1. Jet Airways

2. Airline Industry in India 454 airports and airstrips (includes Operational, Non Operational, Abandoned and Disused Airports) 127 are owned & operated by AAI 16 - international, 7 custom airports, 28 civil enclaves Scheduled domestic air services - available from 82 airports May 2007- May 2008 25.5 million domestic & 22.4 million international passengers 20% growth – highest in the world Growth Rate Projections (for next 5 yrs) 15% p.a (Passenger Traffic) 11.4% p.a (Cargo Traffic)

3. History 1911 1932 1938 1946 1948 1953 First commercial flight Airmails from Allahabad to Naini(10 km) The Aviation Department of Tata Sons Ltd. Established Tata Airlines (successor to aviation division of Tata Sons) Tata Air Lines converted into a public Company and renamed Air India Limited Air 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, Kalinga Airlines, Indian National Airways and Air Services of India

4. History 1986 1990 1994 2003 2007 2008 Private Sector Players permitted as Air taxi operators Players including Jet, Air Sahara, NEPC, East West, Modiluft,etc started service Open Sky Policy Private Carriers permitted to operate scheduled services Entry of low-cost carriers Merger of Indian Airlines into Air India Acquisition of Air Sahara by Jet Airways Kingfisher acquired 49% stake in Deccan Aviation

5. Regulatory Authorities Ministry of Civil Aviation Responsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing airport facilities, air traffic services and carriage of passengers and goods by air 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

6. Policies Open Sky Policy FDI Airports 100% for green field operations 74% for existing airports - 100% with special permissions 100% tax exemptions for 10 yrs. Airlines 49% in domestic airlines - 100% for NRI’s 74% in cargo & non-scheduled airlines

9. Cost Structure Source : http://www.foolonahill.com/mbaaviation.html

10. Jet Airways Founded in 1993, Chairman - Mr.NareshGoyal HQ in Mumbai Country’s second largest international airline Largest domestic airline - 31% Primary base - Mumbai's ChaatrapathiShivaji Airport Secondary hubs - Bangalore, Brussels, Chennai, Delhi, Hyderabad, Kolkata and Pune. April,2007 - Acquired Air Sahara - JetLite Now JetLite integrated into Jet Airways

11. International Network

12. Domestic Network

13. Fleet Plan

14. Jet Airways - Performance Annual 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 showed loss(2006-07)

15. Operational Highlights

16. Revenues & Expenditure Split-up

17. Jet Airways vs. Domestic Players (2006)

18. Jet Airways vs. International Players (2006)

19. STP Primary Segments (Geographic) - Domestic & International Customer Segments First class, Premiere(Business) class & Economy class Target Segments Premiere(Business) class Business travelers, contribute 48% of passengers & 66% of revenues, ready to pay higher prices, last time booking, don’t like transit Economy class Leisure travelers, prefer low cost airlines, ready for transit if there is cost advantage, large % of passengers Seat Allocation – Yield Management Technique Positioning – High value for High price Unique Selling Price – Customer relationship and Punctuality

20. Seating in flights for Segments

21. Fleet Size

22. Flower of Services

23. Information - Reg. the org., flight schedules, ticket fares, promotion schemes etc. Through website, call service, sms, employees etc. Consultation - Reg. the choices of class, routes to a destination & special menus 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 booking to 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 privileges for frequent fliers

24. Impact of IT on Ticket Booking

25. Levels of Product

26. Product - Service On Ground Services Check 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-in Airport Lounges Coach Services In-flight Services Classes of Service - First class, Premiere class & Economy class Convenience & Safety -Towels, Pillows & Blankets, Reading material, First Aid, Smoke detectors, Bassinets, Child Care, life jackets & seat cushion Cuisines Entertainment - Jetscreen – Movies, TV programmes, Games, Music, In-flight communicator, Online magazines etc. JetWings (in-flight magazine), JetBoutique (in-flight shopping catalogue)

28. JetPrivilege – Frequent Flyer Program Membership tiers – Blue, Blue Plus, Silver, Gold & Platinum Personalized web access JP Miles - 13 quarters validity Bonus JPMiles on e-Services Additional baggage allowance Guaranteed reservations up to 24 hrs. prior to departure Waiver on cancellation fees Membership Tier Bonus Earning & Redeeming JP Miles Eg: Chennai to Thiruvananthapuram (Earn Mile-383 & Redeem Mile-6894) 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 African Airways, SWISS, United Airlines and Virgin Atlantic.

29. Price Economy & Club Premiere Fare Discounted fare for senior citizens & defense personnel Advance Passenger Excursion/ APEX Fares One Fare Night Saver Fares Check Fares US Dollar Fares & Visit India Fares

30. Place Place of Service - Aircraft Various Destinations

31. Promotion Offers Companion Free Offer, One Fare, Concessional fares, JetPrivilege Offers, Jet Airways Citibank Credit Cards, Corporate Deal Offers, International Specials, Camp Rock contest, Festival specials, Student specials, Surprises etc. Advertising and Branding Hoardings Brand Ambassadors Sponsorships Event Organization

32. People Employees Pilot, Cabin Attendants, Engineers, Customer Service Agents, Securities, Marketing, Sales & Reservation employees Customers

33. Partners 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 African Airways, 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, HDFC Bank, HSBC, ICICI Bank, SBI Card & Tata Cards Car Rental Partners - Avis, Hertz Hotel Partners - Global Hotel Alliance, Hilton Family Hotels, Hyatt Hotels & Resorts, InterContinental Hotel Groups, ITC etc. Lifestyle Partners - Globus and Golf Fee Card International Publishing Partners -Fortune, The Economist and TIME Retail Partners -Ferns n Petals Telecommunication - Matrix Cellular Services

34. Competitors International market - British Airways & South West Airlines Domestic market - King fisher, Indian Airlines, GoAir, Spicejet & Indigo

35. Process People Processing People physically enter the service system to receive the service. Aircraft is the service factory where service is delivered. Possession Processing Cargo Luggage & Courier

36. Physical Evidence Servicescape Servicescape usage - Interpersonal Complexity of Servicescape - Elaborate Flight Offices - Org. & Ticket Booking Agents Virtual Servicescape

37. Service Quality Source : http://www.foolonahill.com/mbaaviation.html

38. Service Quality Source : http://www.foolonahill.com/mbaaviation.html

39. Strategies to manage the Capacity & Demand Check Fares Automated Rostering System Planning and Scheduling Systems Code Sharing Outsourcing ramp handling, passenger handling, ticket checking, cargo and loading and unloading in Delhi and Mumbai Automation to drive efficiency and improve response time Faster page and application download times for its site

40. Corporate Social Resposibility Magic Box Fund raising inside the flight for disaster relief, education & healthcare for poor and programmes to prevent exploitation of women Flights of Fantasy Underprivileged children and children with special needs are taken on specially organized flights (on Children’s Day)

41. PEST Analysis Political Issue License issue for international operation Infrastructural constraint ATF price policy Economic Effects Rising income level Reduced fare but yet not enough Social Effects Sound Pollution Plane hijacking 9/11 Incident Technology Effects Modernization of aircrafts Modern technology like CAT3 and ILS

42. SWOT Analysis Strengths Market driver Experience exceeding 14 year Only private airline with international operation Market leader Largest fleet size 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 Untapped air cargo market Scope in international service and tourism Threats Strong competitors Fuel price hike Overseas market competition

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