JET AIRWAYS

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


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”


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


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

Automotive

JET AIRWAYS