to increase the profitability are acquiring new customers,
optimize the value of existing customers and try retaining the customer longer. Here it
has been understood that acquiring new customer has been difficult in this industry.
Products and services offered by Jet Airways includes
On ground services, Jet Spark, Inflight Services, cargo, Jet Konnect, Jet Mall, Jet
escape, jet mobile etc.CRM at different travel Experience level is further subdivided
into Pre, Board and Post. Pre-stage consists of marketing Communication, Sales and
reservation and Check-In. In Board, Flight services are considered like arrival services,
Managing connections etc. And Post stage includes Baggage Service, Customer
feedback and Rewards in terms lounge services, miles program and upgrades.
They currently provide regular scheduled services to 42 destinations in India and two
destinations outside India, operating 1,924 flights weekly. Our aircraft fleet has grown
from four aircraft in 1993 to currently 42 aircraft comprising 34 Boeing 737 aircraft and
eight ATR 72-500 aircraft.
2004
-South African Airways ties up with Jet Airways
-Jet Airways inks pact with Hertz India to offer new services
-Jet Air announces launch of 'check fares' scheme

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2005
-Jet Airways Limited has filed its draft Red Herring Prospectus with the Securities and
Exchange Board of India (Sebi) to enter the capital market with its initial public offering.
The company will offer 17,266,801 (1.72 crore shares) equity shares of Rs 10 each
for cash at a price to be decided through the book-building process. It is learnt that the
value of each share will be Rs 870. The IPO proceeds will essentially be used to fund
its international expansion plans.
- The price band of Jet Airways' IPO has been fixed between Rs 950 and Rs 1,125.
The issue opens for bids on February 18 and closes on February 24. The total offer is
for 1,72,66,801 equity shares of Rs 10 each for cash at a premium to be decided
through a book-building process.
- Jet Airways IPO was subscribed 4.25 times on the first day of the offer. At 7:50 pm,
a total of 7.32 crore bids were received on the first day. FIIs accounted for 69.93 per
cent of the total issue and mutual funds accounted for 28.69 per cent of the total.
Insurance companies accounted for 0.61 per cent of the total bids and FIs for 0.36 per
cent.
-Jet Airways signs lease agreement with South African Airways
.
- Jet Airways launches its first inter-continental flight by linking Mumbai with London
Heathrow by a non-stop day flight here on May 23, 2005.
-Jet Airways executes purchase agreement with The Boeing Company, USA.
-Jet Airways introduce an Inflight Safety Manual in Braille
-Jet Airways signs pact with Gulf Air
-Jet Airways wins Avaya Global Connect Customer Responsiveness Award

20. 20
2006
-Jet Airways has signed a special code sharing (SPA) agreement with American
Airlines, the world's largest carrier, for India-US flights.
-Jet Airways signs contract with CAE for Boeing 777 & Airbus A330 simulators, Jet
Airways wins three Avion global Awards for In-flight Entertainment
-Jet Airways to buy Sahara for $500 Mn in cash
2007
- Jet Airways India Ltd has signed the Memorandum of Understanding (MoU) with
Lufthansa Technik AG, Germany for A330/B777 Component Works, Personnel
Assignment Services and Maintenance Management Services.
-Jet Airways inks $238mn aircraft lease agreement.
-Jet Airways India Ltd announces the introduction of its first flight from Chennai to
Toronto, via its hub in Brussels.
-Jet Airways signs MoU with Lufthansa Technik AG, Germany
-Jet Airways wins "Most Innovative Product Launch" Award for its 'First Class' Suites
onboard its Boeing 777-300ER
2008
- Jet Airways has launched daily direct flights between Mumbai and Bangkok with
effect from May 14.This will be its third service to Bangkok from the country, a press
release stated. The air-carrier already operates daily services to Bangkok from Delhi
and Kolkata respectively.

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-Jet Airways India Ltd has appointed Ms. Monica Chopra as the Company Secretary
with effect from October 01, 2008.
- Jet Airways India Ltd has won the 2008 Galileo Express Travel world Best Domestic
Full Service Airline Award for the sixth year in a row
-Jet Airways wins the "Best Cargo Airline of Central Asia" Award.
-Jet Airways Wins the 2008 Galileo Express Tradehold 'Best Domestic Full Service
Airline' Award for the sixth year in a row
2009
-Jet Airways introduces "Jet Airways Konnect" a new All Economy No-Frills services
2010
- IBM has inked a 10-year business transformation and information technology (IT)
services deal worth $62 million with Jet Airways.
2011
-CNBC awards Jet Airways as “Best domestic Airliner.
-Jet Airways - Jet Airways Takes Delivery of 100th Aircraft
.
-Jet Airways - Jet Airways declared "Best Domestic Airline".
- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated January
28, 2011 titled "Jet Airways wins prestigious customer and brand loyalty award 2011".
- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated April 19,
2011 titled "Jet Airways conferred "Air Cargo Award of Excellence 2011" by Air Cargo
World Magazine".
- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated October
14, 2011 titled "Jet Airways conferred 3 prestigious awards at the Times Travel
Honours 2011".

22. 22
-Registered Office of the Company has been shifted to Sirota Centre Sahar Airport
Road, Andheri - (East) Mumbai -400 099
2012
- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated August
27, 2012 titled "Jet Airways and ICICI bank launch Co-branded credit cards Exclusive
Travel and Lifestyle benefits await the Country's Frequent Flyers".
- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated February
02, 2012, titled "Jet Airways Declared "Favourite Full-Service Airline" At The Outlook
Traveller Awards 2011".
- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated February
03, 2012, titled "Jet Airways Declared Winner For Customer & Brand Loyalty In
"Domestic Commercial Airlines Sector"".
- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated March
22, 2012, titled "Jet Airways Rated best on time Performer amongst scheduled
Domestic Airlines in February 2012".
- Jet Airways (India) Ltd today said it, in a meeting held on May 24, 2012, appointed
Gaurang Shetty as an Additional Director and Manager of the Company with effect
from today only.
2013 -Jet Airways Jet Privilege Inks Partnership with the Mobile Store. -Jet Airways
and HDFC Bank join hands to launch ‘Jet Privilege-HDFC Bank World Debit Card. -

23. 23
Jet Airways enters into a Reciprocal Frequent Flyer partnership with Air New Zealand.
-Jet Airways launches daily direct flight from Mumbai to Singapore.
2014 -Jet Airways Launches Daily Direct Service from Mumbai to Paris -Jet Airways
Wins Prestigious ICC Supply Chain and Logistics Excellence Awards 2014. -Jet
Airways Launches Inaugural Service between Mumbai and Paris -Jet Airways Jet
Privilege Programme wins double honours at the prestigious CNN Flyer talk Awards
2014. -Jet Airways wins Best Domestic Airline award 2014.
2015 - Jet Airways designated as the Official Airline Partner for the Vibrant Gujarat
Summit 2015. - Jet Airways designated as the Official Airline Partner for the Vibrant
Gujarat Summit 2015. - Jet Airways bags Henry Sipra Humane Corporate Progress
Award - Jet Airways to launch daily flights to Amsterdam from Mumbai, Delhi and
Toronto. - Jet Airways launches non-stop services b/w India, Amsterdam.
2017 -Jet Airways introduces pre-paid pass for travellers -Jet Airways and app-based
cab aggregator Uber have joined hands to provide first and last mile connectivity to air
travellers. -Jet Airways signs MoU with Aero Mexico for codeshare flights -Jet Airways
signs cooperation agreement with Air France-KLM.

24. 24
IATA ICAO Callsign
9W JAI JET
AIRWAYS
Founded 1 April 1992
Commenced
operations
5 May 1993
Hubs Chhatrapati Shivaji
International
Airport(Mumbai)
Secondary
hubs
 Indira Gandhi
International
Airport (Delhi)
 Kuiperoidal International
Airport(Bangalore)
Focus cities Amsterdam Airport
Schiphol
Frequent-flyer
program
Jet Privilege
Fleet size 124
Destinations 67[3]
Company
slogan
The Joy of Flying

25. 25
Traded as BSE: 532617
NSE: JETAIRWAYS
Headquarters Mumbai, Maharashtra,
India
Key people  Naresh Goyal, Founder &
Chairman
 Vinay Dube, CEO
Revenue ₹252
billion (US$3.5 billion)
(FY 2017-18)
Profit ₹-6.3
billion (US$−88 million)
(FY 2017-18)
Employees 16,015 (2017)

26. 26
HISTORY
Seven decades have passed since the late JRD Tata, better known as the father of
civil aviation in India operated the first ever flight of a scheduled air service. Tata
Airlines was founded in 1938 and operated under this name until nationalization in
1953, when it was renamed Air India International and later; Air India. The Air
Corporation Act of 1953, led to the formation of two airlines – Air India and Indian
Airlines, the former designated as the country’s international airline while Indian
Airlines operated on domestic routes. The liberalization of the economy in the 1990’s
allowing private airlines to operate as Air Taxi Operators saw five major airlines come
into existence. By 1997, only two airlines remained operational, Jet Airways being of
one of them. Jet Airways has become a success story in the Indian Aviation Industry
and is one of the fastest growing airlines in the world. Jet Airways was set up with the
objective of becoming the most preferred domestic airline in the country, by providing
superior quality and reliable air travel in India. A high percentage of the domestic air
traffic comprises business travellers. Therefore, Jet Airways’ focus from the very
beginning was to emerge as the “Businessman’s Preferred Airline.”
Jet Airways began its operations on May 5, 1993, with the first flight, Ahmedabad
– Bombay (AHM – BOM 737 – 9W 322). The fleet started with 4 Modern Generation
Boeing 737 – 300 aircraft with an objective of being the most preferred airline in India
that would upgrade the concept of domestic airline to world class standards. Since
May 1993, Jet Airways has systematically and continually inducted modern generation
aircraft, and was the first to operate the B737 – 400, B737 – 500, in India, after their
launch across the United States.
Jet Airways was also the first to fly the ATR 72 – 500 aircraft in 1997 in India. This has
enabled Jet Airways to offer better connectivity and reliable air links to interior cities
and towns. Seven months later Jet Airways became the first airline to fly the 737 – 900
and also the first to fly the 737 – 700. Today, Jet Airways has one of the youngest
aircraft fleets in the world with an average age of around 3 years. The facilities of
Ansett (Australia) were used for the training and conversion of Jet Airways pilots and
engineers. To help Jet Airways achieve world – class norms in service, Speedwing

27. 27
(a British Airways Subsidiary) assisted Jet Airways in conducting a program on
Customer Service Excellence for staff across functions at all levels.
To ensure accurate and efficient reservation systems, Jet Airways tied up with and is
co – hosted with SABRE – one of the world’s best reservations systems, which was
initiated with the launch of the first flight. Within 3 months of running operations,
Jet Airways also became an associate member of IATA, a party to the IATA Multilateral
Interline Agreement and a member of the IATA Clearing House. To ensure accurate
and efficient reservation systems, Jet Airways tied up with and is co – hosted with
SABRE – one of the world’s best reservations systems, which was initiated with the
launch of the first flight. Within 3 months of running operations, Jet Airways also
became an associate member of IATA, a party to the IATA Multilateral Interline
Agreement and a member of the IATA Clearing House.
Today Jet Airways operates over 250 flights daily to 41 destinations within India and
provides over 22,000 seats per day. Passengers have a choice of multiple frequency
flights between the metros. Same day returns flights make it possible to even conduct
just half a day’s business in a distant city.
Thirty – six millions passengers have flown Jet Airways in the last 10 years. This has
not only contributed to international and domestic tourism within India but has also
provided employment opportunities to a large segment of people. Building a highly
skilled and motivated team of professionals at all levels has played a key role in
delivering world – class service. Both on ground and in the air, Jet Airways’ product
and service standards have been benchmarked against the best internationally. In
recognition of this, several global and national awards and honors have been
conferred on the airline. Jet Airways has also received the ISO 9001:2000 certification
for its in-flight services, a rarity in the aviation industry. Jet Airways is also committed
to the areas of corporate and social responsibility. The airline supports a variety of
social causes, one of which is the Magic Box initiative. This is an in – flight collection
program undertaken by Jet Airways since 1997 to facilitate the welfare activities
undertaken by Save The Children India (STCI), an NGO dedicated to empowering the
under – privileged, especially women and children across the country through health
and education based initiatives.

28. 28
1992–2005: Inception
Jet Airways Boeing 737-800wearing the 1993–2007 livery Jet Airways was
incorporated as a limited liability company on 1 April 1992, with capital investment
obtained from Tail Winds, a company registered in Isle of Man by his children Nivaan
Goyal and Namrata Goyal. It started operations as an air taxi operator on 5 May 1993,
operating flight 9W321 from Bombay to Ahmedabad.[13] In its first financial year, Jet
airways served 12 destinations in India and carried 663,000 passengers and had a
6.6% market share. The airline had a fleet of four Boeing 737-300 aircraft leased
from Ansett Worldwide, making it the first operator of the type in the country. By the
next year, it was India's second largest private airline, having carried 1.7 million
passengers in 1994. The fleet grew to seven aircraft, including three Boeing 737-400
aircraft leased from Malaysian Airlines. On 12 May 1994, all of Jet Airways' shares
were transferred to Tailwinds International, whose equity capital was held by Naresh
Goyal (60%), Gulf Air (20%) and Kuwait Airways (20%).
The airline was granted a scheduled airline status on 14 January 1995. It entered into
a marketing agreement with KLM the same year. In 1996, the airline placed a $375
million order for four 737-400 and six 737-800 aircraft from Boeing, which were
delivered between 1997 and 2000. Jet Airways was the first airline in Southeast Asia
to order the 737-800. In the financial year 1996-97, the airline carried 2.4 million
passengers and had a market share of 20 percent, second highest after state-
owned Indian Airlines. By this time, the airline had a fleet of twelve Boeing 737 aircraft,
operating 83 daily flights to 23 domestic destinations. In 1997, the Cabinet Committee
On Foreign Investment (CCFI) of the Government of India announced that foreign
airlines would no longer be permitted to take an equity stake in joint ventures with
Indian aviation companies, reversing the Government's earlier policy which had
allowed carriers such as Gulf Air, Kuwait Airways and Lufthansa to hold a maximum
40% equity stake in their joint ventures with Indian partners. In October 1997, as per
this directive, Naresh Goyal took back control of Trade Winds from its foreign
investors.
At the Paris Air Show in June 1999, Jet Airways announced an order worth
approximately $550 million for ten Boeing 737-800 aircraft. The airline purchased its
first Boeing 737-400 simulator from CAE Inc. in 2001. By April 2001, the airline fleet

29. 29
had grown to 30 aircraft and was operating over 195 flights daily to 37 destinations
within India. Jet Airways suffered losses for the first time since its establishment in
financial year 2001-2002 as demand fell and costs increased. Jet Airways was
announced as launch customer for the Embraer 175 at the Farnborough air show in
2002, with an order for 10 aircraft and 10 options worth $520 million. But the deal was
postponed due the airline's financial difficulties and eventually fell through. In 2003,
the Indian government decided to allow private carriers to operate international
services to countries in south Asia, such as Bangladesh, Nepal and Sri Lanka. and Jet
began preparations to launch international services. The airline launched its first
international flight in March 2004 from Chennai to Colombo. Jet Airways was listed on
the Bombay Stock Exchange and became public company on 28 December
2004. After the Government lifted the foreign ownership limits on Indian airlines to 49%
from the previous 40%, the airline moved to raise funds via an IPO. The
company's IPO in February 2005, which offered 20% of the airline's stock, saw strong
interest from investors leading to oversubscription in retail, non-institutional and
institutional tranches and raised Rs 18.9 billion, instantly making Naresh Goyal a
paper billionaire. Towards the end of 2004, the government had announced that
privately owned scheduled carriers meeting certain criteria could operate to all
countries apart from those in the Middle East. Then in January 2005, the Ministry of
Civil Aviation granted rights to Jet Airways to operate services to London
Heathrow. The airline started its first international, long-haul flight to London in May
2005 with two-class Airbus A340-300s sub-leased from South African Airways.
2006–2009: Growth and expansion
In January 2006,Jet Airways announced its intention to acquire Air Sahara for US$500
million in an all-cash deal; however, the deal fell through in June 2006. On 12 April
2007, the deal was back on track with Jet Airways agreeing to pay 14.5
billion (US$200 million). On 16 April 2007, Air Sahara was renamed as Jet Lite and
was marketed between a low-cost carrier and a full-service airline. Jet Lite became a
wholly owned subsidiary of Jet Airways. In August 2008, Jet Airways announced its
plans to integrate Jet Lite into Jet Airways. In October 2008, Jet Airways laid off 1,900

30. 30
of its employees, who were later re-instated due to intervention from the Ministry of
Civil Aviation. In October 2008, Jet Airways entered into an alliance with rival Airlines
for code-sharing on domestic and international flights, collaboration on frequent-flyer
program and sharing crew and ground handling equipment. On 8 May 2009, Jet
Airways launched another low-cost brand, Jet Konnect. It operated a fleet of Boeing
737 Next Generation and ATR 72 aircraft and operated on profitable short-haul routes
with higher passenger load factors.
2010–present: Consolidation
In the third quarter of 2010, Jet Airways became the largest airline in India with a
passenger market share of 22.6%. In July 2012, the airline officially sought
government approval to join Star Alliance. Jet Airways is not a member of Star Alliance
as of 2017. In June 2011, it became the first domestic airline in India to ban meat
products and liquids in check-in baggage. Jet Airways merged the Jet Lite brand into
Jet Konnect on 25 March 2012 and started offering business-class seats after the
demise of Kingfisher Airlines. In 2013, Etihad Airways planned to buy a stake in the
airline following the government's announcement in September 2012 that foreign
airlines could take a stake of up to 49% in Indian carriers. On 24 April 2013, Jet
announced that it was ready to sell a 24% stake in the airline to Etihad for US$379
million. The deal which was expected to be signed in January 2013 was postponed
and was completed on 12 November 2013. Naresh Goyal retained 51% ownership of
the stock.
In 2013, the airline lowered prices and entered into fare war with low-cost
carriers IndiGo and SpiceJet due to falling passenger demand. In February 2013, the
airline's market value dropped by ₹4.84 billion (US$67 million) owing to falling share
prices. Jet Airways made profits in the third quarter of the financial year 2013–14, after
posting losses over the previous year. Jet Airways announced on 11 August 2014 that
it would phase out Jet Konnect by the end of the year as part of plans to re-position
itself as a uniform full-service operator. On 1 December 2014, Jet Konnect was fully
merged with Jet Airways, making it the third full-service airline in India besides Air

31. 31
India and Vistara. In December 2015, Jet Airways announced the closure of its scissor
hub at Brussels Airport by March 2016 and the opening of new hub at Amsterdam
Schiphol Airport effective 27 March 2016.As of February 2016, it is the second largest
airline in India after IndiGo with a 21.2% passenger market share.
As of November 2018, Jet Airways has been reported as facing a negative financial
outlook due to increasing losses. Therefore, cost cutting measures as well as talks
have been started with potential investors or buyers.
Management of Jet Airways
Jet Airways Ltd. is an airline service provider based in Mumbai, India. It has a relatively
high market share (over 20 per cent) in the domestic market in India. Jet Airways
operates in 76 destinations daily and has operations in India, US, UK, Canada,
Malaysia, UAE, Singapore and Malaysia.
Study the company management, company profile, ownership, Board of Directors
and Organization Structure of JET AIRWAYS:
COMPANY PROFILE OF JET AIRWAYS, NSE, INDIA
Date of Incorporation 01-Apr-1992
Date of Listing 14-Mar-2005
Management

32. 32
COMPANY PROFILE OF JET AIRWAYS, NSE, INDIA
Name Designation
Naresh Goyal Chairman
Dinesh Kumar Mittal Director
Anita Goyal Director
Vikram Mehta Director
Srinivasan Visvanathan Director
Ranjan Mathai Director
James Rigney Director
RajshreePathy Director
James Hogan Vice Chairman
Gaurang Shetty Whole Time Director
Registered Office Address
Siroya Centre, Sahar Airport Road, Andheri (East),400099, Mumbai, Maharashtra, India

33. 33
Organizational Structure
An organizational structure defines how activities such as task allocation, coordination
and supervision are directed toward the achievement of organizational aims.
Organizations need to be efficient, flexible, innovative and caring in order to achieve
a sustainable competitive advantage. Organizational structure can also be considered
as the viewing glass or perspective through which individuals see their organization
and its environment.
An organization can be structured in many different ways, depending on its objectives.
The structure of an organization will determine the modes in which it operates and
performs.
Organizational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as the branch, department,
workgroup, and individual.
The following table shows the organizational structure of jet airways:
Name Designation
Amit Agarwal Chief Financial Officer
Anita Naresh Goyal Non-Executive Director
Ashok Chawla Ind. Non-Executive Director
Gaurang Shetty Whole Time Director
Hameed Ali Group Executive Officer
Kevin Knight Non-Executive Director
Kuldeep Sharma Vice President & Co. Secretary
Kuldeep Sharma Secretary
Naresh Goyal CEO
Naresh Goyal Chairman
Rahul Taneja Chief People Officer
Rajshree Pathy Ind. Non-Executive Director

34. 34
Robin Kamark Nominee Director
Sharad Sharma Independent Director
Shrimanikandan Ananthvaidyanathan Chief Information Officer
Vinay Dube Chief Executive Officer
Competitors
 Vistara
 Indigo Airlines
 Air India
 Go Air
 Spice jet
 Singapore Airlines
 Emirates
In January 2005, Air Deccan expanded its service to high-traffic destinations like
Mumbai, Delhi, Bangalore, Hyderabad and Chennai by increasing the number of
flights, at fares that were 30-70 per cent of the standard fare of the existing airlines.
Aviation experts anticipated that this move of Air Deccan would incur the anger of its
competitors - Jet, Sahara and Indian Airlines. There was no indication of exactly how
this battle would be played out, but aviation experts were certain that Jet and Sahara
would start a price war7 to push the fledgling airline off the tarmac – permanently. This
was not, in Gopinath’s opinion, an intelligent approach. He was prepared for the
eventuality of the full-service airlines reducing the air fares. The knowledge that these
airlines could afford to lose money in their determination to oust Air Deccan from the
industry, did not bother him since he was prepared for that. Gopinath banked on the
fact that he already had the advantage of low fares. In addition to this he could afford

35. 35
to further reduce the fares to the point where he broke even since his cost structure
was much lower than that of the e FSAs. His competitors, Gopinath emphasized,
should understand that LCA was a different market altogether, one that called for a
completely different model. According to sources, almost as a precursor to the battle
looming on the horizon, intense lobbying with the civil aviation ministry was begun.
Aviation experts said the two operators of what the industry calls full-service airlines
attempted to erect entry barriers. After all, it could well be a matter of their survival. In
market after market - be it in the US, Europe and, now, Australia and South-east Asia
- the low-cost model had expanded the market, and gained a significant share. Full-
service airlines had responded in one of the three ways open to them: restructured
their operations, launched their own low-cost airline or simply exited from the industry.

36. 36
Crisis faced by jet airways
Crisis 1: 1900 Employees Sacked and Then Reinstated
Jet had been constantly incurring losses since 2007-08."Buying Sahara was a big
strategic mistake by Jet. This happened at a time when Jet was growing aggressively
on the international front and facing tremendous competition in local market’, said the
India head of the Centre for Asia Pacific Aviation (CAPA). The first sign of real trouble
in Jet became apparent in 2008 when Naresh Goyal entered into an operational tie-
up with arch rival Vijay Mallya’s Kingfisher. Sacking of 1900 employees This step was
followed by Jet sacking 1,900 cabin crew members in October 2008, all probationary
and temporary workers, across all categories and departments. It was justified as an
attempt to switch to leaner business models and cost-optimize the business operations
of the airways. According to Jet, the layoffs were "unfortunate" but "unavoidable"
because "everybody is bleeding" as the cost of business has gone up by 30 percent
and the alliance is aimed at reaping "maximum synergies." "The economic viability of
the industry has been severely affected by the record high fuel prices and most
recently due to the crisis of the financial markets globally and the downturn in traffic,"
Jet Airways said in a statement. "Jet Airways expects these difficult market conditions
to continue." Jet Airway CEO Wolfgang Pock
Schaeu and Executive Director B Saroj Datta held a press conference in Mumbai
where they explained the company’s decision to terminate the services of company
employees. "It is an unfortunate decision, which all of us in the company regret. A total
of 1,900 people is being served separation notice. 800 have already been served
notice. In the next few days the others will also be served notice. It is an attempt to
save the jobs of remaining 11,100 employees," said Dutta at the airline’s headquarters
in Mumbai. He said the decision to terminate the employees had nothing to do with
the alliance entered into with Kingfisher. "It (alliance) has nothing to do with the
workforce of the companies. These are independent decisions of the two companies."
It resulted in a severe backlash not just from employees but also from the government,
political parties and regulatory bodies who forced the airline to take back the sacked
people. It was in fact an example showcasing the importance of managing
stakeholders in a change management plan. Some commented on the manner in

37. 37
which it was conducted-employees waiting at home for office transport found that the
vehicles never came; when some of them reached the airport on their own, they
discovered that their jobs were in jeopardy. Reinstatement of 1900 employees Jet
Airways chairman Naresh Goyal, in a dramatic press conference late on Thursday
night, said his airline would take back each and every one of the 1,900 sacked Jet
employees because he understood their pain and “would not be able to sleep
peacefully” if he did not reverse the retrenchments. “I apologize for all the agony that
you went through,” Mr Goyal said, his statements directed at the retrenched staff. The
volte face caught everyone by surprise. Jet Airways Chairman Naresh Goyal
reinstated the employees a day later saying that he was not aware of these sackings.
“I was not there when this decision was taken. I came to know about it later." “I have
not been able to sleep all night. I apologize for what has happened,” an emotional Jet
Airways Chairman Naresh Goyal told reporters at a late-night press meet. “I request
all of you to start work from tomorrow morning,” he said. Goyal said his conscience
did not allow economic consideration to be the reason for sacking employees. “When
I saw the tears rolling down some of the workers face, I was moved. I cannot see you
all unhappy. My workers are like my family members,” he said. “It is my personal
decision as father of the family”. The company had said it was forced to trim staff to
cut its losses but Goyal claimed that he had not been consulted before the Jet senior
management ordered the retrenchment. This statement was contradictory to the
earlier ones and puzzled quite a few analysts. The Indian aviation industry was going
through a tough phase and experts felt that it was in the interest of the company to
retrench employees to remain competitive. Experts largely felt that Goyal had
capitulated under pressure from external parties while others felt that all may not be
well with the organizational communication mechanisms at Jet.

38. 38
Crisis 2: The Pilots Revolt
Formation of the NAG
The retrenchment and then the reinstatement saga had bred insecurity among the
employees. The airline pilots did not have any union and being contract employees
could be shown the door anytime. It was reasoned that the current financial crisis may
badly affect the lives of the younger pilots who may be laid off any time as the mass
sacking had indicated. This led to the formation of the National Aviators Guild the NAG.
On July 24 2009, the NGA - National Aviators Guild- was registered by the Regional
Labour Commissioner. Captain Sam Thomas and one of his colleagues played a
significant role in the formation of the Union. The Email Announcing the Termination
of Service on July 31, 2009, the two senior pilots of Jet Airways, who were both office-
bearers of the newly formed NAG, were dismissed. They were sent a single-line e-
mail stating that their services were terminated with immediate effect and no reasons
were assigned for the same. Management alleged that the two captains went around
coercing pilots into signing the union membership form. The pilots on their part
maintained that their request for discussion and representations were ignored by the
management. According to the pilots their appeals fell on deaf ears; NAG issued a
strike notice on August 24, 2009. Jet's Executive Director Saroj Datta stated that the
reason behind sacking pilots were internal disciplinary issues and the lawyers were
duly consulted before the sacking of pilots. The pilots had gone on mass leave without
making any attempt to talk with management, he said, adding, that the move resulted
in disruption of operations and caused huge losses to Jet. On his part, Thomas, the
joint secretary of NAG said, any sacked employee deserved an explanation and he
was not given any for his retrenchment. By not officially calling it a strike, Thomas said
the pilots were still within the law.140 sick. “There are no talks so far. We have not got
any invite from the management side showing their willingness to talk to us," he
claimed. The pilots maintained that they would not return to work until the management
took back four colleagues who were sacked. Two of them were allegedly shown the
door 45 days ago for forming a union – the National Aviators Guild (NAG) – while the
other two were sacked as the protest action began. The four-day strike had led to the
cancellation of nearly 700 flights, costing hardships to over 28,000 passengers. The
stalemate between the striking pilots of the Jet Airways and its management failed to
come to an end even on the fourth day as talks held between the two factions remained

39. 39
inconclusive. The next round of discussion was expected to take place on Saturday in
Mumbai, said television reports on Friday evening. Conciliation talks between agitating
Jet Airways pilots and the airline management were held in the national capital before
the Chief Labour Commissioner to break the deadlock that has severely disrupted
flights across the country. Besides Chief Labour Commissioner S K Upadhyay, the
talks were reportedly being attended by Jet executive director Saroj Dutta, CEO Hafiz
Ali and head of operation Captain Mohan. The pilots’ body National Aviators Guild
(NAG) was being represented by its president Captain Girish Kaushik and Captain
Sam Thomas. The conciliation meeting under the auspices of the Labour
Commissioner on August 31 did not produce the desired result and the management
was asked to furnish the reasons for the sacking of the two pilots by September 7.
They failed to comply and the Labour Commissioner fixed the next meeting for
September 14. A few days later Jet terminated the services of a few more senior
captains and also obtained a Contempt of Court order from Mumbai High Court, on
September 9, 2009. This move actually firmed up the determination of the pilots to
keep close ranks in support of their dismissed colleagues. Goyal further incensed the
pilot’s association when he referred to the pilots as 141 terrorists; that they were
holding the country to ransom and announced that he would bring in foreign pilots to
cope with the situation.

40. 40
CHAPTER 5
RESEARCH METHODOLOGY

41. 41
RESEARCH METHODOLOGY
Research in common pursuance refers to a search for knowledge in a scientific and
systematic way for pursuant information on a specified topic. Once the objective is
identified that next step is to collect the data which is relevance to the problem
identified and analyse the collected data in order to find out the hidden reasons for the
problem. There are two types of data namely:
1. Primary Data
2. Secondary Data
1. PRIMARY DATA
Primary data is to be collected by the concerned project researcher with relevance to
his problem. So, the primary data is original in nature and is collected first hand.
Collection of primary data
There are several methods of collecting primary data particularly in surveys and
descriptive researches. Important ones are as follows:
1.Observation Method
2.Interview Method
3.Questionnaire
4.Schedules and
5.Other methods which include
1) OBSERVATION METHOD:
It is the most commonly used methods especially in studies relating to behavioural
sciences. This method implies the collection of information by way of investigators own
observation, without interviewing the respondents. The information obtained relates to
what is currently happening and is not complicated by either the past behaviour or
future intentions or attitudes of respondents.

42. 42
2) INTERVIEW METHOD
The interview method of collecting data involves presentation of oral, verbal stimuli
and reply in terms of oral-verbal responses.
This method can be used through personal interview and, if possible, through
telephone interview.
3) QUESTIONNAIRE METHOD
The researcher and the respondents do come in contact with each other if this method
of survey is adopted. Questionnaires are mailed to the respondents with a request to
return after completing the same. It is the most extensively used method in various
economic and business surveys & research. Questionnaire to be used must be
prepared very carefully so that it may prove to be effective in collecting the relevant
information.
2. SECONDARY DATA
There are several types of secondary data. They can include information from the
national population census and other government information collected by Statistics
Canada. One type of secondary data that’s used increasingly is administrative data.
This term refers to data that is collected routinely as part of the day-to-day operations
of an organization, institution or agency. There are many numbers of examples: motor
vehicle registrations, hospital intake and discharge records, workers’ compensation
claims records, and more. Compared to primary data, secondary data tends to be
readily available and inexpensive to obtain. In addition, administrative data tends to
have large samples, because the data collection is comprehensive and routine. What’s
more, administrative data (and many types of secondary data) are collected over a
long period. That allows researchers to detect change over time. These are the data
which are collected from some secondary source i.e. the source of reservation storage
where the data is collected by one person and used by other agency. These are
collected as primary data and used by other as secondary data.

43. 43
NOTE: Only Secondary Data Is Used While Preparing this Project Report. Since
this project is based on secondary data all the disadvantages of using
secondary data apply here. Analysis is also based on secondary sources.

44. 44
CHAPTER 6
Limitation of the Study
 LIMITED TIME PERIOD: Due to limited time the research could not be
conducted on large scale.
 SECONDARY SOURCES: The project is based on secondary data only.
Hence the results may not be very accurate.
 SCOPE OF INACCURACY: The sources from which secondary data is
collected may not be accurate so there is a scope of inaccuracy.
 INFLUENCE OF PEOPLE: The survey is subjective in nature and can be
influenced by personal bias of clients.

45. 45
CHAPTER 7
ANALYSIS & INTERPRETATION

46. 46
ANALYSIS & INTERPRETATION
 SWOT Analysis
Strengths:
Vertically integrated operations: Jet airways offer passenger and cargo
services and also leases aircraft. The company operates in various parts of the world
and has vertically integrated all operations which allow it to cater to a wide range of
customers, which gives it a competitive advantage.
Focus on innovationthrough IT and E-Commerce: Jet Airways combined
its services with travel packages to provide customers with an end to end experience.
Also, it has launched its smartphone airline application to help users. Such initiatives
help the company to enhance operational performance.
Strong networkportfolio: Jet airways has a strong base of a fleet and a strong
network to go with that. The company has 116 aircraft under its banner with
20 international 48 local destinations in India. This helps the company to improve
operational margins.
Alliance with Etihad Airways:Jet Airways strategically alliance with Etihad
Airways to expand into new markets. The partnership increased the airline’s
international reach.
Weaknesses:
Negative margins are worrying: Jet airways recorded negative growth in FY
2015, despite the increase in revenues. The operating margin was (-6.2%) down and

47. 47
net margin was (-9.6%) down year on year. Such negative margins affect the
company’s future plans.
Limited market share: Jet Airways competes with various private and public
airlines domestically and internationally and hence the market share gets limited and
growing market share becomes difficult.
Negative margins affect the future growth plans:
The net margins of the company recorded negative figures in FY2013, despite growth
in its revenues. For instance, the company recorded a negative profit margin of 4% in
FY2013, although its revenues increased by more than 13%. The company reported
net loss was INR7,798 million ($142.7 million) in FY2013, as compared to the net loss
of INR14,201 million ($259.8 million) in FY2012. However, the net margins have
improved from the last fiscal but remained in negative values. Therefore, consistent
negative margins for the company could negatively impact shareholder's confidence
in the company thus affecting its future growth plans.
Opportunities:
Growing global tourism industry: The international tourist arrivals increased
by about 4.4%as per the World Tourist organisation (UNWTO) in the year 2015. The
company operates in over 20 international destinations and is going to be benefitted
by the growth.
Strategic Alliances wide reach: Jet Airways should look to the further alliance
with other international airlines, like partnering with Etihad Airways, in order to further
expand across the globe.
Positive growth in Indian airline industry: The Indian airline’s industry has
shown rapid and exponential growth in the recent years. With a CAGR of 11% in the
period 2011-2015, the industry has expanded its operations and increased number of

48. 48
flights in almost all the routes. The industry is further expected to grow at a similar
pace and hence it is beneficial for jet Airways.
Threats:
Intense competition in the aviation industry impacts the domestic
market share:
The competition in the airline industry has been intensified with the emergence of low-
cost carriers in the East Asian region. The low fare charged by these budget airlines
makes Jet Airways' airline operation less competitive. In the long-haul market, the
company faces competition from local operators in most geographical areas, including
Middle East and Asia. Further, as a result of increasing business travel, a number of
customers are increasingly looking towards air travel options which allow them to
minimize stoppage time at airports caused due to various reasons, including baggage
handling and refuelling. This has led an increasing number of business organizations
to invest in private jets, which are jointly owned along with certain airlines, or
completely owned.
Moreover, the recent policy reversal by the Indian Government allowing foreign stakes
in airline. Companies in India may result in the launch of new airlines in the industry,
further increasing the competition. For instance, Malaysian low-fare airline AirAsia in
partnership with the Tata Group plans to establish a domestic Indian airline in the
coming years. Thus, the growing number of low cost and low fare airlines and the
increasing number of private jets could impact Jet Airways domestic market share.
Regulations increase compliance costs: In the aviation industry, in
particular, a company has to abide by many statutory, transport and environment etc.
regulations which increase its compliance costs and hence affects operating margins.
Statutory regulations incur additional costs and impacts the
operating margins:

49. 49
As an airline operator, the company undertakes operations based on the stipulations
of statutory regulations relating to airline operations. Jet Airways is required to conduct
passenger operations
and cargo operations on international routes in accordance with the stipulations of
international agreements. These stipulations include treaties, bilateral agreements,
and the decisions of the International Air Transport Association (IATA). A violation of
specific laws and regulations by the company could result in the imposition of fines
and penalties.
The company is also subject to numerous statutory environmental protection
regulations. These regulations are imposed on airline companies with regard to issues
such as aircraft emissions of greenhouse gases, use of environmentally polluting
substances and their disposal, and energy usage at major offices. Jet Airways
shoulders a considerable cost burden in order to adhere to such statutory regulations.
If the current regulations are strengthened or if new regulations, such as environmental
taxes, are introduced, the company has to incur large additional costs, which would
impact the Jet Airways' operating margins.

50. 50
Factors for Success
India – An Investment Destination
India is emerging as a preferred investment destination for various industries that are
planning to expand their operations. The investment by foreign firms in India is
increasing at a brisk pace as a result of the country’s low labour costs and the
availability of talented professionals. Various European firms are scouting for alliances
with Indian companies. This has increased the air traffic to India, and Jet Airways is
capitalising on this opportunity to expand its international operations to the EU and
other regions.
Tapping the NRI market
With its international operations, Jet Airways has tapped the large non-resident
Indians (NRIs) segment that resides in the USA and Europe. The company’s
advantage of being an early entrant has helped it in tapping this segment. It is
leveraging its established brand name in the domestic market, and has developed a
good hold in the market abroad.
Favourable Government Reforms
The new reforms introduced by the Indian government have provided momentum to
the growth of Jet Airways. Reforms, such as liberalisation of international skies
(permission to fly to certain international destinations) for private domestic airlines,
abolishing Foreign Travel Tax, reducing excise duty on air turbine fuel (ATF) from 16
per cent to 8 per cent and increasing foreign investment limit from 40 per cent to 49
per cent, have promoted Jet Airways’ growth in international operations.
Tourism Driving the Growth
The Indian tourism industry has also been driving the growth in international air traffic
to India. Growing at a considerable pace, the travel and tourism expenditure is
estimated to register a CAGR of 8.8 per cent for the decade starting from 2004
onwards. In 2005, 33 per cent of tourists in India were from the UK and the US.Almost
255,000 tourists annually visit India from the UK, the primary reason being the strong

51. 51
cultural links between the two nations. A healthy growth of the Indian tourism industry
has also helped Jet Airways to increase its international operations.

52. 52
Reason behind the downward trends faced by jetairways due to the
financial disturbances:
Nowadays, the passengers have more options to travel by preferable airlines. So,
success to meet needs and expectations is assumed to be the result in satisfaction
with the service. Jet Airways, today, recognize that it can compete more effectively by
distinguishing itself with respect to service quality and improved customer satisfaction.
Jet Airways would like to know passengers whether they have been satisfied by the
quality and service of Jet Airways. So, the study of customer satisfaction has been
conducted.
Jet Airways India Ltd. has missed a payment to Indian lenders as the country’s second
largest airline by passengers struggles to raise funds after losses worsened a cash
crunch.
The missed payment prompted a downgrade on ratings of its loans and bonds by
credit assessor ICRA to D, a score that signifies that borrowers are in default or are
expected to be soon.
The beleaguered carrier said in an exchange filing that payment of interest and
principal instalment due on Dec. 31 to a consortium of Indian banks led by State Bank
of India “has been delayed due to temporary cashflow mismatch” and that the
company “has engaged with them in relation to the same.” The filing didn’t specify the
amount due and didn’t provide further details.
Crushing fare wars are a hallmark of India’s intensely competitive aviation market, and
Mumbai-based Jet Airways hasn’t seen a profit in nine of the past 11 fiscal years. The
company reported its third straight quarterly loss in November with surging liabilities
that signalled a deepening of financial distress. A weakening rupee also added to its
woes. It has fallen behind on payments to staff and lessors.
Jet Airways has been talking to its foreign equity partner Etihad Airways PJSC and a
clutch of financial investors to avoid potential defaults to lenders and lessors, people
familiar with the matter said. It has also sought a short-term loan of 15 billion rupees
($216 million) from State Bank of India for working capital and the bank is currently
conducting a forensic audit for possible approval of such a facility, according to the
people.

53. 53
Basic Pointers that have led to an apparent downfall in JAI finances:
1. Heavy increase in Fuel Prices.
2. Dollar-Rupee conversions.
3. Airlines struggling for market share than for profits (Leading to Lower Price wars which
are unhealthy for industry growth)
4. Currently, it's not able to repay a debt hence causing a reduction in its credit score.
5. Higher Cost Per Available Seat kilometre (CASK) than Revenue per Available Seat
Kilometre (RASK).
Amongst all these shortcomings (most of which are external (out of company's control)
factors Jet Airways has improved a lot in its On-Time-Performance (OTP) and
customer satisfaction using limited resources which is quite appreciable.
Geographic concentration exposes to risk of downturns in macroeconomic conditions.
Although Jet Airways has expanded to other international regions, it still depends on
Indian market for majority of its revenue. In FY2013, the company generated about
48.1% of its revenue from India. This over-dependence on the Indian market may have
a dampening influence on the company’s revenues if the economy and/or the
company’s sales in India do not grow as expected. High dependence on the domestic
market may restrict Jet Airways’ income growth to the local economy. It makes the
company susceptible to changes associated with the economic and political situation
of the country. Thus, the company’s high reliance on one market exposes it to the risk
of downturns in the country's macroeconomic conditions and amplifies its business
risk.
The future growth plans of jet airways were affected by the negative margins that is
the net margins of the company recorded negative figures in FY2013, despite growth
in its revenues. For instance, the company recorded a negative profit margin of 4% in
FY2013, although its revenues increased by more than 13%. The company reported
net loss was INR7,798 million ($142.7 million) in FY2013, as compared to the net loss
of INR14,201 million ($259.8 million) in FY2012. However, the net margins have
improved from the last fiscal but remained in negative values. Therefore, consistent
negative margins for the company could negatively impact shareholder's confidence
in the company thus affecting its future growth plans.

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Volatile fuel prices pressurize the margins and profitability of the company. Jet fuel
forms the main raw material used in the airline industry. The cost of jet fuel formed a
significant part of the total expenses for the company. Fuel costs increased by 5% to
INR69,920 million ($1,279.5 million) for FY2013 from INR66,306.7 million ($1,213.4
million) in FY2012. This increase was mainly due to an increase in the aviation turbine
fuel (ATF) rates on account of increase in crude oil prices.
The average rate per litter of fuel for domestic operations in FY2013 was INR67.1
($1.2) vs andINR60.2 ($1.1) for FY2013. The average rates for international
operations were INR48.9 (approximately $1) in FY2013 vs INR43.4 ($0.8) in FY2012.
Moreover, the demand for petroleum and related products has historically been
cyclical and sensitive to the availability and prices of oil and related feedstock.
Historically, international prices of crude oil and refined products have fluctuated
widely due to many factors that are beyond the control of companies like Jet Airways.
For instance, according to IATA, the average price of jet fuel in Asia and Oceania
region stood at $122.5 per barrel in January 2014, a decline of 6.9% over the past
year. The average fuel price was $124.6 per barrel in 2013 which impacted the overall
fuel bill of the airline industry by $4 billion. Hence, a sustained volatility in aircraft fuel
prices could negatively impact the Jet Airways costs which in turn would pressurize its
margins and profitability.
Jet Airways has informed its employees that they would have to take an up to 25% cut
in their salaries as cost of operations for airlines is increasing on the back of rising
crude and a falling rupee. Salary cuts are in the range of 5% (for those earning Rs 12
lakh annually) to 25% (for those earning Rs 1 crore and above) starting this month.
Jet said senior management had already taken pay cuts. This decision hasn’t gone
down well with the pilots, who have not agreed to a pay cut in a market that is struggling
with a huge deficit of pilots, especially commanders. In a similar move last year, the
airline had reduced the salaries and other benefits of about 350 junior pilots by about
30% from August.
Financials
The company is listed in the Bombay Stock Exchange. 51% of the stock is owned by
Naresh Goyal through his company Tailwinds International and the remaining 49% by
other investors. The following table presents the key trends for Jet Airways and its
subsidiaries:

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Profitability challenges
After two consecutive years of profits in fiscal 2016 and 2017, Jet incurred losses of
about Rs 76 crore during FY2018. Industry analysts say it is likely to report a loss of
Rs 1,000 crore in the first quarter of the current fiscal. Jet is not the only carrier that
has witnessed a decline in profitability.
2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenue
(₹:
INR bn)
122.3 147.2 170.6 174.0 177.1 202.8 229.0 236.7 251.8
Profit (:
INR bn)
−16.4 −17.3 −14.2 −4.8 −36.7 −18.1 11.7 4.4 −6.4
Departur
es
131,1
08
146,8
76
175,6
46
169,2
54
173,7
23
176,4
06
202,8
16
202,2
65
211,9
64
Number
of
passeng
ers (Mn)
12.0 14.6 17.3 16.8 17.2 19.4 23.4 24.4 27.2
Load
Factor
(%)
77.4 78.6 79.3 78.8 78.2 82.4 82.6 81.4 83.5
Number
of
aircraft
(at year
end)
86 97 102 95 101 107 116 113 112

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Indigo, India’s largest carrier by passengers flown, has reported a 91% drop in profits
for the first quarter of this fiscal. The bottom line of airlines is getting hit due to high
cost but lower yields in India, which is the largest growing market in terms of passenger
growth on the globe. Analysts say fall in yields is due to airlines not being able to
charge a premium on fares booked at the last minute.
Why the pay cuts
The airline says pay cuts are part of its cost-cutting exercise. “As part of its cost
rationalisation measures, the airline continues to evaluate all initiatives to achieve
greater business efficiencies. Payroll is one of the important components of cost
structure and the senior leadership has undertaken a reduction in salary to lead by
example,” the airline told ET.
In a statement, the airline said it was focusing on creating a healthier and more resilient
business and that it had been implementing several measures to cut costs and raise
revenue margins. The airline has also said that that it was committed to sustainable
growth and was planning to add 225 B737 MAX aircraft. At least 11 of these aircraft
would be inducted this year, it said.
Jet has refuted "speculative comments from certain vested interests", terming them
"deliberate attempts to undermine Jet Airways’ transformation efforts".

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Future Plans
Expanding Current Markets
Jet Airways has plans to expand its existing international operations in the UK and
Asia. It plans to increase the frequency of flights to the existing destinations and also
start operations to new destinations. It would strengthen its overall network by
supporting its international operations through its already established domestic
network.
Ambitious Expansion Plans
Jet Airways has plans of ambitious international expansions in the future with
estimated capital expenditure of approximately EUR 2 billion over the next three to five
years for 30 additional widebody and narrow body aircraft. It is expected to increase
its fleet size from 53 aircraft in FY 2006 to 79 aircraft by FY08. Most of the purchased
aircraft will be used on international routes. The management also plans to develop
its own maintenance hangars and a pilot training centre. It plans to launch air services
to key destinations across the world including USA, Canada, UK, South Africa, Kenya,
Mauritius, points in China and South East Asia and some points in Europe like
Brussels, Rome and Zurich.

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CHAPTER 8
Conclusion and recommendation
Conclusion:
From the gathered data, it is shown the importance of customer satisfaction and how
it can link to delighted customers. The benefits derived from the literature review are
as follows: -
1. It can help us to understand concept of the topic, which has been done.
2. Many ideas guide us how to do and analyse the project report
Recommendation:
Overcome the downward trends:
Hit by high fuel costs and continued price war in the domestic market, Jet Airways,
India's second largest airline in terms of market share, reported a huge net loss of Rs
1,261 crore in the July-September quarter, versus a profit of Rs 71 crore a year ago.
Its total revenue for the quarter stood at Rs 6,363 crore, up 7 per cent from a year ago.
“The tough industry environment in the backdrop of a sharp rise in bent fuel price by
more than 50 per cent over second quarter FY18, a depreciating rupee and a
challenging pricing situation in an over-capacitated domestic market, continued to
undermine Jet Airways’ performance for the quarter,” the airline said.
It’s not just Jet Airways that has been hit. The aviation sector as such is facing turbulent
weather, with costs rising and airlines in no mood to raise ticket prices in the wake of
fierce competition. Earlier, Interglobal Aviation, the parent of India's largest carrier

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Indigo, had reported a loss of Rs 652 crore, its first quarterly loss since it went public
three years ago.
There has been speculation in recent days that rivals including Tata Group and US-
based Delta Airlines have held talks with Jet for potential stake acquisition as the
airline is in desperate need of funds. None of the parties have officially commented on
the matter.
The airline continues to engage with financial stakeholders for supporting its funding
requirements till it starts generating operational surplus and is “actively” working on
the monetisation of assets and capital infusion, Jet said on Monday.
Vinay Dube, the CEO of Jet said the airline was clearly focused on getting back to
profits and he was confident of overcoming the headwinds.
“With our clearly defined focus on profitability, we are in the midst of turning the ship
around. We are confident that we will overcome our current challenges, honour our
commitments to our stakeholders, and deliver a more strategic, efficient and financially
viable airline,” he said.
Dube further added that the airline is “closely engaged” with its partners, who
acknowledged the challenges faced by the Indian aviation industry and had been “very
supportive.” The airline's focus would remain on safety and operational reliability as it
navigated the challenges, he said.
The airline has embarked on a comprehensive review and consolidation of its network
involving routes and markets, as well as products and services offered. The measures
will include rationalisation of operations on select, uneconomic routes and the
redeployment of these assets to more productive and economically efficient
international as well as domestic sectors, closely aligning capacity with market
demand.
Earlier this month, Jet Airways started direct flights from Mumbai to Manchester in the
UK and is launching three additional services to Singapore from Mumbai, Delhi and
Pune. It also intends to launch additional frequencies between Delhi-Bangkok,
Mumbai-Doha, Delhi-Doha, Mumbai-Dubai and Delhi-Kathmandu in the winter
schedule.
The company had earlier outlined plans to save costs in excess of Rs 2,000 crore over
the next two years, as a part of its turnaround strategy. In the first half of the current

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financial year, the airline said it has already realised costs savings of over Rs 500
crore.
Currently they are in a critical state (though not as bad as portrayed by
media). The various techniques to turn around them can be:
1. Aircraftconfiguration rationalization: Oneofjet’s problemshasbeen
the way their aircrafts are configured.
Their B777s have 346 seats which include 8 First Class suites. For more than a
decade jet hasn’t been able to generate significant revenues from those suites
although they won the “most innovative first class “award in 2008 and was one of the
first airlines in the world to have private suites in 2007. That F class need to be
removed asap. In fact, their int’l business class is mostly packed to the grills. So what
jet is trying to do is reconfigure their B777s in such a way that their business class
product becomes an upgraded and “world’s finest” as per their CEO. Well I won’t try
to challenge the phrase “world’s finest” because in 2007 their business product was
really one of the world’s best. Having a modern business cabin and adding more
economy seats in the place where currently their First class is placed will take the total
seats to 390–400. Nice cost reduction without comfort reduction.
2. Network rationalization
In terms of network restructuring I would suggest the following:
 Suspend AMS-YYZ. Yes, that fifth freedom route is no use and it’s not needed for jet
to operate a frequency in it that too with their 777. Better leave that to their JV partner
KLM. In fact, the 777 which will be spared after cutting that route can be used
elsewhere.

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 Down gauge MAA-CDG. That route is less business traffic centric and has terrible
yields although load factors are high. An a333 with 34 business seats isn’t required
here. Better if jet tries the a332 here which has 18 business and 256 economy seats.
 Launch BOM-MAN but only 4 weekly because MAN is overhyped and has less
business traffic to support a daily flight jet is planning to do. And it will be good if they
don’t go after Manchester airport demands of launching DEL/BLR -MAN. Both will be
terrible.
3. Staff costs
No, I don’t want the salaries of staff to be cut but what jet can try is reduce their staff
to aircraft ratio. It’s currently 130:1 down from 150:1 in 2015. It should be reduced
more by proper rationalization of staff. Like for example as I mentioned above about
reconfiguration of jet’s 777s, if they have only business and economy instead of First,
business, economy they’ll require 2 less flight attendants for a route. This way staff
rationalization can be done.
4. Unbundling products
Jet is currently FSC but everyone flying jet won’t care about FSC services. What can
be done is meals in economy can be unbundled. They can try launching something
like Economy Lite of Vistara. That saves meal costs significantly. After all there are
many who don’t care whether they get anything to eat or not in a flight. And there are
people who won’t be happy with a snack box and might want full hot meals. Simple
way “unbundle the two”. This way they can follow the principle of “make the customer
realize services come at a cost”.

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CHAPTER 9
BIBLIOGRAPHY
WEBSITE:
 https://www.jetairways.com
 https://www.servicemanagement.com
 https://www.jetair-ways-marketingservices.com
BOOKS:
1) Service Marketing: Integrating Customer Focus Across the Firm (2003) by Valarie A.
Zeithaml and Mary Jo Bitner.
2) Service Marketing (1999) by Roland T. Rust, Zahorik J. Anthony and Tinothy L.
Keiningham.
3) “Gaining Altitude” from the Economics Times Bangalore on 5th June 2003.
4) “10 years of service and growth” from Jetwings Magazine, vol.3, May 2003