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CHAPTER 2

PROFILE OF SELECTED

AIRLINE COMPANIES IN INDIA

2.1 AIR INDIA LIMITED

Introduction:

Air India is the market leader airline company

of India officially named Air India Limited

owned by Air India Limited (AIL). Air India

holds third position in domestic airline sector

of India. Air India’s corporate office is

situated at New Delhi as The Indian Airline

House.

Air India having two main domestic airport hubs namely Indira Gandhi International

Airport and Chhatrapati Shivaji International Airport. Air India also holds two more

secondary airport hubs in Chennai and Kolkata namely Chennai International Airport

and Netaji Subhas Chandra Bose International Airport.

At the initial time period Air India was the biggest aviation operator with market size

of over 60%. Due to various domestic problems, financial position, pilot shortage,

problems regarding unavailability of skilled manpower pushed it behind new low cost

players like SpiceJet, IndiGo Airlines, Air Vistara, Go Air etc.

At present time Air India is holding third position in India, after IndiGo and Jet

Airways with a market share of just 15.1 % whereas market share of IndiGo is highest

i.e.39.9% and 17% of Jet Airways.

Vision

To be the leader in Indian aviation and India’s Ambassador to the world.

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Mission

• Provide safe, reliable and on-time services

• Deliver the highest quality of service around the world

• Be the epitome of Indian hospitality

Processes

• Continuously improve standards of safety and efficiency

• Operate and maintain a young and modern fleet

• Provide the best and most efficient network

• Create economic value

People

• Total employee strength is 21313 employees.

• To be the employer of choice

• Build a highly motivated and professional team

• Maintain highest degree of transparency and ethics

• Be a responsible corporate citizen

India’s Ambassador

• Be India’s flag carrier in spirit and action

• Provide seamless travel within India and the world

• Connect Indians worldwide

Values

• Zeal to excel and zest for change

• Integrity and fairness in all matters

• Respect for dignity and potential of individuals

• Strict adherence to commitments

• Ensure speed of response

• Foster learning, creativity and team-work

• Loyalty and pride in the Company

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History

Early years (1932-1945)

In 1932 JRD Tata started Tata Sons; a division of Tata Sons Ltd. (now Tata Group).

At that time Mr Neville Vincent thought to start mail flights from Mumbai to

Shrilanka Colombo with the help of Imperial Airways from the UK. Mr Neville

Vincent found a good support from JRD Tata the owner of Tata Iron and Steel

Company. After fruitful discussions, negotiations and approval from Aviation

Department Mr Neville Vincent and JRD Tata signed a contract for the same.

During October 1932, JRD Tata flew an air mail having single engine De Havilland

Puss Moth from Karachi to Mumbai passing through Ahmedabad. At that time it was

noted by The New York Times that Tata Air Mail earned a Rs. 60000 as profit in its

first year and by the year the profit amount increased by Rs. 600000.

The route of airmail from Karachi, Madras via Mumbai and Ahmedabad covering

more than 1300 miles so only in first year of service Tara Air flew more than 160000

miles with more than 10 ton of mail and 150 passengers.

During 1932 Tata Airlines started its longest domestic air mail services from Mumbai

to Trivandrum with 6 seater Miles Merlin.

Post-war Era (1946-1999)

After second world war, usual domestic commercial services re-establish in India and

then Tata Airlines converted into a public limited company on July 29, 1946 as Air

India. After the independence period 49% of the aviation companies were attained by

the central Government. In return that aviation companies were sanctioned the status

to function internationally from India under the brand of Air India. A Lockheed

Constellation which was named as Malabar Princess took off from Mumbai to

London via Cairo and Geneva on June 8, 1948.

In August 1953 the Government of India work out on its decision to purchase a major

share in the Air India International Limited then it resulted into the Air Corporations

Page | 32

Act that nationalized the air transportation industry. After formation of the act all the

domestic airlines were merged into Indian Airlines (now Air India).

Air India International went into the jet age during February 1960 when the first

Boeing 707–420 named as Gauri Shankar (registered VT-DJJ) was delivered, thereby

which becomes the first Asian airline to introduce a jet plane in its fleet. Jet services

to John F Kennedy International Airport in New York City via London were launched

on 14 May 1960. The airline's name was officially changed to Air India on 8th June

1962.

Air India became world's first all-jet airline on 11th June 1962. The airlines took its

first delivery of Boeing 747-200B which was named Emperor Ashoka in 1971. This

happened together with the introduction of the 'Palace in the Sky' livery and branding.

A facet of livery is the paint and color work on each airplane windows especially in

the arch style of windows in Indian palaces.

Air India got delivery of Airbus A310-300 in 1986 which is the largest operator of

this type in passenger airline services. Air India took delivery of two Boeing airplanes

747-300Ms in mixed passenger-cargo configuration in 1988. Air India also got

delivery of its dream airline fleet which made history by operating the first non-stop

flight between New York USA and Delhi India in 1993. The airline was officially got

registered as Air India Ltd in 1994. The airline opened its Terminal 2-C at the

Chhatrapati Shivaji International Airport in Mumbai in 1999.

Proposed Privatization, expansion and merger (2000-2007)

Government of India proposed privatization of Air India as per the policy of

Liberalizaiton, privatization and globalization in 2001 and improved its services. In

2004 whn the BJP NDA government fall the attempt was put on hold for a long time.

Air India launched its services to Shanghai ad New Jersey in 2000. Air India also

introduced its own low cost airline “Air India Express which started its working in

Middle East, South Asia and Indian subcontinent regions. Air India started it forth

USA entry at Los Angeles Airport and expanded its route to Ahmedabad, Amritsar,

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Hyderabad and Ahmedabad. In continuation with this Air India started its fifth flight

to Washington DC Dulles International Airport.

Air India and Indian Airlines both owned by Government of India worked fully

independently upto 2007. Air India functioning its operations on international routes

while Indian Airlines look after domestic as well as short international routes. The

Central government decided to merge both Indian Airlines and Air India Express in

one set up and declared that Air India would be merged with Indian Airlines. As a

result of this a new company has been formed called the National Aviation Company

of India Limited (NACIL) and the merger came into existence from February 2011.

"The logo of the new airline is a red colored flying swan with the 'Konark Chakra' in

orange, placed inside it. The flying swan has been morphed from Air India's

characteristic logo, 'The Centaur', whereas the 'Konark Chakra' is reminiscent of

Indian's logo".

The Maharajah

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Actually the logo is the image of traditional Maharaja which is the best narration of

the logo. The logo man looks like a royal man. This image was come into

manifestation in Air India in 1946.

The very impressive image was together created by then Commercial Director of Air

India Mr Bobby Kooka and Mr Umesh Rao, an artist with J Walter Thompson Ltd in

Mumbai.

In this competitive time, the look of Maharaja Logo is changing region to region and

Maharaja of Air India has become a brand around the world. The appearance is

changed as a lover boy in France, a sumo in Japan, an artist, a Red Indian, a monk etc.

and can effortlessly flirt with the beauties and places around the world simply because

he is the Maharaja.

Maharaja has completed 56 years and become the most familiar face in the world

over. His appearance, face, style, different looks have allowed Air India to promote its

services in an unmatchable way.

Makeover of Air India Crew Members and Air Hostesses

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Source: http://www.airindia.in/about!airindia.htm

NEW CLOTHES FOR AIR HOSTESSES OF AIR INDIA - KURTIS,

CHURIDARS AND TROUSERS:

Air India completely focusing on new makeover in variety of ways. Specially for Air

Hostesses, Air India introduced new traditional Indian clothes like kurtis, chudidars,

trousers etc. Air India is planning for contemporary look for its cabin crew in this cut

throat market situations.

Air India also contacted the National Institute of Fashion Technology (NIFT) for new

design of clothes for ground duty staff, air hostesses and cabin crews. “NIFT also

submitted three designs — one for ground staff and two for cabin crew for approval.

The designs are likely to be approved and implemented soon”.

Now Air India has decided to retain the red-white-black colored sari which has for

years been the official uniform for airhostesses in AI and wish to propose a more

modern look company plan to provide cabin crew a choice of uniform on both

domestic and international sectors to increase the image of the airlines.

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BOARD OF DIRECTORS (AS ON 31.03.2016)

Shri Ashwani Lohani

Chairman and Managing Director, Air India Ltd.

Mr Balwinder Singh Bhullar

Additional Secretary,

Ministry of Civil Aviation

Shri Gurcharan Das

Ex-CEO & MD

Procter & Gamble India,

Management Consultant and Author

Ms. Gargi Kaul

Joint Secretary & Financial Advisor

Ministry of Civil Aviation

Dr Prem Vrat

Founder Director, IIT, Roorkee,

Vice Chancellor & Professor,

ITM University, Gurgaon

Mr. V. Hejmadi

Director – Finance

Air India Limited

Shri K K Nohwar

Air Marshal (Retd), PVSM VM

Shri N. K. Jain

Director-Personnel,

Air India Ltd.

Prof. RH Dholakia

Professor IIM Ahmedabad

Shri Pankaj Srivastava

Director-Commercial,

Air India Ltd.

Smt Renuka Ramnath

Ex-CEO, ICICI Venture,

Founder MD & CEO

Multiples Alternate Asset Management Pvt Ltd

Company

Secretary

Smt. Kalpana Rao

Auditors

M/s. Kapoor Tandon & Co.

M/s. R. Devendra Kumar &

Associates

M/s. P.K.K.G. Balasubramaniam &

Associates

Solicitors

M/s. M.V. Kini &

Co.

M/s. Suri & Co.

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Bankers

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Canara Bank

Central Bank of India

Citibank

Corporation Bank

Dena Bank

Deutche Bank

EXIM Bank

Federal Bank

HDFC Bank

Indian Overseas Bank

Investec Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab & Sindh Bank

State Bank of India

Standard Chartered Bank

Syndicate Bank

UCO Bank

United Bank of India

J P Morgan Bank

IDBI Bank

Indian Bank

Organisation

The registered office and headquarter is known as the Indian Airlines House situated

in New Delhi. Air India has three subsidiaries namely Air India, Air India Cargo, Air

India Express, and Air India Regional.”

Air India Building

The Air India house is a multistory business hub of 23 storeys situated at Marine

Drive in Nariman Point, Mumbai. The Air India house was completed in 1974 and is

owned by Air India. It is situated at Mumbai’s rich and posh locations Nariman Point

which is directly facing Arabian Sea. The landmark of the office is the trademark

centaur icon on its top. This office was first in India having escalator which carry

consumers from street level to booking office.

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Air India One

“Air India One also known as AI-1 or AIC001 is the call sign of any Air India aircraft

carrying the Prime Minister of India, President of India or the Vice President of India.

The aircrafts are operated as VIP flights by Air India. Air India One mainly operates

on one of the five Boeing 747-400s that Air India currently owns, to fly the VIPs

overseas. Apart from that, the Embraer 135 and customized Boeing Business Jets

(BBJ) are also used.”

Air India Subsidiaries

Air India Cargo

Air India Cargo initiated its functioning with a Douglas DC3 Dakota aircraft which

was the first airline in Asia operating freighters. Air India operates cargo flights to

many places. Air India also provides truck transportation on selected places. Air India

also carries different kind of cargo flights for many selected locations. It also assists

in providing services to air cargo worldwide.

Air India Regional

Air India Regional known as a low cost arm of Indian alliance. It is functioning on a

357 weekly flights to 25 other local flights of India. Its main hub is Delhi’s Delhi's

Indira Gandhi International Airport. It worked on a 12 Boeings 737-200 aircrafts.

Air India Express

Air India Express is the low cost subsidiary set up having its corporate headquartered

in Mumbai but generally operating from Kerala. Air India Express started in May

2004 after several demand from Malayalee communities living in Middle East

countries.. Air India Express provides its flight services for Middle East and Southeast

countries of Asia. At present, Air India Express Today Air India Express functioning

almost 100 flights in a week. Air India Express uses the airports of Kerala, Punjab and

Mangalore for its Abu Dhabi, Kuwait, Al Ain, Muscat, Dubai, Salalah and Singapore

flights.

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Air India Charters Limited

Air India Charters Limited a low cost carrier operating from India to Gulf and

Southeast Asia. AICL operates flights from airports in Kerala, Punjab and Mangalore

to Abu Dhabi, Muscat, Dubai, Al Ain, and Salalah in the Middle East and Singapore

in the east. It provides charter flights allover India. It works with other charter

companies like Vibha Lifesavers for air ambulance and Hi Flying aviation for its

general charters in India.

Air India Air Transport Services

Air India Air Transport Services Limited is a Public Sector Undertaking. It is a

subsidiary of Air India and having headquartered in Mumbai. Air India Air Transport

Services Limited exclusively provides ground handling services at various airports in

India. Its services include cargo services, passenger services and baggage services.

Registered Office

Air India Ltd.

Airlines House, 113,

Gurudwara Rakabganj Road,

New Delhi - 110 001.

Headquarters

Air India Ltd.

Airlines House, 113,

Gurudwara Rakabganj Road,

New Delhi - 110 001.

Destinations

Air India having its operations in sixty (60) domestic destinations across India. Air

India has 31 international locations in around 19 countries across North America,

Europe, Asia and Australia.

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Short-haul routes

Air India's short-haul routes mostly consist of domestic cities and some cities of South

East Asia and South West Asia. Air India uses Airbus A320 for short-haul routes. Air

India has introduced Boeing-787 aircraft on preferred domestic routes. Recently Air

India has launched its services from New Delhi to Rajkot by its Alliance Air division

with brand new 70 seater ATR 72 600 aircraft

Long-haul routes

Air India serves its long haul routes specially in Europe, North America, East Asia by

the aircraft Boeing 777 200 LR and 300 ER aircraft. East Asia, North America, and

Europe serving using Boeing 777-200LR and -300ER aircraft as a long-haul

destinations. on 15 October 2012, the Boeing 787 aircraft was introduced on long-

haul routes.

However, Air India's Star Alliance associate, Air Canada will take over Air India's

ceased services from Toronto to Delhi from November 1, 2015. In 2013, Air India

spreads its services of long haul flights by Dreamliner787 to various landmark

places across world which includes Sydney, Frankfurt, Paris, Dubai, London, Hong

Kong, Birmingham, Melbourne etc. In 2014, Air India specially started its services to

Singapore from New Delhi by using the aircraft 787 Dreamliner, by replacing the

Airbus A319. In the same year the airline also launched new long haul flights to

Milan, Rome and Moscow.

TRAINING

Engineering Boeing

Total 2,436 technical personnel are trained during the Financial Year 2012-13 in the

training section of the engineering department.

Airbus

Total 2,800 AMEs and 865 Aircraft Technicians were trained in the Financial Year

2012-13. Total 24 participants from Indian Air Force, DGCA and AASL also

participated in various training programmes.

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Security

The security training center Mumbai and central training establishment both arranged

training programs on various basic, refresher security awareness programs on

different aspects of security for all level of security personnel and officers and staff of

the departments like operations, customers, commercial etc. The training centers are

authorized to conduct training programs. Air India also established training centers in

the cities of Chennai, New Delhi, Bengaluru and Kolkata for effective security

facilitations.

HUMAN RESOURCES

Staff Strength

The total personnel strength is 21,313 as on 31st March 2016.

Long Service Mementoes

The company offers a long service memento, wrist watch and a certificate to all the

individuals who completes 25 years of services on 27th August every year. Last year,

on 27 August 2015, more than 1,000 employees were felicitated in the Long Service

Mementoes presentation function which was held Region-wise.

Sports

The Hockey team of Air India won the LB Shastri Hockey match held in Delhi from

27 November to 4 December 2012.

Mr. VS Vinay and Mr. Arjun Halappa were awarded the Man of the Match prize in

the League Phase,. Mr. VS Vinay was awarded the Best Player of the match. The

Hockey Team won the Obaidullah Khan Gold Award held in Bhopal from 17 to 25

December 2012. Mr Arjun Halappa and Mr Birender Lakra were awarded the Man of

the Match prize in the League Phase. The Maharaja Ranjit Singh Hockey Match held

in Delhi from 7 to 16 March 2013 was won by our Hockey Team.

In 37th Junior National Badminton Championship held in Imphal from 10th to18th

November 2012 Air India Junior Team performed extremely well and the boys’ team

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won Narang Cup while girls’ team won bronze medal. Overall, Air India won 4 gold,

5 silver and 3 bronze medal awards with good score and performance.

Air India Chess Team took part in the 33rd National Team Chess Championship and

11th National Team Chess Championship for Women held in Hyderabad in February

2013. In Men’s section, the team won 4 matches, in Women Section all the 7 matches

were won by Air India women team.

Air India Fleet Details

Fleet Information:

Air India got delivery of its first Boeing 747 400 on 4 August 1993 which was

registered as a VT-ESM and named Konark. This was officially withdrawn from use

and scrapped at Mumbai in May 2011.

The first Boeing777 200LR was delivered on 26th July 2007. The aircraft was named

after the Andhra Pradesh state. Air India received its first Boeing 777 300ER aircraft

on 9th October, 2007 and was named Bihar.

Air India received its first Boeing787 dreamliner aircraft on 6 September 2012 and

which commenced trips from 19 September 2012.

Air India also have a wide range of Airbus aircrafts apart from Boeings. In 1989,

Indian Airlines introduced the Airbus A 320 200 aircraft in 1989, Indian Airlines

introduced the smaller A319 in 2005. Air India introduces the biggest member of the

Page | 43

A320 family the A321, to operate mainly on international short haul and medium haul

routes.

At the same time, Air India chartered the Airbus A330s on medium-long haul

international routes. As of February 2013, Air India operates 62 A320 family aircraft

and two A330-200s.

Fleet restructuring

In December 2013, Air India sold its eight Boeing 777-200LR to Etihad Airways as a

part of the financial restructuring. In April 2014, the airline decided to sell its

remaining three Boeing 777 200 LR too, due to higher operating costs. To strengthen

its domestic market, Air India issued a tender for leasing 14 Airbus A320 aircraft for

up to six years on 24th April 2014.

Livery – Air India

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1970–2007 livery

The livery of Air India mainly colored in

Red and White. The metal body of the

aircraft colored in white background with

the airline’s name written in red. The

airline’s name is written in Hindi on one

side and English on another. The

windows are painted in palace style

carving and outside the windows the

slogan “your palace in the sky” is

written. The tail is in red color.

2007 Pre-merger livery

Air India again revised Rajasthani style its livery with small portion painted red at the

underbelly side. Air India again applied Konark style and painted engine nacelles with

deep red and gold color. It was applied to a few aircraft and shortly after than its

implementation.

2007- Post-merger livery

Air India and Indian Airlines revealed their new livery color scheme on 22nd May

2007. Air India adopted a new logo “Flying Swan” with a Konark Chakra. The Flying

Swan image has been created from Air India’s characteristic, The new logo features

significantly on the tail side of the airplane. The selection of colours namely red for

“Flying Swan” and orange for “Konark Chakra” is intended to show the vigor and the

progress respectively.

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Different Livery of Air India

Awards and Recognitions

9th Most Luxurious First Class Cabin in the world, The Richest, April 2014

Preferred International Airline award for travel and hospitality from Awaz

Consumer Awards 2006

Best International West Bound Airline out of India for three successive years

by Galileo Express Travel World Award

Best Corporate Social Responsibility Initiative by Galileo Express TravelWorld

Award

Best Short-Haul International Airline Award by Galileo Express Travel World

2008

Page | 46

The Mercury Award for the years 1994 and 2003, from the International Flight

Catering Association, for finest in-flight catering services.

Amity Corporate Excellence Award instituted by the Amity International

Business School, Noida, Uttar Pradesh to honour Corporate with distinct vision,

innovation, competitiveness and sustenance.

Reader’s Digest Trusted Brand Award Dun and Bradstreet Award (D&B)-

first in terms of revenue out of the top airline companies out of India

Best South Asian Airline award by readers of TTG Asia, TTG China, TTG Mice

and TTG-BT Mice China, all renowned Mice and business travel publications.

Cargo Airline of the Year at the 26th Cargo Airline of the Year Awards. The

airline entered the Guinness Book of World Records for the most people

evacuated by a civil airliner. Over 111,000 people were evacuated from Amman

to Mumbai – a distance of 4,117 km, by operating 488 flights in association with

Indian, from 13 August to 11 October 1990 – lasting 59 days. The operation was

carried out during Persian Gulf War in 1990 to evacuate Indian expatriates from

Kuwait and Iraq.

The Montreal Protocol Public Awareness Award was awarded to Air India by

the United Nations for environmental protection, especially in the ozone layer.

World's first all-jet airline- June 1962

World's largest operator of Airbus A310-300

Air India's security department became the first aviation security organisation in

the world to acquire ISO 9002 certification (31 January 2001).

Air India's Department of Engineering has obtained the ISO 9002 for its

Engineering facilities for meeting international standards.

Fifth airline in the world to receive the Boeing 787

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Air India is enduring with a variety of CSR projects concerning Education,

Environment, Sports and will be signing MoU with Tata Institute of Social Sciences

(TISS) for working on various projects of CSR in Andaman & Nicobar Islands.

Environment Protection - Environment Management System

Air India has introduced formal Environment Management System (EMS). Air India

has decided to observe a Productivity on Day 12 February 2013 it was also observed

to celebrate seven day period from 12 to 18 February 2013 as National Productivity

Week as proposed by the National Productivity Council (NPC). Air India celebrated

the World Environment Day on 5 June 2013 by organising an awareness promotion

on ‘Say No to Plastic Bags’ and organized ‘No Plastic Bags Day’ on the same day.

Encouragement to Small Scale Industrial units

In respect to the directives from central government, Air India continued its assistance

to help small scale industries, social and charity organisations regularly. The company

also encourages entrepreneurs to start small businesses and units. It also assists

various non-profit/ government organizations for elimination of social problems and

for development of needy and poor of the society.

IMPLEMENTATION OF RESERVATION POLICY

Air India fully implements the government guidelines in recruitment of personnel in

various cadres. The company has implemented the reservation policy as per the rules

and regulations imposed by the competent authority time to time.

Total No.

of

employees

Total No.

of SC

employees

Total %

of SC

employees

Total No.

of ST

employees

Total % of

ST

employees

Total No.

of OBC

employees

Total % of

OBC

Employees

21313 4332 20.33 1504 7.06 1193

5.60

5

Source: Annual Report Air India 2015-16

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Employee Development:

Air India has its own staff training college. Air India staff college is organizing

various employee development programs in coordination with IATA for than two

decades. It provides different programs for the students which consists of…

International Travel & Tourism Training Program.

International Cargo Agent Training Program.

IATA Aviation Distance Learning program.

Air India provides program support services and conducts examination on

behalf of IATA all over the country. These exams are conducted every quarter

at:

Ahmedabad

Calicut

Cochin

Kolkata

Bangalore

Chandigarh

Goa Hyderabad

Baroda

Chennai

Delhi

Mangalore

Mumbai

Pune

Thiruvananthapuram

Promotion Policy:

Air India is working on a new uniform promotion policy for the merged entity. The

company is giving equal opportunity to all personnel working in the organisation. The

company follows all the norms and government directives in promoting employees.

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2.2 JET AIRWAYS LIMITED

Introduction:

Jet Airways, is among one of the best airlines of India. Jet Airways is a most

important Indian airline based in Mumbai city of India. A Jet Airways is the second

largest aviation company in India. It also holds second position in terms of market

size, passengers carried after IndiGo Airlines. Jet Airways operates over 300 flights

daily to 73 destinations across world. Jet Airways holds main hub in Mumbai with

secondary hubs at Delhi, Chennai, Kolkata and Bengaluru.

At present, Jet Airways is the most preferred domestic airline in India. it is competing

all the domestic as well international airlines. Jet Airways is offering a high quality

services with reliable, comfortable and efficient functioning.

On 1st April 1992, Jet Airways was started as an air taxi operator. Jet Airways started

commercial operations on 5 May 1993 with fleet of 4 leased Boeing 737-300 aircraft

from Malaysia Airlines. In January 1994, Jet Airways got a chance to apply for

scheduled airline status and which was granted on 4th January 1995. The owner of Jet

Airways Mr Naresh Goyal offered his expertise of marketing and sale for

international airlines who wish to start their operations in India. Jet Airways started to

compete Indian Airlines, a monopolistic airline of India who enjoyed monopoly in the

domestic business from its inception.

Jet initiated international operations from Chennai to Colombo in March 2004. Jet is

listed on Bombay Stock Exchange but the surprise is its 80% of shares are controlled

by the owner Mr Naresh Goyal through its parent company Tailwinds.

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Basic Profile of Jet Airways:

Airline Code 9W

Founded April 1, 1992

Commenced operations May 5, 1993

Corporate Office Mumbai, India

IATA Membership

Active Member and a member of the IATA Clearing

House. Also a participant of the IATA Multilateral

Agreement for Passengers and Cargo Traffic.

IOSA

Earned the distinction of receiving the IATA

Operational Safety Audit (IOSA) Registration. IOSA

is a quality audit programme under the continuing

stewardship of IATA. Has successfully completed the

Operational Safety Audit and has entered into the

IOSA Registry.

Hubs

Primary Hub and Maintenance Base: Mumbai

(Primary Hub and Maintenance Base)

Secondary Bases: Bengaluru, Brussels, Chennai,

Delhi, Kolkata, Pune

Frequent Flyer Program JetPrivilege

Subsidiary Jet Lite (India) Ltd.

Destinations

73

(22 international destinations and

51 destinations within India)

Fleet 116 (Average fleet age: 5.19 years)

Page | 51

Frequent Flyer Program JetPrivilege

Website www.jetairways.com

Employees 13478

History of Jet Airways (India) Private Limited

Origins

The owner of Jet Airways Mr. Naresh Goyal began his career in travel field in 1967 at

the age of 18 as a general sales agent (GSA) for Lebanese International Airlines. He

established his own business named Jetair (Private) Limited in May 1974.

From its inception Air India was the market leader and it enjoyed the monopoly but

after 35 years of the monopoly by both the Air India and Indian Airlines the

government opened doors for private players in April 1989 and that time Mr Naresh

Goyal, owner of Jet group started Jet Airways (India) Private Limited in 1991.Mr

Naresh Goyal owned 60% of stake in Jet Airways as of now.

Jet Airways started domestic flights operation with Boeing 737s on May 5, 1993. The

first flight was from Mumbai to Delhi and Madras to ten other destinations.

Jet’s schedule was matched with the Gulf Air to provide suitable connections. Gulf

Air assisted the new airline with technical and marketing assistance. The Australian

airline Ansett Worldwide also provided engineering and other technical expertise.

Surviving and Thriving in the Mid-1990s

There were eight private airlines practicing all over India during 1990s. Jet Airways

was the second largest domestic airline in India. its revenues for the 1994-95 fiscal

year were estimated at INR 360 crore ($120 million) with more than INR 18 crore ($6

million) profits.

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Jet Airways was operating a fleet of one dozen Boeing 737s and was ordering ten

more for $486 million in 1997. By this time, Jet was India's largest private carrier, and

was flying to 20 destinations. Its market share was about 17 percent. As per the views

of Jet Airways Executive Director Saroj Datta told Britain's Financial Times that the

airline's choice of newer aircraft was a significant factor in its success.

Late 1990s Price Wars

The domestic airline market stayed cutthroat. As demand contracted, competitor

engaged in a spirited price war, particularly on the Mumbai (Bombay) to Delhi route.

Nikos Kardassis, Jet's chief executive officer for five years, left Jet in mid 1999. Then

he was replaced by Executive Director Saroj Dutta, who had been with the airline

since 1992.

As on 1999, Jet Airways was flying 155 flights a day to different 30 destinations. The

fleet was up to 25 aircraft and the airline employed 4,300 individuals.

In October 1999, the airline began a regional feeder network using chartered 64 seater

ATR 72 turboprop airplane. Jet airways revealed new uniforms for its 270 cockpit

crew members and 660 cabin staff which was designed by Ravi Bajaj.

Network:

Jet Airways operates flights on 51 domestic routes and 22 international destinations

that span the length and breadth of India.

International Network:

Abu Dhabi Bahrain Bangkok Brussels

Colombo Dammam Dhaka Doha

Dubai Ho Chi Minh City Hong Kong Jeddah

Kathmandu Kuwait London Heathrow Muscat

Newark Riyadh Sharjah Singapore

Toronto Paris Charles de gaulle -- --

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Destinations within India

Ahmedabad Aizawl Amritsar Aurangabad Bagdogra

Bengaluru Bhavnagar Bhopal Bhuj Chandigarh

Chennai Coimbatore Dehradun Dibrugarh Delhi

Diu Goa Gorakhpur Guwahati Hyderabad

Imphal Indore Jaipur Jammu Jodhpur

Jorhat Khajuraho Kochi Kolkata Kozhikode

Leh

Lucknow

Madurai

Mangalore

Mumbai

Nagpur

Patna

Porbandar

Port Blair

Pune

Raipur

Rajahmundry

Rajkot

Ranchi

Silchar

Srinagar

Thiruvananthpuram

Tiruchirapally

Udapir

Vadodara

Varansi

--

--

--

--

Jet Airways covered maximum part of India by spreading its wings to major cities of

India. As on September 2016, Jet Airways operates total 73 destinations including 51

domestic destinations and 22 international destinations. Mumbai is the primary hub of

Jet Airways while Bangalore, Chennai, Delhi and Kolkata are secondary hubs. In

November 2015, Jet Airways introduced flights from Mumbai and Delhi to the

eastern port city of Vishakhapatnam.

Jet Airways also planning to start some new routes and flights to satisfy increasing

demand of people.

Page | 54

Board of Directors

Jet Airways has a team of distinguished professional with extensive knowledge and

experience in the aviation sector. The Board of Management strives on execution of

fulfillment of organizational objectives. The Board of Management consists of

various expert, specialized aviation distinguished personality across national and

international level.

Mr. Naresh Goyal Chairman

Mr. Javed Akhtar Director

Mr. Iftikar M. Kadri Director

Mr. Aman Mehta Director

Mr. Gaurang Shetty Director

Mr. James Hogan Director

Mr. James Rigney Director

Mr. Dinesh Kumar Mittal Director

Mrs. Anita Goyal Director

Mr. Srinivasan Vishvanathan Director

Page | 55

Senior Management – Jet Airways

The senior management team comprises of as below

Capt. Hameed Ali Group Executive Officer

Mr. Gaurang Shetty Whole Time Director

Mr. Amit Agarwal Acting Chief Executive Officer & CFO

Mr. K M Unni Chief of Operations

Mr. Jayaraj Shanmugam Chief Commercial Officer

Capt. Hassan Sayed Kamal Al M Sr. Vice President - Safety & Quality

Capt. Nikhil Ved Sr. Vice President - Operations

Capt. Sudhir Gaur Vice President- Flight Operations Sp Projects

Ms. Warakorn Komutanont Vice President – Inflight Services

Mr. Rahul Taneja Chief People Officer

Mr. Shrimanikandan A Chief Information Officer

Mr. Colin Neubronner Sr. Vice President – Marketing & Sales

Mr. Belson Coutinho Vice President – Marketing, e-Commerce

Mr. Prasad Kholkute Vice President - Revenue Management

Mr. Abhijit Dasgupta Vice President - Alliances & Planning

Ms. Sonu Kripalani Sr. Vice President - Guest Experience

Ms. Ragini Chopra Vice President - Corporate Affairs

Mr. Manish Kalghatgi Vice President - Corporate Communications

Mr. Pradeep Kumar Sr. Vice President – Cargo

Col. Avneet Singh Bedi Vice President- Security

Mr. Ashok Barimar Sr. Vice President - Legal

Mr. Kuldeep Sharma Vice President –Company Secretary

Page | 56

International Operations Approval

Jet Airways got the approval for international flying on March 22, 2004. Colombo, Sri

Lanka, was the first such international location. Flights to Bangladesh and Nepal

followed soon after.

Jet was fair enough to profit from an expansion of flying rights throughout Asia. A

preliminary public offering of 25 percent of shares, conferred since 1995, was also in

the works. Jet had borrowed about $800 million to finance new aircraft and other

operations.

Principal Competitors

IndiGo, Spice Jet, Air India, GoAir; are considered as a principal competitors at the

domestic level.

Jet Airways Subsidiaries

Jet Lite

JetLite was a fully owned subsidiary company of Jet Airways. It was founded as

Sahara Airlines on 20th September 1991 and initiated functioning on 3 December

1993 with 2 Boeing737-200 airplanes. Initially services were determined in the

northern India, keeping Delhi as its center point, and then operations were expanded

to all over country.

Sahara Airlines was renamed as Air Sahara on 2nd October 2000. Jet Airways took

over Air Sahara on 12th April 2007 and on 16th April 2007 Air Sahara was renamed as

JetLite. JetLite operated a fleet of mixed owned and leased Boeing737 Next

Generation aircraft and Bombardier CRJ-200ER. JetLite stopped its operations on 25

March 2012 after merger with Jet Konnect.

Jet Konnect

JetKonnect, formerly Jet Airways Konnect, the low-cost airline owned by Jet

Airways, was started on 8 May 2009. It started its functions with a fleet of Boeing 737

Page | 57

Next Generation airplane. The foundation for launching Jet Konnect was to shutdown

unprofitable routes and diverts the routes to more beneficial routes with higher

passenger turnover. Jet already ran a low-cost airline named JetLite. As per the Jet

Airways officials, the decision to commence a low-cost brand instead of growing the

existing JetLite was taken to ignore the regulatory impediment associated with

moving surplus airplanes and property from Jet Airways to JetLite, which have

separate operating regulations. Jet Konnect offers a no add-ons flight where food and

other snacks have to be obtained on board. To identify if the flight service or Konnect

the flight numbers for Konnect are in the series 9W-2000-2999. Jet Airways merged

the JetLite brand into Jet Konnect on 25 March 2012. Jet Airways offered eight

business class seats in Konnect to cash in on Kingfisher Airlines' despoilment.

Jet Airways placed an order for 5 ATR72-600 aircraft to "enhance regional

connectivity" during December 2012. The first aircraft was delivered during the same

month, leased from GECAS and was operated for Jet Konnect.

Jet Airways announced that it would phase out Jet Konnect by the end of the year as

part of plans to move itself as a uniform full-service operator on 11th August 2014. Jet

Konnect was fully merged with Jet Airways with complementary meal services to

take on the competition from the new airline Vistara which was then to start it

operations on 1st December 2014.

Page | 58

Fleet Details of Jet Airways

As of March 2016, the Jet Airways fleet consists of the following aircraft:

Jet Airways Fleet

Aircraft In

Service Orders

Passengers

Notes

F J Y Total

Airbus A330-

200

8 — — 30 196 226

2 Dry Leased to

Turkish Airlines and 3

dry leased to Etihad

Airways

Airbus A330-

300

4 — — 34 259 293

ATR 72-500 15 —

— — 62 62

— — 68 68

ATR 72-600 3 — — — 68 68

Boeing 737-700 10 — — 8 126 134

Boeing 737-800 60 8

— 16 138 154

— 8 162 170

Boeing 737-900 2 — — 28 138 166

Boeing 737-

900ER

4 – — 8 178 184

Page | 59

Boeing 737 MAX

8

— 50 TBA Entering service in

2017

Boeing 777-

300ER

10 —

8 30 274 312 5 Dry Leased to Etihad

Airways 8 30 312 350

Boeing 787-9 — 10 TBA Deliveries starting

2017-2018

Total 116 68

Jet Airways Livery

1993–2007

The original and inventive livery of and Jet Airway was Navy Blue, Light Grey and

Chrome Yellow. The top and bottom of the aircraft were colored in light grey with the

flying sun logo in the navy blue background.

Page | 60

2007–Present

Jet Airways' existing livery was begun in 2007. The design retain the dark blue and

gold accented color combination of Jet Airways' earlier business identity, alongwith

the airline's "flying sun" logo. The new livery, created by Landor Associates, added

yellow and gold ribbons. A new yellow uniform was at the same time launched and

created by Italian designer Roberto Capucci. Jet Airways introduced its new identity

in concurrence with a worldwide brand re-launch which included new aircraft and its

seating. On 9th July 2012, Jet Airways revealed India's first Disney branded Boeing

737.

Awards and achievements

Best First Class — Service in the World award at Business Traveler’s 20th

annual 'Best in Business Travel' awards

Best Business Class & Best Economy Class at the Business Traveller Awards

Best Programme of the Year by Freddie Awards 2007 & 2006

Best Elite Level for the second year in a row, at the 21st Annual presentation

ceremony of the Freddie Awards 2008

Best Overall in Entertainment at the Avion Awards 2010

India's Popular Domestic Airline at the SATTE 2006 Awards

India's Airline at the World Travel Awards, 2006

Best Technical Despatch Reliability by Beaver 2002

Best Cargo Airline of North Asia by Cargo Airline of the Year Awards

Best Domestic Airline award for the 1st consecutive year and the 5th time in the

past two years at the 18th TTG (Travel Trade Gazette) Travel Awards 2007

India's Most Respected Company in the Travel and Food Sector by Business

world 2003

Best Long Haul Carrier ex-Brussels award at the Tm Travel Awards 2009.

Page | 61

Best Eastbound Airline from India and Best domestic Airline in India awards at

the Abacus Tafi Awards 2009.

Business Traveller's Best Indian Airline Award in London.

Class of Service on international sectors:

First Class

Business Class branded as Première

Economy

Class of Service on sectors within India

Business Class branded as “Première”

Economy

Corporate Partnerships

Codeshare Partners: As the Jet Airways spreads over worldwide skies, company

also actively entering into code share associations with different international airlines

to facilitate guests to fly to more places than ever before on Jet Airways and

associated air travel.

Jet Airways places its marketing code on the following routes operated by its

codeshare partners:

Air Canada

Air France

Alitalia

All Nippon

Brussels Airline

Etihad Airways

Garuda Indonesia

Kenya Airlines

Malaysian Airlines

Qantas

South African Airways

Thalys United Airlines

Vietnam Airlines

--

Page | 62

Interline Partners: Interline e-Ticketing is the advanced ticketing system, which

permits two companies to electronically sell tickets on each other portal on a single

document at single window. Jet has more than 151 Interline associates of which 102

are Interline e-Ticketing Partners. All existing e-Ticketing eligible sectors of Jet

Airways and the below Interline e-Ticketing Partner are applicable for e-Ticketing.

JetPrivilege Partners: Jet Airways proposed various schemes like Frequent flyer

program, JetPrivilege possess of 140 partners across various categories like airline,

car rental, co-brand card, codeshare, conversion, dining, e-Retail, lifestyle,

entertainment, hotel, lifestyle, publishing, retail and telecommunication and all are

directly beneficial to the fraternity of the Jet Airways.

Through Check-in Partners: Jet proffers by check-in facility for guests travelling on

flights and connecting on 49 through check-in partner airlines across the world.

Corporate Social Responsibility

Jet Airways also recognizes its accountability towards the Society and Nation as

whole. Jet Airways commenced its Yellow Rose promotion in 1998 mean people are

like roses, and like the flower they need friendship and warmness. Jet Airways has

endeavored not only to lengthen these traits to its passengers, but also to the whole

nation in time of mishap.

Shrimad Rajchandra Mission Dharampur’s Love and Care program has initiated the

“Expressions of Love”, in concurrence with “Joy of Giving Week- India's Festival of

Giving”, to spread the message of love and care. In the midst of several other

activities planned by the airline, one of them is Mumbai Darshan - a city tour for 170

students of rural residential school children called “Shrimad Rajchandra Gurukul”

situated in the village of Karanjveri, Dharampur.

Blood Donation Camp

Jet Airways, India's premier international airline arranges a blood donation camp on

regular basis in association with Prathama Blood Centre. The Staff and Management

of Jet Airways contribute in this splendid cause.

Page | 63

Relief efforts in Jammu & Kashmir

Jet Airways initiated its in-flight donation program the 'Magic Box' with the NGO

Save the Children India (STCI) on January 7, 1997 for relief efforts in the

consequences of the earthquake in Jammu & Kashmir.

Relief efforts in the aftermath of the Tsunami

The stalk of demises and demolition that the Tsunami Disaster left across South and

East Asia on December 26, 2004 is incomparable in the records of modern world

history. In India, various states like Tamil Nadu, Pondicherry, Andhra Pradesh, Kerala

and the Andaman & Nicobar Islands which bore the brunt of the destroyer waves,

thousands have died and still many others have been displaced from houses and lives.

Relief Efforts for the Gujarat Earthquake

The January 2001 earthquake in Gujarat was a disaster of substantial extent. The

desolation as well leaving thousands dead or injured also displaced many. Jet Airways

set up 750 temporary shelters for over 700 families of Ramvav village in Rapar

Taluka of Kutch district in the quake-devastated Gujarat as part of a substantial

remedy program.

Magic Box - Contribution to Osmanabad and Kargil

Jet Airways commenced its inflight collection programme the 'Magic Box' in

association with the NGO Save the Children India (STCI) on January 7, 1997 for

contribution to the osmanabad and kargil affected people.

Eco-friendly Napkin Cords on Première Class

Jet Airways has affianced the services of Shraddha Charitable Trust - a registered

NGO who train and offer post school vocation to their mentally challenged and

artistic young wards.

Page | 64

Other Activities

Jet Airways, jointly with different NGOs organizes one or two "Flights of Fantasy"

for the needy and neglected children. Under this distinctive program, children

belonging to deprived sections of Society are commenced into the world of aviation

through special dream flights.

Together with NGOs, other business partners are also involved. Jet Airways has

conducted a number of such flights at Mumbai and Chennai.

Page | 65

2.3 SPICEJET LIMITED

INTRODUCTION

SpiceJet was established as a limited Company under the Companies Act, 1956 on

February 9, 1984 and is officially listed on the Bombay Stock Exchange Limited

(‘BSE’). The airline company is providing air travel services and air transport services

for the carriages. SpiceJet is a low cost airline functioning under the brand of

‘SpiceJet’ in India since May 23, 2005.

At present, SpiceJet operates a fleet of 34 aircrafts across various routes in India as at

March 31, 2016. SpiceJet initiated its international routes with the permission of

Directorate General of Civil Aviation (DGCA) from October 2010.

SpiceJet specially entered in the market as a low cost airline with lowest air fares with

high level of customer satisfaction. The airline is fulfilling everyone’s dream of flying

as its vision statement “Flying for everyone”.

In this competitive aviation market, the ratio of passenger travel is increasing day by

day. Indians are travelling for personal or business purpose they needs to save both

money and time together and SpiceJet caters both needs of individuals.

SpiceJet is a major low cast airline of Indian market and its wings are spread across

more than 8 international locations in middle east, Asian countries and UAE.

Gurgaon is the headquarter of SpiceJet and it is based at Delhi NCR. SpiceJet

operates more than 210 daily routes which includes 34 Indian and 8 International

Page | 66

routes. SpiceJet made the flying experience a more easy, accessible and reasonable

for Indian nationals.

SpiceJet has a fleet power of 19 Boeings 18 737 800 and one 900 ER airplane

alongwith 15 Bombardier Q 400 aircrafts. SpiceJet offered variety of services for its

customers with more pioneering products which includes spacious seating called

SpiceMax and SpiceMax which facilitates early checking of bags and luggage.

The product “Corporate Traveller” and “SME Traveller” both attracts so many

travellers and a wide range of aviation groups and customers. SpiceJet started OTG

mean “On Time Gurantee” program that ensures timely availability of flights and if

the flight delayed for any reason that within control purview of the airline, it will be

compensated with discount vouchers for their next flight.

Evolution and History:

Month/

Year

Historical Milestones

Feb 1984 The business was originally established with the name Genius

Leasing Finance and Investment Company Ltd.

Year 1993 The business started its domestic airline operations under

technological affiliation with Deutsche Lufthansa AG.

Oct 1996 The company poised its operations in October 1996.

Dec 2004 Mr. Ajay Singh raises new financial resources and re-launched the

practices as SpiceJet following the low-cost model. Mr. Singh was

also inducted as director on the board of the Company.

Jan 2005 Agreement with Boeing Company for purchase of 10B737-800

aircraft.

May 2005 The Company started its airline operations with a fleet size of three

(3) leased aircraft at initial time.

Page | 67

Month/

Year

Historical Milestones

Feb 2006 Agreement to procure of additional 10B737-800 aircraft taking

Boeing order size to 20 aircraft.

Mar 2007 Agreement to procure of additional 10B737-800 aircraft taking

Boeing order size to 30 aircraft.

Aug 2008 Reshuffling of FCCBs worth US$68 million wherein stakes of

Goldman and partially Istithmar were purchased by Wilbur Ross.

Jun 2010 –

Nov 2010

Modification in ownership/ control of the business from Royal

Holdings Services Limited to Kal Airways Pvt. Ltd and Mr.

Kalanithi Maran whereby 38.66% of the capital was acquired by

Aug 2010 Mr. Ajay Singh resigned from the board of the Company however

continued to remain the shareholder of the Company

Aug 2010 Agreement with Boeing to purchase additional 30 aircraft taking

Boeing order size to 60 aircraft.

Oct 2010 SpiceJet became eligible for international operations and launched

operations to Kathmandu and Colombo

Dec 2010 Agreement with Bombardier for purchase of 15 Q400 aircraft to

connect Tier II and Tier III cities in India

Sep 2011 Launch of Q400 operations with base at Hyderabad and first flight

to Tirupati.

Oct 2011 –

Nov 2014

Attainment of additional 5% equity shares in each financial year by

the then promoter introduce approximately Rs.454 crore in the

Company

Jan 2015 Mr. Kalanithi Maran and Kal Airways mutually transfered

ownerships, management and control of the airline to Mr. Ajay

Singh.

Page | 68

Month/

Year

Historical Milestones

Jan 2015 –

Feb 2015

Fresh blend of funds in the Company aggregating to Rs.500 crore.

SpiceJet’s Success Mantra

The power to fly for everyone

SpiceJet makes the flying a reality than a dream. The fares of SpiceJet are quite

reasonable and most importantly fares are lower than other domestic airlines in India.

SpiceJet is like no other airline in India.

SpiceJet’s punchline “with all our heart” is very much appropriate as per its

objectives. SpiceJet’s interiors, latest graphics and designs are unique. SpiceJet

considered as a stylist airline. SpiceJet makes its customers feel smart, good and fresh

at the end of travel at the arriving destination – feeling cool, fresh and on time.

The power of performance.

SpiceJet is focusing on its employees and make them feel comfortable at job. Each

individual at SpiceJet having good personality, etiquettes, friendly approach, efficient

working and good communication skills. Experienced and professional pilots, trained

crew members, smiling face air hostesses make the customer feel welcome and make

each flight a unforgettable experience.

The power of safety

SpiceJet is more concerned about safety of its customers. SpiceJet practices high level

of safety measures with high level of expertise in safety and security standards.

SpiceJet invests smart amount of money in maintenance of safety standards and

personnel. SpiceJet also organizes safety training programs regularly.

Page | 69

The power behind the power to fly

SpiceJet's key management people are all senior, experienced and specialized

individuals and have noteworthy global experience in managing low cost airlines. The

management of the company always strives to provide quality services at the lowest

fare with smiling face and is committed to customer satisfaction. The objective of

SpiceJet is to make the travel more comfortable, reasonable and joyful experience for

all.

Fleet Information:

Boeing 737-900ER Technical Characteristics:

Aircraft Boeing 737-900

Total in Service 01

Seats 212

Engines CFM 56-7B26

Cruising Speed 0.78MACH

Length 42.1M

Height 12.50M

Wheel Base 17.2M

Maximum Fuel Capacity 20500Kgs

Page | 70

Boeing 737-800 Technical Characteristics:

Aircraft Boeing 737-800

Total in Service 18

Seats 189

Engines CFM 56-7B24

Cruising Speed 0.78MACH

Length 39.5M

Height 12.50M

Wheel Base 15.6M

Maximum Fuel Capacity 20500Kgs

BOMBARDIER Q400 TECHNICAL CHARACTERISTICS

Aircraft Q-400

Total in Service 15

Seats 78

Engines PW-150A

Cruising Speed 0.65MACH

Page | 71

Length 32.83M

Height 8.34M

Wheel Base 13.94M

Maximum Fuel Capacity 5100Kgs

SpiceJet Cargo

SpiceJet Cargo, an unit of SpiceJet, which proposes safe, on-time and easy air cargo

transportation across the nation supported by SpiceJet's advanced infrastructural

setup.

SpiceJet Cargo proposes the capacity to commute between 2 to 3.5 tons of cargo per

flight with 264 scheduled daily flights, these amounts to a total capacity of around

300 tons on a daily basis. The cargo team is supported by years of experience, and is

fully competent of providing efficiently handled cargo and logistical services across

India. SpiceJet Cargo is nationwide airport to airport merchandise with offices at

major SpiceJet offices such as Ahmedabad, Agartala, Bagdogra, Bangalore, Chennai,

Coimbatore, Delhi, Goa, Guwahati, Hyderabad, Jaipur, Kochi, Kolkata, Madurai,

Mumbai, Pune and Vizag.

The range of products and services given by SpiceJet Cargo includes Cargo Services

that provide all types of common cargo, the Valuable Cargo and Goods classified

under hazardous Goods. The maximum acceptable dimensions for each package are

L48''XB52''XH34'', with separate package weight not exceeding 100kgs.

SpiceJet Cargo providing very satisfying services to all parties. India’s domestic cargo

business has grown by 21 % to 25% in last six months. SpiceJet has tie-up with many

organisations for cargo. SpiceJet Cargo services are well connected across India.

Page | 72

Board of Directors:

Promoter Directors (Non- Executive) Mr. Kalanithi Maran, Chairman

Mrs. Kavery Kalanithi

Managing Director Mr. S. Natrajhen

Independent & Non-Executive Directors Mr. J. Ravindran

Mr. M. K. Harinarayanan

Mr. Nicholas Martin Paul

Mr. R. Ravivenkatesh

Mr. Ajay Singh is holding maximum shares of the company (60%) and he is the

Promoter of the company. Other key management personnel include Mr. Sanjiv

Kapoor, who is the Chief Operating Officer and Mr. Kaneswaran Avili is the Chief

Commercial Officer.

The airline's board of directors has also appointed new majority shareholders -- Ajay

Singh and his wife Shiwani Singh as directors, and Harsha Vardhana Singh as the

independent director.

Mr Ajay Singh the chairman and managing director of the company but he is not

drawing any remuneration for the executive functions to be performed by him. Singh,

a co-founder of SpiceJet who exited the airline in 2010, took back its control after

acquiring the entire 58.46% stake of Kalanithi Maran and Kal Airways Pvt. Ltd in

February as part of a revival plan.

Page | 73

Human Resources

SpiceJet as an airline company believes in fostering positive workforce and promoting

fruitful interpersonal relationships between employees and employer. Success of any

organisaion lies upon its human resources. SpiceJet has committed and reliable

manpower. SpiceJet developed its people by nurturing their needs and wants. SpiceJet

believes in employee engagement programs and making them more competitive.

The organisaion cares for its human resources with all round practices. Individuals at

SpiceJet are highly satisfied and faithful to the organisaion. The performance and

evaluations are high on values. People respect the organisaion, its practices and it is

working. All work with great team spirit and great zeal.

The Company makes possible ways to train its manpower by organizing a variety of

training programs at various levels. It also imparts training in soft skills to maximize

employee productivity and development. SpiceJet provides constant best physical

working conditions, neat and clean environment and essential amenities to all people.

The overall strength of the organisation workforce as on March 31, 2016 is 4,192

(previous year it was 5,639) and they highly emphasizes on employee work

productivity by creating a high performance culture and an enabling environment

through alignment of business requirements and individual goals.

Page | 74

Executive Development:

SpiceJet has joined hands with University of Petroleum and Energy Studies for

campus placement as well as to offer its human resources full time MBA and BBA

program in Aviation.

SpiceJet has selected first batch consists of 15 candidates who have qualified for the

MBA programme. The objective of this program is to offer managerial and

professional touch to junior and middle level managers and allow them to develop

skills and talent required for higher managerial positions in the organization.

This programme is a fully supported opportunity from SpiceJet to its manpower and it

includes free services like travel expenses and accommodation while individuals

attend classes at Gurgaon campus

Company's philosophy on Corporate Governance

Corporate governance is a morally drive business practices that is committed to fair

principles and standards aimed at enhancing an organization’s wealth generating

capacity.

Corporate governance is focusing on valuable principle based ethical practices in all

aspects of the business. In these practices, business ensures transparency in all kind of

monetary and non monetary decisions taken by the management. An organisation

shows its commitment towards all stakeholders and makes them assure about the

company’s policy on ethical code of conduct. By this company protects the long term

interest of all stakeholders.

Page | 75

Corporate Social Responsibility:

The punch line of SpiceJet’s Corporate Social Responsibility is, “Giving Wings to

Dreams” is the initiative in which SpiceJet categorize and arranges special treats for

disadvantaged, poor, needy, orphan and underprivileged children throughout the year.

SpiceJet’s major aim is to improve the livelihood of unprivileged and upliftment of

the needy people of the society specially children. By this CSR programs SpiceJet

frequently organizes a range of activities like trips for these children, art competitions

in association with various social and non government organisaitons.

Greeting Cards Competition for

Children on Board

Trip to Goa for Vision Foundation –

an NGO

Trip for Sneha Bhavan Shishu NGO

Madhurai Trip for challenging

children

Page | 76

CODE OF CONDUCT FOR BOARD MEMBERS

& SENIOR MANAGEMENT

SpiceJet has a vision for maximum customer satisfaction and fostering stakeholders’

value. SpiceJet’s mission is to be India’s number one airline with the utmost customer

values throughout ethical code of conduct of the organisaion.

SpiceJet’s values on corporate governance reveals about fair and transparent

organization, administration and governance with its disclosure practices. It includes

respect and value for manpower, dignity of each personnel and obedience to sincere,

faithful, ethical and professional conduct.

Page | 77

2.4 INDIGO

InterGlobe Aviation Limited

Company Profile:

IndiGo is known as a fashionable and flourishing airline in the entire world, it is

booming with a variety of reasons and having many number of flights across the

globe. IndiGo becomes a leader airline in aviation world today. IndiGo is well known

for its in-time flights, connecting most destinations, hospitality, travel services, crew

services and assistance all together makes it leader on aviation sector.

IndiGo was initiated its services in the year 1989. Its headquarter is situated in

Gurgaon, India. InterGlobe has strong network of 126 offices across 59 cities at the

global level. InterGlobe has more than 16000 manpower and among them more than

10536 manpower rendering their services in IndiGo airlines. InterGlobe has variety of

businesses which includes IndiGo Airlines (InterGlobe Aviation)‚ InterGlobe

Technologies‚ InterGlobe Air Transport‚ InterGlobe Technology Quotient‚

InterGlobe Hotels, InterGlobe CAE Simulation Training Private Limited.

At present, IndiGo becomes India’s fastest growing airline and hold number one

position at many levels. The key features of IndiGo includes on time services, lowest

fares, marvelous travel experience and wonderful hospitality.

IndiGo has started its international routes since 2011. IndiGo becomes people’s airline

due to its three principles namely on-time services, reasonable routes and hassle free

travelling. IndiGo has a fleet size of 94 advanced Airbus A320 200 airplanes and

having more than 564 flights. IndiGo has total 32 destinations in India and 5 at the

international level.

Page | 78

IndiGo is specially meant for the people who don’t want to waste time, money and

want to enjoy the air travel with IndiGo. IndiGo has world best resources, IT

applications and software’s and amenities from around the world. IndiGo focuses on

doing one thing and doing it right and well.

Hence, IndiGo has;

One type of brand new Airbus A320s Airplanes

One type of fare – low fares

One type of Professional customer services

One way to deal with delay and cancellations with honesty.

History and Developments:

IndiGo has clear vision, mission, objectives and quality policy which makes it apart

from other airlines across world. Today, IndiGo considered as a most successful and

number one domestic airline in India.

Following is the time line which shows the growth and development in its operations.

1989

InterGlobe Air Transport becomes the General Sales Agent

(GSA) for International airlines

InterGlobe Enterprises becomes the national distribution

company for Galileo International & Global Distribution

Systems (GDS) distribution

InterGlobe Enterprises sets up InterGlobe Air Transport

First office is set up in New Delhi, at 66 Janpath, with 5

employees

InterGlobe Enterprises is established

1991

InterGlobe Air Transport launches a national network of offices

to support its growth

InteGlobe Enterpises grows rapidly with more than 66

Page | 79

employees

1994 InterGlobe Enterprises sets up a separate business unit

1998

InterGlobe Enterprises establishes InterGlobe Technologies as a

joint venture with Travelport (formerly known as Cendant), with

its headquarters in Gurgaon

2000

InterGlobe Technologies expands its client base by acquiring

clients like Virgin Atlantic, United Airlines, Saudi Arabian

Airlines and many more

InterGlobe Technologies becomes a member of Nasscom

2004

InterGlobe Technologies IT practices achieve CMMI Level 3

Certification

InterGlobe Technologies introduces an offshore development

model for clients such as Worldspan, Galileo, Al Tayyar and

several travel companies

InterGlobe Enterprises enters into a joint venture with Accor for

hotel development and management

2005

InterGlobe Technologies sets up a second 1200 seat capacity

center in Gurgaon

InterGlobe Technologies IT practices achieve CMMI Level 5

Certification

InterGlobe Technologies enters into a strategic agreement with

Galileo International to provide off-shore development and

support for Apollo and Galileo Global Distribution Systems

InterGlobe Enterprises launches InterGlobe Technology

Quotient, the distribution arm for Galileo in India

InterGlobe Enterprises orders 100 A320 aircrafts for its low-cost

carrier IndiGo

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2006

InterGlobe Technologies sets up subsidiaries in China

(InterGlobe Technologies Solutions Beijing Co Ltd.) &

Singapore (InterGlobe Technologies Solutions PTE Ltd.)

Worldspan signs a long-term agreement with InterGlobe

Technologies for travel IT & BPO solutions

IndiGo receives CAT III approval

By November, IndiGo's fleet size increases to 5 aircrafts

IndiGo's first aircraft is delivered in July, and the low-cost

domestic airline commences operations

InterGlobe Technologies declared as the winner in "Fastest 50

Growing Companies in India" & "Fastest 50 Growing

Companies in Asia", in a survey conducted by Deloitte

Consulting

InterGlobe Technologies sets up a delivery center in Chennai

InterGlobe Technologies BPO practices receive ISO 9001:2000

certification

2007

IndiGo flies to 13 destinations within India with a fleet size of 15

aircrafts

InterGlobe Technologies sets up a branch office in the

Netherlands to serve the European market

InterGlobe Enterprises enters into the general aviation market

with Hawker Beechcraft Corporation

InterGlobe Technologies is declared as the winner in "Fastest 50

Growing Companies in Asia", in a survey conducted by Deloitte

Consulting

InterGlobe Technologies achieves ISMS 27001:2005

certification

2008

InterGlobe Technologies is declared as the winner in "Fastest 50

Growing Companies in India", in a survey conducted by Deloitte

Consulting

IndiGo flies to 17 destinations within India with a fleet size of 20

Page | 81

aircrafts

First ibis hotel in India becomes operational in Gurgaon

The authorized service center is launched by InterGlobe General

Aviation

InterGlobe Enterprises divests a minority stake in InterGlobe

Technology Quotient to a group of private equity investors

including Standard Chartered Private Equity, DBS Private Equity

and Credit Suisse Private Equity

Galileo launches first PodCast service in India

InterGlobe Technologies becomes the first Travel BPO

Organization to become PCI DSS 1.2 compliant

InterGlobe Technologies becomes the world's first organization

to achieve People CMM Level 3 certification for both IT and

BPO services

2009

Sikorsky Aircrafts added to the InterGlobe General Aviation

portfolio

InterGlobe Technologies sets up a delivery center of its BPO

operations in Mumbai, Manila, and Philippines

InterGlobe Technology Quotient acquires Worldspan's

distribution license for South Asia, Australia and New Zealand

InterGlobe Technology Quotient appointed as Galileo's

distributor for Sri Lanka

The second ibis hotel in India becomes operational in Pune

IndiGo flies to 20 destinations within India with a fleet size of 20

aircrafts

Page | 82

2010

InterGlobe Enterprises has operations across 31 cities in India,

and 11 countries worldwide

IndiGo operates 221 daily flights connecting to 24 destinations

within India with a fleet size of 34 aircrafts

InterGlobe General Aviation gains exclusive representation for

Dornier Seaplane Company and Pacific Aerospace

InterGlobe Technologies becomes 1st Travel BPO Globally to be

COPC® certified on standard version 4.3

InterGlobe Technologies achieves prestigious ISO 9001:2008

Certification

InterGlobe Technologies ranks in prestigious Global Services

100 Companies list

2011

InterGlobe Enterprises unveils its new brand identity

InterGlobe General Aviation Private Limited undergoes a change

in its brand identity and has re-launched to become InterGlobe

Established Private Limited

InterGlobe Aviation orders an additional 180 Airbus aircrafts for

its low-cost carrier IndiGo

InterGlobe Technologies becomes the first BPO in the Asia

Pacific region to receive COPC 4.4 version certification

IndiGo commences international operations with flights to five

destinations: Dubai, Muscat, Singapore, Kathmandu and

Bangkok

2012 7 ibis hotels become operational in Bangalore, Gurgaon,

Mumbai, Navi Mumbai, Nasik and Pune

2013

ITQ launches Travelport Rooms and More in the Indian market

IGH opens ibis Jaipur, the first ibis hotel at a leisure destination

InterGlobe and CAE inaugurate CSTPL: India’s largest pilot

training facility

CSTPL announces long-term training agreement with GoAir and

Page | 83

IndiGo

IndiGo expands network connecting 35 destinations, with 73

brand new Airbus A320s, and 459 daily flights

IndiGo Fleet Information:

IndiGo applies very smart operational decisions in reducing operational overheads.

IndiGo purchases new airplanes when an airplane demands more maintenance or the

life of airplane is over. At present, IndiGo operates only the Airbus A320-200

airplanes. It has total 94 fleets as on 31st March 2016.

Aircraft In

Service Orders

Passengers

Capacity Note

All-economy

Airbus A320-200 93 1 180

11 sub-leased from Tiger

Air group, 1 more due by

2016 to fill in the demand

till the delivery of new

A320neo comes in.

Airbus A320neo — 430 189 Deliveries starting 2015.

Total 95 431

IndiGo got the delivery of first Airbus A320-200 in July 2006 and at that time it

ordered more 100 Airbus A320-200 in 2015-16. The delivery of Airbus A320neo

aircraft will be delivered between 2016 and 2022. Meanwhile, IndiGo has leased 12

Airbus A320 aircraft from Tiger Air, delivered between December 2014 to May 2015.

New aircraft orders

IndiGo ordered the Airbus A 320neo family aircraft in 2011 and the delivery will be

started from 2015. Due to delay in delivery of past orders IndiGo dry-leased a total of

Page | 84

22 used airplanes to cope up with the demand. The first A320neo airplane was

delivered to IndiGo on 11th March 2016.

IndiGo placed an order of A320-200 Airbus airplane worth US$6 billion in June 2005

during the Paris Air Show with planning to commence its operations in mid 2006.

IndiGo signed a MoU for more 180 A320 Airbus aircrafts including new with the new

engine option (neo) worth US$ 15 billion on 11th January 2011. IndiGo is the first

airline company which launched A320neo for its customers.

Again on 15th October 2014 IndiGo placed an order for more 250 A320neo aircrafts

worth US$ 25.7 billion at the list prices. On 15th August 2015 Indigo confirmed the

order for 250 A320neo airplanes for US$26.5 billion. There is also flexibility to

convert A320neoorder into A321neo which have more passenger as well as fly

capacity. IndiGo is the first airline company which placed largest order of Airbuses at

a single time across the world.

Global Presence: World Wide126 Offices in following regions

Africa Asia Australia

China East India Europe

Middle East North India South India

USA West India --

Page | 85

The Board of Directors

Mr. Devadas Mallya

Mangalore

Independent Director

Dr. Anupam Khanna

Non-Executive Independent Director

Mr. Rahul Bhatia

Promoter & Non-Executive Director

Mr. Rakesh Gangwal

Promoter & Non-Executive Director

Ms. Rohini Bhatia

Non-Executive Director

Mr. Aditya Ghosh

President and Whole time Director

Page | 86

Leadership Team

Mr. Aditya Ghosh

President

Mr. Riyaz Peermohamed Chief Aircraft Acquisition & Financing Officer

Mr. Sanjeev Ramdas Executive Vice President: AOCS, OCC & In-flight

Mr. Pankaj Madan Chief Finance Officer, Finance & Accounts

Mr. Stephen Tame Chief Advisor - IT

Mr. S. C. Gupta Vice President Engineering

Capt. Saleem Zaheer Vice President: Special Projects

Capt Ashim Mittra Vice President: FLT OPS

Mr. Dhruv Rebbapragada Chief of Flight Safety

Ms. Suman Chopra Vice President: Inflight Services

Mr. Ashish Agarwal Vice President: IT

Ms. Sunita Shrivastava Vice President: OCC & Dispatch

Mr. Vikram Chona Vice President: Corporate Affairs

Mr. Sukhjit S. Pasricha Vice President: Human Resources

Mr. Alphonso Dass Vice President: Airport Operations and Customer

Services

Ms. Shalini Singh Director: Administration

Ms. Summi Sharma

Vice President: Corporate Learning & Development

& ifly

Page | 87

Learning and Development

At InterGlobe, people are very happy. IndiGo promotes people on merit as well

seniority basis. IndiGo consists of a culture having continuous learning and total

quality management. IndiGo always strives to develop and empower its people by a

variety of programs. IndiGo believes in employee performance, employee output and

leadership they provide that help IGE scale new heights.

Work Life Balance

IndiGo always committed and dedicated to supporting its quality manpower. IndiGo

provides a good work-life balance practices. IndiGo offers flexible work environment

and enhanced productivity and greater work-life balance.

Employee Referral Program:

At InterGlobe, the organisaion itself encourages people to refer good candidates for

job. Job referral generally used for referring own/ known candidates for jobs in the

company. This method is cost effective method of employee selection. In this method,

IndiGo gets good number of candidates at the minimum hiring cost. This program

encourages to refer professional, skilled and fit candidates to the organisation.

Employees who make successful referrals are recognised to persuade their colleagues

for contribution.

Achievements

Following are the recognitions, awards and considerations for good work done by the

IndiGo airline which was recognized by various competent authorities and

Government.

2006

InterGlobe Technologies was included in the Deloitte

Technology Fast 50 India 2006 Program

InterGlobe Technologies was ranked in the Deloitte Technology

Page | 88

Fast 500 Asia Pacific 2006 Program

2007

IndiGo named "Best Low - Fare Carrier 2007" by Air Passenger

Association of India

2008

Harish K. Gandhi, Group Head-HR, receives the 'HR Leadership

Award'

InterGlobe Technologies was included in the Deloitte and

Touche Technology Fast 50 2008 Program

InterGlobe Technologies ranked amongst the "Top 5 BPOs in

travel industry by the Black Book of Outsourcing 2008"

InterGlobe Technologies is recognized as one of the "Exciting

Emerging Companies to Work for"

Black Book of Outsourcing 2008 ranked InterGlobe

Technologies amongst "The Top 5 Best BPO"

Galileo awarded "Best GDS" in Travel Weekly Asia's Inaugural

Travel Industry Awards

IndiGo named the "Best Domestic Low-Cost Carrier" at the

Galileo Express TravelWorld Awards 2008

IndiGo awarded the "Best Domestic Low Cost Carrier" in the

Express TravelWorld Awards - 2008

2009

InterGlobe amongst "India's Best Companies to Work for -

2009"

InterGlobe Technologies recognized by NASSCOM as

"Exciting Emerging Companies to work for"

InterGlobe Technologies ranked No.2 and No.3 in Travel BPO

and IT Services by Black Book of Outsourcing

Inc. Magazine ranked InterGlobe Technologies No. 1068 on its

third annual Inc. 5000

InterGlobe Technologies was chosen amongst the fastest

growing technology companies in Deloitte Technology Fast 500

Asia Pacific 2009

Page | 89

InterGlobe Technologies made it to "The 2009 Global Services

100"

InterGlobe Technologies ranked anomg the world's best in the

"2009 Global Outsourcing 100 - IAOP"

IndiGo wins CNBC AWAAZ Travel Award '09, in the Best

Low Cost Carrier category

IndiGo voted as the "Best Low-Fare Airline - Domestic for the

year 2009" by APAI

IndiGo awarded as the "Most Admired Travel Product of the

Year 2009" by SATTE

IndiGo received the " NDTV Profit Business Leadership award

2009" in the Aviation Category

IndiGo awarded by GMR for "Safety Excellence"

ibis Gurgaon adjudged the Best Budget/Mid-Scale Hotel in India

2010

InterGlobe adjudged as "India's Best Company to Work For -

2010" third consecutive year in a row

InterGlobe Technologies made it to "The 2010 Global Services

100"

InterGlobe Technologies ranked among the world's best in the

"2010 Global Outsourcing 100- IAOP"

IndiGo awarded by BIAL for "Safety Excellence"

IndiGo received the "NDTV Profit Business Leadership Award

2010" in the Aviation Category

IndiGo adjudged as the "Best Domestic Low Cost Service

Airline for the Year 2010" by Travel Agents Association of

India (TAAI)

IndiGo adjudged as the"Best Low-Cost Airline" by SKYTRAX

World Airline Awards

Rahul Bhatia, Group Managing Director, awarded "The

Entrepreneur of the Year" in the services category by Ernst &

Young

Page | 90

2011

Rahul Bhatia, Group Managing Director, awarded "The

Entrepreneur of the Year" for the year 2011 by Ernst & Young

IndiGo awarded the "The Best TV Campaign" at Budgie and

Travel awards, Singapore

IndiGo awarded the "STAT Times International Award for

Excellence in Air Cargo" for the Year 2011 by STAT Times

IndiGo awarded the "Favorite Low Cost Airline" for the Year

2011 by Outlook Traveler

Aditya Ghosh, President, IndiGo, receives "The NDTV Profit

Young Business Leader" award at the NDTV Profit Business

Leadership Awards

IndiGo awarded the "Best Low-Cost Airline Central Asia/India"

for the Year 2011 by SKYTRAX

Rahul Bhatia, Group Managing Director, receives "The

Outstanding Start - Up" award at the Forbes India Leadership

Awards

Rahul Bhatia, Group Managing Director, is adjudged as "The

Entrepreneur of the Year" by Economic Times

Rahul Bhatia, Group Managing Director, receives AIMA's

"Entrepreneur of the Year" award

InterGlobe Enterprises is adjudged one of "India's Top 50 Best

Companies to Work For" for the fourth consecutive year in a

study done by Great Place to Work ® Institute, in partnership

with The Economic Times

2012

IndiGo wins the World Travel Market Globe Award, for its

contribution to the country's travel and tourism industry over the

past 12 months

Travelport awarded "Best GDS" at the TTG Travel Awards

InterGlobe Technologies recognized as a 2012 Global Services

100 Provider

IndiGo awarded the "Best Airline - Economy (Domestic)" at the

Page | 91

Lonely Planet Magazine India Awards, 2012

InterGlobe Enterprises is adjudged one of "India's Top 25 Best

Companies to Work For" for the fifth consecutive year in a

study done by Great Place to Work ® Institute, in partnership

with The Economic Times

IndiGo awarded the "Best Low-Cost Airline Central Asia/India"

for the Year 2012 by SKYTRAX

IndiGo awarded the "Airline of the Year - India" at the GMR -

IGI Airport Awards, 2012

2013

InterGlobe Enterprises ranks 12th among “Top 25 Best

Companies to Work For 2013” by a study done by Great Places

to Work® Institute in partnership with Economic Times

IndiGo received “Best low cost airline in Central Asia & India”

at Skytrax World Airline Awards 2013, hosted at the Paris Air

show

IndiGo awarded favorite airline for travel within India- Conde

Nast Traveller readers’ Travel awards - Nov 13, New Delhi

InterGlobe Technology Quotient (ITQ) awarded the “Best GDS

of the year” in 2013 for third consecutive time at the annual

TAAI Travel Awards, Bengaluru

IndiGo awarded 3rd Best Budget Airline in Asia, 2013 by

SmartTravelAsia.com

IndiGo awarded Best Airline in India: ASSOCHAM, Indian

Civil aviation and Tourism Awards, August 2013, New Delhi

IndiGo received “Best Airline-Low cost” at CNBC AWAAZ

Travel awards 2013, Mumbai

Travelport named Best GDS in the Asia Pacific region for the

fifth consecutive year at the Annual TTG Travel Awards, 2013

IndiGo awarded The Airline of the year-India, GMR IGI Award,

May 2013, New Delhi

IndiGo awarded Best Airline in India by Travel and Leisure,

Page | 92

April 2013, Mumbai

InterGlobe Technologies recognized as a 2013 Global Services

100 Company for showcasing leadership in IT and Business

Process Outsourcing globally by Cyber Media

IndiGo received the NDTV Profit Business Leadership Awards

April 2013 in ‘Aviation’ category, New Delhi

IndiGo awarded for “Best IT driven innovation” in

Transportation and logistics category At the NASSCOM’s India

3.0 IT innovation Awards 2013, Feb 2013

Corporate Social Responsibility:

IndiGo as an organization has time and again stood up and contributed in every

possible way to fulfill its commitment as a responsible Corporate. IndiGo is doing this

practice since long. Its CSR program is objective based, it has vision and mission. It

has been joined hands with other airline companies too.

InterGlobe Foundation has been set up to contribute to the social and economic

development of communities in which it operates and to participate in providing

education, skill development, conserving environment and promoting national

heritage.

Objective

The main objective of IndiGo CSR program is to establish sound and transparent

policy for CSR programs. IndiGo undertakes various voluntary initiatives to create a

holistic method in achieving “common good” by deploying its employees and

resources round the year.

CSR Focus Areas:

At IndiGo, the purpose is to improve the quality of life of the communities they serve.

In IndiGo the objective of undertaking development activities following are the three

main areas focusing on IndiGo Reach:

Page | 93

Children & Education- The basic objective is educating the youth of the country and

providing appropriate employment opportunities. They create value in local

communities by using people’s time, skills and experience to make a lasting

difference. As on 31st March 2016 IndiGo has impacted more than 13600 children by

providing them good educational and welfare opportunities.

Environment- IndiGo is fully committed to doing all they can to minimize this

impact. As part of the commitment, IndiGo is involved in activities at the local level

to reduce carbon foot print and organizes variety of events and programs to save

environment, earth, trees, globalization impacts etc. by implementing and using

A320neo IndiGo will minimize 4 % reduction in noise footprint. 15% fuel burn

savings due to A320neo.

Women- IndiGo is truly working for women specially weaker section of women and

helping them for their upliftment. Indigo also working on good employment

opportunities, small businesses, home business assistance, education assistance etc for

their development and self sufficient i.e. women empowerment. As on 31st March

2016 IndiGo has impacted 600 women by their welfare.

Page | 94

CSR – IN PRACTICE

Indigo Staff with Rural School Students

Page | 95

2.5 GoAir

INTRODUCTION

Go Airlines (India) Ltd. is the airline company owned by the giant Indian business

conglomerate Wadia Group. It renders its services under the brand GoAir. GoAir

started its first airline as a low cost carrier with the objective of commoditizing air

travel and offering airline seats at a marginal premium to train fares across the nation

in November 2005. At present, the airline operates over 140 daily flights and around

975 weekly flights across 22 destinations of India. GoAir became fully eligible for

international flights and operations but yet not started.

The GoAir route network consists of major business hubs as well as key travel

locations of India. GoAir presently using services of the airports at Ahmedabad,

Bagdogra, Bengaluru, Bhubaneswar, Chandigarh, Chennai, Delhi, Goa, Guwahati,

Jaipur, Jammu, Kochi, Kolkata, Leh, Lucknow, Mumbai, Nagpur, Patna, Port Blair,

Pune, Ranchi, and Srinagar. GoAir make sure about its customers a smart value-for-

money option for both business and leisure travellers, without any compromise for

any safety measures.

GoAir has provided convenient and simplified booking options through online

platform on its website. Even customers can book their tickets through call centers.

GoAir also provides tickets at Go Airport counters.

Page | 96

GoAir is known as a people’s airline and also called as 'the Smart People's Airline'. Its

punchline is 'Fly Smart' is intended at presenting its customers reliable, qualitative and

timely services through 'pocket friendly' lowest fares. The airline utilizes the most

modern Airbus A320 airplane fleet.

GoAir is believed on the regularity, affordability, and convenience' business model.

The airline has also joined hands with Radix International, a leading technology

supplier of automatic aviation and air travel related softwares.

The Wadia Group is an active business tycoon since 25 years. Today, the Wadia

Group has ownership of variety of businesses like aviation, chemicals, textiles,

plantations, petrochemicals, electronics, laminates, light engineering, foods, health,

real estate etc. The Wadia Group has earned a good amount of repute as a domestic

business brands like Britannia and Bombay Dyeing.

GoAir operates over 900 flights in a week to 21 domestic destinations with a fleet of

19 aircraft. It is set to add delivery of one more aircraft in July. Besides, GoAir has

ordered for 72 NEO Airbus aircraft and the deliveries of these planes are expected

between 2016 and 2020.

The Vision

GoAir strives to maintain and enhance passenger’s perception of its services, and in

doing so will consistently endeavour to improve on the quality and reliability of its

operations.

The Mission

To provide safe, secure and efficient transportation at all times with attention to

essential details that uniquely differentiates our services, thus leading to strengthening

and maintaining our position in the market.

Page | 97

History & Developments:

GoAir was established in 2005 by Jahangir Wadia, the younger son of eminent

business tycoon Nusli Wadia. The airline marked its entry as a significant step into

airlines business. As we know, Wadia Group, an Indian business tycoon is known for

its businesses like Bombay Dyeing and Britannia Industries. The Wadia group wholly

owns the GoAir. Jahangir Wadia is the founder and Managing Director (MD) of

GoAir. At the initiation time November 2005 GoAir has Airbus A320 aircraft.

GoAir has average load factor is 76%. Since January 2007 GoAir functioning very

slowly due to various reasons including competitive markets and other players.

IndiGo and SpiceJet gave full competition to GoAir specially in market share, number

of fleets and destinations served as on 2016.

However, the Chief Executive Officer (CEO) Giorgio De Roni opined that the slow

development and low business is due to the heavy market competition. The fleet size

also affect the business and as a result of which the focus is on maintain profitability

rather than holding market share and growing the fleet size and connecting more

places. In April 2012, GoAir stirred from 6th position to 5th in market size and the

reason was decline of Kingfisher Airlines. But following the grounding of Kingfisher

Airlines, GoAir once again on the lowest market share 8.4% as on March 2016.

Key Executives of Go Airlines (India) Ltd.

Mr. Giorgio De Roni Chief Executive Officer

Mr. Jehangir Nusli Wadia Managing Director

Mr. Sujit Cherian Chief Financial Officer

Mr. Birender Ahluwalia Chief Commercial Officer

Captain Roland Thomas Executive Vice President - Flight Operations

Page | 98

Destinations

Total 22 places operated by GoAir in India, there were total 140 daily flights and

about 975 weekly flights operated by GoAir. The reason for this low size of market

share is the small size of its fleet which is total 19 aircrafts.

GoAir does not function at international flights as per the regulations of the Ministry

of Civil Aviation, Government of India, but in 2012 the airline has applied for a

waiver regarding the same to the ministry of Aviation which is not approved yet.

Country (State) City Airport

India (Gujarat) Ahmedabad Sardar Vallabhbhai Patel International Airport

India (West Bengal) Bagdogra Bagdogra Airport

India (Karnataka) Bangalore Kempegowda International Airport

India (Odissa) Bhubaneswar Biju Patnaik International Airport

India (Chandigarh) Chandigarh Chandigarh Airport

India (Tamil Nadu) Chennai Chennai International Airport

India (National Capital Region)

Delhi Indira Gandhi International Airport Hub

India (Goa) Goa Goa International Airport

India (Assam) Guwahati Lokpriya Gopinath Bordoloi International Airport

India (Rajasthan) Jaipur Jaipur International Airport

India (Jammu & Kashmir) Jammu Jammu Airport

India (Kerala) Kochi Cochin International Airport

India (West Bengal) Kolkata

Netaji Subhas Chandra Bose

International Airport

Page | 99

Country (State) City Airport

India (Jammu & Kashmir) Leh Leh Kushok Bakula Rimpochee Airport

India (Uttar Pradesh) Lucknow Amausi Airport

India (Maharashtra) Mumbai

Chhatrapati Shivaji International Airport

Hub

India (Maharashtra) Nagpur Dr. Babasaheb Ambedkar International Airport

India (Bihar) Patna Lok Nayak Jayaprakash Airport

India (Andaman & Nicobar)

Port Blair Veer Savarkar Airport

India (Maharashtra) Pune Pune Airport

India (Jharkhand) Ranchi Birsa Munda Airport

India (Jammu & Kashmir) Srinagar Srinagar Airport

Fleet Information

As of March 2016, the fleet of GoAir consists of the following aircraft.

Aircraft In Service Orders Passengers Notes

Airbus A320-200 19 — 180 One owned and 15 dry

leased

Airbus A320neo — 70 TBA Deliveries begin 2015

Total 19 70

Page | 100

A320neo order

GoAir has ordered for 72 Airbus A320neo (New Engine Option) aircraft worth 324

billion (US$5.1 billion) on June 2011. The delivery for the same will start from 2015

onwards, with an induction rate of 12-15 aircraft per year.

Livery

The official color scheme of GoAir's airplanes are blue and white, with the the logo

on the tail. GoAir keep some of the aircraft are in different color including pink, sky

blue, light green, grey and brown as a different themes. GoAir has mentioned it

official website address on the engine side.

Services

GoAir does not of after any free cost meals in its flights, but it provides a facility of

buy-on board in-flight meal. GoAir offers its passengers refreshment facilities like

Café Coffee Day, Snacks, Sandwiches, Samosa, Cookies, Nuts, Soft drinks, Tea,

Coffee, Mineral Water and many more in its cafetaria.

GoAir offers its exclusive in-flight magazine "Go-getter" which provides complete

information about continuing Indian holiday places, product details and various duty-

free food and other things which can be bought on board.

Page | 101

GoAir recommends a premium service known as "Go Business" for a flawless flying

experience in which customers gets relaxed leg area seats in the first two rows of the

aircraft at a nominal fare with vacant middle seat, as well as welcome drink with free

hot meals and an increased baggage allowance going up to 35kg with priority

boarding and other amenities, GoAir also proposes GoAir Holiday packages through

its official website.

Awards

GoAir was nominated as the "Best Domestic Airline for Excellence in Quality and

Efficient Service" in 2008. The airline was also awarded as the "Best Performing

Airline" in Asia and Africa of all Airbus A320 operators by Airbus in 2011 based on

fleet utilization and other performance parameters.

GoAir to lease new A320 aircraft to expand its fleet size:

GoAir plans to lease new A320 airplanes to expand its number of fleets as it

mechanism up to meet the requirement from tier-2 and tier-3 cities and also initiate

flying on at the international routes. The aircraft hiring strategy is aimed at

maintaining the pace of growth between 2014 and 2016 - during this time, GoAir is

not expected to take delivery of any new aircraft.

“GoAir is analyzing opportunities to add some more airplanes as they want to have a

young fleet which saves money in terms of fuel consumption and various maintenance

costs”.

The Italian CEO of the GoAir however didn't unveil the number of planes the airline

plans to lease the fleet in the coming year. “GoAir recorded 100% business in tier 2

cities in places like Patna, Lucknow, Jaipur, Kochi, Chandigarh, and Jammu and

Kashmir, while metro to metro business has not witnessed a similar rapidity of

growth,”

“GoAir is looking to add several smaller cities to schedule during 2014-15. The list of

cities to be added hasn't however been finalised yet but company see huge

opportunities in East India”.

Page | 102

“GoAir recorded their best-ever first quarter profit this financial year. Though the

quarter three, the festival season was not that good, Company is still hoping to deliver

a profit this financial year”. According to Center for Aviation (CAPA) estimates,

GoAir stated profit in the range of $17-19 million Q1, FY14 a record quarterly result

for the carrier. “This was partly supported by sale and leaseback income and other

non in service transactions. GoAir is also confident that the airline will continue to

grow and earn sound amount of money even after the arrival of other low-cost major

Air Asia India into the domestic market and Tata-Singapore Airline joint venture,

which are set to hit the Indian sky sometime in 2014.

“Chinese commercial airlines have about 1,500 aircraft while their Indian

counterparts have just 450 aircraft though the populations of both nations are more or

less the same. So, there is definitely space for more airlines in the country and scope

for growth for its airlines.”

However, GoAir confirmed that the airline is currently working on its plans to fly

international without elaborating the exact time frame of the launch of its international

services. At present, they are analyzing market opportunities, and they will take a

decision after traffic rights are available, while also taking into account the

competitive scenario across the world.

Page | 103

Corporate Social Responsibility

Corporate Social Responsibility (CSR) represents the variety of schemes of The

Wadia Group in the communities and environment in which the Group of Companies

functioning. It shows the ongoing obligation and measures of The Wadia Group to

contribute towards economic and social development and growth of the society.

The scope of CSR and its contribution will be made for any activities undertaken

within India. The CSR Committee will give preference to the local region and area

around it where it operates in spending the amount allocated for CSR events.

While dealing with any project or program with other partnering organizations, the

Company will ensure due carefulness to assess the NGO’s status and repute, its track

record, aptitude and capability, including its management, necessary consent and

authorization with the Wadia Group CSR Policy.

The CSR Committee will report to the Board of Management of GoAir time to time

and the status of the CSR projects/ activities carried out by it along with the report on

the impact created by such assignment/ actions. The CSR activities of the Company

should be obvious through newsletters, websites, press reports and Company’s

Annual Report.

Page | 104

Fleet Statistics of Domestic Airline Companies 2015-2016

Figure 2.1 - Fleet Statistics of Domestic Airline Companies 2015-2016

Source: Handbook on Civil Aviation Statistics, DGCA 2015-16