Jet Airways
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This document provides an overview of Jet Airways, an Indian airline. It discusses Jet Airways' history starting in 1992, operations, fleet, financial performance, services, competitors, and SWOT analysis. Key information includes that Jet Airways is headquartered in Mumbai and operates over 370 daily flights to 68 destinations domestically and internationally. It has a fleet of 98 aircraft and earned annual revenues of Rs. 9481.5 crores in 2009-10.
Jet Airways
- 1. Submitted To: Prof. Sachin Khare Prepared By: Sneha Varma (193) Mayank Shah (202) Ritu Singh (59) Swatanu Mohan Satpathy ( 108 ) December 1, 2011 1
- 2. Introduction • Started by Naresh Goyal as Air Taxi Operator in April 1992 • Started Indian commercial airline operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft • Scheduled airline status was granted on 4 January 1995 • Initial investment of US$10 million • 80%of its stake controlled by Naresh Goyal • Jet’s parent company, Tail Winds Ltd. • Began international operations to Sri Lanka in March 2004. • Jet, is headquarters in Mumbai, India December 1, 2011 2
- 3. Introduction • Operates over 370 daily flights to about 68 destinations both in India and international (abroad) • Listed in the NSE in the year 2005 • Includes major cities like Mumbai, Delhi, Chennai, Jaipur, etc. • Second Leg cities like Aurangabad, Patna, Nagpur, etc. • 21 international destinations in 17 countries across Asia, Europe & North America • International destination includes cities like San-Francisco, New York, Singapore, London (Heathrow), Hong Kong, Colombo, Abu Dhabi, Dubai, etc. December 1, 2011 3
- 4. Financials • Annual Revenues Rs 9481.5 crores (2009-10) Rs 7401.3 crores (2010-11) • Profit After Tax (PAT) - Rs 253 crores (2009-10) Rs 27 crores (2010-11) • Average Passenger Load 69.1% (2009-10) 84.3% (2010-11) December 1, 2011 4
- 5. Fleets Of Aircrafts 98 Airplanes in total • Airbus330--200--(12) • ATR72 --500--(14) • Boeing737--700--(11) • Boeing737--800--(42) Airbus330 • Boeing737--900--(2) • Boeing777—300ER*--(11) *Includes aircraft that have been leased to other airlines Boeing 737-700 December 1, 2011 5
- 6. Current Service Offerings Jet Privilege Blue Silver Platinum Blue Plus Gold JPMiles – The number of Base JPMiles earned is the direct travelled distance between the origin and destination city-pair. JPMiles earned are based on the fare and cabin travelled. December 1, 2011 6
- 7. Current Service Offerings Jet Konnect • Launched on 8 May 2009 to close down loss making routes • Divert planes to more profitable routes with higher passenger load factors. • Started 54 flights a week, rose to 125 flights, target of 160 flights a week Jet Escapes • A holiday package to a particular destination • Option to earn JPMiles on each holiday availed December 1, 2011 7
- 8. Current Service Offerings Jet Mobile • Access information such as flight status, schedules, set alerts or automatically receive flight delay messages • Request for your JetPrivilege account details • Search for the lowest fares on Jet Airways Jet Viva • Interaction forum for women travelers • Modern fashion trends, spa getaways, high end cosmetics December 1, 2011 8
- 9. Current Service Offerings Jet Lite • Acquisition of Sahara Airlines • Low cost carrier • Wider reach Jet Kerala/ Jet2IncredibleMP • Tourism packages to Kerala and Madhya Pradesh • Special offers during summer vacations and new year December 1, 2011 9
- 10. On-board Services • Check-In options • Airport lounges • Bus Services • Cuisines • Entertainment December 1, 2011 10
- 11. Market Share December 1, 2011 11
- 12. Competitor Analysis Domestic Market International Market December 1, 2011 12
- 13. Porter's 5 Forces December 1, 2011 13
- 14. 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 customers to earn rewards, book flight in an easier/faster manner, and stay on top of the upcoming event/sales • Customer loyalty does not come cheaply – the average Indian flier expects more by paying less. December 1, 2011 14
- 15. 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 pay demanded are very high. December 1, 2011 15
- 16. Threat from substitutes - High • Numerous other low-cost airlines • Switching costs among other transportation option are high for everything but short distance (Train, bus etc) • High exiting barriers – regulated by ministry of civil aviation • Trains are the most preferred modes of transport when it comes to domestic travel December 1, 2011 16
- 17. 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 December 1, 2011 17
- 18. 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 December 1, 2011 18
- 19. The 7 P’s Product • Airline service – travel Price • Discounted fare for senior citizens, defense personnel • Economy & Club Premiere Fare • Advance Passenger Excursion Place • Place of Service – Aircraft • Various Airports – Jet lounge December 1, 2011 19
- 20. The 7 P’s Promotion • Companion Free Offer, Concessional fares • Jet Privilege frequent-flier programme • Jet Airways Citibank Credit Cards • Corporate Deal Offers • Festival specials, Student specials • Advertising and Branding Hoardings and advertisements Brand Ambassadors Sponsorships Event Organization December 1, 2011 20
- 21. The 7 P’s Process People Processing • Greeting method and standard procedure of treatment for customers for each class • Booking tickets made online and in counters • Flights sticking to schedules • In flight service – baby care, disabled care • Travelling with pets Possession Processing • Cargo • Luggage December 1, 2011 21
- 22. The 7 P’s Physical Evidence • Cuisine • In-flight entertainment facilities • Kiosks – check-in counters • Jet boutique – in flight fashion apparel • Jet kids – in flight kids programme • Jet mall – in flight shopping People • Trained cabin crew • Immigration & transportation December 1, 2011 22
- 23. SWOT Analysis Strengths Weaknesses Experience exceeding 14 years Losing domestic market share International operations Old fleet with average age - 4.79 years Large fleet size Need improvement in in-flight service Among top 3 in India Weak brand promotion Opportunities Threats Untapped air cargo market Strong competitors Scope in global service and tourism Fuel price hike Increasing salaries of people Overseas market competition Regulations December 1, 2011 23
- 24. Gap Model December 1, 2011 24
- 25. Gap – 1 Customer Expectation – Management Perception • Seat allotment • More variety in harder products December 1, 2011 25
- 26. Gap – 2 Management Perception – Service Quality Specification • Reclining Feature • Check-In baggage December 1, 2011 26
- 27. Gap – 3 Service Quality Specification – Services Delivered • Unfriendly Check-In • Unhygienic conditions December 1, 2011 27
- 28. Gap – 4 Service Delivered – External Communication • Time delay in Flights • Emergency services December 1, 2011 28
- 29. Gap – 5 JET AIRWAYS KINGFISHER INDIAN AIRLINES RELIABILITY 1 2 3 ASSURANCE 1 2 3 TANGIBLES 2 1 3 EMPATHY 1 2 3 RESPONISVENESS 1 2 3 December 1, 2011 29
- 30. Recommendations • Concentrate on the gaps created • Improvise on branding strategies • Look into newer geographical regions • Improving technology to overcome unfavorable weather conditions December 1, 2011 30
- 31. Thank You December 1, 2011 31