April 8, 2023 1

SERVICE OPERATION PRESENTATION

Prepared By:

Sneha Varma (193)

Mayank Shah (202)

Ritu Singh (59)

Swatanu Mohan Satpathy ( 108 )

Submitted To: Prof. Sachin Khare

April 8, 2023 2

Introduction

• 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

April 8, 2023 3

Introduction• 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.

April 8, 2023 4

Financials• Annual Revenues

Rs 9481.5 crores (2009-10)

Rs 7401.3 crores (2010-11)

• Profit After Tax (PAT)

- Rs 253 crores (2009-10)

Rs 27 crores (2010-11)

• Average Passenger Load

69.1% (2009-10)

84.3% (2010-11)

April 8, 2023 5

Fleets Of Aircrafts98 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 other airlines

Airbus330

Boeing 737-700

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Current Service Offerings

Jet Privilege

JPMiles – The number of Base JPMiles earned is the direct travelled distance between the origin and destination city-pair. JPMiles earned are based on the fare and cabin travelled.

Blue Silver Platinum

GoldBlue Plus

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Current 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

April 8, 2023 8

Current 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

April 8, 2023 9

Current Service Offerings

Jet Lite

• Acquisition of Sahara Airlines• Low cost carrier• Wider reach

Jet Kerala/ Jet2IncredibleMP

• Tourism packages to Kerala and Madhya Pradesh• Special offers during summer vacations and new year

April 8, 2023 10

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

April 8, 2023 11

Market Share

April 8, 2023 12

Competitor Analysis

Domestic Market International Market

April 8, 2023 13

Porter's 5 Forces

Bargaining power of buyerHIGH

Threat from new entrantsLOW

Bargaining power of supplier

HIGH

Threat from substitutesHIGH

Competitive rivalryHIGH

April 8, 2023 14

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.

April 8, 2023 15

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.

April 8, 2023 16

Threat from substitutes - High • Numerous other low-cost airlines• Switching costs among other transportation option are high for

everything but short distance (Train, bus etc)• High exiting barriers – regulated by ministry of civil aviation• Trains are the most preferred modes of transport when it

comes to domestic travel

April 8, 2023 17

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

April 8, 2023 18

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

April 8, 2023 19

Product

• Airline service – travel

Price

• Discounted fare for senior citizens, defense personnel• Economy & Club Premiere Fare• Advance Passenger Excursion

Place• Place of Service – Aircraft • Various Airports – Jet lounge

The 7 P’s

April 8, 2023 20

The 7 P’sPromotion

• Companion Free Offer, Concessional fares• Jet Privilege frequent-flier programme• Jet Airways Citibank Credit Cards• Corporate Deal Offers• Festival specials, Student specials

• Advertising and BrandingHoardings and advertisementsBrand AmbassadorsSponsorshipsEvent Organization

April 8, 2023 21

The 7 P’sProcess

People Processing• Greeting method and standard procedure of

treatment for customers for each class• Booking tickets made online and in counters• Flights sticking to schedules• In flight service – baby care, disabled care• Travelling with pets

Possession Processing• Cargo• Luggage

April 8, 2023 22

The 7 P’sPhysical Evidence

• Cuisine• In-flight entertainment facilities• Kiosks – check-in counters• Jet boutique – in flight fashion apparel• Jet kids – in flight kids programme• Jet mall – in flight shopping

People

• Trained cabin crew• Immigration & transportation

April 8, 2023 23

SWOT Analysis

 Strengths

Experience exceeding 14 yearsInternational operationsLarge fleet sizeAmong top 3 in India

Threats

Strong competitorsFuel price hikeOverseas market competitionRegulations

Weaknesses

Losing domestic market shareOld fleet with average age - 4.79 yearsNeed improvement in in-flight serviceWeak brand promotion

Opportunities

Untapped air cargo marketScope in global service and tourismIncreasing salaries of people

April 8, 2023 24

Gap Model

April 8, 2023 25

Customer Expectation – Management Perception

• Seat allotment• More variety in harder products

Gap – 1

April 8, 2023 26

Gap – 2

Management Perception – Service Quality Specification

• Reclining Feature• Check-In baggage

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Gap – 3

Service Quality Specification – Services Delivered

• Unfriendly Check-In• Unhygienic conditions

April 8, 2023 28

Gap – 4

Service Delivered – External Communication

• Time delay in Flights• Emergency services

April 8, 2023 29

Gap – 5

JET AIRWAYS KINGFISHER INDIAN AIRLINES

RELIABILITY 1 2 3

ASSURANCE 1 2 3

TANGIBLES 2 1 3

EMPATHY 1 2 3

RESPONISVENESS 1 2 3

April 8, 2023 30

Recommendations• Concentrate on the gaps created• Improvise on branding strategies• Look into newer geographical regions• Improving technology to overcome unfavorable weather

conditions

April 8, 2023 31

Thank You