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Background
1974 – Goyal (founder and chairman) set up
JetAir Pvt. Ltd
1990 – dominated by govt. of India
1991 – entry of private airlines
1993 – jet airways began to fly
Lintas – corporate logo
IMRB – consumer survey
Andersen consulting – business plan
2001 – terrorist attack affect Jet Airways
2004 – net profit of Rs. 1.4 Billion
Leader in Indian Airline industry with market
share of 46%
2005 – International routes i.e. Kuala Lumpur,
Singapore, London and Colombo
Issue shares to public – 18% gain over the
issue price.
Background
Jet Airways Successful IPO
March 2005
Raised Rs.1899 crore
Rs.1300, gain of 18%
Amount used for high cost debts & fund airline expansion plans
LCA found difficult to beat jet airways
46% market share leader
Indian airlines- 38.5%, Air Sahara- 14.5%
Air Deccan- 1%
Marketing & Operation strategies
Firstly jet airways positioned itself differently
from the Indian airlines
They took advantage of the unsatisfactory
performance of Indian airlines
Jet airways positioned itself as an airline for
the regular fliers i.e. business travelers
Business travelers are less price conscious
This helped them to charge corresponding to
the regular rise in the fuel charges
Marketing & Operation strategies
First to introduce tele – check-in and on time
check-in
Jet got its meals catered by TAJ SATS a five
star airline catering service
Jet airways provided meals on all its flights no
matter what the duration was
In flight entertainment with magazine “JET
WINGS”
Marketing & Operation strategies
Jet airways had a young fleet of aircrafts
Leading to low maintenance and good
appearance of the aircrafts
Its chose to fly to only tourists and business
destinations
Concessional Apex fares were introduced for
booking 30 days, 21 and 15 days in advance
Check fares – 30 to 40 % lower depending on
the availability of seats
Marketing & Operation strategies
Night fares – 80 % cheaper
By Jan 2004 Jet airways had outsourced
functions like –
Ramp handling, cargo, passenger handling
and ticket checking
They soon started looking to fly to foreign
countries
Cost Structure
Fuel cost
Employee cost
Aircraft Maintenance expenses
Landing, Navigation & Airport Charges
Other expenses
Selling & distribution expenses
Indian Airline & Jet Airways
IA offered Metro shuffle- provided frequent
flights to busy routes like Mumbai to Delhi
low prices
IA had wide network and political clout
Jet airways & Air Sahara
Same service and performance
Air Sahara focused on budget travelers
Schemes to attract
More warmth and considerations by Air
Sahara
Jet airways presence in southern sectors
Smaller network of Air Sahara
2005- launched flights to south and connecting
several northern cities
SpiceJet & Kingfisher
Exemplary services
In-flight entertainment
Price
Seat back television sets with wide menu and
swanky interiors
Offered prices 10% lower then Jet Airways
Major metro routes target
Jet Airways & Air Deccan
Air Deccan –middle class
Major cities and small cities
Starting price-99
Reduced operational costs-cabin attendant
Sold food-Revenue
Rented plane bodies, seat backs,rented space
for advertisement
Drawbacks
Employee poaching
High demand- Inflated salaries
High staff costs
Air Deccan- punctuality issue delays,
cancellations
Secondary airports-landing and parking slots
Fixed costs
International Prospects
Started its international service after GoI’s
permission in 2005
High rank officials were confident of breaking
even in the 1st year itself
Jet airways was ready for the intense
competition
It focused on values like hospitality and
courteousness for its overseas operations
New communication strategy for its newly
launched services to Singapore
Themed as “Spirit of New India”
To change the mindset of the people towards
India
International Prospects
Financials
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