201Roselle 207-Rajashekhar 212-Yugin 214-Shailesh

206-Jitendra 216-Hema

211-Ganesh

VISION

Best Airline in the World

MISSION
Jet Airways will be the most preferred domestic airline in India. It will be the automatic first choice carrier for the travelling public and set standards, which other competing airlines will seek to match. Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliable, comfortable and efficient operations. Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel - be a world class domestic airline. Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achieving healthy, long-term returns for the investors and providing its employees with an environment for excellence and growth.

JET AIRWAYS-Early Years

`

Jet Airways was incorporated as an Air taxi operator on 1st April, 1992. Started Indian commercial airline operations on 5th May 1993 with a fleet of 4-leased Boeing 737-300 aircraft. Was granted scheduled airline status on 4th Jan, 1995. Began international operations to Sri Lanka in March 2004.

JET AIRWAYS - Network

` ` ` ` ` ` `

Jet Airways has come a long way since its first flight in 1993. It is one of the fastest growing airlines in the world. It is the largest airline in India and the market leader in the domestic sector. It operates flights to 24 international destinations and 43 destinations within India. With 67 destinations, Jet Airways connects places every five minutes. It has a fleet of Boeing 737 jets and ATR72 turboprops. It also operates two low-cost airlines viz. Jetlite and Jet Airways Konnect.

MARKET SHARE

Source : DGCA website

FINANCIAL DATA
Figures : Rs in Crores

Sales Expenditure Operating Profit Interest Gross Profit Depreciation PBT Tax Net Profit Financial ratio Operating Profit Margin PAT/Total Income Debt/Equity Ratio Current Ratio Fixed Asset Turnover Ratio Interest Coverage Ratio

2009-10 10772 9284 1488 993 495 961 -466 0 -466 2009-10 14.25 -4.34 14.24 1.13 0.57 0.53

2008-09 13146 11978 1168 738 430 899 -469 67 -402 2008-09 10.1 -3.06 9.01 1.11 0.65 0.36

2007-06 9632 8774 858 492 366 777 -411 158 -253 2007-06 9.69 -2.63 4.57 1.2 0.79 0.16

2006-05 7447 6742 705 240 465 414 51 23 28 2006-05 10.07 0.38 2.58 2.11 1.39 1.21

2005-04 6108 4738 1370 241 1129 406 723 271 452 2005-04 24.18 7.4 2.02 2.43 1.18 3.99

CHALLENGES FACED
` ` ` ` ` ` ` `

Rising ATF Cost Internal Competition Rivalry with Indian Railways in Short Haul Market Shortage of trained and skilled man power Increasing labor cost Infra structural Hurdles Deficiency of airports Airstrips

ANALYSIS

PESTEL
`

Political

` ` `

Open sky policy FDI Foreign Relations Taxes and Surcharges

` `

Economical

` ` ` `

Urbanization (Development of Tier II and III cites) Rising fuel prices. Interest Rates Growing Economy (Business Traveler) Investment in the sector of aviation Middle income group growth

PESTEL
`

Social

` `

Changing Lifestyle ( Train to Flight) Safety regulations Status symbol

` `

Technological

` `

Growth of e-commerce and eticketing Satellite based navigation systems Modernization and privatization of airports Development of green field airports with the help of private sector

PESTEL
Legal
` `

Bilateral ties Airlines acquisitions

Environmental

` `

Global warming Dependency on weather Tourism saturation

PORTERS COMPETITIVE MODEL

` ` ` ` ` `

Aircraft Manufacturers Labor Unions Fuel Companies Airports Local Transportation Service Hotels LOW

Potential New Entrants

` ` `

Saturation High Capital Investment High Operation Cost

Power of Suppliers

HIGH

Competition
HIGH

HIGH

Power of Buyers

LOW
` ` `

Travel Agents Business Travellers Pleasure Travellers

Alternate mode of transport Videoconferencing

Substitute Products

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Figure 4-2

SWOT MATRIX
Strength
Strong Brand Value Quality of Service Code Sharing Highly efficient mgmt Catering to all class.

Weakness
Employee Relation Media Relations Excess capacity High debt

Opportunities
Growth Rate : 25%-30% Tourism Strong Performance of Indian Economy Non Penetrated Domestic Market International market Untapped cargo Market

SO
Increased focus on premium travel by targeting business groups. Entry in to Cargo market. International connectivity

WO
Increase regional connectivity. partnership

Threat
Shortage of trained Pilots Inadequate Infrastructure Rising Fuel Prices Increased Competition - Price War Railway Regional Connectivity Terrorism

ST
In-house training school for pilots Innovation in services offered Fuel price hedging

WT
Leasing of surplus aircrafts. Renegotiation of all purchase contracts & manpower rationalisation Cancellation of unprofitable routes. Network restructuring

INTERNAL FACTOR EVALUATION

Strengths 1 Brand image and reputation 2 Stong management team 3 Quality of service 4 Presence in all class 5 Loyal customers 6 Code sharing 7 Marketing 8 Cabin Crew 9 On time performance Weight 15 5 10 5 5 5 9 5 10 Rating 4 3 4 4 3 3 3 3 4 Weighted score 0.6 0.15 0.4 0.2 0.15 0.15 0.27 0.15 0.4

Weaknesses 1 High Debt 2 Excess capacity 3 Employee relations 4 Media relation 15 6 6 4 100 1 1 2 2 0.15 0.06 0.12 0.08 2.88

EXTERNAL FACTOR EVALUATION

COMPETITIVE PROFILE MATRIX

Jet Airways Kingfisher NACIL Critical sucess factor Weight Rating Weighted score Rating Weighted score Rating Weighted score 1 Advertisement 10 2 0.2 4 0.4 1 0.1

2 Market share

0.24

0.18

0.12

3 Quality of service

15

0.45

0.3

0.15

4 On time performance

15

0.6

0.45

0.3

5 Customer complaints

10

0.1

0.3

0.4

6 Price competitiveness

15

0.15

0.3

0.6

7 Consumer loyalty

0.07

0.21

0.21

8 Sequirity precautions

10

0.2

0.3

0.2

9 Financial stability

0.08

0.08

0.04

10 Management

0.24

0.16

0.08

100

2.33

2.68

2.2

ANSOFF MATRIX
EXISTING PRODUCT Market Penetration NEW PRODUCT Product development

EXISTING MARKET

1. Competitive pricing. 1. Cargo 2. Discounts 3.Incentives programs, Holiday Package , Student fares.

Market development 1. Regional Connectivity 2. Code sharing. NEW MARKET

Diversification

VALUE CHAIN ANALYSIS

STRATEGIES ADPOTED

OPERATIONAL STRATEGIES
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Adjust capacity with demand both on international and domestic routes. Network re-structuring in the long-haul routes. Cancellation of unprofitable routes.

Leasing out the surplus aircrafts. Rationalizing manpower, freezing recruitment and salary increases.

OPERATIONAL STRATEGIES
`

Catering to all class starting from low fare to business class (Blue, Gold, Silver). Concentrate on In-Airline Hospitality & food service. Service excellence starting from ticketing to final destination, assuring best practices in the industry like online booking. Common reservation system for Jetlite and Jetairways.

OPERATIONAL HIGHLIGHTS

FINANCIAL STRATEGIES
`

Re -negotiating all major purchase contracts. Re- Structuring Aircraft lease agreements. Jetlite will act as subsidiary.

MARKETING STRATEGIES
Innovative sales and marketing program through :
` ` `

Corporate contracts and agreements Competitive Pricing Expand Marketing alliances with other carriers in order to improve global connectivity. Jet Airways Konnect and Jet Airways Konnect Select Incentives programs, Holiday Package , Student fares. Jet Privilege club, Visible on social network site and connect people.

` ` `

HR STRATEGIES
`

Rationalizing manpower, freezing recruitment and salary increases.

In house company wide program to encourage innovation from all employees. Proper training to their employee with professional trainer in particular field. Encouraged employee for multiple jobs and maximum utilization of resource.

` `

AREAS TO FOCUS ON
` ` ` ` ` ` ` ` `

Minimize the Operating costs Hedge the Fuel Pricing Improve Load Factor To grow and expand their low cost airline to tap potential markets (Jet-Lite) Improving ancillary revenues by in-flight marketing Selling packages with tours and hotels along with tickets Being part of a growing technology trade using IT service providing. Improve on retaining its Manpower Financial Position

RECOMMENDATIONS
`

Jet Airways can increase Late bird / Night bird flights between metros. It needs to undertake aggressive Marketing . To improve in providing Quality service in economy class. Jet Airways is being considered as a potential member of the SkyTeam which is one of the major International Airline Alliances of the world.

RECOMMENDATIONS
`

To retain and improve on its customer satisfaction, they can resort to many customer oriented approaches as below:
` ` ` `

Proper data maintenance of frequent fliers to be made and priority to be given to them. Reservation and Cancellation facility should be much easier. In-Flight entertainment should be considered. Kingfisher stands out far in terms of in-flight entertainment. Proper Information and Services need to be provided in case of delayed flights

CONCLUSION
` `

Jet has to continue with their efforts to innovate, control costs and improve loads and yields. It should continue with providing world class services to customers at nominal rates in India as well as Internationally. This national carrier should retain its image of acting as the countrys cultural ambassador and making various facets of India popular with the people of the world.