3. JET AIRWAYSJET AIRWAYS
About Jet Airways :About Jet Airways :
Jet Airways (India) Private Limited is India's leadingJet Airways (India) Private Limited is India's leading
private airline.private airline.
It boasts a market share of about 29 percent.It boasts a market share of about 29 percent.
Jet operates a relatively young fleet of Boeing 737 jets andJet operates a relatively young fleet of Boeing 737 jets and
ATR72 turboprops.ATR72 turboprops.
It carries about seven million passengers a year.It carries about seven million passengers a year.
Its reputation for punctuality and outstanding serviceIts reputation for punctuality and outstanding service
attracts a largeattracts a large
Vikas Kumar Tyagi
4. Light on Naresh Goyal: FounderLight on Naresh Goyal: Founder
andCEOandCEO
Naresh Goyal is the founder andNaresh Goyal is the founder and
Chairman of Jet Airways, India's largestChairman of Jet Airways, India's largest
domesticdomestic
airline.airline.
In May 1974, Naresh Goyal founded JetIn May 1974, Naresh Goyal founded Jet
air (Private) Limited to look after Sales andair (Private) Limited to look after Sales and
Marketing operations of foreign airlines inMarketing operations of foreign airlines in
India.India.
Naresh Goyal took advantage of OpenNaresh Goyal took advantage of Open
Skies Policy of the Government of IndiaSkies Policy of the Government of India
and set up Jet Airwaysand set up Jet Airways
Vikas Kumar Tyagi
5. Key Dates:Key Dates:
1993:1993: Jet Airways begins domestic operations flyingJet Airways begins domestic operations flying
Boeing 737 jets.Boeing 737 jets.
1997:1997: Kuwait Airways and Gulf Air sell their stakes inKuwait Airways and Gulf Air sell their stakes in
Jet Airways.Jet Airways.
1999:1999: A regional network is launched with turbopropA regional network is launched with turboprop
aircraft.aircraft.
2004:2004: The first international services are started.The first international services are started.
20072007: Acquired Air Sahara and re launched it as jet: Acquired Air Sahara and re launched it as jet
lite.lite.
Vikas Kumar Tyagi
6. Principal Competitors:Principal Competitors:
International Market :International Market :
- British Airways- British Airways
- South West Airlines- South West Airlines
Domestic Market :Domestic Market :
- King Fisher- King Fisher
- Indian Airlines- Indian Airlines
- Go Air- Go Air
- Spice jet- Spice jet
- Indigo- Indigo
Vikas Kumar Tyagi
7. Marketing Strategy:Marketing Strategy: STP for JetSTP for Jet
airways.airways.
Market Segmentation:Market Segmentation:
Economic ClassEconomic Class
Business ClassBusiness Class
Premium classPremium class
Target customersTarget customers
Business ClassBusiness Class
Economic class (Jet lite)Economic class (Jet lite)
Vikas Kumar Tyagi
8. Promotional ActivitiesPromotional Activities
For promotions we use tactics likeFor promotions we 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
Vikas Kumar Tyagi
9. FLIGHTS OF JET AIRWAYSFLIGHTS OF JET AIRWAYS
It operates over 400 daily flights to 65 destinationsIt operates over 400 daily flights to 65 destinations
worldwide.worldwide.
Provides services in:Provides services in:
44 domestic destinations in India44 domestic destinations in India
21 international destinations in 17 countries21 international destinations in 17 countries
across Asia, Europe & North America. across Asia, Europe & North America.
International destinations include Colombo,International destinations include Colombo,
New York, Toronto, Singapore etc.New York, Toronto, Singapore etc.
Vikas Kumar Tyagi
10. FLEETS OF AIRCRAFTS IT INCLUDESFLEETS OF AIRCRAFTS IT INCLUDES
IT HAS 84 AIRCRAFTSIT 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
Vikas Kumar Tyagi
13. Recent problems :Recent problems :
InIn oct 2008oct 2008 around 1900 employees were firedaround 1900 employees were fired
out of which 800 were laid off.out of which 800 were laid off.
It started voice from politicians , staff , senas ,It started voice from politicians , staff , senas ,
public.public.
Later in the same week they were taken back.Later in the same week they were taken back.
N.A.G( NATIONAL AVIATORS GUILD )N.A.G( NATIONAL AVIATORS GUILD )
formed on 24formed on 24thth
July claiming a membership ofJuly claiming a membership of
680 ,President Girish Kaushik , Gen.Sec.Captain680 ,President Girish Kaushik , Gen.Sec.Captain
Sam Thomas.Sam Thomas.
Vikas Kumar Tyagi
14. Due to which two senior pilot were fired .Due to which two senior pilot were fired .
Captain Sam Thomas(g.s)Captain Sam Thomas(g.s)
Captain D Balaraman.Captain D Balaraman.
OnOn Aug. 23Aug. 23rdrd
the Guild (NAG) warned that theythe Guild (NAG) warned that they
would go on strike from Sep. 7would go on strike from Sep. 7thth
if both theif both the
pilots are not reinstated.pilots are not reinstated.
Matter reached to the regional laborMatter reached to the regional labor
commissioner who held a meeting on Aug. 31commissioner who held a meeting on Aug. 31stst
and told any strike till the process is over wouldand told any strike till the process is over would
be illegal.be illegal.
Vikas Kumar Tyagi
15.
But onBut on 88thth
sep. 432/1056sep. 432/1056 pilotspilots
reported sick in violation of Bombayreported sick in violation of Bombay
high court orders a day earlierhigh court orders a day earlier
restraining them against any kind ofrestraining them against any kind of
strike in countries largest pvt. Carrier.strike in countries largest pvt. Carrier.
Pilots were demanding thePilots were demanding the
reinstatement of their colleagues.reinstatement of their colleagues.
Situation created huge problems forSituation created huge problems for
passengerspassengers .80% of them were.80% of them were
accommodated to other airlines for restaccommodated to other airlines for rest
entire fare was refunded.entire fare was refunded.
Vikas Kumar Tyagi
16. Chief justice Swatanter Kumar and JusticeChief justice Swatanter Kumar and Justice
AM Khanwilkar issued aAM Khanwilkar issued a noticenotice againstagainst
NAG seaking a reply in 2 weeks.NAG seaking a reply in 2 weeks.
Later 2 more pilots were sackedLater 2 more pilots were sacked
Civil aviation secretoryCivil aviation secretory MadhavanMadhavan
NambiarNambiar said govt. has nothing to dosaid govt. has nothing to do
between both, but they has taken seriousbetween both, but they has taken serious
view of the inconvenience to public andview of the inconvenience to public and
askedasked DGCADGCA to take action.to take action.
CEOCEO told he is open for talk but he toldtold he is open for talk but he told
company does not recognize NAG. andcompany does not recognize NAG. and
pilots are behaving like terrorists.pilots are behaving like terrorists.
Vikas Kumar Tyagi
17. Jets lawyer Harish Salve saidJets lawyer Harish Salve said
““Industrial Disputes ActsIndustrial Disputes Acts
prohibits strike whileprohibits strike while
conciliation proceedings areconciliation proceedings are
underway”.underway”.
FortunatelyFortunately after “loss ofafter “loss of
crores and goodwill”on 13crores and goodwill”on 13thth
sep.sep.
strike ended after 5 days whenstrike ended after 5 days when
Naresh Goyal reinstated theNaresh Goyal reinstated the
sacked pilots and paved the waysacked pilots and paved the way
for possible recognition of afor possible recognition of a
pilots union.pilots union.
Back to work
Vikas Kumar Tyagi
18. Consequences Of Strike:Consequences Of Strike:
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 internationalCancellation of 134 domestic and 32 international
FlightsFlights
Average passenger per day dropped from 23000/day toAverage passenger per day dropped from 23000/day to
14000/day.14000/day.
Vikas Kumar Tyagi
19. Consequences Of Strike:Consequences Of Strike:
Jet has to accommodate 80% of the passenger on theJet has to accommodate 80% of the passenger on the
other carriers.other carriers.
For the rest 20% entire fare has been refunded.For the rest 20% entire fare has been refunded.
Loss of goodwill is not measurable.Loss of goodwill is not measurable.
Vikas Kumar Tyagi
20. Advantage of jet airways crisis for otherAdvantage of jet airways crisis for other
airlinesairlines
Jet Airways transferred as many as 60 percent ofJet Airways transferred as many as 60 percent of
the passengers booked on its flights to Air India,the passengers booked on its flights to Air India,
the national carrier, and other airlines during thethe national carrier, and other airlines during the
strike.strike.
Rival carriers began to charge fares at almostRival carriers began to charge fares at almost
double the usual rates after the strike hampereddouble the usual rates after the strike hampered
Jet Airways operations.Jet Airways operations.
A big competitor was out, therefore it was a bigA big competitor was out, therefore it was a big
advantage to other airlinesadvantage to other airlines
Vikas Kumar Tyagi
21. Current SituationCurrent Situation
1.1. The standoff between the airline and its pilots endedThe standoff between the airline and its pilots ended
late Saturday after the company agreed to reinstatelate Saturday after the company agreed to reinstate
four pilots who were fired for trying to form a pilot’sfour pilots who were fired for trying to form a pilot’s
union.union.
2.2. Jet airways has reduced its fares to 50%.WithJet airways has reduced its fares to 50%.With
discounts, the cost of air tickets dropped close todiscounts, the cost of air tickets dropped close to
air-conditioned II tier Rajdhani Express fares.air-conditioned II tier Rajdhani Express fares.
3.3. Jet airways witnessed a 10 per cent switch from low-Jet airways witnessed a 10 per cent switch from low-
cost carriers to jet.cost carriers to jet.
4.4. The airline is operating on full schedule of servicesThe airline is operating on full schedule of services
on its domestic and international flights with all crewon its domestic and international flights with all crew
reporting for dutyreporting for duty
Vikas Kumar Tyagi
22. 5. Jet offered a full refund to passengers whose flights5. Jet offered a full refund to passengers whose flights
were canceled.were canceled.
The sacked pilots are rehired and a consultative groupThe sacked pilots are rehired and a consultative group
is being formed comprising representatives of theis being formed comprising representatives of the
company and pilots to continue the process ofcompany 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 million aJet Airways suffered a loss of nearly US$8 million a
day during the strike. and the number of passengersday during the strike. and the number of passengers
came down from 23,000 per day to 7,500.came down from 23,000 per day to 7,500.
No punitive action against any one who participatedNo punitive action against any one who participated
in the agitationin the agitation
Vikas Kumar Tyagi
23. 9.9. Shares of Jet Airways rose as much as 4.6Shares of Jet Airways rose as much as 4.6
percent, the most in two weeks.percent, the most in two weeks.
10.10. Airline losses globally may total $9 billion thisAirline losses globally may total $9 billion this
year, according to the International Airyear, according to the International Air
Transport Association, almost double theTransport Association, almost double the
group’s previous forecast.group’s previous forecast.
Vikas Kumar Tyagi