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.
  • Jet Airways

    1. 1. Jet Airways<br />
    2. 2. Airline Industry in India<br />454 airports and airstrips <br /> (includes Operational, Non Operational, Abandoned and Disused Airports)<br />127 are owned & operated by AAI<br />16 - international, 7 custom airports, 28 civil enclaves<br />Scheduled domestic air services - available from 82 airports<br />May 2007- May 2008<br />25.5 million domestic & 22.4 million international passengers<br />20% growth – highest in the world<br />Growth Rate Projections (for next 5 yrs)<br />15% p.a (Passenger Traffic)<br />11.4% p.a (Cargo Traffic)<br />
    3. 3. History<br />1911<br />1932<br />1938<br />1946<br />1948<br />1953<br />First commercial flight <br />Airmails from Allahabad to Naini(10 km)<br />The Aviation Department of Tata Sons Ltd. Established<br />Tata Airlines (successor to aviation division of Tata Sons) <br />Tata Air Lines converted into a public Company and renamed Air India Limited <br />Air India International incorporated <br />Nationalization of Aircraft Industry<br />Air India (serving the international sectors) <br />Indian Airlines (serving domestic sectors)<br />Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Services of India<br />
    4. 4. History<br />1986<br />1990<br />1994<br />2003<br />2007<br />2008<br />Private Sector Players permitted as Air<br /> taxi operators<br />Players including Jet, Air Sahara, NEPC, East West, Modiluft,etc started service <br />Open Sky Policy<br />Private Carriers permitted to operate scheduled services<br />Entry of low-cost carriers<br />Merger of Indian Airlines into Air India<br />Acquisition of Air Sahara by Jet Airways<br />Kingfisher acquired 49% stake in Deccan Aviation<br />
    5. 5. Regulatory Authorities<br />Ministry of Civil Aviation<br />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<br />Other Attached/Autonomous Organizations: <br />Directorate General of Civil Aviation (DGCA) <br />Promote safe and efficient Air Transportation through regulation and proactive safety oversight system<br />Bureau of Civil Aviation Security(BCAS) <br />Regulatory authority for civil aviation security in India <br />Airport Authority of India (AAI) <br />Accelerate the integrated development, expansion and modernization of the operational, terminal and cargo facilities at the airports<br />
    6. 6. Policies<br />Open Sky Policy<br />FDI<br />Airports<br />100% for green field operations<br />74% for existing airports - 100% with special permissions<br />100% tax exemptions for 10 yrs.<br />Airlines<br />49% in domestic airlines - 100% for NRI’s<br />74% in cargo & non-scheduled airlines<br />
    7. 7.
    8. 8. Market Share in Domestic Market<br />In Post Consolidation Jet includes Air Sahara & Kingfisher includes Air Deccan<br /><ul><li>Market Share is based on their Capacity Source: B&K Securities </li></li></ul><li> Service vs. Price <br />High<br />Jet Airways<br />Kingfisher<br />Indian Airlines<br />Full <br />Service<br />Air Deccan<br />SpiceJet<br />Indigo<br />Go Air<br />Low<br />High<br />Low<br />Price<br />Source :<br />
    9. 9. Cost Structure<br />Source :<br />
    10. 10. Jet Airways<br />Founded in 1993, Chairman - Mr.NareshGoyal<br />HQ in Mumbai<br />Country’s second largest international airline<br />Largest domestic airline - 31%<br />Primary base - Mumbai&apos;s ChaatrapathiShivaji Airport Secondary hubs - Bangalore, Brussels, Chennai, Delhi, Hyderabad, Kolkata and Pune.<br />April,2007 - Acquired Air Sahara - JetLite<br />Now JetLite integrated into Jet Airways<br />
    11. 11. International Network<br />
    12. 12. Domestic Network<br />
    13. 13. Fleet Plan<br />
    14. 14. Jet Airways - Performance<br />Annual Revenues - Rs.9481.5 crores (2007-08)<br /> Rs.7401 crores (2006-07)<br />Profit(Loss) After Tax - Rs.253 crores loss (2007-08)<br /> Rs.27 crores profit (2006-07)<br /> - All Other Domestic Players showed loss(2006-07)<br />
    15. 15. Operational Highlights<br />
    16. 16. Revenues & Expenditure Split-up<br />
    17. 17. Jet Airways vs. Domestic Players (2006)<br />
    18. 18. Jet Airways vs. International Players (2006)<br />
    19. 19. STP<br />Primary Segments (Geographic) - Domestic & International<br />Customer Segments<br />First class, Premiere(Business) class & Economy class<br />Target Segments<br />Premiere(Business) class <br /> Business travelers, contribute 48% of passengers & 66% of revenues, <br /> ready to pay higher prices, last time booking, don’t like transit<br />Economy class<br /> Leisure travelers, prefer low cost airlines, ready for transit if there is cost advantage, large % of passengers<br />Seat Allocation – Yield Management Technique<br />Positioning – High value for High price<br />Unique Selling Price – Customer relationship and Punctuality<br />
    20. 20. Seating in flights for Segments<br />
    21. 21. Fleet Size<br />
    22. 22. Flower of Services<br />
    23. 23. Information - Reg. the org., flight schedules, ticket fares, promotion schemes etc.<br />Through website, call service, sms, employees etc.<br />Consultation - Reg. the choices of class, routes to a destination & special menus for frequent fliers<br />Order taking - Booking - through phones, fax and internet<br /> - Ticket Office, Call Centres, Company Website & Agents<br />Hospitality - Most important differentiating factor (from ticket booking to post flight help)<br />Safe keeping - Luggage & Children<br />Exceptions - Special requests reg. meal preferences, special amenities for elderly people or children, medical needs etc.<br />Billing - Charges split, E-mail bills etc.<br />Payment - Credit card, Travellers cheque, Special payment privileges for frequent fliers<br />
    24. 24. Impact of IT on Ticket Booking<br />
    25. 25. Levels of Product<br />
    26. 26. Product - Service<br />On Ground Services <br />Check in options - Airport check-in, Tele Check-in, Web Check-in, <br /> Kiosk Check-in, SMS Check-in, Check-in while walk-in, <br /> One Time Check-in on Return Journey, Through Check-in <br />Airport Lounges <br />Coach Services<br />In-flight Services<br />Classes of Service - First class, Premiere class & Economy class<br />Convenience & Safety -Towels, Pillows & Blankets, Reading material, <br /> First Aid, Smoke detectors, Bassinets, Child Care, life jackets & seat cushion<br />Cuisines<br />Entertainment - Jetscreen – Movies, TV programmes, Games, Music, In-flight communicator, Online magazines etc.<br />JetWings (in-flight magazine), JetBoutique (in-flight shopping catalogue)<br />
    27. 27. Product - Service<br />Special Services<br /><ul><li>Infant and child care, wheel chair assistance, expectant mothers, unaccompanied minors, medical emergencies, travelling with animals & carriage of stretchers</li></ul>JetMobile<br />JetKids<br />JetEscapes<br />Cargo<br />
    28. 28. JetPrivilege – Frequent Flyer Program<br />Membership tiers – Blue, Blue Plus, Silver, Gold & Platinum<br />Personalized web access<br />JP Miles - 13 quarters validity<br />Bonus JPMiles on e-Services <br />Additional baggage allowance<br />Guaranteed reservations up to 24 hrs. prior to departure<br />Waiver on cancellation fees<br />Membership Tier Bonus<br />Earning & Redeeming JP Miles<br />Eg: Chennai to Thiruvananthapuram (Earn Mile-383 & Redeem Mile-6894)<br />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. <br />
    29. 29. Price<br />Economy & Club Premiere Fare<br />Discounted fare for senior citizens & defense personnel<br />Advance Passenger Excursion/ APEX Fares<br />One Fare <br />Night Saver Fares<br />Check Fares<br />US Dollar Fares & Visit India Fares<br />
    30. 30. Place<br />Place of Service - Aircraft<br />Various Destinations<br />
    31. 31. Promotion<br />Offers <br />Companion Free Offer, One Fare, Concessional fares, JetPrivilege Offers, <br /> Jet Airways Citibank Credit Cards, Corporate Deal Offers, International Specials, Camp Rock contest, Festival specials, Student specials, Surprises etc.<br />Advertising and Branding<br />Hoardings<br />Brand Ambassadors<br />Sponsorships<br />Event Organization<br />
    32. 32. People<br />Employees<br />Pilot, Cabin Attendants, Engineers, Customer Service Agents, Securities, Marketing, Sales & Reservation employees <br />Customers<br />
    33. 33. Partners<br />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.<br />Code Share Partners - Air Canada, All Nippon Airways, American Airways, Brussels Airlines, Etihad Airways and Qantas<br />Co-Brand Cards - CitiBank<br />Conversion Partners - BarclayCard, CitiBank, Deutsche Bank AG, HDFC Bank, HSBC, ICICI Bank, SBI Card & Tata Cards<br />Car Rental Partners - Avis, Hertz<br />Hotel Partners - Global Hotel Alliance, Hilton Family Hotels, Hyatt Hotels & Resorts, InterContinental Hotel Groups, ITC etc.<br />Lifestyle Partners - Globus and Golf Fee Card International<br />Publishing Partners -Fortune, The Economist and TIME<br />Retail Partners -Ferns n Petals<br />Telecommunication - Matrix Cellular Services<br />
    34. 34. Competitors<br />International market - British Airways & South West Airlines<br />Domestic market - King fisher, Indian Airlines, GoAir, Spicejet & Indigo<br />
    35. 35. Process<br />People Processing<br />People physically enter the service system to receive the service. Aircraft is the service factory where service is delivered.<br />Possession Processing<br />Cargo<br />Luggage & Courier<br />
    36. 36. Physical Evidence<br />Servicescape<br />Servicescape usage - Interpersonal <br />Complexity of Servicescape - Elaborate<br />Flight<br />Offices - Org. & Ticket Booking Agents<br />Virtual Servicescape<br />
    37. 37. Service Quality<br />Source :<br />
    38. 38. Service Quality<br />Source :<br />
    39. 39. Strategies to manage the Capacity & Demand<br />Check Fares<br />Automated Rostering System<br />Planning and Scheduling Systems <br />Code Sharing<br />Outsourcing ramp handling, passenger handling, ticket checking, cargo and loading and unloading in Delhi and Mumbai<br />Automation to drive efficiency and improve response time<br />Faster page and application download times for its site<br />
    40. 40. Corporate Social Resposibility<br />Magic Box <br />Fund raising inside the flight for disaster relief, education & healthcare for poor and programmes to prevent exploitation of women<br />Flights of Fantasy <br />Underprivileged children and children with special needs are taken on specially organized flights (on Children’s Day)<br />
    41. 41. PEST Analysis<br />Political Issue<br />License issue for international operation<br />Infrastructural constraint<br />ATF price policy<br />Economic Effects<br />Rising income level<br />Reduced fare but yet not enough<br />Social Effects<br />Sound Pollution<br />Plane hijacking<br />9/11 Incident <br />Technology Effects<br />Modernization of aircrafts<br />Modern technology like CAT3 and ILS<br />
    42. 42. SWOT Analysis<br />Strengths<br />Market driver<br />Experience exceeding 14 year <br />Only private airline with international operation<br />Market leader<br />Largest fleet size<br />Weaknesses<br />Loosing domestic market share<br />Old fleet with average age around 4.79 years<br />Scope for improvement in <br /> in-flight service <br />Weak brand promotion <br />Opportunities<br />Untapped air cargo market<br />Scope in international service and tourism<br />Threats<br />Strong competitors<br />Fuel price hike<br />Overseas market competition<br />
    43. 43. Thank ‘u’<br />