jet-airways-100217134202-phpapp01

8/8/2019 jet-airways-100217134202-phpapp01

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ET ETAIRWAYSIRWAYS


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i r l ine Industry in India i r l ine Industry in India454 airports and airstrips

(includes Operational, Non Operational, Abandonedand Disused Airports)

127 are owned & operated by AAI16 - international, 7 custom airports, 28 civil enclaves

Scheduled domestic air services - available from 82 airports

May 2007- May 200825.5 million domestic & 22.4 million international passengers20% growth highest in the world

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


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Historyis tory1911

19321938

1946

1948

1953

First commercial flightAirmails from Allahabad to Naini(10 km)The Aviation Department of Tata Sons Ltd. EstablishedTata Airlines (successor to aviation division of Tata

Sons)

Tata Air Lines converted into a public Company andrenamed Air India LimitedAir India International incorporated

Nationalization of Aircraft Industry

Air India (serving the international sectors)Indian Airlines (serving domestic sectors)Deccan Airways, Airways India, Bharat

Airways, Himalayan Aviation, KalingaAirlines, Indian National Airways and Air Services of India


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Historyis tory

1986

1990199420032007

2008

Private Sector Players permitted as Air taxi operators

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

Open Sky PolicyPrivate Carriers permitted to operate scheduled servicesEntry of low-cost carriersMerger of Indian Airlines into Air IndiaAcquisition of Air Sahara by Jet Airways

Kingfisher acquired 49% stake in Deccan Aviation


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egulatory Authori t iesegulatory Authori t iesMinistry of Civil Aviation

Responsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing airportfacilities, air traffic services and carriage of passengers and goods byair

Other Attached/Autonomous Organizations:

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

proactive safety oversight system

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

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

the operational, terminal and cargo facilities at the airports


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Policiesol icies

Open Sky PolicyFDI

Airports100% for green field operations

74% for existing airports - 100% with special permissions100% tax exemptions for 10 yrs.

Airlines49% in domestic airlines - 100% for NRIs74% in cargo & non-scheduled airlines


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arket Share in Domestic arket Share in DomesticMarketarket

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


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ost Structureost Structure

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


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et Airwayset AirwaysFounded in 1993, Chairman - Mr.Naresh Goyal

HQ in MumbaiCountrys second largest international airlineLargest domestic airline - 31%

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

Hyderabad, Kolkata and Pune.

April,2007 - Acquired Air Sahara - JetLite

Now JetLite integrated into Jet Airways


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nternational Networknternat ional Network


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omest ic Networkomest ic Network


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leet Planleet Plan


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-et Airways Performance-et Airways PerformanceAnnual Revenues - Rs.9481.5 crores (2007-08)

Rs.7401 crores (2006-07)

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

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


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perat ional Highl ightsperat ional Highl ights

Operational Parameters 2007-08 2006-07

Number of departure 126,676 119,369

Available Seat Kilometers (ASKMs)Million 24,447 17,698

Revenue Passenger Kilometers (RPKMs)Million

16,914 12,307

Passenger Load Factor % 69.2% 69.5%

Revenue Passengers (Numbers) 11,428,910 10,726,874

Average Fleet Size 66.3 56.1


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& -evenues Expenditure Spli t& -evenues Expenditure Splitupp


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


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.et Airways vs International Players.et Airways vs International Players( )006 )006


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STPTP

Primary Segments (Geographic) - Domestic & International

Customer SegmentsFirst class, Premiere(Business) class & Economy class

Target SegmentsPremiere(Business) class

Business travelers, contribute 48% of passengers & 66% of revenues,ready to pay higher prices, last time booking, dont like transit

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

Seat Allocation Yield Management TechniquePositioning High value for High price

Unique Selling Price Customer relationship and Punctuality


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eating in fl ights for eating in fl ights forSegmentsegments


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leet Sizeleet SizeAir craft No. Seats per flight

First Premiere Economy

Airbus 330-200 11 - 30 190

ATR 72-500 11 - - 62

Boeing 737-400 04 - 24 112

Boeing 737-700 13 - 16 96

Boeing 737-800 33 - 24 120

Boeing 737-900 02 - 28 132

Boeing 777-300ER 10 08 30 274

Total 84


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lower of Services lower of Services


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

Through website, call service, sms, employeesetc.

Consultation - Reg. the choices of class, routes to a destination & specialmenus for frequent fliers

Order taking - Booking - through phones, fax and internet- Ticket Office, Call Centres, Company Website & Agents

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

Safe keeping - Luggage & Children

Exceptions - Special requests reg. meal preferences, special amenities

for elderly people or children, medical needs etc.

Billing - Charges split, E-mail bills etc.

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


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mpact of IT on Ticket Booking mpact of IT on Ticket Booking


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evels of Product evels of Product


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-roduct Service-roduct Service

On Ground ServicesCheck in options - Airport check-in, Tele Check-in, Web Check-in,Kiosk Check-in, SMS Check-in, Check-in while walk-

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

Check-inAirport LoungesCoach Services

In-flight ServicesClasses of Service - First class, Premiere class & Economy classConvenience & Safety -Towels, Pillows & Blankets, Reading material,

First Aid, Smoke detectors, Bassinets, Child Care, life jackets & seatcushion

CuisinesEntertainment - Jetscreen Movies, TV programmes, Games, Music, In-

flight communicator, Onlinemagazines etc.


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-roduct Service-roduct Service

Special Serviceso Infant and child care, wheel chair assistance, expectant mothers,

unaccompanied minors, medical emergencies, travelling with animals

& carriage of stretchers

JetMobile

JetKids

JetEscapes

Cargo


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etPrivi lege Frequent FlyeretPrivi lege Frequent FlyerProgramrogram

Membership tiers Blue, Blue Plus, Silver, Gold & PlatinumPersonalized web accessJP Miles - 13 quarters validityBonus JPMiles on e-ServicesAdditional baggage allowanceGuaranteed reservations up to 24 hrs. prior to departureWaiver on cancellation feesMembership Tier Bonus

Earning & Redeeming JP Miles

Eg: Chennai to Thiruvananthapuram (Earn Mile-383 & Redeem Mile-6894)Airline Partners - Air France, American Airlines, ANA, AustrianAirlines, Brussels Airlines, Cathay Pacific, Dragonair, EtihadAirways, Gulf Air, JetLite, KLM, Lufthansa, Northwest Airlines ,Qantas, South African Airways, SWISS, United Airlines and VirginAtlantic.


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Pricerice

Economy & Club Premiere FareDiscounted fare for senior citizens & defense

personnelAdvance Passenger Excursion/ APEX FaresOne FareNight Saver FaresCheck FaresUS Dollar Fares & Visit India Fares


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Placelace

Place of Service - Aircraft

Various Destinations


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Promotionromotion

OffersCompanion Free Offer, One Fare, Concessional fares, JetPrivilege Offers,

Jet Airways Citibank Credit Cards, Corporate Deal Offers, InternationalSpecials, Camp Rock contest, Festival specials, Student specials, Surprisesetc.

Advertising and Branding

HoardingsBrand AmbassadorsSponsorshipsEvent Organization


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Partnersar tners

Airline Partners - Air France, American Airlines, ANA, Austrian Airlines,Brussels Airlines, Cathay Pacific, Dragonair, Etihad Airways, Gulf Air,JetLite, KLM, Lufthansa, Northwest Airlines , Qantas, South AfricanAirways, SWISS, United Airlines and Virgin Atlantic.

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

Co-Brand Cards -CitiBank

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

Car Rental Partners - Avis, HertzHotel Partners - Global Hotel Alliance, Hilton Family Hotels, Hyatt Hotels &

Resorts, InterContinental Hotel Groups, ITC etc.

Lifestyle Partners - Globus and Golf Fee Card InternationalPublishing Partners - Fortune, The Economist and TIMERetail Partners - Ferns n PetalsTelecommunication - Matrix Cellular Services


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Competi torsompeti tors

International market - British Airways & South West Airlines

Domestic market - King fisher, Indian Airlines, GoAir,Spicejet & Indigo


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Processrocess

People Processing

People physically enter the service system to receive the service. Aircraftis the service factory where service is delivered.

Possession Processing

CargoLuggage & Courier


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hysical Evidencehysical Evidence

ServicescapeServicescape usage - InterpersonalComplexity of Servicescape - Elaborate

FlightOffices - Org. & Ticket Booking AgentsVirtual Servicescape


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ervice Quali tyervice Quali ty



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ervice Quali tyervice Quali ty



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&trategies to manage the Capacity &trategies to manage the CapacityDemandemand

Check FaresAutomated Rostering SystemPlanning and Scheduling SystemsCode SharingOutsourcing ramp handling, passenger handling, ticket

checking, cargo and loading and unloading in Delhi andMumbai

Automation to drive efficiency and improve response time

Faster page and application download times for its site


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orporate Social orporate SocialResposibi l i tyesposibi l i ty

Magic BoxFund raising inside the flight for disaster relief,

education & healthcare for poor and programmes to prevent exploitation of women

Flights of FantasyUnderprivileged children and children with special needs

are taken on specially organized flights (on Childrens

Day)


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SWOTWOT AnalysisAnalysisStrengthsMarket driver

Experience exceeding 14year

Only private airline withinternational operation

Market leader Largest fleet size

WeaknessesLoosing domestic market

shareOld fleet with average age

around 4.79 yearsScope for improvement in

in-flight serviceWeak brand promotion

OpportunitiesUntapped air cargo marketScope in international

service and tourism

ThreatsStrong competitorsFuel price hike

Overseas marketcompetition


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