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JET AIRWAYSJET AIRWAYS

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Airline Industry in IndiaAirline Industry in India

454 airports and airstrips(includes Operational, Non Operational, Abandoned and

Disused Airports) 127 are owned & operated by AAI

16 - international, 7 custom airports, 28 civil enclaves

Scheduled domestic air services - available from 82 airports

May 2007- May 2008 25.5 million domestic & 22.4 million international passengers

20% growth highest in the world

Growth Rate Projections (for next 5 yrs) 15% p.a (Passenger Traffic) 11.4% p.a (Cargo Traffic)

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HistoryHistory1911

1932

1938

1946

1948

1953

First commercial flight

Airmails from Allahabad to Naini(10 km)

The Aviation Department of Tata Sons Ltd. Established

Tata Airlines (successor to aviation division of TataSons)

Tata Air Lines converted into a public Company andrenamed Air India Limited

Air India International incorporated

Nationalization of Aircraft Industry

Air India (serving the international sectors)

Indian Airlines (serving domestic sectors)

Deccan Airways, Airways India, Bharat Airways,Himalayan Aviation, Kalinga Airlines, Indian NationalAirways and Air Services of India

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HistoryHistory

1986

19901994

2003

2007

2008

Private Sector Players permitted as Air

taxi operators

Players including Jet, Air Sahara, NEPC, East West,Modiluft,etcstarted service

Open Sky Policy

Private Carriers permitted to operate scheduled services

Entry of low-cost carriers

Merger of Indian Airlines into Air India

Acquisition of Air Sahara by Jet Airways

Kingfisher acquired 49% stake in Deccan Aviation

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Regulatory AuthoritiesRegulatory Authorities

Ministry of Civil Aviation Responsible for the formulation of policy, development and regulation of Civil

Aviation. Its functions also extend to overseeing airport facilities, air trafficservices and carriage of passengers and goods by air

Other Attached/Autonomous Organizations:

Directorate General of Civil Aviation (DGCA) Promote safe and efficient Air Transportation through regulation and proactive

safety oversight system

Bureau of Civil Aviation Security(BCAS) Regulatory authority for civil aviation security in India

Airport Authority of India (AAI) Accelerate the integrated development, expansion and modernization of the

operational, terminal and cargo facilities at the airports

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PoliciesPolicies

Open Sky Policy

FDI

Airports 100% for green field operations

74% for existing airports - 100% with special permissions 100% tax exemptions for 10 yrs.

Airlines 49% in domestic airlines - 100% for NRIs

74% in cargo & non-scheduled airlines

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Market Share in DomesticMarket Share in DomesticMarketMarket

In Post Consolidation Jet includes Air Sahara & Kingfisher includes Air DeccanMarket Share is based on their Capacity Source: B&K Securities

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FullService

Price

Jet Airways

Indian AirlinesKingfisher

Air Deccan

SpiceJet

IndigoGo Air

High

Low

HighLow

Service vs. PriceService vs. Price

Source : http://www.foolonahill.com/mbaaviation.html

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Cost StructureCost Structure


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Jet AirwaysJet Airways

Founded in 1993, Chairman - Mr.Naresh Goyal

HQ in Mumbai Countrys second largest international airline Largest domestic airline - 31%

Primary base - Mumbai's Chaatrapathi ShivajiAirportSecondary hubs - Bangalore, Brussels, Chennai, Delhi,

Hyderabad, Kolkata and Pune.

April,2007 - Acquired Air Sahara - JetLite

Now JetLite integrated into Jet Airways

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International NetworkInternational Network

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Domestic NetworkDomestic Network

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Fleet PlanFleet Plan

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Jet Airways - PerformanceJet Airways - Performance

Annual Revenues - Rs.9481.5 crores (2007-08)

Rs.7401 crores (2006-07)

Profit(Loss) After Tax - Rs.253 crores loss (2007-08)

Rs.27 crores profit (2006-07)- All Other Domestic Players showed loss(2006-07)

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Operational HighlightsOperational Highlights

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Revenues & Expenditure Split-Revenues & Expenditure Split-upup

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Jet Airways vs. Domestic Players (2006)Jet Airways vs. Domestic Players (2006)

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Jet Airways vs. International PlayersJet Airways vs. International Players(2006)(2006)

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STPSTP

Primary Segments (Geographic) - Domestic & International

Customer Segments First class, Premiere(Business) class & Economy class

Target Segments Premiere(Business) class

Business travelers, contribute 48% of passengers & 66% of revenues,

ready to pay higher prices, last time booking, dont like transit Economy class

Leisure travelers, prefer low cost airlines, ready for transit if there is costadvantage, large % of passengers

Seat Allocation Yield Management Technique

Positioning High value for High price

Unique Selling Price Customer relationship and Punctuality

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Seating in flights forSeating in flights forSe mentsSe ments

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Fleet SizeFleet Size

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Flower of ServicesFlower of Services

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Information - Reg. the org., flight schedules, ticket fares, promotionschemes etc.

Through website, call service, sms, employees etc.

Consultation - Reg. the choices of class, routes to a destination & special

menus for frequent fliers

Order taking - Booking - through phones, fax and internet

- Ticket Office, Call Centres, Company Website & Agents

Hospitality - Most important differentiating factor (from ticket bookingt o post flight help)

Safe keeping - Luggage & Children

Exceptions - Special requests reg. meal preferences, special amenitiesfor elderly people or children, medical needs etc.

Billing - Charges split, E-mail bills etc.

Payment - Credit card, Travellers cheque, Special payment privilegesfor frequent fliers

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Impact of IT on Ticket BookingImpact of IT on Ticket Booking

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Levels of ProductLevels of Product

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Product - ServiceProduct - Service

On Ground Services Check in options - Airport check-in, Tele Check-in, Web Check-in,

Kiosk Check-in, SMS Check-in, Check-in while walk-in,

One Time Check-in on Return Journey, Through Check-in

Airport Lounges

Coach Services

In-flight Services Classes of Service - First class, Premiere class & Economy class

Convenience & Safety -Towels, Pillows & Blankets, Reading material,

First Aid, Smoke detectors, Bassinets, Child Care, life jackets & seat cushion

Cuisines

Entertainment - Jetscreen Movies, TV programmes, Games, Music, In-flightcommunicator, Online magazines etc.

JetWings (in-flight magazine), JetBoutique (in-flight shopping catalogue)

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Product - ServiceProduct - Service

Special Services

o Infant and child care, wheel chair assistance, expectant mothers,

unaccompanied minors, medical emergencies, travelling with animals &

carriage of stretchers

JetMobile

JetKids

JetEscapes

Cargo

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JetPrivilege Frequent FlyerJetPrivilege Frequent FlyerProgramProgram

Membership tiers Blue, Blue Plus, Silver, Gold & Platinum Personalized web access JP Miles - 13 quarters validity Bonus JPMiles on e-Services Additional baggage allowance Guaranteed reservations up to 24 hrs. prior to departure Waiver on cancellation fees Membership Tier Bonus

Earning & Redeeming JP Miles

Eg: Chennai to Thiruvananthapuram (Earn Mile-383 & Redeem Mile-6894) 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 AfricanAirways, SWISS, United Airlines and Virgin Atlantic.

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PricePrice

Economy & Club Premiere Fare

Discounted fare for senior citizens & defense personnel

Advance Passenger Excursion/ APEX Fares

One FareNight Saver Fares

Check Fares

US Dollar Fares & Visit India Fares

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PlacePlace

Place of Service - Aircraft

Various Destinations

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PeoplePeople

Employees Pilot, Cabin Attendants, Engineers, Customer Service Agents, Securities,

Marketing, Sales & Reservation employees

Customers

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PartnersPartners

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.

Code Share Partners - Air Canada, All Nippon Airways, American Airways,Brussels Airlines, Etihad Airways and Qantas

Co-Brand Cards -CitiBank

Conversion Partners - BarclayCard, CitiBank, Deutsche Bank AG, HDFC Bank,HSBC, ICICI Bank, SBI Card & Tata Cards

Car Rental Partners - Avis, Hertz

Hotel Partners - Global Hotel Alliance, Hilton Family Hotels, Hyatt Hotels &Resorts, InterContinental Hotel Groups, ITC etc.

Lifestyle Partners - Globus and Golf Fee Card InternationalPublishing Partners -Fortune, The Economist and TIME

Retail Partners -Ferns n Petals

Telecommunication - Matrix Cellular Services

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CompetitorsCompetitors

International market - British Airways & South West Airlines

Domestic market - King fisher, Indian Airlines, GoAir,

Spicejet & Indigo

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Service QualityService Quality


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Service QualityService Quality


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Strategies to manage the Capacity &Strategies to manage the Capacity &DemandDemand

Check Fares

Automated Rostering System

Planning and Scheduling Systems

Code Sharing

Outsourcing ramp handling, passenger handling, ticketchecking, cargo and loading and unloading in Delhi andMumbai

Automation to drive efficiency and improve response time

Faster page and application download times for its site

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Corporate SocialCorporate SocialRes osibilitRes osibilit

Magic Box Fund raising inside the flight for disaster relief, education &

healthcare for poor and programmes to prevent exploitationof women

Flights of Fantasy Underprivileged children and children with special needs are

taken on specially organized flights (on Childrens Day)

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SWOTSWOT AnalysisAnalysis

Strengths Market driver Experience exceeding 14 year

Only private airline withinternational operation

Market leader

Largest fleet size

Weaknesses Loosing domestic market share

Old fleet with average age around

4.79 years Scope for improvement in

in-flight service

Weak brand promotion

Opportunities Untapped air cargo market

Scope in international service andtourism

Threats Strong competitors

Fuel price hike

Overseas market competition

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Documents

8718529 Jet Airways