Prajakta Sawant :- 2013022

Poonam Rai :- 2013019

Naresh Goyal & Jet Airways

Jet Airways (India) Ltd.

Presentation

1 11

Submitted By :- Omkar Gurav :- 2013016

Omkar Vedak :- 2013017

Pinky Thakkar :- 2013018

Prabina Mothiravalli :- 2013020

Chairman’s Profile

Naresh Goyal, the founder Chairman of Jet Airways, India‟s premier airline, has over 4 decades of

experience in the Civil Aviation industry. In addition to his responsibilities at Jet Airways, Mr. Goyal was

also appointed Chairman of JetLite in 2007, following the acquisition and subsequent re-branding of the

erstwhile Sahara Airlines Limited.

After graduating in Commerce in 1967, Mr. Goyal joined the travel business with the GSA for Lebanese International Airlines. From

1967 to 1974, he underwent extensive training in all facets of the travel business through his association with several foreign airlines.

He also travelled overseas extensively on business during this period.

With the experience, expertise and technical know-how thereby acquired, in May 1974, Mr. Naresh Goyal founded Jetair (Private)

Limited with the objective of providing Sales and Marketing representation to foreign airlines in India. He was involved in the

development of traffic patterns, route structures, operational economics and flight scheduling, all of which has made him an authority

in the world of aviation and travel.

In 1991, as part of the ongoing diversification of his business activities, Mr. Goyal took advantage of the opening of the Indian

economy and the enunciation of the Open Skies Policy by the Government of India to set up Jet Airways for the operation of scheduled

air services on domestic sectors in India. Jet Airways commenced commercial operations on May 05, 1993.

With his vast experience in the field of aviation, Mr. Goyal currently serves on the prestigious International Air Transport Association

(IATA) Board of Governors for the year 2009-2010, having earlier served on the Board from 2008 – 2009 and 2004-2006.

Chairman’s Profile

Mr. Goyal is the recipient of several national and international awards, including:

On November 16, 2011, in a unique honour, Belgium conferred the "Commandeur of the Order of Leopold II", one of the country‟s

highest civilian distinctions, to Mr. Naresh Goyal, for his meritorious service and efforts to foster business and cultural ties with

Belgium.

Re-elected to the prestigious IATA Board of Governors from 2011 - 2013 (August 2011)

„Hall Of Fame‟ honour from Hotel Investment Forum of India (2011)

Prestigious Lifetime Achievement Award by the Travel Agents Association of India (TAAI) (August 2010)

„International Entrepreneurs of the Year‟ award at the house of commons, UK - Naresh Goyal and Anita Goyal (February 2009)

Honoured at the fourth edition of the prestigious CNBC TV18 India Business Leader Awards, in the „Taking India Abroad‟ award

category (January 2009)

Business Person of the Year award by UK Trade & Investment at the prestigious India Business Awards (September 2008)

'Man of the Year' award by the Belgian Aviation Press Club (APC) (April 2008)

„Travel Entrepreneur of the Year‟ award at the 19th annual TTG Travel Awards (October 2007)

TATA AIG - Lifetime Achievement Award (September 2007)

First Profit Business Award 2006 (July 2006)

First BML Munjal Award for Excellence in Learning & Development in the Private Sector category (January 2006)

Featured by Business Week as one of the five leaders from India in the Asia Edition cover story- „Stars of Asia - 25 Leaders at The

Forefront of Change.‟ (July 2005)

„Aerospace Laurels‟ for outstanding contribution in the field of Commercial Air Transport (February 2004)

„Outstanding Asian-Indian‟ award for leadership and contribution to the global community given by the Indian American Centre for

Political Awareness (November 2003)

„Distinguished Alumni Award-2000‟ for meritorious and distinguished performance as an Entrepreneur‟ (October 2000)

„Entrepreneur of the Year Award for Services‟ from Ernst & Young (September 2000)

„Aerospace Laurels‟ for outstanding contribution in the field of Commercial Air Transport (April 2000)

Frequent Flyer Program - JetPrivilege

With JetPrivilege, members enjoy a truly rewarding experience with unique privileges across five membership tiers: Blue, Blue Plus,

Silver, Gold and the exclusive Platinum. JetPrivilege members can expect to earn more miles, enjoy more benefits, quicker tier

upgrades and easier tier retention, enhanced rewards and easier redemption.

JetPrivilege has won Freddie Awards considered 'Oscars' of frequent flyer programmes across the world, for five consecutive years

including the most coveted 'Program of the Year' Award 2007 and 2006 for the Japan, Pacific, Asia and Australia region.

Key features that make the JetPrivilege programme a winner

Ease of enrolment

Five membership levels

Faster tier upgrades

Easier tier retention

Personalized web access

Multiple mileage earning opportunities

JetPrivilege membership updates on SMS

Global partnerships

Bonus JPMiles on e-Services

Redeem JPMiles

Purchase JPMiles

Transfer JPMiles

JPMiles Upgrade

Cash Upgrade

Cash N Miles

Benefits of JetKonnect

Customer Satisfaction Strategies

Corporate Partnerships

Codeshare Partners: As Jet Airways expands its wings over international skies, we are also actively entering into codeshare

relationships with various international airlines to enable our guests to fly to more destinations than ever before on Jet Airways

marketed flights.

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

Air Canada

All Nippon

Brussels Airline

Etihad

Garuda Indonesia

JetKonnect

Kenya Airlines

Malaysian Airlines

Qantas

South African Airways

Thalys

United Airlines

Interline Partners: Interline eTicketing is the latest ticketing method, which allows two carriers to electronically sell tickets on each

other on a single document. Jet Airways has 145 Interline Partners of which 95 are Interline eTicketing Partners. All existing

eTicketing eligible sectors of Jet Airways and the below Interline eTicketing Partner are applicable for Interline eTicketing.

JetPrivilege Partners: boasts of 140 partners across various categories like airline, car

rental, co-brand card, codeshare, conversion, dining, eRetail, lifestyle, entertainment, hotel, lifestyle, publishing, retail and

telecommunication.

Through Check-in Partners: through check-in facility for our guests travelling on our flights and connecting on 42

through check-in partner airlines across the globe.

frequent flyer program, JetPrivilege

They offer

Awards

2013

“Wines on the Wing” award in Global Traveller magazine.

Monitor Award for Best In-flight Meal in Economy for 2012

Freddie Awards 2013 for „„Best Promotion for JetPrivilege's 20% discount for online redemption of JPMiles and „Best Loyalty Credit

Card: JetPrivilege HDFC Bank Credit Card‟

Best use of Customer & Data Analytics award at the 6th Loyalty Award 2013

Best Domestic Airline at CNBC Awaaz Travel Awards 2013

2012

Lonely Planet Magazine Travel Award 2012

Triple honors for JetPrivilege Programme at the prestigious Freddie Awards 2012

Customer & Brand Loyalty Award In “Domestic Commercial Airlines Sector”

Favourite Full-Service Airline at the Outlook Traveller Awards 2011

Coveted Digital Marketing award at Indira International Innovation Summit

2011

NDTV Profit Business Leadership Award 2011

Best Domestic Airline award by the Travel Agents Association of India (TAAI)

Best Airline in Central/South Asia and India at Global Traveller Reader Survey Awards 2011

Best Long Haul Airline Ex Brussels - Travel Magazine Awards 2011

„Best Domestic Airline‟ At CNBC Awaaz Travel Awards 2011

Jet Airways conferred three prestigious awards at the "Times Travel Honours 2011"

Rated Best On Time Performer Amongst Scheduled Domestic Airline in March 2011

eCommerce @ Jet Airways

Technological innovation is an integral part of Je

technology to enhance guest experience by implementing innovative products that will ensure a seamless customer experience.

As the world hails e-age as a revolution in consumer convenience, Jet Airways has been keeping its guests ahead by launching

technologically-advanced customer touch-point services.

Website: Jet Airways website, jetairways.com, is India's leading travel site, which is available in 35 country sites and 18 multilingual

sites in 7 languages, providing a complete travel solution offering flight bookings, hotel bookings and travel insurance.

Log on to our multi-country & multi-lingual website where you can benefit from a host of services, offers, rewards and much more,

every time you visit. With 35 country sites and 18 multilingual sites and 24x7 real-time content updates, you can be assured of

viewing customised offers and content in your language preference.

You can book air tickets with Jet Airways, JetKonnect and other partner airlines like British Airways, Lufthansa, Air Canada, Brussels

Airlines, Etihad Airways, Malaysia Airlines, Qantas and United Airlines.

t Airways‟ business strategy. Their focus has always been to use cutting edge

Technological Innovation

eCommerce @ Jet Airways

JetMobile:

JetMobile is a real-time and fully automated service designed to provide you –

our esteemed guests, with instant

information on your mobile phone –

be it for bookings, flight status, check-in, JetPrivilege account updates or simply searching for the

lowest air fare.

WAP Site:

We have tailored our website to fit your mobile phone! You don‟t need to get near a computer to access jetairways.com;

you can do it from your GPRS enabled mobile phone anywhere anytime by simply logging onto m.jetairways.com and access a range

of services.

Mobile Ticketing:

Book your tickets while on the move. Jet Wallet –

our innovative Mobile Ticketing solution -

offers a new booking

channel and is a convenient and highly secured booking option.

IVR Ticketing:

Our Interactive Voice Response (IVR) based payment and ticketing service is a booking facility that we provide

through our 24x7 call centre to book and pay for your eTickets over an exclusively customised and secure Interactive Voice Response

(IVR) system.

Technological Innovation

Crisis 1: 1900 Employees Sacked and Then ReinstatedJet had been constantly incurring losses since 2007-08."Buying Sahara was a big strategic mistake by Jet. This happened at a time when Jet was growing aggressively on the international front and facing tremendous competition in local market‟, said the India head of the Centre for Asia Pacific Aviation (CAPA).The first sign of real trouble in Jet became apparent in 2008 when Naresh Goyalentered into an operational tie-up with arch rival Vijay Mallya‟s Kingfisher.

Sacking of 1900 employeesAccording to Jet, the layoffs were "unfortunate" but "unavoidable" because "everybody is bleeding" as the cost of business has gone up by 30 percent and the alliance is aimed at reaping "maximum synergies." "The economic viability of the industry has been severely affected by the record high fuel prices and most recently due to the crisis of the financial markets globally and the downturn in traffic," Jet Airways said in a statement. "Jet Airways expects these difficult market conditions to continue.“

Reinstatement of 1900 employeesJet Airways chairman Naresh Goyal, in a dramatic press conference late on Thursday night, said his airline would take back each and every one of the 1,900 sacked Jet employees because he understood their pain and “would not be able to sleep peacefully” if he did not reverse the retrenchments.

“I apologize for all the agony that you went through,” Mr Goyal said, his statements directed at the retrenched staff.

Un-controllable Factors & Solutions

Crisis 2:The Pilots RevoltFormation of the NAG

The retrenchment and then the reinstatement saga had bred insecurity among the employees. The airline pilots did not have any union and being contract employees could be shown the door anytime. It was reasoned that the current financial crisis may badly affect the lives of the younger pilots who may be laid off any time as the mass sacking had indicated. This led to the formation of the National Aviators Guild the NAG. On July 24 2009, the NGA - National Aviators Guildwas registered by the Regional Labour Commissioner. Captain Sam Thomas and one of his colleagues played a significant role in the formation of the Union.

The Email Announcing the Termination of Service

On July 31, 2009, the two senior pilots of Jet Airways, who were both office-bearers of the newly formed NAG, were dismissed. They were sent a single-line e-mail stating that their services were terminated with immediate effect and no reasons were assigned for the same. Management alleged that the two captains went around coercing pilots into signing the union membership form. The pilots on their part maintained that their request for discussion and representations were ignored by the management. According to the pilots their appeals fell on deaf ears; NAG issued a strike notice on August 24, 2009.

Un-controllable Factors & Solutions

• The domestic carriers in India reported a combined loss ofUSD 1.6 billion for the financial year (“FY”) 2012-13

• High taxes on fuel, high airport and operational costs continue to plague domestic airlines.

• Among a comparison of 140 countries, it was seen that Indianticket taxes and airport charges are 24th highest.

• Another major cost component for Indian airlines is themaintenance, repairs and operations (“MRO”). Currentlythere are only 2 MRO facilities in India, which results in mostmaintenance and operation activities to be conducted outsideIndia.

Challenges in the Indian Aviation Industry

• Jet and Etihad entered into an agreement to link their frequent flyers programs. Etihad has now agreed to invest USD 150 million into (“JetPrivilege”),• Rebuilding Jet :- The strategic investment by the Abu Dhabi-based Etihad Airways in Jet Airways could be a Game-changer .• According to the deal, Jet will be issuing 27.2million shares to Etihadfor Rs 754.7 apiece totaling Rs 2,060 crore• The deal is a positive as Jet will be able to refinance its high-cost debt and improve its cash flows. In addition to improving its balance sheet, the company can also look at expansions, both in the domestic as well

JET EHIAD DEAL

Various Parameters Relating to the Utilization of Aircraft Efficiency at Jet Airways

One of the key elements of the company‟s Business Strategy is maintain high daily Aircraft Utilization, which represents the average number of block hours operated per day per Aircraft for the total aircraft fleet.

High daily aircraft Utilization allows to enhance the efficiency of is operations and Generate more Revenue

Aircraft Utilization is reduced by delays resulting from the following factors, beyond Control of Airline

• Security Parameters

• Air traffic and Airport Congestion

• Adverse Weather condition, especially in North-India during Winter months

• Defects or Mechanical Problems with Aircraft of the Airline

• Unavailability of Cockpit and in-flight crew

• Strikes or Work Stoppages and

• Acts of third Parties upon which Airline rely for requirements such as fueling and maintenance

A major Cause of concern for Jet Airways expansion of its business is to include new

Destinations and More frequent Flights on existing Routes.

Utilizing Aircraft Efficiently

Jet Airways offers Several fare Options as given below :-

• Economy and club Premier Fares;

• Discounted fares for Senior Citizens and defense personnel;

• Advance Passenger excursion or APEX fares Using Yield Management

• „One fare‟ scheme that allows passengers to buy four or six coupons fopr a fixed fare and use them on any sector

• „Night Saver‟ fares are offered for night flights, operated by Jet on Certain routes.

• US Dollars fares and „visit INDIA' fares for overseas travelers

• „Check fares‟ are offered to the customers on certain flights with no requirement for advance booking. These are different from APEX fares as no need for advance bookings.

Jet Airways derives its revenue primarily from transportation of passengers on its aircraft. In addition, it also earns revenues from carriage of Cargo.

Pricings & Revenue Management

Market share

7 77

Jet Airways 22.0%

SpiceJet 10.2%

Go Air 4.3%

Paramount 1.2%

Indigo 9.9%

Kingfisher 13.6%

Air Deccan 15.4%

Indian 16.0%

JetLite 7.4%

Combined 29.0%

Combined 29.4%

Jet Airways' revenue management strategy: Developing new value propositions for the passenger market in face of stiffening competition

Revenue optimization at Jet Airways is done through network rationalization, seat inventory optimization and margin maximization. Their focus currently is on being a network carrier. They are also keen on maximizing their network connectivity to and from their international gateways. "The airline is looking at mediums to take passengers beyond the gateways,"

Revenue maximization according to them is an outcome of the combined efforts of people working for an organization, good execution and technology. One of Jet Airways revenue management practices is that different passenger segments exist at different time bands throughout the day and they cash in on opportunities available to increase revenue.

Jet Airways plans shift to network-based model

Its current revenue programme works on individual flights

Even as it is battling the current downturn in travel, Jet Airways has started work to migrate to a network-based revenue optimization programme.

Pricings & Revenue Management

Yield Management :- It tries to utilize existing fixed Capacity most optimally to maximize the overall Revenue.Jet Airways yield management practices enable it to respond to and anticipate market changes. Past booking history, season ability, the effects of competition and current bookings trends are used to forecast demand.

Passengers Revenues are dependant on „Passengers Load Factors‟

• Capacity measure in terms of Available Seat Kilometers or ASKMs.

• Utilization measures in terms of Revenue Passenger Kilometers RPKMs.

• Passenger Load Factor, is used by revenue customers.

• Net passenger revenues, representing passenger revenues less commission paid to GSA and travel Agent

• Yield, derived by dividing the net passenger revenues by revenue passenger kilometer

• Break even factor defined as passenger load factor that will result in revenues equal to total expense less Cargo revenues

Yield Management

They pride in providing world-class service coupled with warm Indian hospitality. So you can expect as high a standard of service on the ground, as you‟d do in the air.

Moreover, our professional internationally trained staff goes to extra lengths to ensure you have a comfortable and relaxing flying experience.Welcome aboard Jet Airways, one of the world‟s finest airlines.

Class of Service on international Jet-Konnect

Jet-Konnect, the new all-economy service, with the same world whole lot less.

Jet-Konnect is a no-frills all economy service on specific routes/flight timings, designed to meet your need for affordable fares in these trying times. It will complement the Jet Airways‟ full service product. So, with Jet Airways and Jet-Konnect, we will be able to cater to all your needs on the Jet Airways networkwithin India.

All Jet-Privilege members using Jet-Konnect service will enjoy the accrual and redemption benefits of the Jet-Privilege programme.

Your entire journey/experience right from the time of making the booking, airport experience, in-flight experience will be managed by Jet Airways. For example, at the airport, the check-in, queries, transfers etc. will be managed by Jet Airways and its staff as always.

Class of Service

JetEscapes – Our Holidays Product

JetEscapes provides you with the get-away you want while taking care of the nitty-gritty - right from your flights to your meals, on-

ground conveyance to tours and excursions.

A range of innovative JetEscapes travel packages in association with India's leading hotels and resorts. Packages are inclusive of

return airfares.

Let your holiday be a break from everything, including the hassles of planning for it. Our all-new JetEscapes provides you with the

getaway you want while taking care of the nitty-gritty. Right from your flights to your meals, on-ground conveyance to tours and

excursions, we‟ve got it all laid out for you.

More than 750 packages to over 100 destinations in India and overseas offering theme-based holidays of Honeymoon,

Adventure, Beach, Wildlife and so on

JetEscapes holidays are priced competitively at affordable rates and include return air travel, airport/local transfers, hotel stay in 3 / 4

/ 5 - Star categories, sight-seeing, travel insurance and much more

JetPrivilege members have the added advantage of earning 5 JPMiles on every Rs.100 spent

JetEscapes packages can be booked through our dedicated JetEscapes Service Centre or any IATA approved travel agent in India.

They also provide customised packages to the destinations where Jet Airways operates.

Service Quality….

• Infant and child care• Expectant mothers• Unaccompanied minors• Medical case• Extra seat• Guests with disabilities• Travel with pets

Services Sales

• Jet has since put its rivals to shame by offering high-quality service, comfort, and reliability, yet it operates on a break-even of 65 per cent seat sales - 20 per cent below that of many rivals.

The Branding Tagline of Jet Airways „ The Joy of flying’ and it reflects in the quality of services it provides to its passengers.

Service Quality….

Current Affairs

Jet Airways flight to London marks inaugural departures from Mumbais New Terminal 2Date: 12 Feb 2014The all new state-of-the-art international integrated terminal T2 at Mumbai‟s ChhatrapatiShivaji International Airport today commenced operations with the inaugural flight of Jet Airways, India's premier international airline, to London Heathrow. The airline has already carried out terminal process proving flights to establish the operational and logistical readiness

Jet Airways JetPrivilege wins prestigious 7th loyalty awards 2014Date: 10 Feb 2014Jet Airways, India‟s premier international airline, was adjudged winner of the coveted 7th Loyalty Award 2014 for the “Best Loyalty Program in Service Sector” at The Lalit Hotel in Mumbai. The award was received by Mr. Kaushal Satam, Head - JetPrivilege, Jet Airways in the presence of an august gathering of industry stalwarts. The 7th Loyalty Summit Awards 2014 were presented by AIMIA, India.

Etihad deal: FIPB seeks information on Jet Airways' former owner Tailwinds, wants details of companies owned by Naresh Goyal

MUMBAI: The $379-million (2,059 crore) deal between Jet and Etihad continues to face regulatory headwinds even as the two carriers are stepping up the integration of their networks and top management teams.

Prajakta Sawant Roll No :- 2013022