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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
Source : http://www.foolonahill.com/mbaaviation.html
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ervice Quali tyervice Quali ty
Source : http://www.foolonahill.com/mbaaviation.html
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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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THANK U