jet airways case study ppt

1. JET AIRWAYS: Come Fly With
Me’ To ‘Flying Without Wings’
Submitted To:
Prof. Raghavendra
Prepared By:
Shivendra Pratap Rao

2. Introductio
n
• Started by Naresh Goyal as Air Taxi Operator in April 1992
• Started Indian commercial airline operations on 5 May 1993
with a fleet of four leased Boeing 737-300 aircraft
• Scheduled airline status was granted on 4 January 1995
• Initial investment of US$10 million
• 80%of its stake controlled by Naresh Goyal
• Jet’s parent company, Tail Winds Ltd.
• Began international operations to Sri Lanka in March 2004.
• Jet, is headquarters in Mumbai, India

3. Introductio
n
• Operates over 370 daily flights to about 68 destinations both
in India and international (abroad)
• Listed in the NSE in the year 2005
• Includes major cities like Mumbai, Delhi, Chennai, Jaipur, etc.
• Second Leg cities like Aurangabad, Patna, Nagpur, etc.
• 21 international destinations in 17 countries across Asia,
Europe & North America
• International destination includes cities like San-Francisco,
New York, Singapore, London (Heathrow), Hong Kong,
Colombo, Abu Dhabi, Dubai, etc.

4. Fleets Of
Aircrafts
98 Airplanes in total
• Airbus330--200--(12)
• ATR72 --500--(14)
• Boeing737--700--(11)
• Boeing737--800--(42)
• Boeing737--900--(2)
• Boeing777—300ER*--(11)
*Includes aircraft that have been leased to otherairlines
Airbus33
0
Boeing 737-
700

5. Service Offerings
Jet Konnect
• Launched on 8 May 2009 to close down loss making routes
• Divert planes to more profitable routes with higher passenger
load factors.
• Started 54 flights a week, rose to 125 flights, target of 160
flights a week
Jet Escapes
• A holiday package to a particular destination
• Option to earn JPMiles on each holiday availed

6. Service Offerings
Jet Mobile
• Access information such as flight status, schedules, set alerts
or automatically receive flight delay messages
• Request for your JetPrivilege account details
• Search for the lowest fares on Jet Airways
Jet Viva
• Interaction forum for women travelers
• Modern fashion trends, spa getaways, high end cosmetics

7. Service Offerings
Jet Lite
• Acquisition of Sahara Airlines
• Low cost carrier
• Wider reach
Jet Kerala
• Tourism packages to Kerala and Madhya Pradesh
• Special offers during summer vacations and new year

8. On-board
Services
• Check-In options
• Airport lounges
• Bus Services
• Cuisines
• Entertainment

9. Porter's 5
Forces

10. Bargaining power of Buyer -
High
• Standard product and services
• Several options available to customers
• No switching cost – customer need a reason to stay
• Customer can research easily using the internet
• Customer incentives such as JPMiles which allow customers
to earn rewards, book flight in an easier/faster manner, and
stay on top of the upcoming event/sales
• Customer loyalty does not come cheaply – the average Indian
flier expects more by paying less.

11. Bargaining power of Supplier -
High
• Cost of fuel has risen in the years
• Airplanes are mostly created by 2 manufacturers :
Boeing and Air-Bus
• Aviation personnel are very few in number. The pay
demanded are very high.

12. Threat from new entrants -
Low
• Very high cost or capital required for entry
• Low profit margin
• Difficult to differentiate product & services
• Brand image and loyalty is important
• New airlines must be seen as safe and reliable
• Large airlines are very aggressive
• Premature domestic market

13. Competitive rivalry -
High
• Competitors like Kingfisher, Indian Airlines, Indigo
• In times of low or moderate industry growth,
the competition gets fiercer as each one
tries to nab customers from the other in
order to keep their capacity utilizations
at acceptable levels
• The industry is extremely sensitive
to economic cycles
• Ambush marketing campaigns

14. Competitor
Analysis
Domestic Market International Market

15. Crises
• The merger between Sahara Airlines and Jet
Airways was a mistake on Jet Airways' part.
Sahara was acquired by Jet Airways for $500
million which was way above what the airline
was actually worth.
• Every company and organization rests on the
of its management board; there are no
opinions to this school of thought. Naresh
founder of Jet Airways, decided to become a
army for Jet Airways and did not hire a sound
management committee to assist him in
airline.

16. SWOT
Analysis
Strengths
Experience exceeding 14 years
International operations
Large fleet size
Among top 3 in India
Threats
Strong competitors
Fuel price hike
Overseas market competition
Regulations
Weaknesses
Losing domestic market share
Old fleet with average age - 4.79 years
Need improvement in in-flight service
Weak brand promotion
Opportunities
Untapped air cargo market
Scope in global service and tourism
Increasing salaries of people

17. Thank
You