S.P. MANDALI’S

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS

MATUNGA, MUMBAI-400 019.

A PROJECT REPORT ON

SWOT ANALYSIS OF JET AIRWAYS

SUBMITTED BY

ANISH NAGWEKAR

M.COM (SEM. I): STRATEGIC MANAGEMENT

SUBMITTED TO

UNIVERSITY OF MUMBAI

2012-2013

PROJECT GUIDE

Prof. _________________

S.P. MANDALI’S

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS

MATUNGA, MUMBAI-400 019.

CERTIFICATE

This is to certify that Mr/Ms. _ANISH NAGWEKAR_of M.Com Business Management Semester I (2012-2013) has successfully completed the project on SWOT ANALYSIS OF JET AIRWAYS under the guidance of Prof.__________________

Course Co-ordinator Principal

Dr. (Mrs) Vinita Pimpale Dr.(Mrs) Shobana Vasudevan

Project Guide/Internal Examiner

Prof. ____________________________

External Examiner

Prof. ____________________________

Date Seal of the College

ACKNOWLEDGEMENT

I acknowledge the valuable assistance provided by S. P Mandali’s R. A. Podar College of Commerce & Economics.

I specially thank the Principal Dr.(Mrs) Shobana Vasudevan for allowing us to use the facilities such as Library, Computer Laboratory, internet etc.

I sincerely thank the M.Com Co-ordinator Dr. (Mrs) Vinita Pimpale for guiding us in the right direction to prepare the project.

I thank my guide Prof. ___________ who has given his/her valuable time, knowledge and guidance to complete the project successfully in time.

My family and peers were great source of inspiration throughout my project, their support is deeply acknowledged.

Signature of the student

DECLARATION

I, ANISH NAGWEKAR of R. A. PODAR COLLEGE OF COMMERCE

& ECONOMICS of M.Com SEMESTER I, hereby declare that I

have completed the project ‘SWOT ANALYSIS OF JET AIRWAYS’

in the academic year 2012-2013. The information submitted is

true and original to the best of my knowledge.

Signature of the student

SWOT ANALYSIS

OF

JET AIRWAYS

INDEX

1.INTRODUCTION

2 .COMPANY PROFILE

3. AVIATION INDUSTRY IN INDIA

4.SWOT ANALYSIS

5.FINDINGS AND SUGGESTIONS

6.CONCLUSION

7. BIBLOGRAPHY

1.INTRODUCTION

Jet Airways (India) Private Limited is India's leading private airline. It boasts a market share

of about 45 percent. Jet operates a relatively young fleet of Boeing 737 jets and ATR72

turboprops. It carries about seven million passengers a year. Its reputation for punctuality and

outstanding service attracts a large proportion of business travelers. Jet's founder and

chairman is Naresh Goyal, an Indian expatriate living in London.

Jet Airways and rival private airlines in India were freed to begin flying outside the country

on March 22, 2004. Colombo, Sri Lanka, was the first such international destination. Flights

to Bangladesh and Nepal followed soon after.

Jet was poised to profit from an expected extension of flying rights throughout Asia. An

initial public offering of 25 percent of shares, discussed since 1995, was also in the works. Jet

had borrowed about $800 million to finance new aircraft.

2.COMPANY PROFILE

2.1 Company History:

Jet Airways (India) Private Limited is India's leading private airline. It boasts a market share

of about 45 percent. Jet operates a relatively young fleet of Boeing 737 jets and ATR72

turboprops. It carries about seven million passengers a year. Its reputation for punctuality and

outstanding service attracts a large proportion of business travelers. Jet's founder and

chairman is Naresh Goyal, an Indian expatriate living in London.

Origins

Company founder Naresh Goyal began his travel career in 1967 at the age of 18 as a general

sales agent (GSA) for Lebanese International Airlines. In May 1974, he formed his own

company, Jet air (Private) Limited, to market other foreign airlines in India. Jet air eventually

grew to a network of 60 branch offices.

After three and a half decades of monopoly by Air India and Indian Airlines, the Indian

government reopened the domestic aviation market to private carriers in April 1989. Goyal

set up Jet Airways (India) Private Limited in 1991.

Initial investment was $20 million. Through an Isle of Man holding company, Tail Winds,

company founder Naresh Goyal (then based in London) owned 60 percent of Jet Airways,

with Gulf Air and Kuwait Airways dividing the remaining 40 percent.

Jet Airways began domestic flight operations with four new-generations Boeing 737s on May

5, 1993. The first flights were from Mumbai (Bombay) to Delhi and Madras and ten other

destinations. (Jet was not the first private airline in the skies; that distinction went to East

West Airlines, which launched in February 1992.) Jet Airways aimed to carry seven million

passengers by the end of 1993, and to take in first year revenue in excess of $75 million (INR

2.4 billion).

The schedule was coordinated with that of Gulf Air to provide convenient connections. Gulf

Air assisted the new airline with technical and marketing assistance. The Australian airline

Ansett Worldwide also provided engineering expertise, and was the lessor for Jet's first four

aircraft.

Malaysia Airlines System (MAS) provided technical and flight training and performed

maintenance services, while a unit of British Airways educated cabin staff in customer

service. Three of Jet's Boeing 737s was leased from MAS. Jet entered a comprehensive

marketing agreement with KLM in 1995.

2.2 Founder of Jet Airways

Naresh Goyal The founder Chairman of Jet Airways

Naresh Goyal (59), the founder Chairman of Jet Airways, India’s premier airline, has over

38 years of experience in the Civil Aviation industry.  He is the recipient of several national

and international awards.

After graduating in Commerce in 1967, Mr. Naresh Goyal joined the travel business with the

GSA for Lebanese International Airlines.  From 1967 to 1974 he underwent extensive

training in all facets of the travel business through his association with several foreign

airlines. He also extensively travelled overseas on business during this period.

With the experience, expertise and technical know-how thereby acquired, in May 1974, Mr.

Naresh Goyal founded Jetair (Private) Limited with the objective of providing Sales and

Marketing representation to foreign airlines in India.  He was involved in developing studies

of traffic patterns, route structures, operational economics and flight scheduling, all of which

has made him an authority in the world of aviation and travel.

In 1991, as part of the ongoing diversification programme of his business activities, Mr.

Naresh Goyal took advantage of the opening of the Indian economy and the enunciation of

the Open Skies Policy by the Government of India to set up Jet Airways for the operation of

scheduled air services on domestic sectors in India.  Jet Airways commenced commercial

operations on May 05, 1993.

Mr. Goyal has been re-elected to IATA Board of Governors for the year 2008-09.  He has

earlier served on the Board of Governors of the International Air Transport Association

(IATA), from 2004-2006.

Jet Airways with the acquisition of JetLite, today has a combined fleet strength of 111 aircraft

and offers customers a schedule of over 480 flights daily.

Chairman, Naresh Goyal received the first BML Munjal Award for Excellence in Learning &

Development in the Private Sector category from the Honourable Minister for Civil Aviation,

Shri Praful Patel along with a citation at a special function at Hotel Maurya Sheraton, New

Delhi on January 6, 2006.

The Prime Minister, Dr Manmohan Singh presented the first NDTV Profit Business Award

2006 to Jet Airways, which was received by the Chairman, Naresh Goyal at a glittering

function at Taj Palace Hotel on July 28, 2006. The award, in the aviation category, is to salute

the men and women who fuel India’s journey to the fore front of the World Economy.

Chairman, Naresh Goyal was accorded the prestigious TATA AIG – Lifetime Achievement

Award at the Abacus-TAFI Awards ceremony organized during the TAFI (Travel Agents’

Federation of India) International Travel Convention 2007, on Saturday 8th September, 2007

at the Sutera Harbour Resort in Kota Kinabalu, Malaysia.

2.3 Milestones

1993: Jet Airways begins domestic operations flying Boeing 737 jets.

1997: Kuwait Airways and Gulf Air sell their stakes in Jet Airways.

1999: A regional network is launched with turboprop aircraft.

2004: The first international services are started.

2.4 MISSION STATMENT

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.

2.5 Entry barriers:

Jet Airways and Air Sahara want the Government to impose entry barrier of Rs 250 crore as

minimum paid up capital for new airlines but Air Deccan, the only other scheduled airline in

the private sector, has strongly opposed this suggestion.

Jet and Sahara made this proposal to the Government during a closed-door meeting of their

CEOs Wolfgang Prock-Schauer and UK Bose with Civil Aviation minister Praful Patel. Air

Deccan managing director GR Gopinath, who was also invited for the meeting, however, told

reporters: “The two private airlines (Jet and Sahara) suggested entry level barriers to Mr

Patel. We are opposed to any such move which would harm the growing aviation industry in

the country.”

Mr.Gopinath confirmed that Jet and Sahara suggested Rs 250 crore entry barrier for a new

entrant besides allowing only experienced private airlines to fly to foreign destinations. The

meeting with private airlines was called by Mr Patel to invite suggestions about the framing

of new aviation policy.

In its position paper submitted to the Civil Aviation Ministry, Jet has also stated that the

induction of aircraft by Indian Airlines (IA), Sahara and Air Deccan in 2004-05 would lead to

a capacity increase in the domestic aviation sector by 20 per cent whereas market growth is

expected at around 8-10 per cent. “Jet is in favour of sound capacity-demand equation but

will be forced to also add capacity in order not to lose market share substantially,” the airline

stated in the paper.

Jet in its position paper has suggested that new applications should fulfill minimum capital

base norm laid down by European Union (EU), minimum fleet size, and operational

soundness to fulfill Directorate General of Civil Aviation (DGCA) requirements.

2.6 Company Perspectives:

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.

2.7 Takeover of Air Sahara

Successful buyout

On January 2006 Jet Airways announced that it was to buy Air Sahara for $500 million in an

all-cash deal. Everything, including Sahara's assets and infrastructure, would belong to Jet

Airways. This deal would have been the biggest in India's aviation history and the resulting

airline the country's largest Market reaction to the deal was mixed, with analysts suggesting

that Jet Airways was paying too much for Sahara.

On April 12, 2007 Jet Airways agreed to buy out Sahara for 14.5 billion Rupees ($340

million). Sahara will be renamed Jet Lite, and will be marketed between low-cost carriers and

full service airlines. With the acquisition of Sahara, Jet Airways is set to refurbish the fleet

and crew with

New livery and uniform. The deal will give the airline a combined domestic market share

close on 50% Indian Airlines, which is its closest competitor at around 25% market share.

Both Jet Airways and Air Sahara have extensive domestic networks and limited international

operations, and they were the only survivors from the Indian government’s first attempt at

liberalization in the early 1990s, when more than a dozen new carriers launched services.

Air Sahara will continue to operate separately in the near term, but eventually Jet Airways

will absorb the smaller airline’s aircraft, airport facilities and technical operations, after

which the Air Sahara name will disappear. A joint integration team has already been

established that is headed by senior executives from both airlines, and there are indications

the merger could be completed in a matter of months.

Delhi-based Air Sahara had been on the market for some time as it needs cash to expand and

its parent was not willing to make the necessary investments, while Jet Airways is financially

comfortable following a successful public offering last year. Recently launched Kingfisher

was considered a front-runner in the bidding for Air Sahara, but its flamboyant chairman,

Vijay Mallya, said in withdrawing his offer shortly before the Jet Airways deal was

confirmed that the asking price was far too high.

The fleets of Air Sahara and Jet Airways are not radically different, as both operate Classic

and Next Generation Boeing 737 narrow bodies on the majority of their routes. Jet Airways

has more than 50 aircraft, some 40 of which are 737s, which it acquired through a mix of

lease and purchase. It also has eight ATR 72s and three Airbus A340-300s, in addition to firm

orders with Airbus and Boeing for 10 A330-200s, 10 777-

300ERs and 10 more 737-800s. Whereas, Air Sahara operates nearly 30 leased aircraft,

around 20 of which are 737s. It also has seven Bombardier CRJ200 regional jets and one

recently added 767-300ER that it leased for new London Heathrow services.

Jet Airways India Ltd acquired Jet Lite in April 2007. Positioned as a Value based Airline, Jet

Lite promises to offer value for money, economical fares, 'Buy on board' in-flight meals, in-

flight shopping and much more.

2.8 Awards

Jet Airways wins the ‘BEST CARGO AIRLINE OF CENTRAL ASIA’ award May

2008 :

Jet Airways, India’s premier international airline, has won the ‘Best Cargo Airline of Central

Asia’ at the prestigious Cargo Airline of the Year Awards, held at the Royal Lancaster Hotel,

London.

This Award is widely acknowledged in the air cargo industry. The winner is determined on

the basis of votes cast by the readers of Air Cargo News, the world’s best-read air cargo

newspaper. These votes are then checked by a neutral body, BIFA (British International

Freight Association) and winners in various categories determined.

Mr. Duncan Gambrill, General Manager – UK & Ireland, Jet Airways and Mr. Steve Stewart,

Regional Manager Cargo - UK & Ireland, Jet Airways received the award on behalf of the

company in the presence of an impressive industry gathering of six hundred distinguished

guests who flew in from different corners of the globe to support and acknowledge the

achievements of their peers.

Commenting on the honor, Mr. Jay Shelat, Vice President-Cargo, Jet Airways, said, “We are

delighted to receive this honor, which is a reflection of the high standards of Jet Airways’

cargo services. Accolades such as these spur us on to greater heights as we further expand our

services around the world, including the launch of our maiden flight on the Mumbai-

Shanghai-San Francisco sector on June 14, 2008. We would like to take this opportunity to

thank our customers, front line staff and airport services who helped us achieve this award.”

The Cargo Airline of the Year Awards celebrated its Silver Jubilee this year, having

recognized for 25 years the very best achievements and highest standards of quality and

service provided by airlines around the world.

Jet Airways wins Customer & Brand Loyalty in the “Commercial Airlines Sector

(Domestic)" Jan 2008:

Jet Airways has won the Award for Customer & Brand Loyalty in the “Commercial Airlines

Sector (Domestic)”, at the IndiaTimes Mindscape and Savile Row ( A Forbes Group

Venture ) Awards ceremony , held at the Taj Lands End Mumbai, on 22nd January 2008.

The 1st ever Loyalty Awards ‘08,are a part of the Loyalty Summit ‘08 that was scheduled on

22nd & 23rd January 2008 at the same Venue.

Jet Airways wins customer and brand loyalty award for the second consecutive time

Jan 2009 Mumbai, January 30, 2009:

Jet Airways, India’s premier international airline, has won the coveted Customer and Brand

Loyalty award in the Commercial Airlines Sector (Domestic), at the second Loyalty Awards.

The award was received by Mr. Rahul Kucheria, General Manager – Relationship Marketing,

Jet Airways in the presence of industry stalwarts from the telecom, banking, insurance and IT

sectors, among others, at the Taj Lands End, Mumbai on January 29, 2009.

This was the airline’s second consecutive victory at the Loyalty awards, having previously

won the award in the same category in 2008.

The Loyalty Awards are the outcome of a combination of Consumer Research undertaken in

six Indian cities, as well as nominations received from organisations. These Awards are

governed by a carefully selected jury who, on the basis of the above two findings, decide the

final Award Winners in each award category.

Commenting on the honour, Mr. Wolfgang Prock-Schauer, CEO, Jet Airways said, “At Jet

Airways, we have always strived to build long-term relationships with our customers, beyond

mere commercial transactions. This relentless focus on the customer has helped generate

tremendous goodwill and loyalty for the Jet Airways brand, in both Indian and foreign skies.

2.9 Key Developments:

Jet Airways to launch low-fare Jet Konnect:

Jet Airways Konnect is a new economy class service designed to meet the needs of the low

fare segment. It will complement Jet Airways full service product, by providing a service that

is better suited to cater to a market that desires an economically priced low fare product.

Jet Airways Konnect offers a no-frills, economy class service where guests will be offered

attractive and competitive low fares on specific routes.

The on ground and in flight service will be delivered by Jet Airways staff, the only difference

will be that travelers will have to buy their meals on board.

Jet Airways Konnect will have dedicated aircraft for this service, the flight number range for

this service will be unique and will help both guests and travel agents identify the class of

service.

Guests can book flights either on the airlines website www.jetairways.com or through the call

centers or Jet Airways city and ticketing offices. Travel Agents can book the service using the

global distribution systems (GDS). All guests using Jet Airways Konnect will enjoy the

accrual and redemption of Jet Privileges mileage points.

Jet Airways Konnect service will give us the flexibility and speed to deploy capacity to meet

these changing trends.

The Jet Airways Konnect Service will initially operate with two 737 and six ATR aircraft on

sectors such as Chennai-Coimbatore, Chennai-Madurai, Chennai-Kochi, Mumbai-

Ahmedabad, Mumbai-Bhopal, Mumbai-Udaipur, Bangalore-Pune, and Bangalore -

Mangalore.

2.10 Products

 At Jet Airways we always endeavor to make your travel comfortable, convenient and

seamless. From our on ground to in-flight services we constantly strive to innovate and

upgrade our services. As India's best airline, we have always come up with many firsts by

offering new services and have set standards in Indian Aviation. Find out all you would want

to know about our Product and Services.

1. On Ground Services:-

At Jet Airways, service on the ground is as important as service in the air. Whether it is the

process of booking your ticket or checking in for your flight, Jet Airways ensures that your

every need on the ground is met.

(a). Check- in Options: multiple check-in options. Visit this section for detailed

information. 

(b). Airport Lounges: If you are a Jet Privilege Silver, Gold or Platinum card member or a

Club Première passenger, you can relax and enjoy complimentary snacks and beverages in

our plush airport lounges.

(c). Coach Services: Airport Authority of India (A.A.I.) operates shuttle coaches for transit

passengers from domestic to international airport and vice-versa at Mumbai and Delhi

airports.

2. In-flight Services:-

Jet Airways continually endeavors to better our services, both on the ground and in the air.

From our crew, whose priority is your comfort to the safety standards enforced to ensure that

you are free of worry are just the basic things that we pay close attention to.

Our in-flight meals are designed keeping in mind the varied customers we cater to. Jet Kids is

one more instance of how important we think it is to put a smile on the faces of our younger

passengers. It is because of this kind of excellence of service that we are today, one of the

few airlines in the world to receive an ISO: 9001 certification. Our aim is your complete

flying comfort.

(a). Class of Service: Jet Airways operates three classes of service - First Class, Première and

Economy. Read more on the facilities that we have to offer for each class.

(b). Convenience & Safety: Jet Airways provides you with service that caters to a more

convenient and safer journey.

(c). Cuisines: Your meal selection is just as important as the other details you give us when

booking your flight.

(d). Entertainment: We know how your favorite movies, music and sports can make time

fly. And drive stress away. Introducing Jet Screen for non-stop entertainment on board.

(e). Magazine: Now read your favorite magazine at a click of a button.

3. Special Services:

Jet Airways understands that some of our passengers have special needs. It is our constant

effort to meet these needs to the best of our ability. This section will give you a glimpse into

some of the special requirements that we cater to so that all of our passengers can travel in

comfort.

(a). Infant and Child Care: Special attention is always given to our younger patrons of Jet

Airways.

(b). Wheel Chair Assistance: Handicapped and infirm passengers can also look forward for

a comfortable, safe and hastle free journey. 

(c). Expectant Mothers: Expectant Mothers till 36 weeks of pregnancy can be permitted to

fly on Jet Airways flights.

(d). Unaccompanied Minors: Parents / guardians can be rest assured regarding our ability to

look after your children whilst traveling with us.

(e). Medical Emergencies: Visit this section for detailed information on medical care and

emergencies.

(f). Traveling with Animals: Carriage of animals are permitted only on our  Boeing 737

aircraft. 

(g). Carriage of Stretcher: We now accept stretchers on all domestic flights operated by our

Boeing aircrafts.

5. Jet Kids:

When you fly Jet Airways with your family, we promise that your kids will have a great time.

There is assistance if and when you need it.

6. JetMail - Newsletter:

Get Updates on the latest offerings from Jet Airways and its partners. Be the first to know

about Jet Airways' latest flight and fare news update. Get the best offers from Jet Airways

and its partners. Jet Mail is our periodic newsletter which keeps you updated with all the

latest at Jet Airways and its partner promotion. Subscribing to newsletter will automatically

enroll you to Jet Privilege, our frequent flyer program.

7. Cargo:

Jet Airways cargo with its huge network and infrastructure is equipped to handle just about

all your cargo requirements.

Jet Airways has been on the forefront in the transportation and handling of general and

special cargo.

You can now send your cargo to New York and India daily. Enjoy the reliability of world

class professionalism and service with the convenience of a daily flight. Make a change

for the better with Jet Airways Cargo.

Call 3065 8282 or contact your cargo agent, or email cargo@jetairways.com for details.

Our cargo product ranges from carriage of fresh flowers, household pets, life saving drugs,

valuables and all other general goods.

A special care service for human remains is specially designed for support at times of

need.

Jet Airways ensures the delivery of services with the most amount of care to reach the

customers’ delight.

And now, you can enjoy the convenience of tracking your cargo online! Please click

here to check the status of your cargo.

For any information regarding rates and services contact our nearest office or e-mail your

query to cargo@jetairways.com. To download the 'Instruction For Dispatch Of Goods'

(IDG) form, please click here.

Table no- 1.1 List of Jet Airways Cargo offices

Cargo

Station

Phone number(s) Fax number(s)

Chennai

+91 44 2256 0197 / 0198/ 0206 +91 44 2256 0191

Delhi +91 11 2567 3055 / 256 73056 +91 11 2567 5208

Hyderabad +91 9247069186 / 9247069187 +91 40 2790 0605

Kochi +91 484 2610 082 +91 484 2610 038

Kolkota +91 33 2511 7639 / 2511 7637 / 2511 6624 +91 33 2511 6623

2.11 SERVICES:

1. Cabin classes

With the arrival of its new Boeing 777-300ER and Airbus A330-200 aircraft, Jet Airways has

introduced a new cabin with upgraded seats in all classes. The Boeing 777-300ER aircraft has

three classes of service: First, Première (Business), and Economy. The Airbus A330-200

aircraft have two classes: Première and Economy. All Airbus A330-200 and Boeing 777-

300ER aircraft have this feature. Boeing 737 aircraft are configured differently. Jet Airways

has a three-star rated Business and First Class, and is in the top twenty-five business classes

reviewed by Skytrax. Economy class has been reviewed as a three-star product by Skytrax.

2. First Class

First class is available on all Boeing 777-300ER aircraft. All seats convert to a fully-flat bed,

similar to Singapore Airlines first class seat but smaller. It was the second airline in the world

to have private suites (Emirates being the first with its introduction in 2003 on their Airbus

A340-500s). All seats in First have a 29-inch widescreen LCD monitor with audio-video on-

demand systems (AVOD), in seat power supply, and USB ports etc. Jet Airways is the first

Indian airline to offer fully-enclosed suites on its aircraft; each suite has a closable door,

making for a private compartment. Skytrax consumer airline reviewers recently rated Jet

Airways First Class as being 44th best in the world.

3. Premiere

Première (Business Class) on the Airbus A330-200 and Boeing 777-300ER international fleet

has a fully-flat bed with AVOD entertainment. Seats are configured in a herringbone pattern

(1-2-1 on the Boeing 777-300ER, and 1-1-1 on the Airbus A330-200), with each seat offering

direct access to the aisle. Première seats on the A330-200s leased from ILFC are configured

differently in a 2-2-2 non-herringbone pattern. Each Première Seat has a 15.4-inch flat screen

LCD TV with AVOD. USB ports and in-seat laptop power are provided.

On the short-haul/domestic Boeing 737-700/800, all new aircraft are equipped with AVOD.

All seats are standard recliner business-class seats with a few newer aircraft with electronic

recline and massager.

4.Economy Class

Economy class on Jet's Airbus A330-200, Boeing 737-700/800 and Boeing 777-300ER

aircraft has 32-inch seat pitch. Seats on the Boeing 777-300ER/Airbus A330-200 have a

"hammock-style" net footrest. The cabin is configured in 3-3-3 abreast on the Boeing 777-

300ER, 2-4-2 on the Airbus A330-200, and 3-3 in the Boeing 737. Each Economy seat on the

777-300ER/A330-200 has a 10.6-inch touch screen LCD TV with AVOD.Some recently

acquired Boeing 737-700/800 aircraft also feature Personal LCD screens with AVOD.

All three classes feature Mood lighting on the Airbus A330-200 and Boeing 777-300ER, with

light schemes corresponding to the time of day and flight position.

5. In-Flight Entertainment

Jet Airways' Panasonic EFX IFE system on-board the Boeing 737-700/800 and Panasonic

eX2 IFE system on-board the Airbus A330-200/Boeing 777-300ER, called "Jet Screen",

offers audio video on-demand programming (passengers can start, stop, rewind, and fast-

forward as desired). It has over 100 movies, 80 TV programmes, 11 audio channels and a CD

library of 130 titles. The system operates via individual touch screen monitors at each seat,

and is available in all classes.

6.Airport Lounges

Jet Airways Lounges are offered to First and Première Class passengers, along with

JetPrivilege Platinum, Gold or Silver card members. The international lounge at Brussels has

showers, business centre, entertainment facilities and children's play areas.

2.12 Brand ownership

Jet Airways does not own its brand. The brand is owned by Jet air Enterprises Ltd., a separate

company substantially owned by Naresh Goyal, which licenses the brand to the airline in

return for an annual payment. This arrangement is very similar to the terms governing the use

of the "easy" brand by the easy Jet Airline Company Limited (the name under which easy Jet

has been incorporated). Under the aforesaid arrangement, Sir Stelios Haji-Ioannou, the

founder and largest individual shareholder of easy Jet Airline Co. Ltd. has sole ownership of

the "easy" brand and licenses it to that airline for a specified payment. This kind of

arrangement is of vital

importance should the concerned airlines become the subject of a hostile takeover bid

because the bidders will not automatically acquire ownership of their takeover target's brand

and without access to the brand the takeover target will be less valuable.

2.13 Jet Airways Top Competitors

Company Location

Air India Mumbai, India

Kingfisher Airlines Mumbai, India

Malaysian Airlines Kuala Lumpur, Malaysia

3. AVIATION INDUSTRY IN INDIA

Aviation Industry in India is one of the fastest growing aviation industries in the world. With

the liberalization of the Indian aviation sector, aviation industry in India has undergone a

rapid transformation. From being primarily a government-owned industry, the Indian aviation

industry is now dominated by privately owned full service airlines and low cost carriers.

Private airlines account for around 75% share of the domestic aviation market. Earlier air

travel was a privilege only a few could afford, but today air travel has become much cheaper

and can be afforded by a large number of people.

The origin of Indian civil aviation industry can be traced back to 1912, when the first air

flight between Karachi and Delhi was started by the Indian State Air Services in collaboration

with the UK based Imperial Airways. It was an extension of London-Karachi flight of the

Imperial Airways. In 1932, JRD Tata founded Tata Airline, the first Indian airline. At the

time of independence, nine air transport companies were carrying both air cargo and

passengers. These were Tata Airlines, Indian National Airways, and Air service of India,

Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways.

After partition Orient Airways shifted to Pakistan.

In early 1948, Government of India established a joint sector company, Air India

International Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2

crore and a fleet of three Lockheed constellation aircraft. The inaugural flight of Air India

International Ltd took off on June 8, 1948 on the Mumbai-London air route. The Government

nationalized nine airline companies vide the Air Corporations Act, 1953. Accordingly it

established the Indian Airlines Corporation (IAC) to cater to domestic air travel passengers

and Air India International (AI) for international air travel passengers. The assets of the

existing airline companies were transferred to these two corporations. This Act ensured that

IAC and AI had a monopoly over the Indian skies. A third government-owned airline,

Vayudoot, which provided feeder services between smaller cities, was merged with IAC in

1994. These government-owned airlines dominated Indian aviation industry till the mid-

1990s.

In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to

operate flights from any airport, both on a charter and a non charter basis and to decide their

own flight schedules, cargo and passenger fares. In 1994, the Indian Government, as part of

its open sky policy, ended the monopoly of IA and AI in the air transport services by

repealing the Air Corporations Act of 1953 and replacing it with the Air Corporations

(Transfer of Undertaking and Repeal) Act, 1994. Private operators were allowed to provide

air transport services. Foreign direct investment (FDI) of up to 49 percent equity stake and

NRI (Non Resident Indian) investment of up to 100 percent equity stake were permitted

through the

automatic FDI route in the domestic air transport services sector. However, no foreign airline

could directly or indirectly hold equity in a domestic airline company.

By 1995, several private airlines had ventured into the aviation business and accounted for

more than 10 percent of the domestic air traffic. These included Jet Airways Sahara, NEPC

Airlines, East West Airlines, ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and

Damania Airways. But only Jet Airways and Sahara managed to survive the competition.

Meanwhile, Indian Airlines, which had dominated the Indian air travel industry, began to lose

market share to Jet Airways and Sahara. Today, Indian aviation industry is dominated by

private airlines and these include low cost carriers such as Deccan Airlines, Go Air, Spice Jet

etc, who have made air travel affordable.

Airline industry in India is plagued with several problems. These include high aviation

turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet

expansion, and intense price competition among the players. But one of the major challenges

facing Indian aviation industry is infrastructure constraint. Airport infrastructure needs to be

upgraded rapidly if Indian aviation industry has to continue its success story. Some steps

have been taken in this direction. Two of India's largest airports-Mumbai and New Delhi-

were privatized recently. Two greenfield airports are coming up at Bangalore and Hyderabad

in southern India. Investments are pouring into almost all aspects of the industry, including

aircraft maintenance, pilot training and air cargo services. The future prospects of Indian

aviation sector look bright.

3.1 Market share of Jet airways

Jet Airways gaining the Market share in May. Aggressive marketing seems to have helped

these start-up carriers eat into the market share of full-service carriers.

While Jet Airways’ market share in the domestic market came down to 20.5% (from 21.6%

in April 2008), Jet’s low fare airline, JetLite, has also gained market share at 8.6% as against

8% in April.

“Jet Airways’ top-end business has been hit hard by Kingfisher. Simultaneously, budget

carriers have snatched its the bottom-end customers,” Amadeus India managing director

Ankur Bhatia said. He said the airline has also lost market share by going slow on its route

expansion plans.

3.2 Accidents and Incidents

Jet Airways is accredited by International Air Transport Association with IOSA (IATA

Operational Safety Audit) for its operational safety practices.

On 1 June 2007 Jet Airways Flight 3307 an ATR 72-212A (registered VT-JCE) was flying

on the route Bhopal-Indore was involved in an accident which was caused by a storm. Whilst

there was no fatality amongst the 45 passengers and 4 crew onboard, the aircraft suffered

damages beyond repair. One pair Pug dogs were killed during flight 9W370 Mumbai to New

Delhi, matter was taken up before the International Organization for Animal Protection -

OIPA in India Representative Naresh Kadyan, Chairman of the People for Animals (PFA)

Haryana for legal help against Jet Airways, complaint # 12377 dated May 12th, 2009 has

been lodged with the Mumbai Police

3.3 News: as on June 2009

1. June 17, India’s private air carrier, Jet Airways, Wednesday increased its fuel

surcharge by Rs.400 on all domestic sectors, and attributed it to an increase in

aviation fuel prices.

2. Jet Airways had said after state-run oil firm, hiked fuel prices by 12 percent, the sixth

increase since March 16.

3. Jet Airways Group Remains India's Largest Airline

4. Air India Considering 10-12 Percent Fare Cut

5. Jet Airways' Top Executives To Take 25 Percent Pay Cut

6. Jet Airways Begins Bangalore-Brussels Flight

7. MRTPC Orders Investigation Into Jet-Kingfisher Code-Sharing Alliance

8. Jet Airways Decides To Reinstates Sacked Employees

9. Air Fares In India Hiked Again

10. Jet Airways Muscat-Thiruvananthapuram Daily Flights

11. Jet Airways Plans 2nd Hub In Central Europe

12. JetLite May Merge With Jet Airways In 2008- 09 Fiscal Year .

13. Jet Launches Service To China .

14. Jet, Etihad Sign Codeshare Agreement .

15. Jet In Tie Up With Global Hotel Alliance .

16. Jet Airways Cuts Salaries Of Its Senior Staff .

4.SWOT ANALYSIS

Jet Airways has come off another difficult financial year, but an extensive cost reduction

programme launched in the second half of its latest financial year is bearing some early fruit

with a return to profit in the fourth quarter. This SWOT Analysis reviews Jet Airways'

internal strengths and weaknesses and its external opportunities and threats.

STRENGTHS:

Jet grasps the nettle, restructuring finally paying off Financial discipline (not before time): Jet

Airways' management is finally executing an effective restructuring plan after some

haphazard attempts over the past 18 months to come to grips with a rapidly changing market.

Encouragingly, the airline generated a USD10.4 million net profit in the fourth quarter to 31-

Mar-2009, turning around a USD55.1 million net loss in the previous corresponding period

and a USD44 million loss in the third quarter. This was to some extent driven by exceptional

items such as income from subleasing aircraft, changes to depreciation charges and tax

credits. Full year losses reached USD79.3 million in the 12 months ended 31-Mar-2009,

following an USD63.1 million loss in the previous corresponding period.The improved fourth

quarter operating result was achieved through an extensive cost cutting programme that

included network restructuring, the deferral of aircraft deliveries for the next 1-2 years,

rationalisation of personnel costs, restructuring of aircraft leases, debt restructuring, cash

conservation/cost savings measures and a focus on alliances. Jet stated the full impact of this

restructuring programme would be seen in the coming financial year.Revenue fell 8.2% in the

quarter to USD505.9 million, while EBITDAR margin in the

fourth quarter surged 13. 1 ppts to 20.8% in the fourth quarter. Jet Airways EBITDAR

margin growth: 1Q08 to 1Q09

Streangths

• Market driver

• Experience exceeding 14 year

• Only private airline with international operation

• Market leader

• Largest fleet size

WEAKNESSES:

Brand confusion Too many brands: A key strategy by Jet to adapting to new market realities"

and capture price sensitive markets is its "Jet Konnect" product. Its third brand in the

domestic market (after Jet Airways and JetLite) risks further confusing the travelling public

in a highly fragmented market.

A Risky Combination: Although full details are yet to be released, Jet Konnect is expected to

operate as a low fare brand within the existing full service carrier's operations. The danger is

that such a model could result in the undesirable combination of low fares and high costs.

Several carriers in Europe and North America have failed with such an approach. As

demonstrated by the Qantas/Jet star example, a more successful strategy is one where the low

cost product is operated as an independent subsidiary with independent management and a

Greenfield cost structure. That does not appear to be the intention with Jet Konnect.

Meanwhile, Jet Airways' all-economy unit, JetLite, is a massive drain, reporting an USD25.9

million net loss in the fourth quarter (albeit an improvement on the USD40.7 million losses in

the previous corresponding period). Load factors fell 0.4 ppts year-on-year to 69.1%. The

strategic mistake with JetLite was to attempt to create a low cost unit out of an airline with

significant legacy issues.

Weaknesses

• Loosing domestic market share

• Old fleet with average age around 4.79 years

• Scope for improvement in in-flight service

• Weak brand promotion

OPPORTUNITIES:

Growth options limited to short-haul international expansion: In terms of route development,

Jet's long-haul ambitions have been put on hold until market conditions improve. It is

however planning to target short-haul (B737) opportunities, with new services to Jeddah,

Riyadh and additional services to ASEAN & SAARC region destinations "in the near future".

The expansion of its presence in these Middle East markets, particularly Saudi Arabia, is

crucial in defending Jet's network against the growing Middle East carriers, but also creates

opportunities for increased hubbing over Mumbai and Delhi to its strong domestic franchise

and points in Southeast Asia. Industry "consolidation": The return of the Singh Government

should see an easing of foreign ownership restrictions and could prompt more moves to

consolidate the Indian airline sector. Jet is unlikely to be an active participant following its

costly acquisition of Sahara, its ineffective operational alliance with Kingfisher and strong

motivation within Jet's founders to maintain its independence. The potential for easing of

foreign investment rules should support the share prices of India's leading aviation

companies, which could improve conditions for further capital raisings in the medium term.

Jet Airways' shares have risen strong since the election result.

Jet Airways share price growth: Jan-2009 to May-2009

Industry capacity rationalisation: Overall, some further consolidation activity in India is

expected in the next 12-18 months, especially in the LCC segment if oil prices stay above

USD60 per barrel, which could help to rationalise industry capacity. This would be a positive

development for

Opportunities

• Untapped air cargo market

• Scope in international service and tourism

THREATS:

Ongoing economic weakness and competitive tension Loss of pricing traction: Jet Airways'

steep capacity reduction has meant its mantle as the dominant Indian carrier has passed to

Kingfisher Airlines – and with it the ability to influence pricing. Yields were down sharply in

the final quarter, increasing pressure on the airline to reduce its costs.

Revenue per RPKM: 1Q08 to 4Q09

Jet's passenger numbers were down a significant 20% in the fourth quarter to 2.54 million, as

the airline reduced capacity by 9.3%. RPKs fell by 8.3%, resulting in a 0.8% improvement in

passenger load factor to 71.7%. The domestic market contracted 12% in the first quarter, with

Jet ceding market share to Kingfisher and the LCCs.

Indian carriers total passenger numbers and passenger number growth: May-

08 to Apr-09

Jet's domestic market share has fallen to 17.8%, while JetLite's share remains around 7.4%

for a combined group share of 25.2%, 1.6 ppts below Kingfisher/Kingfisher Red.

"Challenging" outlook: Jet Airways admitted the global economic environment, coupled with

economic realities of the airline industry in India requires "exceptional efforts to return to

breakeven and profitability". It expects the year ahead to be "challenging", with sluggish

demand for both domestic and international operations and premium segments. It concluded,

"With the upcoming lean season, load factors and yields will continue to be under severe

pressure".

Threats

• Strong competitors

• Fuel price hike

• Overseas market competition

5.FINDINGS AND SUGGESTIONS

5. Findings

In all the years the debt equity is more, when compared with borrowings. Hence

the company is maintaining its debt position.

The Net profit from the year 2006-07 is very less and in the year 2007-08 the

company made a loss.

Reported Net profit has been reduced from 100% to 7.12 % in the year 2006-2007

where as it fall down to negative i.e. 64.55 in 2008.

During the period of study the total income was less than the total expenditure

which is not good for the company.

The sales figure increasing year after year. It increased about Rs.8,057.20 Crores .

Administrative and other expenses were fluctuating. The other income of the

company was increased year by year.

The administration and selling expenses during 2007-08 is very high when

compared to previous year's %age as they were in between 13-20% of sales. This

may also be one of the reasons to a net loss in that year.

5.1 Reasons for losses

Jet Airways got maximum loss in last three years. Decreasing domestic traffic is also

responsible for the losses of these airlines. For the fourth quarter ended March 2008, Jet

incurred a loss of Rs 221.18 crore compared to a net profit of Rs 88 crore for the

corresponding quarter in the previous fiscal as fuel prices touched a record high. Sales for the

period increased 37% to Rs 2,727 crore as compared to Rs 1,989 crore.

According to these companies the fuel prices are quite high in India. Jet fuel prices are about

three-quarters higher as compared to international standards due to local taxes. This increase

in fuel price will end in increase fuel surcharges on tickets. The increase in fuel prices has

increased operating costs of these airways from 45% to 90%. India’s scheduled aviation

Companies are expected to double their combined losses to Rs 8,000 crore from Rs 4,000

crore last fiscal, the minister for civil aviation, Praful Patel said earlier this month. This hike

has sent a wave of gloom in airways that are already suffering due to cut-throat competition

and reduced domestic traffic.

"The next few quarters are expected to be impacted negatively by very high fuel prices, very

high oil prices are affecting demand on international sectors to some extent

5.2 Suggestions

1.Jet Airways should expand overseas routes to compensate for the losses.

2. The company's profit over the years has been decreasing when compared to previous years

and it incurred loss in the year 2008. The company must increase the profit in future. The

company must take steps to increase the profit level.

3. The Gross Profit ratio can be improved by increasing the gross profit and the factors

decreasing the gross profit ratio should be thoroughly checked timely whither they are

operating factors or any misleading factors.

4. The sales of the organization can be further increased by improving the quality through

optimum utilization of company's resources (i.e. assets, raw materials, credit system, etc.) and

that in turn will increase the overall profits of the organization.

5. The Management must also study the market position and it also find the demand

prevailing in the market for the products and thus this will guide them to enhance their sales

volume.

6.Conclusions

I would like to conclude that Jet Airways Company which is providing Services

should Increase its Overseas routes to get full fledge global recognition, and more over the

services offered by jet airways should be improved in terms of quality. Finally this is a very

great company because in recession also jet airways stood up strongly in the market and it

created trusty image in the minds of investors and also it acts as the core competitor for all

other aviation companies in Recession period.

7. BIBLOGRAPHY

6.1 Books Refered

Kotler, Philip. Marketing Management, 2002 edition.

Marketing Research – Text and Cases- Boyd, Westfall and Stasch.

Reprint Edition 2001.

Foundations of Advertising – Theory and Practice – S.A.Chunawalla

& K.C.Sethia, McGraw-hill, 3rd edition 2003.

International Marketing Management, Keegan.

6.2 Websites

http://www.jetairways.com

http://www.sharetermpapers.com

http://findarticles.com/p/articles/mi_gx5202/is_1994/ai_n19122366

http://goindia.about.com/od/gettingaround/gr/jetairways.htm

http://www.nytimes.com/2006/01/20/business/worldbusiness/20air.html

http://www.airlinequality.com/Airlines/9W.htm

http://www.investopedia.com/terms/r/retentionratio.asp

http://www.managmentparadise.com

6.3 Reports

Annunal Reports Of Jetairwys .Ltd