Good morning

JET AIRWAYSJET AIRWAYSAbout Jet Airways :About Jet Airways :Jet Airways (India) Private Limited is India's Jet Airways (India) Private Limited is India's leading private airline.leading private airline.It boasts a market share of about 29 It boasts a market share of about 29 percent.percent.Jet operates a relatively young fleet of Jet operates a relatively young fleet of Boeing 737 jets and ATR72 turboprops.Boeing 737 jets and ATR72 turboprops.It carries about seven million passengers a It carries about seven million passengers a year.year.Its reputation for punctuality and Its reputation for punctuality and outstanding service attracts a largeoutstanding service attracts a large

Light on Naresh Goyal: Light on Naresh Goyal: Founder and CEOFounder and CEO

Naresh Goyal is the founder Naresh Goyal is the founder and Chairman of Jet Airways, and Chairman of Jet Airways, India's largest domesticIndia's largest domesticairline.airline.In May 1974, Naresh Goyal In May 1974, Naresh Goyal founded Jet air (Private) Limited founded Jet air (Private) Limited to look after Sales andto look after Sales andMarketing operations of foreign Marketing operations of foreign airlines in India.airlines in India.Naresh Goyal took advantage of Naresh Goyal took advantage of Open Skies Policy of the Open Skies Policy of the Government of India and set up Government of India and set up Jet AirwaysJet Airways

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Key Dates:Key Dates:1993: 1993: Jet Airways begins domestic Jet Airways begins domestic operations flying Boeing 737 jets.operations flying Boeing 737 jets.1997: 1997: Kuwait Airways and Gulf Air sell Kuwait Airways and Gulf Air sell their stakes in Jet Airways.their stakes in Jet Airways.1999: 1999: A regional network is launched A regional network is launched with turboprop aircraft.with turboprop aircraft.2004: 2004: The first international services are The first international services are started.started.20072007: Acquired Air Sahara and re : Acquired Air Sahara and re launched it as jet lite.launched it as jet lite.

Principal Principal Competitors:Competitors:

International Market :International Market : - British Airways- British Airways - South West Airlines- South West AirlinesDomestic Market :Domestic Market :- King Fisher- King Fisher- Indian Airlines- Indian Airlines- Go Air- Go Air- Spice jet- Spice jet- Indigo- Indigo

Marketing Strategy: Marketing Strategy: STP for STP for JetJetairways.airways. Market Market

Segmentation:Segmentation: Economic ClassEconomic Class Business ClassBusiness Class Premium classPremium class

Target customersTarget customers Business ClassBusiness Class Economic class (Jet Economic class (Jet

lite)lite)

Promotional Promotional ActivitiesActivities

For promotions they use tactics likeFor promotions they use tactics like

i) Offering free ticketsi) Offering free tickets

ii) Concessional fares for studentsii) Concessional fares for students

iii) Jet lite surprisesiii) Jet lite surprises

iv) Corporate deal offersiv) Corporate deal offers

FLIGHTS OF JET AIRWAYSFLIGHTS OF JET AIRWAYS    It operates over 400 daily flights to 65 It operates over 400 daily flights to 65

destinations worldwide.destinations worldwide.

  Provides services in:Provides services in: 44 domestic destinations in India 44 domestic destinations in India 21 international destinations in 17 21 international destinations in 17

countries across Asia, Europe & North countries across Asia, Europe & North America.  America.  International destinations include International destinations include Colombo, New York, Toronto, Singapore Colombo, New York, Toronto, Singapore etc. etc.

FLEETS OF AIRCRAFTS IT FLEETS OF AIRCRAFTS IT

INCLUDESINCLUDES    IT HAS 84 AIRCRAFTS IT HAS 84 AIRCRAFTS Airbus330-200*   -  (12)Airbus330-200*   -  (12)  

Atr72-500   -   (14)Atr72-500   -   (14)    

Boeing737-700   -  (13)Boeing737-700   -  (13)    

Boieng737-800  -  (33)Boieng737-800  -  (33)    

Boeing737-900  -  (2)Boeing737-900  -  (2)    

Boeing777-300er*  -  (10) Boeing777-300er*  -  (10)   

* Includes aircraft that have been leased to other airlines * Includes aircraft that have been leased to other airlines   

Annual results in brief Annual results in brief

Mar ' Mar ' 09 09

Mar ' Mar ' 08 08

Mar ' Mar ' 07 07

Mar ' Mar ' 06 06

Mar ' Mar ' 05 05

Sales Sales 11,476.11,476.98 98

8,811.10 8,811.10 7,057.78 7,057.78 5,693.73 5,693.73 4,338.01 4,338.01

OperatiOperating profit ng profit

-306.75 -306.75 187.55 187.55 362.08 362.08 928.53 928.53 1,210.61,210.66 6

Interest Interest 738.03 738.03 492.75 492.75 240.15 240.15 241.60 241.60 253.69 253.69

Gross Gross profit profit

-734.88 -734.88 365.21 365.21 465.46 465.46 1,128.61,128.67 7

1,039.13 1,039.13

EPS EPS (Rs) (Rs)

-46.60 -46.60 -29.17 -29.17 3.24 3.24 52.36 52.36 45.4145.41

(Rs crore)

Market ShareMarket Share

Recent problems :Recent problems : In In oct 2008oct 2008 around 1900 employees were around 1900 employees were

fired out of which 800 were laid off.fired out of which 800 were laid off. It started voice from politicians , staff , It started voice from politicians , staff ,

senas , public.senas , public. Later in the same week they were taken Later in the same week they were taken

back.back. N.A.G( NATIONAL AVIATORS GUILD )N.A.G( NATIONAL AVIATORS GUILD )

formed on 24formed on 24thth July claiming a July claiming a membership of 680 ,President Girish membership of 680 ,President Girish Kaushik , Gen.Sec.Captain Sam Thomas.Kaushik , Gen.Sec.Captain Sam Thomas.

Due to which two senior pilot were Due to which two senior pilot were fired .fired .

Captain Sam Thomas(g.s)Captain Sam Thomas(g.s)

Captain D Balaraman.Captain D Balaraman.

On On Aug. 23Aug. 23rdrd the Guild (NAG) the Guild (NAG) warned that they would go on strike warned that they would go on strike from Sep. 7from Sep. 7thth if both the pilots are if both the pilots are not reinstated.not reinstated.

But on But on 88thth sep. 432/1056 sep. 432/1056 pilots reported sick in violation of pilots reported sick in violation of Bombay high court orders a day Bombay high court orders a day earlier restraining them against earlier restraining them against any kind of strike in countries any kind of strike in countries largest pvt. Carrier.largest pvt. Carrier.

Pilots were demanding the Pilots were demanding the reinstatement of their colleagues. reinstatement of their colleagues.

Situation created huge problems Situation created huge problems for for passengerspassengers .80% of them were .80% of them were accommodated to other airlines accommodated to other airlines for rest entire fare was refunded. for rest entire fare was refunded.

Chief justice Swatanter Kumar and Chief justice Swatanter Kumar and Justice AM Khanwilkar issued a Justice AM Khanwilkar issued a noticenotice against NAG seaking a reply against NAG seaking a reply in 2 weeks.in 2 weeks.

Later 2 more pilots were sackedLater 2 more pilots were sacked Civil aviation secretory Civil aviation secretory Madhavan Madhavan

NambiarNambiar said govt. has nothing to said govt. has nothing to do between both, but they has taken do between both, but they has taken serious view of the inconvenience to serious view of the inconvenience to public and askedpublic and asked DGCA DGCA to take to take action.action.

CEOCEO told he is open for talk but he told he is open for talk but he told company does not recognize told company does not recognize NAG. and pilots are behaving like NAG. and pilots are behaving like terrorists.terrorists.

FortunatelyFortunately after “loss after “loss of crores and goodwill” of crores and goodwill” on 13on 13thth sep. strike ended sep. strike ended after 5 days when after 5 days when Naresh Goyal reinstated Naresh Goyal reinstated the sacked pilots and the sacked pilots and paved the way for paved the way for possible recognition of a possible recognition of a pilots union.pilots union.

Back to work

Strike: A Huge LossStrike: A Huge Loss

From 8 to 13 September:From 8 to 13 September: Jet Airways lost 200 crores in just five days.Jet Airways lost 200 crores in just five days.

Cancellation of 134 domestic and 32 Cancellation of 134 domestic and 32 international Flightsinternational Flights

Average passenger per day dropped from Average passenger per day dropped from 23000/day to 14000/day.23000/day to 14000/day.

Strike: A Huge LossStrike: A Huge Loss

Jet has to accommodate 80% of theJet has to accommodate 80% of the

passenger on the other carriers.passenger on the other carriers.

For the rest entire fare has been For the rest entire fare has been refunded.refunded.

Loss of goodwill is not measurable. Loss of goodwill is not measurable.

Can Pilots Form A union?Can Pilots Form A union?

It is written in our Constitution that it is a It is written in our Constitution that it is a fundamental right of every citizen to form fundamental right of every citizen to form groups or union.groups or union.

Under IDA pilots are classified as Under IDA pilots are classified as workmen.workmen.

Under WCA members of any company, Under WCA members of any company, organization or Industry can form a trade organization or Industry can form a trade union if they are more then 100 people. union if they are more then 100 people.

IS IT IS IT STRIKE?STRIKE?

IS PILOTS IS PILOTS ARE ON SICK ARE ON SICK LEAVE?LEAVE?

OR IS IT OR IS IT SOMETHINSOMETHING ELSE?G ELSE?

Actually it is Actually it is a strike.a strike.

Illegal StrikeIllegal Strike

According to INDUSTRIAL DISPUTE ACT:According to INDUSTRIAL DISPUTE ACT: Any strike without giving notice during Any strike without giving notice during

conclusion processing is prohibited.conclusion processing is prohibited. Even if they have given a notice then Even if they have given a notice then

also they have to wait for 14 days. Then also they have to wait for 14 days. Then only they can go on strike.only they can go on strike.

After the conclusion on consolation After the conclusion on consolation proceeding they have to wait for 7 days proceeding they have to wait for 7 days before they can go on strike.before they can go on strike.

Advantage of jet airways crisis Advantage of jet airways crisis for other airlinesfor other airlines Jet Airways transferred as many as 60 Jet Airways transferred as many as 60

percent of the passengers booked on its percent of the passengers booked on its flights to Air India, the national carrier, flights to Air India, the national carrier, and other airlines during the strike. and other airlines during the strike.

Rival carriers began to charge fares at Rival carriers began to charge fares at almost double the usual rates after the almost double the usual rates after the strike hampered Jet Airways operations. strike hampered Jet Airways operations.

A big competitor was out, therefore it A big competitor was out, therefore it was a big advantage to other airlines was a big advantage to other airlines

Advantage of jet airways crisis Advantage of jet airways crisis for other airlinesfor other airlines Jet Airways transferred as many as 60 Jet Airways transferred as many as 60

percent of the passengers booked on its percent of the passengers booked on its flights to Air India, the national carrier, flights to Air India, the national carrier, and other airlines during the strike. and other airlines during the strike.

Rival carriers began to charge fares at Rival carriers began to charge fares at almost double the usual rates after the almost double the usual rates after the strike hampered Jet Airways operations. strike hampered Jet Airways operations.

A big competitor was out, therefore it A big competitor was out, therefore it was a big advantage to other airlines was a big advantage to other airlines

Advantage of jet airways crisis Advantage of jet airways crisis for other airlinesfor other airlines Jet Airways transferred as many as 60 Jet Airways transferred as many as 60

percent of the passengers booked on its percent of the passengers booked on its flights to Air India, the national carrier, flights to Air India, the national carrier, and other airlines during the strike. and other airlines during the strike.

Rival carriers began to charge fares at Rival carriers began to charge fares at almost double the usual rates after the almost double the usual rates after the strike hampered Jet Airways operations. strike hampered Jet Airways operations.

A big competitor was out, therefore it A big competitor was out, therefore it was a big advantage to other airlines was a big advantage to other airlines

Current SituationCurrent Situation  

1.1. The standoff between the airline and its The standoff between the airline and its pilots ended late Saturday after the pilots ended late Saturday after the company agreed to reinstate four pilots who company agreed to reinstate four pilots who were fired for trying to form a pilot’s union. were fired for trying to form a pilot’s union.

2.2. Jet airways has reduced its fares to Jet airways has reduced its fares to 50%.With discounts, the cost of air tickets 50%.With discounts, the cost of air tickets dropped close to air-conditioned II tier dropped close to air-conditioned II tier Rajdhani Express fares. Rajdhani Express fares.

3.3. Jet airways witnessed a 10 per cent switch Jet airways witnessed a 10 per cent switch from low-cost carriers to jet. from low-cost carriers to jet.

4.4. The airline is operating on full schedule of The airline is operating on full schedule of services on its domestic and international services on its domestic and international

flights with all crew reporting for dutyflights with all crew reporting for duty

5. Jet offered a full refund to passengers 5. Jet offered a full refund to passengers whose flights were canceled. whose flights were canceled.

The sacked pilots are rehired and a The sacked pilots are rehired and a consultative group is being formed consultative group is being formed comprising representatives of the company comprising representatives of the company and pilots to continue the process of and pilots to continue the process of dialogue to resolve all their problems. dialogue to resolve all their problems.

Jet Airways suffered a loss of nearly US$8 Jet Airways suffered a loss of nearly US$8 million a day during the strike. and the million a day during the strike. and the number of passengers came down from number of passengers came down from 23,000 per day to 7,500. 23,000 per day to 7,500.

No punitive action against any one who No punitive action against any one who participated in the agitation participated in the agitation

9.9. Shares of Jet Airways rose as much Shares of Jet Airways rose as much as 4.6 percent, the most in two as 4.6 percent, the most in two weeks. weeks.

10.10. Airline losses globally may total $9 Airline losses globally may total $9 billion this year, according to the billion this year, according to the International Air Transport International Air Transport Association, almost double the Association, almost double the group’s previous forecast.group’s previous forecast.

THANK YOU