Jet final.pptx

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  • 7/27/2019 Jet final.pptx


    Prepared By:

    Prashant Abitkar(1)

    Swati GokhleIshan Kelvalkar(71)


    Ankita Mistry(93)

    Anis Madraswala(115)

    Shruti Satam

  • 7/27/2019 Jet final.pptx



    Started by Naresh Goyal as Air Taxi Operator in April 1992

    Started Indian commercial airline operations on 5 May 1993with a fleet of four leased Boeing 737-300 aircraft

    Scheduled airline status was granted on 4 January 1995

    Initial investment of US$10 million

    100%of its share controlled by Naresh Goyal

    Jets parent company, Tail Winds Ltd.

    Began international operations to Sri Lanka in March 2004.

    Jet, is headquarters in Mumbai, India

  • 7/27/2019 Jet final.pptx


    Current Service Offerings

    Jet Privilege

    JPMiles The number of Base JPMiles earned is the directtravelled distance between the origin and destination city-pair.JPMiles earned are based on the fare and cabin travelled.

    October 24, 2013 3

    Blue Silver Platinum

    GoldBlue Plus

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    On-board Services

    Check-In options

    Airport lounges

    Bus Services



    October 24, 2013 4

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    Strengths largest market share high reputation and a strong brand image operates over 400 flights reaching 76 destinations

    across the world Gained unshakable trust among Indian flyers byregistering 91.8% on-time performance The debt recovery plan and the rebranding exercise

    has added new hopes to Jet Airways Jet Airways has strong partnership alliances with

    international brands like Barista Lavazza to promote itsbrand

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    The competition for Low cost carriers isincreasing Too Many Brands Dilute the brand resonance;Customers are confused with its subsidiaries JetKonnect (Lcc) and Jet Lite JetLite operating low cost carriers withpremium features would increase operating costand slowdown the revenues The share prices of Jet Airways is constantlyfluctuating which is not attracting new investors

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    Jet airways total debts in the year 2009 was Rs. 16,323.532009 Cr and has come down to Rs.13, 480.39 Cr in 2011.

    The effective recovery plan has helped Jet Airways to gain

    many investors Jet Airways has entered strategic partnership with UnitedColors of Benetton for its frequent flyer program, Jet Privilege Jet Airways has good presence over International Routes The number of Tourists visiting India is on the raise and its isexpected to go up to 1,747 Million in 2021

    The passenger traffic in India has grown up to 15 in theFY2011 the domestic traffic is expected to rise to 56% in thenext FY2013

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    Jet Airways faces threat from Low Cost carriers, which isattracting huge customers

    Increasing fuel prices and operation costs impose newchallenges to this industry

    Certain media reports accuse Jet Airways regardingservice tax issues and spoil the reputation with stakeholders

    The global economic crisis has urged companies toreduce air travels to cut their costs

    Jet Airways also faces threats from new Lcc like JagsonAirways Indian Aviation sector including Government-owned Air

    India faces heavy loss for past two financial years, whileinternational players like Indigo Airlines make huge


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    Porter's 5 Forces

    October 24, 2013 9

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    Bargaining power of Buyer - High

    Standard product and services

    Several options available to customers

    No switching cost customer need a reason to stay

    Customer can research easily using the internet

    Customer incentives such as JPMiles which allow customersto earn rewards, book flight in an easier/faster manner, andstay on top of the upcoming event/sales

    Customer loyalty does not come cheaply the average Indian

    flier expects more by paying less.

    October 24, 2013 10

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    Bargaining power of Supplier - High

    Cost of fuel has risen in the years

    Airplanes are mostly created by 2 manufacturers :

    Boeing and Air-Bus

    Aviation personnel are very few in number. The paydemanded are very high.

    October 24, 2013 11

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    Threat from substitutes - High

    Numerous other low-cost airlines

    Switching costs among other transportation option are high foreverything but short distance (Train, bus etc)

    High exiting barriers regulated by ministry of civil aviation

    Trains are the most preferred modes of transport when itcomes to domestic travel

    October 24, 2013 12

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    Threat from new entrants - Low

    Very high cost or capital required for entry

    Low profit margin

    Difficult to differentiate product & services

    Brand image and loyalty is important

    New airlines must be seen as safe and reliable

    Large airlines are very aggressive

    Premature domestic market

    October 24, 2013 13

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    Competitive rivalry - High

    Competitors like Kingfisher, Indian Airlines, Indigo

    In times of low or moderate industry growth,

    the competition gets fiercer as each one

    tries to nab customers from the other in

    order to keep their capacity utilizations

    at acceptable levels

    The industry is extremely sensitive

    to economic cycles

    Ambush marketing campaigns

    October 24, 2013 14

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    Porter Competitive Model

    Intra-Industry RivalrySBU: American Airlines

    Rivals: United, Delta, US Air,

    Northwest, Southwest


    Power of Buyers



    of Suppliers



    and Services


    New Entrants

    Airline Industry Analysis - North American Market

    Travel Agents

    Business Travelers

    Federal Government

    Pleasure Travelers

    Charter Service

    U.S. Military

    Cargo and Mail

    Alternate Travel Services

    Fast Trains


    Private Transportation



    Aircraft Manufacturers

    Aircraft Leasing Companies

    Labor Unions

    Food Service Companies

    Fuel Companies


    Local Transportation Service



    Foreign Carriers

    Regional Carrier Start ups

    Cargo Carrier Business Strategy Change

    Fi ure 4-2

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    SWOT Analysis


    Experience exceeding 14 years

    International operations

    Large fleet sizeAmong top 3 in India


    Strong competitorsFuel price hike

    Overseas market competition



    Losing domestic market share

    Old fleet with average age - 4.79 years

    Need improvement in in-flight serviceWeak brand promotion


    Untapped air cargo marketScope in global service and tourism

    Increasing salaries of people

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    Improvise on branding strategies lagging behind Indigo

    Look into newer geographical regions

    Improving technology to overcome unfavorable weatherconditions

    Improve on Time delay in Flights

    October 24, 2013 17

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    Thank You

    October 24, 2013 18