Good morning

Vikas Kumar Tyagi

Vikas Kumar Tyagi

JET AIRWAYSJET AIRWAYSAbout Jet Airways :About Jet Airways :Jet Airways (India) Private Limited is India's Jet Airways (India) Private Limited is India's leading private airline.leading private airline.It boasts a market share of about 29 It boasts a market share of about 29 percent.percent.Jet operates a relatively young fleet of Jet operates a relatively young fleet of Boeing 737 jets and ATR72 turboprops.Boeing 737 jets and ATR72 turboprops.It carries about seven million passengers a It carries about seven million passengers a year.year.Its reputation for punctuality and Its reputation for punctuality and outstanding service attracts a largeoutstanding service attracts a largeVikas Kumar Tyagi

Light on Naresh Goyal: Light on Naresh Goyal: Founder andCEOFounder andCEO

Naresh Goyal is the founder Naresh Goyal is the founder and Chairman of Jet Airways, and Chairman of Jet Airways, India's largest domesticIndia's largest domesticairline.airline.In May 1974, Naresh Goyal In May 1974, Naresh Goyal founded Jet air (Private) Limited founded Jet air (Private) Limited to look after Sales andto look after Sales andMarketing operations of foreign Marketing operations of foreign airlines in India.airlines in India.Naresh Goyal took advantage of Naresh Goyal took advantage of Open Skies Policy of the Open Skies Policy of the Government of India and set up Government of India and set up Jet AirwaysJet Airways

Vikas Kumar Tyagi

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Key Dates:Key Dates:1993: 1993: Jet Airways begins domestic Jet Airways begins domestic operations flying Boeing 737 jets.operations flying Boeing 737 jets.1997: 1997: Kuwait Airways and Gulf Air sell Kuwait Airways and Gulf Air sell their stakes in Jet Airways.their stakes in Jet Airways.1999: 1999: A regional network is launched A regional network is launched with turboprop aircraft.with turboprop aircraft.2004: 2004: The first international services are The first international services are started.started.20072007: Acquired Air Sahara and re : Acquired Air Sahara and re launched it as jet lite.launched it as jet lite.

Vikas Kumar Tyagi

Principal Principal Competitors:Competitors:

International Market :International Market : - British Airways- British Airways - South West Airlines- South West AirlinesDomestic Market :Domestic Market :- King Fisher- King Fisher- Indian Airlines- Indian Airlines- Go Air- Go Air- Spice jet- Spice jet- Indigo- Indigo

Vikas Kumar Tyagi

Marketing Strategy: Marketing Strategy: STP for STP for JetJet

airways.airways. Market Market

Segmentation:Segmentation: Economic ClassEconomic Class Business ClassBusiness Class Premium classPremium class Target customersTarget customers Business ClassBusiness Class Economic class (Jet Economic class (Jet

lite)lite)

Vikas Kumar Tyagi

Promotional Promotional ActivitiesActivities

For promotions we use tactics likeFor promotions we use tactics like

i) Offering free ticketsi) Offering free tickets

ii) Concessional fares for studentsii) Concessional fares for students

iii) Jet lite surprisesiii) Jet lite surprises

iv) Corporate deal offersiv) Corporate deal offers

Vikas Kumar Tyagi

FLIGHTS OF JET AIRWAYSFLIGHTS OF JET AIRWAYS    It operates over 400 daily flights to 65 It operates over 400 daily flights to 65

destinations worldwide.destinations worldwide.

  Provides services in:Provides services in: 44 domestic destinations in India 44 domestic destinations in India 21 international destinations in 17 21 international destinations in 17

countries across Asia, Europe & North countries across Asia, Europe & North America.  America.  International destinations include International destinations include Colombo, New York, Toronto, Singapore Colombo, New York, Toronto, Singapore etc. etc. Vikas Kumar Tyagi

FLEETS OF AIRCRAFTS IT FLEETS OF AIRCRAFTS IT

INCLUDESINCLUDES    IT HAS 84 AIRCRAFTS IT HAS 84 AIRCRAFTS Airbus330-200*   -  (12)Airbus330-200*   -  (12)  

Atr72-500   -   (14)Atr72-500   -   (14)    

Boeing737-700   -  (13)Boeing737-700   -  (13)    

Boieng737-800  -  (33)Boieng737-800  -  (33)    

Boeing737-900  -  (2)Boeing737-900  -  (2)    

Boeing777-300er*  -  (10) Boeing777-300er*  -  (10)   

* Includes aircraft that have been leased to other airlines * Includes aircraft that have been leased to other airlines   

Vikas Kumar Tyagi

Annual results in briefAnnual results in brief

Mar ' Mar ' 09 09

Mar ' Mar ' 08 08

Mar ' Mar ' 07 07

Mar ' Mar ' 06 06

Mar ' Mar ' 05 05

Sales Sales 11,476.11,476.98 98

8,811.10 8,811.10 7,057.78 7,057.78 5,693.73 5,693.73 4,338.01 4,338.01

OperatiOperating profit ng profit

-306.75 -306.75 187.55 187.55 362.08 362.08 928.53 928.53 1,210.61,210.66 6

Interest Interest 738.03 738.03 492.75 492.75 240.15 240.15 241.60 241.60 253.69 253.69

Gross Gross profit profit

-734.88 -734.88 365.21 365.21 465.46 465.46 1,128.61,128.67 7

1,039.13 1,039.13

EPS EPS (Rs) (Rs)

-46.60 -46.60 -29.17 -29.17 3.24 3.24 52.36 52.36 45.4145.41

(Rs crore)

Vikas Kumar Tyagi

Market ShareMarket Share

Vikas Kumar Tyagi

Recent problems :Recent problems : In In oct 2008oct 2008 around 1900 employees were around 1900 employees were

fired out of which 800 were laid off.fired out of which 800 were laid off. It started voice from politicians , staff , It started voice from politicians , staff ,

senas , public.senas , public. Later in the same week they were taken Later in the same week they were taken

back.back. N.A.G( NATIONAL AVIATORS GUILD )N.A.G( NATIONAL AVIATORS GUILD )

formed on 24formed on 24thth July claiming a July claiming a membership of 680 ,President Girish membership of 680 ,President Girish Kaushik , Gen.Sec.Captain Sam Thomas.Kaushik , Gen.Sec.Captain Sam Thomas.

Vikas Kumar Tyagi

Due to which two senior pilot were Due to which two senior pilot were fired .fired .

Captain Sam Thomas(g.s)Captain Sam Thomas(g.s)

Captain D Balaraman.Captain D Balaraman. On On Aug. 23Aug. 23rdrd the Guild (NAG) warned the Guild (NAG) warned

that they would go on strike from Sep. that they would go on strike from Sep. 77thth if both the pilots are not reinstated. if both the pilots are not reinstated.

Matter reached to the regional labor Matter reached to the regional labor commissioner who held a meeting on commissioner who held a meeting on Aug. 31Aug. 31stst and told any strike till the and told any strike till the process is over would be illegal.process is over would be illegal.

Vikas Kumar Tyagi

But on But on 88thth sep. 432/1056 sep. 432/1056 pilots reported sick in violation of pilots reported sick in violation of Bombay high court orders a day Bombay high court orders a day earlier restraining them against earlier restraining them against any kind of strike in countries any kind of strike in countries largest pvt. Carrier.largest pvt. Carrier.

Pilots were demanding the Pilots were demanding the reinstatement of their colleagues. reinstatement of their colleagues.

Situation created huge problems Situation created huge problems for for passengerspassengers .80% of them were .80% of them were accommodated to other airlines accommodated to other airlines for rest entire fare was refunded. for rest entire fare was refunded.

Vikas Kumar Tyagi

Chief justice Swatanter Kumar and Chief justice Swatanter Kumar and Justice AM Khanwilkar issued a Justice AM Khanwilkar issued a noticenotice against NAG seaking a reply against NAG seaking a reply in 2 weeks.in 2 weeks.

Later 2 more pilots were sackedLater 2 more pilots were sacked Civil aviation secretory Civil aviation secretory Madhavan Madhavan

NambiarNambiar said govt. has nothing to said govt. has nothing to do between both, but they has taken do between both, but they has taken serious view of the inconvenience to serious view of the inconvenience to public and askedpublic and asked DGCA DGCA to take to take action.action.

CEOCEO told he is open for talk but he told he is open for talk but he told company does not recognize told company does not recognize NAG. and pilots are behaving like NAG. and pilots are behaving like terrorists.terrorists.

Vikas Kumar Tyagi

Jets lawyer Harish Salve Jets lawyer Harish Salve said “said “Industrial Disputes Industrial Disputes Acts prohibits strike while Acts prohibits strike while conciliation proceedings conciliation proceedings are underway”.are underway”.

FortunatelyFortunately after “loss of after “loss of crores and goodwill”on crores and goodwill”on 1313thth sep. strike ended after sep. strike ended after 5 days when Naresh Goyal 5 days when Naresh Goyal reinstated the sacked reinstated the sacked pilots and paved the way pilots and paved the way for possible recognition of for possible recognition of a pilots union.a pilots union.

Back to work

Vikas Kumar Tyagi

Consequences Of Strike:Consequences Of Strike:

From 8 to 13 September:From 8 to 13 September: Jet Airways lost 200 crores in just five days.Jet Airways lost 200 crores in just five days.

Cancellation of 134 domestic and 32 Cancellation of 134 domestic and 32 international Flightsinternational Flights

Average passenger per day dropped from Average passenger per day dropped from 23000/day to 14000/day.23000/day to 14000/day.

Vikas Kumar Tyagi

Consequences Of Strike:Consequences Of Strike:

Jet has to accommodate 80% of the Jet has to accommodate 80% of the passenger on the other carriers.passenger on the other carriers.

For the rest 20% entire fare has been For the rest 20% entire fare has been refunded.refunded.

Loss of goodwill is not measurable. Loss of goodwill is not measurable. Vikas Kumar Tyagi

Advantage of jet airways crisis Advantage of jet airways crisis for other airlinesfor other airlines

Jet Airways transferred as many as 60 Jet Airways transferred as many as 60 percent of the passengers booked on its percent of the passengers booked on its flights to Air India, the national carrier, flights to Air India, the national carrier, and other airlines during the strike. and other airlines during the strike.

Rival carriers began to charge fares at Rival carriers began to charge fares at almost double the usual rates after the almost double the usual rates after the strike hampered Jet Airways operations. strike hampered Jet Airways operations.

A big competitor was out, therefore it A big competitor was out, therefore it was a big advantage to other airlines was a big advantage to other airlines

Vikas Kumar Tyagi

Current SituationCurrent Situation  

1.1. The standoff between the airline and its The standoff between the airline and its pilots ended late Saturday after the pilots ended late Saturday after the company agreed to reinstate four pilots who company agreed to reinstate four pilots who were fired for trying to form a pilot’s union. were fired for trying to form a pilot’s union.

2.2. Jet airways has reduced its fares to Jet airways has reduced its fares to 50%.With discounts, the cost of air tickets 50%.With discounts, the cost of air tickets dropped close to air-conditioned II tier dropped close to air-conditioned II tier Rajdhani Express fares. Rajdhani Express fares.

3.3. Jet airways witnessed a 10 per cent switch Jet airways witnessed a 10 per cent switch from low-cost carriers to jet. from low-cost carriers to jet.

4.4. The airline is operating on full schedule of The airline is operating on full schedule of services on its domestic and international services on its domestic and international

flights with all crew reporting for dutyflights with all crew reporting for duty Vikas Kumar Tyagi

5. Jet offered a full refund to passengers 5. Jet offered a full refund to passengers whose flights were canceled. whose flights were canceled.

The sacked pilots are rehired and a The sacked pilots are rehired and a consultative group is being formed consultative group is being formed comprising representatives of the company comprising representatives of the company and pilots to continue the process of and pilots to continue the process of dialogue to resolve all their problems. dialogue to resolve all their problems.

Jet Airways suffered a loss of nearly US$8 Jet Airways suffered a loss of nearly US$8 million a day during the strike. and the million a day during the strike. and the number of passengers came down from number of passengers came down from 23,000 per day to 7,500. 23,000 per day to 7,500.

No punitive action against any one who No punitive action against any one who participated in the agitation participated in the agitation Vikas Kumar Tyagi

9.9. Shares of Jet Airways rose as much Shares of Jet Airways rose as much as 4.6 percent, the most in two as 4.6 percent, the most in two weeks. weeks.

10.10. Airline losses globally may total $9 Airline losses globally may total $9 billion this year, according to the billion this year, according to the International Air Transport International Air Transport Association, almost double the Association, almost double the group’s previous forecast.group’s previous forecast.

Vikas Kumar Tyagi

THANK YOU

Vikas Kumar Tyagi