Jet Airways Company Analysis2

CHAPTER I
Introduction
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1.0 Introduction
Jet Airways (India) Private Limited is India's leading private airline. It boasts a market share of about 45
percent. Jet operates a relatively young fleet of Boeing 737 jets and ATR72 turboprops. It carries about seven
million passengers a year. Its reputation for punctuality and outstanding service attracts a large proportion of
business travelers. Jet's founder and chairman is Naresh Goyal, an Indian expatriate living in London.
Jet Airways and rival private airlines in India were freed to begin flying outside the country on March 22, 2004.
Colombo, Sri Lanka, was the first such international destination. Flights to Bangladesh and Nepal followed
soon after.
Jet was poised to profit from an expected extension of flying rights throughout Asia. An initial public offering
of 25 percent of shares, discussed since 1995, was also in the works. Jet had borrowed about $800 million to
finance new aircraft.
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CHAPTER II
Company Profile
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2.0 Company Profile
2.1 Company History:
Jet Airways (India) Private Limited is India's leading private airline. It boasts a market share of about 45
percent. Jet operates a relatively young fleet of Boeing 737 jets and ATR72 turboprops. It carries about seven
million passengers a year. Its reputation for punctuality and outstanding service attracts a large proportion of
business travelers. Jet's founder and chairman is Naresh Goyal, an Indian expatriate living in London.
Origins
Company founder Naresh Goyal began his travel career in 1967 at the age of 18 as a general sales agent (GSA)
for Lebanese International Airlines. In May 1974, he formed his own company, Jet air (Private) Limited, to
market other foreign airlines in India. Jet air eventually grew to a network of 60 branch offices.
After three and a half decades of monopoly by Air India and Indian Airlines, the Indian government reopened
the domestic aviation market to private carriers in April 1989. Goyal set up Jet Airways (India) Private Limited
in 1991.
Initial investment was $20 million. Through an Isle of Man holding company, Tail Winds, company founder
Naresh Goyal (then based in London) owned 60 percent of Jet Airways, with Gulf Air and Kuwait Airways
dividing the remaining 40 percent.
Jet Airways began domestic flight operations with four new-generations Boeing 737s on May 5, 1993. The first
flights were from Mumbai (Bombay) to Delhi and Madras and ten other destinations. (Jet was not the first
private airline in the skies; that distinction went to East West Airlines, which launched in February 1992.) Jet
Airways aimed to carry seven million passengers by the end of 1993, and to take in first year revenue in excess
of $75 million (INR 2.4 billion).
The schedule was coordinated with that of Gulf Air to provide convenient connections. Gulf Air assisted the
new airline with technical and marketing assistance. The Australian airline Ansett Worldwide also provided
engineering expertise, and was the lessor for Jet's first four aircraft.
Malaysia Airlines System (MAS) provided technical and flight training and performed maintenance services,
while a unit of British Airways educated cabin staff in customer service. Three of Jet's Boeing 737s was leased
from MAS. Jet entered a comprehensive marketing agreement with KLM in 1995.
Surviving and Thriving in the Mid-1990s
Eight private airlines plied the skies over India in the mid-1990s. Jet Airways was the second largest. Revenues
for the 1994-95 fiscal year were estimated at INR 360 crore ($120 million), with profits of more than INR 18
crore ($6 million), crore being a traditional term meaning 10 million.
Jet Airways claimed to be the only profitable privately owned airline in India. Indeed, by 1997, five of the seven
that had been launched since 1992 were grounded. By another count, more than 20 start-up airlines had been
launched in India since deregulation, reported Airline Business. Jet Airways was one of the very few survivors.
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Jet's revenues rose 32 percent to $300 million in 1997, with profits of $11 million. During the year, Jet bought
out the shareholdings of Kuwait Airways and Gulf Air after the Indian government banned foreign ownership in
India's airlines. This also scuttled MAS's proposal to acquire a 9 percent stake in Jet Airways.
In 1997, Jet Airways was operating a fleet of one dozen Boeing 737s and was ordering ten more for $486
million. By this time, Jet was India's largest private carrier, and was flying to 20 destinations. Its market share
was about 15 percent. Jet Airways Executive Director Saroj Datta (formerly of Air-India and Kuwait Airways)
told Britain's Financial Times that the
Airline’s choice of newer aircraft was a significant factor in its success. While they cost more to lease, they
saved fuel and helped endear business travelers with their reliability. Datta added that Jet benefited from
Goyal's background as a general sales agent; it had established interline agreements with 90 foreign carriers
flying into India, accounting for 25 percent of revenues.
Late 1990s Price Wars
While the Tat industrial group was unable to secure government approval to create a proposed carrier with
Singapore Airlines, the domestic aviation market remained competitive. As demand contracted, rivals engaged
in a spirited price war, particularly on the Mumbai (Bombay) to Delhi route.
Nikos Kardassis, Jet's chief executive officer for five years, resigned in the summer of 1999. He was replaced
by Executive Director Saroj Dutta, who had been with the airline since 1992.
In 1999, Jet Airways was flying 155 flights a day to 30 destinations. The fleet was up to 25 aircraft, and the
airline employed 4,300 people. Jet estimated that it had a 32 percent market share and that 80 percent of its
passengers were business travelers. In October 1999, the airline launched a regional feeder network using leased
64-seat ATR 72 turboprop aircraft. Jet Airways unveiled new uniforms for its 270 cockpit crew members and
660 cabin staff about the same time as the ATR rollout. Designed by Ravi Bajaj, the new uniforms were a year
in the making.
Changes in the Early 21st Century
Jet Airways got a new CEO in 2000, Steve Forte, formerly vice-president of marketing at the U.S. carrier TWA.
Forte, a native of Italy also had worked for Meridiana, a small Italian domestic airline, when its aviation market
was undergoing liberalization. Forte left the airline in December 2002 to return to the United States. He was
replaced by Wolfgang Prock- Schauer, a former Star Alliance board member. In May 2003, Jet hired its first
chief operating officer, Peter Luethi.
The air travel market in India was making up for lost time after being flat for a couple of years. Jet and other
airlines were appealing to the government to reduce the tariffs on India's relatively expensive aviation fuel, as
domestic carriers paid a $2 per gallon premium compared with foreign ones. Chairman Naresh Goyal told the
Hindu the airline planned to connect to all of India's tourist destinations. Jet also was increasing frequencies on
key routes.
According to India Business Insight, Jet Airways' share of domestic passenger traffic rose to 48.7 percent, or
more than six million passengers, in 2002. Although the company had reportedly been profitable from its
inception, it was now posting significant losses despite total revenue in 2003 of INR 2,876.41 crore ($550
million).
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Business Today observed that interest costs had risen 50 percent during the year; fuel costs were also up
sharply. The effects of the September 11, 2001 terrorist attacks on the United States, and, later, the SARS health
crisis, took their toll on traffic for not just Jet Airways, but most airlines.
Controlling costs was CEO Wolfgang Prock-Schauer's primary agenda. The airline leased two of its Boeing
737s to a Japanese company, and implemented a number of workforce productivity measures. Prock-Schauer
aimed for Jet to be posting a profit of $60 million by 2005.
The airline was introducing ultra-low "Super Apex" (advanced purchase excursion fares) tickets to lure
passengers away from trains. Passenger demand fell slightly, however, and Jet reduced capacity on some routes
and began assigning employees multiple roles and cutting capacity on various routes. A charge card for frequent
flyers had been launched with Citibank in August 2000.
International in 2004
Jet Airways and rival private airlines in India were freed to begin flying outside the country on March 22, 2004.
Colombo, Sri Lanka, was the first such international destination. Flights to Bangladesh and Nepal followed
soon after.
Jet was poised to profit from an expected extension of flying rights throughout Asia. An initial public offering
of 25 percent of shares, discussed since 1995, was also in the works. Jet had borrowed about $800 million to
finance new aircraft.
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2.2 Founder of Jet Airways
Naresh Goyal The founder Chairman of Jet Airways
Naresh Goyal (59), the founder Chairman of Jet Airways, India’s premier airline,
has over 38 years of experience in the Civil Aviation industry. He is the recipient of several national and
international awards.
After graduating in Commerce in 1967, Mr. Naresh Goyal joined the travel business with the GSA for Lebanese
International Airlines. From 1967 to 1974 he underwent extensive training in all facets of the travel business
through his association with several foreign airlines. He also extensively travelled overseas on business during
this period.
With the experience, expertise and technical know-how thereby acquired, in May 1974, Mr. Naresh Goyal
founded Jetair (Private) Limited with the objective of providing Sales and Marketing representation to foreign
airlines in India. He was involved in developing studies of traffic patterns, route structures, operational
economics and flight scheduling, all of which has made him an authority in the world of aviation and travel.
In 1991, as part of the ongoing diversification programme of his business activities, Mr. Naresh Goyal took
advantage of the opening of the Indian economy and the enunciation of the Open Skies Policy by the
Government of India to set up Jet Airways for the operation of scheduled air services on domestic sectors in
India. Jet Airways commenced commercial operations on May 05, 1993.
Mr. Goyal has been re-elected to IATA Board of Governors for the year 2008-09. He has earlier served on the
Board of Governors of the International Air Transport Association (IATA), from 2004-2006.
Jet Airways with the acquisition of JetLite, today has a combined fleet strength of 111 aircraft and offers
customers a schedule of over 480 flights daily.
Chairman, Naresh Goyal received the first BML Munjal Award for Excellence in Learning & Development in
the Private Sector category from the Honourable Minister for Civil Aviation, Shri Praful Patel along with a
citation at a special function at Hotel Maurya Sheraton, New Delhi on January 6, 2006.
The Prime Minister, Dr Manmohan Singh presented the first NDTV Profit Business Award 2006 to Jet
Airways, which was received by the Chairman, Naresh Goyal at a glittering function at Taj Palace Hotel on July
28, 2006. The award, in the aviation category, is to salute the men and women who fuel India’s journey to the
fore front of the World Economy.
Chairman, Naresh Goyal was accorded the prestigious TATA AIG – Lifetime Achievement Award at the
Abacus-TAFI Awards ceremony organized during the TAFI (Travel Agents’ Federation of India) International
Travel Convention 2007, on Saturday 8th September, 2007 at the Sutera Harbour Resort in Kota Kinabalu,
Malaysia.
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Chairman, Naresh Goyal was awarded the prestigious “Man of the Year Award” by the Aviation Press Club
(APC) at its 30th Anniversary on Wednesday, April 09, 2008, in Belgium. The Aviation Press Club is an
influential club of Belgian Aviation Journalists.
Mr and Mrs. Goyal have also received the “International Entrepreneurs of the Year” award at the house of
commons, UK . The award was presented by Rt Hon Geoff Hoon MP, UK Secretary of State for Transport,
before an august gathering of British parliamentarians and other distinguished guests at the House of Commons,
as part of the Asian Voice Political and Public Life Awards 2008.
2.3 Milestones
1993: Jet Airways begins domestic operations flying Boeing 737 jets.
1997: Kuwait Airways and Gulf Air sell their stakes in Jet Airways.
1999: A regional network is launched with turboprop aircraft.
2004: The first international services are started.
2.4 MISSION STATMENT
Jet Airways will be the most preferred domestic airline in India. It will be the automatic first choice carrier for
the travelling public and set standards, which other competing airlines will seek to match.
Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliable,
comfortable and efficient operations.
Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel - be a world class
domestic airline.
Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achieving
healthy, long-term returns for the investors and providing its employees with an environment for excellence and
growth.
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2.5 Entry barriers:
Jet Airways and Air Sahara want the Government to impose entry barrier of Rs 250 crore as minimum paid up
capital for new airlines but Air Deccan, the only other scheduled airline in the private sector, has strongly
opposed this suggestion.
Jet and Sahara made this proposal to the Government during a closed-door meeting of their CEOs Wolfgang
Prock-Schauer and UK Bose with Civil Aviation minister Praful Patel. Air Deccan managing director GR
Gopinath, who was also invited for the meeting, however, told reporters: “The two private airlines (Jet and
Sahara) suggested entry level barriers to Mr Patel. We are opposed to any such move which would harm the
growing aviation industry in the country.”
Mr.Gopinath confirmed that Jet and Sahara suggested Rs 250 crore entry barrier for a new entrant besides
allowing only experienced private airlines to fly to foreign destinations. The meeting with private airlines was
called by Mr Patel to invite suggestions about the framing of new aviation policy.
In its position paper submitted to the Civil Aviation Ministry, Jet has also stated that the induction of aircraft by
Indian Airlines (IA), Sahara and Air Deccan in 2004-05 would lead to a capacity increase in the domestic
aviation sector by 20 per cent whereas market growth is expected at around 8-10 per cent. “Jet is in favour of
sound capacity-demand equation but will be forced to also add capacity in order not to lose market share
substantially,” the airline stated in the paper.
Jet in its position paper has suggested that new applications should fulfill minimum capital base norm laid down
by European Union (EU), minimum fleet size, and operational soundness to fulfill Directorate General of Civil
Aviation (DGCA) requirements.
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2.6 BOARD OF DIRECTORS
Mr. Naresh Goyal, a non-resident Indian national, is the chairman of the Company. He is also the chairman of
the Board of Directors. Mr. Goyal holds a Bachelors of Commerce degree and after completing his education in
1967, Mr. Goyal joined the travel business and underwent extensive practical training with several foreign
airlines.
Mr. Ali Ghandour, a Jordanian national, has been a Director of the Company since February 1998. Mr.
Ghandour is a qualified aeronautical engineer from New York University, U.S.A. Mr. Ghandour has over 50
years of experience in the civil aviation industry.
Mr. Victoriano P. Dungca, an American national, has been a Director of the Company since January 1999.
Mr. Dungca holds an MBA from Cornell University, U.S.A. and is a Certified Public Accountant from the
U.S.A.
Mr. Javed Akhtar, an Indian national has been a Director of the Company since March 1993. Mr. Akhtar holds
a Bachelor of Arts degree. Mr. Akhtar is a well-known poet, lyricist, screenplay and scriptwriter and is a famous
media personality.
Mr. Iftikar M. Kadri, an Indian national, has been a Director of the Company since February 2000. Mr. Kadri
holds a Bachelors degree in Engineering from Pune University. He is a member of the Council of Architecture,
New Delhi and a Fellow of the Indian Institute of Architects and a fellow of the Indian Institute of Interior
Design.
Mr. Charles Arthur Adams, an American national, has been a Director of the Company since September
2003. Mr. Adams hold a Bachelors of Science degree in Marketing from the University of Hartford, U.S.A. and
has 40 years of experience in the aviation industry.
Mr. Aman Mehta, an Indian national, has been a Director of the Company since September 2004. Mr. Mehta
holds a Bachelors degree in Economics from Delhi University. Mr. Mehta is a member of the governing board
of the Indian School of Business, Hyderabad, and of the Indian Council for Research and International
Economic Relations, New Delhi. Mr. Mehta serves as an independent director on the boards of several
companies in India as well as in the UK, Hong Kong and Singapore.
Mr. Yash Chopra, an Indian national, has been appointed a Director of the Company since April 2006. In
2005, Mr. Chopra was conferred the Padma Bhushan, one of the Country’s highest civilian honours.
Mr. ShahRukh Khan, an Indian national, has been appointed a Director of the Company since August 2006.
Mr. ShahRukh Khan is a well-known Actor from the Indian Film Industry. He is the recipient of thirteen Film
fare Awards, three National Honours including Best Indian Citizen Award in 1997, Rajiv Gandhi Award for
Excellence in 2002. In 2005, Mr. Khan was conferred the Padma Shri, one of the prestigious civilian honours
conferred annually by the Government of India. He is also recognized as a cultural ambassador of India to the
rest of the world.
Dr. Pierre J. Jeanniot, a Canadian national, has been appointed a Director of the Company since August 2006.
Dr. Pierre J. Jeanniot is a prominent, distinguished and widely acknowledged contemporary leader of the
aviation industry. Dr. Jeanniot was Director General and CEO of the International Air Transport Association
(IATA) from 1993 to 2002.
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Mr. Saroj K. Datta Executive Director, Jet Airways (India) Ltd., completed his education at St. Stephen’s
College, Delhi, with a post-graduate degree in Economics. After a two-year stint at the National Council of
Applied Economic Research (NCAER) in New Delhi, Mr. Datta joined Air-India in November 1962.
2.7 Management
Chief Executive Officer
Mr. Wolfgang Prock-Schauer
Executive Director
Mr. Saroj K. Datta
Chief Financial Officer
Mr. Carl Saldanha
Executive Vice President - Marketing & Sales
Ms. Anita Goyal
Chief Commercial Officer
Mr. Garry Kingshott
Regional Vice President - USA & Canada
Mr. Zainul Aljunied
Vice President - Eastern & Midwest America &
Mr. Peter Luethi
Canada
Capt. Ritzerwan Bin Rashid
Vice President - Flight Operations
Capt. K. Mohan
Vice President - Flight Operations
Mr. P. K. Sinha
(Administration)
Mr. Sitham Nadarajah
Vice President - Industry Affairs
Dato’ K. Jeyakanthan
Vice President - Technical (Projects)
Mr. Mike Johnson
Vice President - Engineering Services
Mr. Poh Leong Choo
Vice President - Engineering & Maintenance
Mr. Prasun Sengupta
Regional Vice President - Sales (India & SAARC)
Mr. N. Hariharan
Vice President - Corporate Administration
Mr. Rajesh Sharma
Vice President - Ofﬁ ce of Chairman
Mr. Ashok Barimar
Vice President - Technical Purchase & Service
Ms. Ragini Chopra
General Counsel & Vice President - Legal
Mr. Gaurang Shetty
Vice President - Corporate Communication &
Mr. Jay Shelat Public Relations
Vice President - Marketing
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2.8 Company Perspectives:
Jet Airways will be the most preferred domestic airline in India. It will be the automatic first choice carrier for
the travelling public and set standards, which other competing airlines will seek to match.
Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliable,
comfortable and efficient operations.
Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel--be a world class
domestic airline.
Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achieving
healthy, long-term returns for the investors and providing its employees with an environment for excellence and
growth.
2.9 Takeover of Air Sahara
Successful buyout
On January 2006 Jet Airways announced that it was to buy Air Sahara for $500 million in an all-cash deal.
Everything, including Sahara's assets and infrastructure, would belong to Jet Airways. This deal would have
been the biggest in India's aviation history and the resulting airline the country's largest Market reaction to the
deal was mixed, with analysts suggesting that Jet Airways was paying too much for Sahara.
On April 12, 2007 Jet Airways agreed to buy out Sahara for 14.5 billion Rupees ($340 million). Sahara will be
renamed Jet Lite, and will be marketed between low-cost carriers and full service airlines. With the acquisition
of Sahara, Jet Airways is set to refurbish the fleet and crew with
New livery and uniform. The deal will give the airline a combined domestic market share close on 50% Indian
Airlines, which is its closest competitor at around 25% market share. Both Jet Airways and Air Sahara have
extensive domestic networks and limited international operations, and they were the only survivors from the
Indian government’s first attempt at liberalization in the early 1990s, when more than a dozen new carriers
launched services.
Air Sahara will continue to operate separately in the near term, but eventually Jet Airways will absorb the
smaller airline’s aircraft, airport facilities and technical operations, after which the Air Sahara name will
disappear. A joint integration team has already been established that is headed by senior executives from both
airlines, and there are indications the merger could be completed in a matter of months.
Delhi-based Air Sahara had been on the market for some time as it needs cash to expand and its parent was not
willing to make the necessary investments, while Jet Airways is financially comfortable following a successful
public offering last year. Recently launched Kingfisher was considered a front-runner in the bidding for Air
Sahara, but its flamboyant chairman, Vijay Mallya, said in withdrawing his offer shortly before the Jet Airways
deal was confirmed that the asking price was far too high.
The fleets of Air Sahara and Jet Airways are not radically different, as both operate Classic and Next
Generation Boeing 737 narrow bodies on the majority of their routes. Jet Airways has more than 50 aircraft,
some 40 of which are 737s, which it acquired through a mix of lease and purchase. It also has eight ATR 72s
and three Airbus A340-300s, in addition to firm orders with Airbus and Boeing for 10 A330-200s, 10 777-
300ERs and 10 more 737-800s. Whereas, Air Sahara operates nearly 30 leased aircraft, around 20 of which are
737s. It also has seven Bombardier CRJ200 regional jets and one recently added 767-300ER that it leased for
new London Heathrow services.
Jet Airways India Ltd acquired Jet Lite in April 2007. Positioned as a Value based Airline, Jet Lite promises to
offer value for money, economical fares, 'Buy on board' in-flight meals, in-flight shopping and much more.
2.10 Airline agreements
Jet Airways has commercial agreements with the following airlines:
· Air Canada
· Air France
· American Airlines
· Austrian Airlines
· Brussels Airlines
· Gulf Air
· Jet Lite
· KLM
· Lufthansa
· Northwest Airlines
· Qantas
· South African Airways
· Swiss International Airlines
· Thai Airways International
· Virgin Atlantic Airways
· British Airways
2.11 Awards
Jet Airways wins the ‘BEST CARGO AIRLINE OF CENTRAL ASIA’ award May 2008 :
Jet Airways, India’s premier international airline, has won the ‘Best Cargo Airline of Central Asia’ at the
prestigious Cargo Airline of the Year Awards, held at the Royal Lancaster Hotel, London.
This Award is widely acknowledged in the air cargo industry. The winner is determined on the basis of votes
cast by the readers of Air Cargo News, the world’s best-read air cargo newspaper. These votes are then checked
by a neutral body, BIFA (British International Freight Association) and winners in various categories
determined.
Mr. Duncan Gambrill, General Manager – UK & Ireland, Jet Airways and Mr. Steve Stewart, Regional
Manager Cargo - UK & Ireland, Jet Airways received the award on behalf of the company in the presence of an
impressive industry gathering of six hundred distinguished guests who flew in from different corners of the
globe to support and acknowledge the achievements of their peers.
Commenting on the honor, Mr. Jay Shelat, Vice President-Cargo, Jet Airways, said, “We are delighted to
receive this honor, which is a reflection of the high standards of Jet Airways’ cargo services. Accolades such as
these spur us on to greater heights as we further expand our services around the world, including the launch of
our maiden flight on the Mumbai-Shanghai-San Francisco sector on June 14, 2008. We would like to take this
opportunity to thank our customers, front line staff and airport services who helped us achieve this award.”
The Cargo Airline of the Year Awards celebrated its Silver Jubilee this year, having recognized for 25 years the
very best achievements and highest standards of quality and service provided by airlines around the world.
Jet Airways wins Customer & Brand Loyalty in the “Commercial Airlines Sector (Domestic)" Jan 2008:
Jet Airways has won the Award for Customer & Brand Loyalty in the “Commercial Airlines Sector
(Domestic)”, at the IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Awards ceremony ,
held at the Taj Lands End Mumbai, on 22nd January 2008.
The 1st ever Loyalty Awards ‘08,are a part of the Loyalty Summit ‘08 that was scheduled on 22nd & 23rd
January 2008 at the same Venue.
Jet Airways wins customer and brand loyalty award for the second consecutive time Jan 2009 Mumbai,
January 30, 2009:
Jet Airways, India’s premier international airline, has won the coveted Customer and Brand Loyalty award in
the Commercial Airlines Sector (Domestic), at the second Loyalty Awards.
The award was received by Mr. Rahul Kucheria, General Manager – Relationship Marketing, Jet Airways in the
presence of industry stalwarts from the telecom, banking, insurance and IT sectors, among others, at the Taj
Lands End, Mumbai on January 29, 2009.
This was the airline’s second consecutive victory at the Loyalty awards, having previously won the award in the
same category in 2008.
The Loyalty Awards are the outcome of a combination of Consumer Research undertaken in six Indian cities, as
well as nominations received from organisations. These Awards are governed by a carefully selected jury who,
on the basis of the above two findings, decide the final Award Winners in each award category.
Commenting on the honour, Mr. Wolfgang Prock-Schauer, CEO, Jet Airways said, “At Jet Airways, we have
always strived to build long-term relationships with our customers, beyond mere commercial transactions. This
relentless focus on the customer has helped generate tremendous goodwill and loyalty for the Jet Airways
brand, in both Indian and foreign skies.
(2.12) S.W.O.T. Analysis
- Weakness
Strengths
• Loosing domestic market share
• Market driver • Old fleet with average age around
• Experience exceeding 14 year 4.79 years
• Only private airline with international • Scope for improvement in in-flight
Operation service
• Market leader • Weak brand promotion
• Largest fleet size
- Threats
- Opportunities • Strong competitors

• Fuel price hike
• Untapped air cargo market • Overseas market competition
• Scope in international service
and tourism
(2.13) Key Developments:
Jet Airways to launch low-fare Jet Konnect:

Jet Airways Konnect is a new economy class service designed to meet the needs of the low fare segment. It
will complement Jet Airways full service product, by providing a service that is better suited to cater to a
market that desires an economically priced low fare product.
Jet Airways Konnect offers a no-frills, economy class service where guests will be offered attractive and
competitive low fares on specific routes.
The on ground and in flight service will be delivered by Jet Airways staff, the only difference will be that
travelers will have to buy their meals on board.
Jet Airways Konnect will have dedicated aircraft for this service, the flight number range for this service will
be unique and will help both guests and travel agents identify the class of service.
Guests can book flights either on the airlines website www.jetairways.com or through the call centers or Jet
Airways city and ticketing offices. Travel Agents can book the service using the global distribution systems
(GDS). All guests using Jet Airways Konnect will enjoy the accrual and redemption of Jet Privileges mileage
points.
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Jet Airways Konnect service will give us the flexibility and speed to deploy capacity to meet these changing
trends.
The Jet Airways Konnect Service will initially operate with two 737 and six ATR aircraft on sectors such as
Chennai-Coimbatore, Chennai-Madurai, Chennai-Kochi, Mumbai-Ahmedabad, Mumbai-Bhopal, Mumbai-
Udaipur, Bangalore-Pune, and Bangalore -Mangalore.
Jet Airways (India) Limited Lays Off 110 Employees

-Business Standard
Business Standard reported that Jet Airways (India) Limited has laid off 110 employees. Of these employees,
50 are contract employees who have 'superannuated,' and another 60 are probationary cabin-crew.
Sahara Commercial Corporation Takes Jet Airways (India) Limited To Court, Seeks INR2,000 Crore-
- -Business Standard
Business Standard reported that Sahara Commercial Corporation filed an application in the Bombay High
Court alleging that Jet Airways (India) Limited had committed breach of contract in the takeover deal and
was liable to pay it (Sahara) INR2,000 crore instead of the renegotiated INR1,450 crore agreed on by them.
Jet Airways (India) Limited May Further Reduce Capacity

-Business Standard
Business Standard reported that Jet Airways (India) Limited is likely to cut capacity by 8%-10% this year to
cope with the falling passenger traffic due to recession. The Company would not reduce the number of
aircraft as they were on lease.
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(2.14) JET AIRWAYS NETWORK
Figure-I
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Product
&
Services
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(2.15) Products
At Jet Airways we always endeavor to make your travel comfortable, convenient and seamless. From our on
ground to in-flight services we constantly strive to innovate and upgrade our services. As India's best
airline, we have always come up with many firsts by offering new services and have set standards in Indian
Aviation. Find out all you would want to know about our Product and Services.
1. On Ground Services:-
At Jet Airways, service on the ground is as important as service in the air. Whether it is the process of
booking your ticket or checking in for your flight, Jet Airways ensures that your every need on the ground is
met.
(a). Check- in Options: multiple check-in options. Visit this section for detailed information.
(b). Airport Lounges: If you are a Jet Privilege Silver, Gold or Platinum card member or a Club Première
passenger, you can relax and enjoy complimentary snacks and beverages in our plush airport lounges.
(c). Coach Services: Airport Authority of India (A.A.I.) operates shuttle coaches for transit passengers from
domestic to international airport and vice-versa at Mumbai and Delhi airports.
2. In-flight Services:-
Jet Airways continually endeavors to better our services, both on the ground and in the air. From our crew,
whose priority is your comfort to the safety standards enforced to ensure that you are free of worry are just
the basic things that we pay close attention to.
Our in-flight meals are designed keeping in mind the varied customers we cater to. Jet Kids is one more
instance of how important we think it is to put a smile on the faces of our younger passengers. It is because
of this kind of excellence of service that we are today, one of the few airlines in the world to receive an ISO:
9001 certification. Our aim is your complete flying comfort.
(a). Class of Service: Jet Airways operates three classes of service - First Class, Première and
Economy. Read more on the facilities that we have to offer for each class.
(b). Convenience & Safety: Jet Airways provides you with service that caters to a more convenient and safer
journey.
(c). Cuisines: Your meal selection is just as important as the other details you give us when booking your
flight.
(d). Entertainment: We know how your favorite movies, music and sports can make time fly. And drive
stress away. Introducing Jet Screen for non-stop entertainment on board.
(e). Magazine: Now read your favorite magazine at a click of a button.

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3. Special Services:
Jet Airways understands that some of our passengers have special needs. It is our constant effort to meet
these needs to the best of our ability. This section will give you a glimpse into some of the special
requirements that we cater to so that all of our passengers can travel in comfort.
(a). Infant and Child Care: Special attention is always given to our younger patrons of Jet Airways.
(b). Wheel Chair Assistance: Handicapped and infirm passengers can also look forward for a comfortable,
safe and hastle free journey.
(c). Expectant Mothers: Expectant Mothers till 36 weeks of pregnancy can be permitted to fly on Jet
Airways flights.
(d). Unaccompanied Minors: Parents / guardians can be rest assured regarding our ability to look after
your children whilst traveling with us.
(e). Medical Emergencies: Visit this section for detailed information on medical care and emergencies.
(f). Traveling with Animals: Carriage of animals are permitted only on our Boeing 737 aircraft.
(g). Carriage of Stretcher: We now accept stretchers on all domestic flights operated by our Boeing
aircrafts.
4. Jet Mobile:
Get flight information at your fingertips. With Jet Mobile, get information on flight schedules, automatic
flight status alert or simply request for a flight alert.
Flight Delays/Cancellations due to Fog/Weather:
Jet Airways realize that disruptions / delays and cancellations of flights can cause inconvenience to our
passengers. Therefore equipped to resolve these issues via a dual approach of systemized tracking of flight
updates and a formal hotel accommodation policy for our passengers.
To combat weather related delays and the consequent inconvenience caused to passengers, Jet Airways has
systemized tracking of flight delays via the following tools.
Make sure to give your mobile numbers while making bookings for instant SMS alerts in case of flight
delays.
Fog / Weather Related delays:
SMS “Jet Flight Number” e.g. Jet 301 to 6388 for instant flight status.
21
This will give you the flight status for flight 9W 301 (BOM-DEL)
Helpline numbers for real-time flight status:
For real time flight status - now you can dial our multi-purpose call centre number - 3989 3333 - across six
metros.
The six cities are Mumbai, Delhi, Chennai, Hyderabad, Bangalore and Kolkata. Callers from satellite towns
who can access the main cities through a local call can also use this number.
For example: Pune callers can use 9520 – 3989 3333 to call Jet Airways.
customers using mobile phones will have to prefix the STD code of the local city, as they currently do for
any landline number.
Toll-free number for international queries is 1800 22 55 22 and will be reachable from BSNL and MTNL
lines.
Flight status:To check Flight Status for same day of travel:
SMS: JET Flight No (e.g. JET 301) to 6388.
Reply: Jet Mobile: 9W 301 BOM 0700AM DEL 0855AM On Time.
In the event of a delayed flight:
Reply: Jet Mobile: 9W 301 BOM 0700AM DEL 0855AM Delayed.
• To check Flight Status for a particular date of travel:
SMS: JET Flight No mm/dd (e.g. JET 301 08/30) to 6388

Reply: Jet Mobile: 9W 301 BOM 0700AM DEL 0855AM On Time.
Flight Schedules:
SMS: JETSCH mum del to 6388(Please enter the first 3 letters of the city pair i.e. for Bangalore you will
need to key BAN)
Reply:JetMobile:9W301 1 2 3 4 5 6 7 07:00am 08:55am Mumbai Delhi.JetMobile:9W331 1 2 3 4 5 6 7
09:25am 11:20am Mumbai Delhi.JetMobile:9W361 1 2 3 4 5 6 7 20:00pm 21:55pm Mumbai Delhi.
Flight Alert:
• Set Flight Alert for the same day of travel:
SMS: JETALERT Flight No (e.g. JETALERT 301) to 6388

Reply: Your alert has been registered for flight no 9W301. Date 11/18/2005.
• Set Flight Alert for a particular date of travel:
22
SMS: JETALERT Flight No mm/dd (e.g. JETALERT 301 08/30) to 6388
Reply: Your alert has been registered for flight no 9W301. Date 08/30/2005
• Unsubscribe the Alert service for the same day
SMS:JETCAN Flight Number ( JETCAN 301) to 6388.

Reply: Your alert has been cancelled for flight no 9W301
• Unsubscribe the Alert service for a particular date
SMS:JETCAN Flight Number mm/dd ( JETCAN 301 08/30) to 6388.

Reply: Your alert has been cancelled for flight no 9W301
5. Jet Kids:
When you fly Jet Airways with your family, we promise that your kids will have a great time. There is
assistance if and when you need it.
6. JetMail - Newsletter:
Get Updates on the latest offerings from Jet Airways and its partners. Be the first to know about Jet Airways'
latest flight and fare news update. Get the best offers from Jet Airways and its partners. Jet Mail is our
periodic newsletter which keeps you updated with all the latest at Jet Airways and its partner promotion.
Subscribing to newsletter will automatically enroll you to Jet Privilege, our frequent flyer program.
7. Cargo:
Jet Airways cargo with its huge network and infrastructure is equipped to handle just about all your cargo
requirements.
Jet Airways has been on the forefront in the transportation and handling of general and special cargo.
You can now send your cargo to New York and India daily. Enjoy the reliability of world class professionalism
and service with the convenience of a daily flight. Make a change for the better with Jet Airways Cargo.
Call 3065 8282 or contact your cargo agent, or email cargo@jetairways.com for details.
Our cargo product ranges from carriage of fresh flowers, household pets, life saving drugs, valuables and all
other general goods.
A special care service for human remains is specially designed for support at times of need.
Jet Airways ensures the delivery of services with the most amount of care to reach the customers’ delight.
And now, you can enjoy the convenience of tracking your cargo online! Please click here to check the
status of your cargo.
For any information regarding rates and services contact our nearest office or e-mail your query to
23
cargo@jetairways.com. To download the 'Instruction For Dispatch Of Goods' (IDG) form, please click here.
Table no- 1.1 List of Jet Airways Cargo offices

Cargo Station Phone number(s) Fax number(s)
+91 44 2256 0197 / 0198/ 0206 +91 44 2256 0191
Chennai
Delhi +91 11 2567 3055 / 256 73056 +91 11 2567 5208
Hyderabad +91 9247069186 / 9247069187 +91 40 2790 0605
Kochi +91 484 2610 082 +91 484 2610 038
Kolkota +91 33 2511 7639 / 2511 7637 / 2511 6624 +91 33 2511 6623
Table no- 1.2 The international contact numbers are:
International Cargo Station Phone number(s) Fax number(s)

London +44 20 8745 8555 +44 20 8745 8550
Singapore +65 6542 8041 +65 6542 8043
Hong Kong +852 3966 5083 +852 3966 5028
Kuwait +965 2437 2294 / 229 / 338 +965 2437 2337
Dubai +971 46064 146 / 47
Abu Dhabi +971 2631 5547 +971 6312 292
New York +1 717 632 7177 +1 717 632 7149
8. Downloads: You can download concession forms, safety cards and also our corporate video.
9. Your Safety and Comfort: Your safety is of vital importance to us and your comfort comes right up with
safety. Find out how Jet Airways innovatively meets these challenges
Your safety
Your safety is of vital importance to us. Hence, we lay great emphasis on the maintenance of our aircraft.
Our staff of 560 engineers and technicians, with 5 to 20 years of aviation experience, ensures that we
conform to international safety standards so that your favorite airline is also your safe airline.p
We have developed in-house engineering and maintenance capability to carry out annual C checks of our
aircraft. We are currently seeking clearance for 6C checks on Classic and up to Phase 80 checks on Next
Generation aircraft.
We have installed the Aircraft Maintenance and Engineering System (AMOS) for better inventory control.
Since our inception, we have had a tie up with Airlines Rotablesa Limited for supply and overhaul of spares
and maintaining a consignment stock.
24
To further strengthen our engineering infrastructure, we have recently been allotted our own hangar in Delhi,
which will be operational soon. We are also in the process of acquiring land to build our own hangar in
Mumbai.
Safety inside the aircraft
Cabin Baggage
Using your Mobile Phone
Smoking
Safety in case of Hazardous Situations
25
2.16 SERVICES:
1. Cabin classes
With the arrival of its new Boeing 777-300ER and Airbus A330-200 aircraft, Jet Airways has introduced a
new cabin with upgraded seats in all classes. The Boeing 777-300ER aircraft has three classes of service:
First, Première (Business), and Economy. The Airbus A330-200 aircraft have two classes: Première and
Economy. All Airbus A330-200 and Boeing 777-300ER aircraft have this feature. Boeing 737 aircraft are
configured differently. Jet Airways has a three-star rated Business and First Class, and is in the top twenty-
five business classes reviewed by Skytrax. Economy class has been reviewed as a three-star product by
Skytrax.
2. First Class
First class is available on all Boeing 777-300ER aircraft. All seats convert to a fully-flat bed, similar to
Singapore Airlines first class seat but smaller. It was the second airline in the world to have private suites
(Emirates being the first with its introduction in 2003 on their Airbus A340-500s). All seats in First have a
29-inch widescreen LCD monitor with audio-video on-demand systems (AVOD), in seat power supply, and
USB ports etc. Jet Airways is the first Indian airline to offer fully-enclosed suites on its aircraft; each suite
has a closable door, making for a private compartment. Skytrax consumer airline reviewers recently rated Jet
Airways First Class as being 44th best in the world.
26
3. Premiere
Premiere
Première (Business Class) on the Airbus A330-200 and Boeing 777-300ER international fleet has a fully-flat
bed with AVOD entertainment. Seats are configured in a herringbone pattern (1-2-1 on the Boeing 777-
300ER, and 1-1-1 on the Airbus A330-200), with each seat offering direct access to the aisle. Première seats
on the A330-200s leased from ILFC are configured differently in a 2-2-2 non-herringbone pattern. Each
Première Seat has a 15.4-inch flat screen LCD TV with AVOD. USB ports and in-seat laptop power are
provided.
On the short-haul/domestic Boeing 737-700/800, all new aircraft are equipped with AVOD. All seats are
standard recliner business-class seats with a few newer aircraft with electronic recline and massager.
4.Economy Class
Economy Class
Economy class on Jet's Airbus A330-200, Boeing

737-700/800 and Boeing 777-300ER aircraft has
32-inch seat pitch. Seats on the Boeing 777-
300ER/Airbus A330-200 have a "hammock-style"
net footrest. The cabin is configured in 3-3-3
abreast on the Boeing 777-300ER, 2-4-2 on the
Airbus A330-200, and 3-3 in the Boeing 737.
Each Economy seat on the 777-300ER/A330-200
has a 10.6-inch touch screen LCD TV with
AVOD.Some recently acquired Boeing 737-
700/800 aircraft also feature Personal LCD
screens with AVOD.
27
light schemes corresponding to the time of day
All three classes feature Mood lighting on the and flight position.
Airbus A330-200 and Boeing 777-300ER, with
5. In-Flight Entertainment
Jet Airways' Panasonic EFX IFE system on-board the Boeing 737-700/800 and Panasonic eX2 IFE system
on-board the Airbus A330-200/Boeing 777-300ER, called "Jet Screen", offers audio video on-demand
programming (passengers can start, stop, rewind, and fast-forward as desired). It has over 100 movies, 80 TV
programmes, 11 audio channels and a CD library of 130 titles. The system operates via individual touch
screen monitors at each seat, and is available in all classes.
6.Airport Lounges
Jet Airways Lounges are offered to First and Première Class passengers, along with JetPrivilege Platinum,
Gold or Silver card members. The international lounge at Brussels has showers, business centre,
entertainment facilities and children's play areas.
28
(2.17) Brand ownership
Jet Airways does not own its brand. The brand is owned by Jet air Enterprises Ltd., a separate company
substantially owned by Naresh Goyal, which licenses the brand to the airline in return for an annual payment.
This arrangement is very similar to the terms governing the use of the "easy" brand by the easy Jet Airline
Company Limited (the name under which easy Jet has been incorporated). Under the aforesaid arrangement,
Sir Stelios Haji-Ioannou, the founder and largest individual shareholder of easy Jet Airline Co. Ltd. has sole
ownership of the "easy" brand and licenses it to that airline for a specified payment. This kind of
arrangement is of vital
importance should the concerned airlines become the subject of a hostile takeover bid because the bidders
will not automatically acquire ownership of their takeover target's brand and without access to the brand the
takeover target will be less valuable.
(2.18) Jet Airways Top Competitors
Company Location
Air India Mumbai, India

Kingfisher Airlines Mumbai, India
Malaysian Airlines Kuala Lumpur, Malaysia
29
(2.19) Fleet Information
1. Airbus 330-200 12 aircrafts
Cruise Speed 870 kmph

Aircraft Length 57.512 m
Wing Span 60.304 m
Engine Type Rolls

Royce Trent-772B /CF6- 80E1A4/B
First Class Premiere Economy
- 30 Seats 196 Seats
30
2. ATR 72-500 14 aircrafts
Engine Type PW127F

Wing Span 27.00 m
- - 62 Seats
Boeing 737-400 1 aircraft
Engine Type CFM56 3C1

Wing Span 28.90 m
- - 62 Seats
31
3. Boeing 737-700 13 aircraft
Engine Type CFM56 7B22

Wing Span 35.80 m
- 16 seats 19 Seats
4. Boeing 737-800 34 aircraft
Engine Type CFM56 7B24

Wing Span 35.7 m
32
5. Boeing737-900 2 aircraft
Engine Type CMF56 7B24
Wing Span 34.30 m
- 28 seats 132 Seats
6. Boeing 777-300ER 10 aircraft
Engine Type GE90-115B

Wing Span 64.80 m
8 seats 30 seats 274 Seats
Total No. of aircraft are 86
3.0 Aviation Industry in India

33
Aviation Industry in India is one of the fastest growing aviation industries in the world. With the
liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation.
From being primarily a government-owned industry, the Indian aviation industry is now dominated by
privately owned full service airlines and low cost carriers. Private airlines account for around 75% share of
the domestic aviation market. Earlier air travel was a privilege only a few could afford, but today air travel
has become much cheaper and can be afforded by a large number of people.
The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight between
Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial
Airways. It was an extension of London-Karachi flight of the Imperial Airways. In 1932, JRD Tata founded
Tata Airline, the first Indian airline. At the time of independence, nine air transport companies were carrying
both air cargo and passengers. These were Tata Airlines, Indian National Airways, and Air service of India,
Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition
Orient Airways shifted to Pakistan.
In early 1948, Government of India established a joint sector company, Air India International Ltd in
collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three Lockheed
constellation aircraft. The inaugural flight of Air India International Ltd took off on June 8, 1948 on the
Mumbai-London air route. The Government nationalized nine airline companies vide the Air Corporations
Act, 1953. Accordingly it established the Indian Airlines Corporation (IAC) to cater to domestic air travel
passengers and Air India International (AI) for international air travel passengers. The assets of the existing
airline companies were transferred to these two corporations. This Act ensured that IAC and AI had a
monopoly over the Indian skies. A third government-owned airline, Vayudoot, which provided feeder
services between smaller cities, was merged with IAC in 1994. These government-owned airlines dominated
Indian aviation industry till the mid-1990s.
In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to operate flights
from any airport, both on a charter and a non charter basis and to decide their own flight schedules, cargo and
passenger fares. In 1994, the Indian Government, as part of its open sky policy, ended the monopoly of IA
and AI in the air transport services by repealing the Air Corporations Act of 1953 and replacing it with the
Air Corporations (Transfer of Undertaking and Repeal) Act, 1994. Private operators were allowed to provide
air transport services. Foreign direct investment (FDI) of up to 49 percent equity stake and NRI (Non
Resident Indian) investment of up to 100 percent equity stake were permitted through the
automatic FDI route in the domestic air transport services sector. However, no foreign airline could directly
or indirectly hold equity in a domestic airline company.
By 1995, several private airlines had ventured into the aviation business and accounted for more than 10
percent of the domestic air traffic. These included Jet Airways Sahara, NEPC Airlines, East West Airlines,
ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and Damania Airways. But only Jet Airways and
Sahara managed to survive the competition. Meanwhile, Indian Airlines, which had dominated the Indian air
travel industry, began to lose market share to Jet Airways and Sahara. Today, Indian aviation industry is
dominated by private airlines and these include low cost carriers such as Deccan Airlines, Go Air, Spice Jet
etc, who have made air travel affordable.
Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF)
prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competition
among the players. But one of the major challenges facing Indian aviation industry is infrastructure
constraint. Airport infrastructure needs to be upgraded rapidly if Indian aviation industry has to continue its
success story. Some steps have been taken in this direction. Two of India's largest airports-Mumbai and New
34
Delhi-were privatized recently. Two greenfield airports are coming up at Bangalore and Hyderabad in
southern India. Investments are pouring into almost all aspects of the industry, including aircraft
maintenance, pilot training and air cargo services. The future prospects of Indian aviation sector look bright.
(3.1) Market share of Jet airways
Jet Airways gaining the Market share in May. Aggressive marketing seems to have helped these start-up
carriers eat into the market share of full-service carriers.
While Jet Airways’ market share in the domestic market came down to 20.5% (from 21.6% in April 2008),
Jet’s low fare airline, JetLite, has also gained market share at 8.6% as against 8% in April.
“Jet Airways’ top-end business has been hit hard by Kingfisher. Simultaneously, budget carriers have
snatched its the bottom-end customers,” Amadeus India managing director Ankur Bhatia said. He said the
airline has also lost market share by going slow on its route expansion plans.
3.2 Accidents and Incidents
Jet Airways is accredited by International Air Transport Association with IOSA (IATA Operational
Safety Audit) for its operational safety practices.
On 1 June 2007 Jet Airways Flight 3307 an ATR 72-212A (registered VT-JCE) was flying on the route
Bhopal-Indore was involved in an accident which was caused by a storm. Whilst there was no fatality
amongst the 45 passengers and 4 crew onboard, the aircraft suffered damages beyond repair. One pair Pug
dogs were killed during flight 9W370 Mumbai to New Delhi, matter was taken up before the International
Organization for Animal Protection - OIPA in India Representative Naresh Kadyan, Chairman of the People
for Animals (PFA) Haryana for legal help against Jet Airways, complaint # 12377 dated May 12th, 2009 has
been lodged with the Mumbai Police
(3.3)Careers
Currently not recruiting for any new positions.
35
(3.4) Contact Us(Jet Airways)
Jet Airways Reservation & Ticketing Office in Hyderabad.
Dial our multi-purpose call centre number - 3989 3333 - across Mumbai, Delhi, Chennai, Hyderabad,
Bangalore & Kolkata, and access all the information under one roof. For other cities within India, please
prefix the city code of the nearest metro city and dial 3989 3333.
For any queries related to international flights, please call 1800 22 55 22. This number can be dialed only
within India and can be reachable from BSNL and MTNL lines.
To receive instant flight information, SMS Jet "Flight Number" to 56388.
Table no 1.3
Airport Address Contact
Rajiv Gandhi International Airport Reliance Krishna Reservations:

5-10-197 ABC, Hill Fort Road, +91 40 3989 3333
Hyderabad
Hyderabad 500004 Tele-Check-In:
+91 40 3989 3333
24 Hour Flight Information:

+91 40 3989 3333
36
(3.5) News: as on June 2009
1. June 17, India’s private air carrier, Jet Airways, Wednesday increased its fuel surcharge by Rs.400 on
all domestic sectors, and attributed it to an increase in aviation fuel prices.
2. Jet Airways had said after state-run oil firm, hiked fuel prices by 12 percent, the sixth increase since
March 16.
3. Jet Airways Group Remains India's Largest Airline
4. Air India Considering 10-12 Percent Fare Cut
5. Jet Airways' Top Executives To Take 25 Percent Pay Cut
6. Jet Airways Begins Bangalore-Brussels Flight
7. MRTPC Orders Investigation Into Jet-Kingfisher Code-Sharing Alliance
8. Jet Airways Decides To Reinstates Sacked Employees
9. Air Fares In India Hiked Again
10. Jet Airways Muscat-Thiruvananthapuram Daily Flights
11. Jet Airways Plans 2nd Hub In Central Europe
12. JetLite May Merge With Jet Airways In 2008- 09 Fiscal Year.
13. Jet Launches Service To China.
14. Jet, Etihad Sign Codeshare Agreement.
15. Jet In Tie Up With Global Hotel Alliance.
16. Jet Airways Cuts Salaries Of Its Senior Staff.
3.6 Historical Earnings & Dividends Pershare

37
(Figure-II)
38
Chapter IV
DATA ANALYSIS
AND
INTERPRETATION
39
(4.0)Balance sheet (Rs crores)
Particulars Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Sources of funds
Owner's fund
Equity share capital 86.33 86.33 86.33 86.33 72.09
Share application money - - - - -
Preference share capital - - - - 69.83
Reserves & surplus 1,765.42 2,018.48 2,057.53 1,664.56 -112.08
Loan funds
Secured loans 1,612.75 742.46 206.02 60.00 60.34
Unsecured loans 10,402.29 5,313.84 4,689.58 2,904.84 3,149.65
Total 13,866.79 8,161.11 7,039.46 4,715.73 3,239.83
Uses of funds
Fixed assets
Gross block 16,591.09 5,713.83 4,312.07 5,162.79 5,130.88
Less : revaluation reserve 2,699.90 132.44 162.02 259.27 387.57
Less : accumulated depreciation 2,506.92 2,416.34 2,249.58 2,593.46 2,050.21
Net block 11,384.27 3,165.05 1,900.47 2,310.06 2,693.10
Capital work-in-progress 1,223.28 3,994.52 2,725.66 71.32 46.12
Investments 1,475.35 68.93 187.23 1,595.73 233.42
Net current assets
Current assets, loans & advances 4,145.67 3,402.32 4,091.31 2,156.27 1,398.72
Less : current liabilities & provisions 4,361.78 2,469.71 1,865.21 1,417.65 1,131.53
Total net current assets -216.11 932.61 2,226.10 738.62 267.19
Miscellaneous expenses not written - - - - -
Total 13,866.79 8,161.11 7,039.46 4,715.73 3,239.83
Notes:
Book value of unquoted investments 1,465.00 - - - 233.42
Market value of quoted investments 10.35 69.01 190.06 1,603.68 -
Contingent liabilities 14,247.89 6,624.43 9,736.40 3,097.06 121.10
Number of equity shares outstanding 893.34 893.34 863.34 863.34 720.89
(Lacs)
Table 1.4
40
(4.1)Profit and loss account (Rs
crores)
Income:
Operating income 8,811.10 7,057.78 5,693.73 4,338.01 3,447.42
Expenses
Material consumed - - 63.12 71.96 50.07
Manufacturing expenses 5,129.92 3,667.20 2,456.60 1,622.30 1,295.17
Personnel expenses 1,205.18 938.55 567.81 374.74 282.24
Selling expenses 982.86 800.85 774.02 559.06 426.41
Adminstrative expenses 739.24 616.12 420.02 269.89 270.05
Expenses capitalized - - - - -
Cost of sales 8,057.20 6,022.72 4,281.57 2,897.95 2,323.94
Operating profit 753.90 1,035.06 1,412.16 1,440.06 1,123.48
Other recurring income 115.23 90.36 77.36 51.57 38.23
Adjusted PBDIT 869.13 1,125.42 1,489.52 1,491.63 1,161.71
Financial expenses 1,056.03 909.70 691.24 461.31 525.47
Depreciation 777.80 414.10 406.41 457.00 515.15
Other write offs - - - - -
Adjusted PBT -964.70 -198.38 391.87 573.32 121.09
Tax charges -160.73 23.42 270.22 190.14 15.03
Adjusted PAT -803.97 -221.80 121.65 383.18 106.06
Non recurring items 522.01 225.25 289.38 -10.01 56.51
Other non cash adjustments 28.90 24.49 41.01 18.82 0.54
Reported net profit -253.06 27.94 452.04 391.99 163.11
Earnigs before appropriation 208.91 525.37 601.71 273.98 -118.01
Equity dividend - 51.80 51.80 25.90 -
Preference dividend - - - - -
Dividend tax - 8.80 7.27 3.63 -
Retained earnings 208.91 464.77 542.64 244.45 -118.01
Table 1.5
41
(4.2)Ratios Table 1.6
Per share ratios
Adjusted EPS (Rs) -90.00 -24.83 14.09 44.38 14.71
Adjusted cash EPS (Rs) -2.93 21.53 61.16 97.32 86.17
Reported EPS (Rs) -28.33 3.13 52.36 45.40 22.63
Reported cash EPS (Rs) 58.74 49.48 99.43 98.34 94.09
Dividend per share - 6.00 6.00 3.00 -
Operating profit per share (Rs) 84.39 115.86 163.57 166.80 155.85
Book value (excl rev res) per share (Rs) 207.28 235.61 248.32 202.80 -5.55
Book value (incl rev res) per share (Rs.) 509.51 250.44 267.09 232.84 48.22
Net operating income per share (Rs) 986.31 790.04 659.50 502.47 478.22
Free reserves per share (Rs) 191.40 219.73 231.88 186.37 -16.37
Profitability ratios
Operating margin (%) 8.55 14.66 24.80 33.19 32.58
Gross profit margin (%) -0.27 8.79 17.66 22.66 17.64
Net profit margin (%) -2.83 0.39 7.83 8.93 4.67
Adjusted cash margin (%) -0.29 2.69 9.15 19.14 17.82
Adjusted return on net worth (%) -43.41 -10.53 5.67 21.88 111.25
Reported return on net worth (%) -13.66 1.32 21.08 22.38 111.25
Return on long term funds (%) 0.69 9.53 16.80 21.93 19.97
Leverage ratios
Long term debt / Equity 6.11 2.75 2.21 1.69 22.37
Total debt/equity 6.49 2.88 2.28 1.69 22.37
Owners fund as % of total source 13.35 25.79 30.45 37.12 -1.23
Fixed assets turnover ratio 0.53 1.28 1.38 0.84 0.67
Liquidity ratios
42
Current ratio 0.95 1.38 2.19 1.52 1.24
Current ratio (inc. st loans) 0.81 1.07 1.66 1.52 1.23
Quick ratio 0.77 1.18 1.97 1.21 0.69
Inventory turnover ratio 2,143.82 5,601.41 4,951.07 7,111.49 7,660.93
Payout ratios
Dividend payout ratio (net profit) - 216.89 13.06 7.53 -
Dividend payout ratio (cash profit) - 13.70 6.88 3.47 -
Earning retention ratio - 127.32 51.45 92.30 100.00
Cash earnings retention ratio - 68.49 88.82 96.49 100.00
Coverage ratios
Adjusted cash flow time total debt - 31.49 9.27 3.53 5.17
Financial charges coverage ratio 0.82 1.24 2.15 3.23 2.21
Fin. charges cov.ratio (post tax) 1.50 1.49 2.24 2.84 2.29
Component ratios
Material cost component (% earnings) - - 1.10 1.65 1.45
Selling cost Component 11.15 11.34 13.59 12.88 12.36
Exports as percent of total sales 29.47 26.39 24.10 13.96 14.91
Import comp. in raw mat. consumed - - - - -
Long term assets / total Assets 0.76 0.67 0.53 0.64 0.67
Bonus component in equity capital (%) 10.89 10.89 10.89 10.89 13.04
Interpretation
(4.3) Cash Eps( Earning per share) :
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 98.34 99.43 49.48 58.74
% 100(base) 101.108 50.31 59.73
Table 1.7
EPS Means?
43
The portion of a company's profit allocated to each outstanding share of common stock. Earnings per
share serve as an indicator of a company's profitability.
Calculated as:
OR
EPS = Net Earnings / Outstanding Shares
When calculating, it is more accurate to use a weighted average number of shares outstanding over the
reporting term, because the number of shares outstanding can change over time. However, data
sources sometimes simplify the calculation by using the number of shares outstanding at the end of the
period.
Diluted EPS expands on basic EPS by including the shares of convertibles or warrants outstanding in the
outstanding shares number.
EPS serves as a clear indicator for investors. The cash EPS is perhaps the best computation for determining a
company’s investment potential, since it is calculated by dividing the company's operating cash flow with
diluted shares, which include assets such as inventories in addition to the stocks that are available on the
market. If the cash EPS is higher that the reported EPS, the company is a good investment due to its ability to
earn real cash.
Companies choose to be cautious,, if the reported EPS is higher than expectations, the stocks of the company
increase in value.
Graphical Representation
44
Earnings Per Share(Cash)
2008 2005
59.73% 100%
2005
2006
2007
2007
2008
50.31%
2006
101.76%
Interpretation:
 In the above table, Amount in Rupees (Crores) is the EPS (Earnings per Share) of the company
during the four years. The first year is taken as the base & accordingly calculated the percentages for
the other three years.
 EPS is calculated by dividing the Earnings after Income Tax (EAIT), which is available to Equity
Share Holders, with the Number of Equity Shares. EPS is used to measure the Profit to Equity Share
Holders on ‘Per’ Share Basis.
 The year 04-05 has the least amount of EPS 8.55(23.10%) & 06-07 has the highest amount of EPS
70.09(189.38%).
(4.4) Dividend Per share (DPS)
45
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 3.00 6.00 6.00 -

% 100(Base) 200 200 -
Table 1.8
Dividend Means?
1. A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its
shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends
per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend
yield.
Also referred to as "Dividend Per Share (DPS)."
2. Mandatory distributions of income and realized capital gains made to mutual fund investors
1. Dividends may be in the form of cash, stock or property. Most secure and stable companies offer
dividends to their stockholders. Their share prices might not move much, but the dividend attempts to make
up for this.
High-growth companies rarely offer dividends because all of their profits are reinvested to help sustain
higher-than-average growth.
2. Mutual funds pay out interest and dividend income received from their portfolio holdings as dividends to
fund shareholders. In addition, realized capital gains from the portfolio's trading activities are generally paid
out (capital gains distribution) as a year-end dividend.
DPS Means?
The the sum of declared dividends for every ordinary share issued. Dividend per share (DPS) is the total
dividends paid out over an entire year (including interim dividends but not including special dividends)
divided by the number of outstanding ordinary shares issued.
DPS can be calculated by using the following formula:
D - Sum of dividends over a period (usually 1 year)

SD - Special, one time dividends
S - Shares outstanding for the period
The directors may pay an interim dividend during the accounting period and then recommend a final rate of
dividend per share for approval by shareholders at the Annual General Meeting (AGM). Dividends can be
divided into the following types: Interim, Final, Quarterly, Provisional, Special, Monthly and Maiden.
Dividend amounts are displayed if they are known and the total dividend amounts are displayed only for the
46
Final dividends i.e. the total dividend amount per share for the whole financial period. If the Final total
dividend amount is zero, it means that the company have not paid any dividends for that period.
Dividend Per Share(DPS)

2008
-64.55%
2007 2005
7.129% 100%
2005
2006
2007
2006 2008
115.31%
Interpretation:
 In the above table, Amount in Rupees (Crores) is the DPS (Dividend per Share) of the company
 DPS is calculated on the Earnings after Income Tax (EAIT), Dividend is paid to Share Holders,.
 In The year 07-08 company did not declared any Dividend Due to losses
(4.5) Long Term Debt

47
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 1.69 2.21 2.75 6.11
% 100(Base) 130.76 162.72 631.53
Table 1.9
Long-Term Debt Mean?
Loans and financial obligations lasting over one year. Debts obligations such as bonds and notes, which have
maturities greater than one year, would be considered long-term debt. Other securities such as T-bills and
commercial papers would not be long-term debt because their maturities are typically shorter than one year.
Company’s long-term debt to see how much leverage a company has and how solvent the company is. In
general, long-term debt can help a company magnify its financial success, but the burden of principal and
interest payments may become too heavy for companies that borrow excessively.
Interest rate changes can motivate companies to repay debt before it is due. If a company notices that interest
rates have fallen below the rate the company is currently paying on some or all of its debt, the company may
choose to pay off the high-rate debt with new, lower-rate debt. The early extinguishing of debt and debt
restructurings for struggling companies could even require recording extraordinary gains or losses on the
income statement.
Long Term Debt
2005
100%
2008 2005
631.53% 2006
2007
2006
2008
130.76%
2007
162.72%
Interpretation:
48
 In the above table, Amount in Rupees (Crores) is the EPS (Earnings per Share) of the company
 EPS is calculated by dividing the Earnings after Income Tax (EAIT), which is available to Equity
Share Holders, with the Number of Equity Shares. EPS is used to measure the Profit to Equity Share
Holders on ‘Per’ Share Basis.
 The year 04-05 has the least amount of EPS 8.55(23.10%) & 06-07 has the highest amount of EPS
70.09(189.38%).
(4.6) Liquidity Ratio
(4.6.1) Current Ratio
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 1.52 2.19 1.38 0.95
% 100(Base) 144.07 90.78 62.5
Table 2.0
Current Ratio Mean?
A liquidity ratio that measures a company's ability to pay short-term obligations.
The Current Ratio formula is:
Also known as "liquidity ratio", "cash asset ratio" and "cash ratio".
The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities
(debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the
more capable the company is of paying its obligations. The current ratio can give a sense of the efficiency of
a company's operating cycle or its ability to turn its product into cash.
A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that
point. While this shows the company is not in good financial health, it does not necessarily mean that it will
go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
49
2008 Current Ratio
62.5%
2005
100%
2005
2006
2007 2007
90.78%
2008
2006
144.07%
Interpretation:
 In the above table, Current Ratio of the company for four years is depicted.
 It is calculated by dividing the Current Assets with the Current Liabilities.
 A Current Ratio of 2:1 is usually considered as ideal. If Current ratio is less than 2, it indicates that the
business does not enjoy adequate liquidity. However, a high current ratio
of more than 3 indicates that the firm is having idle funds and has not invested them properly.
 The figures in the above table are being represented as a graph, here as under :
50
(4.6.2) Quick Ratio
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 1.21 1.97 1.18 0.77

% 100(Base) 162.80 97.52 63.63
Table 2.1
Quick Ratio Mean?
An indicator of a company's short-term liquidity. The quick ratio measures a company's ability to meet its
short-term obligations with its most liquid assets. The higher the quick ratio, the better the position of
the company.
The quick ratio is calculated as:
Also known as the "acid-test ratio" or the "quick assets ratio".
The quick ratio is more conservative than the current ratio, a more well-known liquidity measure, because
it excludes inventory from current assets. Inventory is excluded because some companies have difficulty
turning their inventory into cash. In the event that short-term obligations need to be paid off immediately,
there are situations in which the current ratio would overestimate a company's short-term financial strength.
Quick Ratio
2008
63.63% 2005
100%
2007 2005
97.52%
2006
2007
2008
2006
162.80%
51
Interpretation:
 In the above table, Quick Ratio of the company for four years is depicted.
 It is calculated on Current Assets deducted with Inventories divided by Current Liabilities.
 The figures in the above table are being represented as a graph, here as under
(4.8) Inventory Turnover Ratio
52
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 7,111.49 4,951.07 5,601.41 2,143.82
% 100(Base) 69.62 78.76 30.14
Table 2.2
Inventory Turnover Mean?
A ratio showing how many times a company's inventory is sold and replaced over a period. Calculated as
The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to
sell the inventory on hand or "inventory turnover days".
Although the first calculation is more frequently used, COGS (cost of goods sold) may be substituted
because sales are recorded at market value, while inventories are usually recorded at cost. Also, average
inventory may be used instead of the ending inventory level to minimize seasonal factors.
This ratio should be compared against industry averages. A low turnover implies poor sales and, therefore,
excess inventory. A high ratio implies either strong sales or ineffective buying.
High inventory levels are unhealthy because they represent an investment with a rate of return of zero. It also
opens the company up to trouble should prices begin to fall.
53
Inventory TurnOver Ratio
2008
60.14%
2007
78.76%
2005 2005
100% 2006
2007
2008
2006
69.62%
(4.9) Dividend Payout Ratio
54
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 3.47 6.88 13.70 -
% 100(Base) 198.27 394.81 -
Table 2.3
Dividend Payout Ratio Mean?
The percentage of earnings paid to shareholders in dividends.
Calculated as:
The payout ratio provides an idea of how well earnings support the dividend payments. More mature
companies tend to have a higher payout ratio.
Dividend Pay Out Ratio

2008
0%
2005
100% 2005
2007
394.81% 2006
2007
2008
2006
198.27%
55
(4.10) Reserves and Surplus
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 1,664.56 2,057.53 2,018.48 1,765.42
% 100(Base) 123.60 121.26 106.05
Table 2.4
Reserves and Surplus means?
The reserve created out of profits transferred from profit and loss account is called general reserve. The
balance in the profit and loss account is called a surplus and will be shown under this head in the balance
sheet.
The company can use the general reserve for various purposes including issue of bonus shares to
shareholders and payment of dividend when profits are insufficient
Reserves and Surplus
2008 2005
106.05% 100%
2005
2006
2007
2007
121.26% 2008
2006
1123.60%
Interpretation:
56
 In the above table, the Reserves and Surplus of the company for the four years are depicted. The first
year is taken as base & accordingly calculated the percentages for the other three years.
 Reserves and Surplus represent the profitability of the company.
 The company’s Reserves and Surplus are constantly increasing year after year. They increased from
1664.56(100%) in 04-05 to 2,057.53(123.60%) where has in 06-07 (121.26%) and 07-08 (106.05%)
the company reserves and surplus were decreased.
 There are less Profitability of the company appears to be drastic decrease in Reserves and surplus.
 The figures in the above table are being represented as a graph, here as under :
(4.11) Cost Of Sales
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 2,897.95 4,281.57 6,022.72 8,057.20

% 100(Base) 147.74 207.82 278.03
Table 2.5
Cost of sales means?
On an income statement, the cost of purchasing raw materials and manufacturing finished products. Equal to
the beginning inventory plus the cost of goods purchased during some period minus the ending inventory
Also called Cost Of Goods Sold (COGS).
The cost of goods attributed to a company's products are expensed as the company sells these goods. There
are several ways to calculate COGS but one of the more basic ways is to start with the beginning inventory
for the period and add the total amount of purchases made during the period then deducting the ending
inventory. This calculation gives the total amount of inventory or, more specifically, the cost of this
inventory, sold by the company during the period
• Graphical Representation
Cost of Sales
2005
100%
2008
278.03% 2005
2006
2007
2008
2007 2006
207.82% 147.74%
57
Interpretation
• In the above table, Amount in Rupees (millions) is the Cost of Goods Sold achieved by the company
• The Cost of Goods Sold has increased from 2,897.95 (100%) in the year 2005-06 to
4,281.57(147.74%) in the year 06-07. When we compare the years 05-06, 06-07, 07-08 – in the year
04-05 has the least turnover i.e., 2,897.95(100%) & 07-08 has the highest turnover
8,057.20(278.03%).
(4.12) Current Liabilities and Provisions
Particular 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 1417.65 1865.21 2469.71 4361.78
% 100(Base) 131.57 174.21 306.67
Table 2.6
Current Liabilities Mean?
A company's debts or obligations that are due within one year. Current liabilities appear on the company's
balance sheet and include short term debt, accounts payable, accrued liabilities and other debts.
Essentially, these are bills that are due to creditors and suppliers within a short period of time. Normally,
companies withdraw or cash current assets in order to pay their current liabilities.
creditors will often use the current ratio, (which divides current assets by liabilities), or the quick ratio,
(which divides current assets minus inventories by current liabilities), to determine whether a company has
the ability to pay off its current liabilities.
Provision Mean?
A legal clause or condition contained within a contract that requires or prevents either one or both parties
to perform a particular requirement by some specified time. Specified requirements can include, but are not
limited to, sunset, soft call, anti-dilution, and anti-greenmail provisions.
Provisions were created to protect the interests of one or both parties named in a contract or legal document.
58
Current Liabilities and Provisions
2005
100%
2008
306.67%
2005
2006
2007
2008
2006
2007 131.57%
174.21%
Interpretation:
 In the above table, the Current Liabilities & Provisions of the company for the four years are
depicted. The first year is taken as base & accordingly calculated the percentages for the other three
years.
 Current Liabilities represent that category of assets which the company should pay within a period of
1year.
 The company’s Current Liabilities are constantly increasing year after year. They increased from
1417.65(100%) to 4361.78(306.67%).
59
(4.13) Current Assets, Loans And Advances
Particular 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 2,156.27 4,091.31 3,402.32 4,145.67
% 100(Base) 189.74 157.78 192.26
Table 2.7
Current Assets Mean?
1. A balance sheet account that represents the value of all assets that are reasonably expected to be converted
into cash within one year in the normal course of business. Current assets include cash, accounts receivable,
inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to
cash.
2. In personal finance, current assets are all assets that a person can readily convert to cash to pay
outstanding debts and cover liabilities without having to sell fixed assets.
Current assets are important to businesses because they are the assets that are used to fund day-to-day
operations and pay ongoing expenses. Depending on the nature of the business, current assets can range from
barrels of crude oil, to baked goods, to foreign currency.
In personal finance, current assets include cash on hand and in the bank, and marketable securities that are
not tied up in long-term investments. In other words, current assets are anything of value that is highly liquid.
60
Current Assets, Loans and Advances
2005
2008
100%
192.26%
2005
2006
2007
2007 2008
157.78%
2006
189.74%
Interpretation:
 In the above table, the Current Assets, Loans and advances of the company for the four years are
depicted. The first year is taken as base & accordingly calculated the percentages for the other three
years.
 Current Assets represent that category of assets which can be easily converted into cash within a
period of 1year.
 The company’s Current Assets, Loans and Advances 2156.27 Crores (100%) in the base year which
was increased to 189.74% and again decreased to 157.78% in 2007, where has in 2008 there was a
drastic increase up to 4,145.67 (192.26%).
61
(4.14) Net profit
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 391.99 452.04 27.94 -253.06
% 100(Base) 115.31 7.129 -64.55
Table 2.8
Net profit means?
A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost
of doing business, depreciation, interest, taxes and other expenses. This number is found on a company's
income statement and is an important measure of how profitable the company is over a period of time. The
measure is also used to calculate earnings per share.
Net Profit means difference between Gross profit and Indirect Expenses that Is, expenses which are not
directly related to purchases
Net income is calculated by starting with a company's total revenue. From this, the cost of sales, along with
any other expenses that the company incurred during the period, is removed to reach earnings before tax. Tax
is deducted from this amount to reach the net income number. Net income, like other accounting measures, is
susceptible to manipulation through such things as aggressive revenue recognition or by hiding expenses.
When basing an investment decision on net income numbers, it is important to review the quality of the
numbers that were used to arrive at this value.
62
Net Profit
2007 2008
7.129% -64.55%
2005
2006
2007
2008
2006
115.31%
2005
100%
Interpretation
 In the above table, Amount in Rupees (Crores) is the Net Profit achieved by the company during the four
years. The first year is taken as the base & accordingly calculated the percentages for the other three
years.
 The Net Profit has increased from 391.99(100%) in the year 04-05 to 452.04 (115.31%) in the year 05-
06. When we compare the years , 05-06, 06-07, 07-08 the year 07-08 has the least amount of Net Profit
63
i.e., -253.06(64.55%) & 05-06 has the highest amount of Net Profit 452.04(115.31). When we compare
all the four years, the Net Profit has been
drastically come down in the year 2006-07, and which fall down to negative in the year 2007-08
thereafter it has shown a steady decrease which indicates that company is in full of losses in the year
2008.
 The figures in the above table are being represented as a graph, here as under :
(4.15) Depreciation
Year 2004-2005 2005-2006 2006-2007 2007-2008
Rs(in crores) 457.00 406.41 414.41 777.80
64
% 100(Base) 88.92 90.68 170.19
Table 2.9
Depreciation Mean?
1. In accounting, an expense recorded to allocate a tangible asset's cost over its useful
life. Because depreciation is a non-cash expense, it increases free cash flow while decreasing reported
earnings.
Depreciation is used in accounting to try to match the expense of an asset to the income that the asset helps
the company earn.
Depreciation
2005
2008 100%
170.19%
2005
2006
2007
2008
2007 2006
90.68% 88.92%
Intrepretation
 In the above table, Amount in Rupees (Crores) is the Deprecation calculated by the company during
the four years. The first year is taken as the base & accordingly calculated the percentages for the
other three years.
 The Net Profit has increased from 391.99(100%) in the year 04-05 to 452.04 (115.31%) in the year
05-06. When we compare the years , 05-06, 06-07, 07-08 the year 07-08 has the least amount of Net
Profit i.e., -253.06(64.55%) & 05-06 has the highest amount of Net Profit 452.04(115.31). When we
compare all the four years, the Net Profit has been drastically come down in the year 2006-07, and
which fall down to negative in the year 2007-08 thereafter it has shown a steady decrease which
indicates that company is in full of losses in the year 2008.
(4.16) Working Capital
Year 2004-2005 2005-2006 2006-2007 2007-2008
65
Rs(in crores) 71.32 2,725.66 3,994.52 1,223.28
% 100(Base) 3821.73 5600.84 1715.19
Table 3.0
Working Capital Mean?

A measure of both a company's efficiency and its short-term financial health. The working capital ratio is
calculated as:
Positive working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable to meet its short-term
liabilities with its current assets (cash, accounts receivable and inventory).
Also known as "net working capital", or the "working capital ratio".
If a company's current assets do not exceed its current liabilities, then it may run into trouble paying back
creditors in the short term. The worst-case scenario is bankruptcy. A declining working capital ratio over a
longer time period could also be a red flag that warrants further analysis. For example, it could be that the
company's sales volumes are decreasing and, as a result, its accounts receivables number continues to get
smaller and smaller.
Working capital also gives investors an idea of the company's underlying operational efficiency. Money that
is tied up in inventory or money that customers still owe to the company cannot be used to pay off any of the
company's obligations. So, if a company is not operating in the most efficient manner (slow collection), it
will show up as an increase in the working capital. This can be seen by comparing the working capital from
one period to another; slow collection may signal an underlying problem in the company's operations.
66
2008 Working Capital

1715.19% 2005
100%
2005
2006
2007
2008
2007
5600.84%
2006
3821.73%
67
(4.17) Return on Net Worth
Year 2004-2005 2005-2006 2006-2007 2007-2008
%age 22.38 21.08 1.32 -13.66
Table 3.1
Return On Networth Means?
Return On Networth
2007 2008
1.32% -13.66%
2005
2006
21.08% 2006
2005
22.38%
2007
2008
Interpretation:
 In the above table, Return on Net worth Ratio is mentioned for the four years. The first year is taken
as the base & accordingly calculated the percentages for the other three years.
 Return on Net worth indicates the return , which the shareholders are earning on their resources
invested in the business.
 The Higher the ratio , the better it is for shareholders.
 It is calculated by dividing the Profit after Taxes with the Average Net worth. The higher it is, the
better it is for the company.
 In the year 2004-05 it is 3.15% which is the least & the year 2006-07 has 26.90%, which is the
highest.
 The figures in the above table are being represented as a graph, here as under.
68
(4.18) Jet Airways (India) Limited - 16th Annual Report 2007-08
ANALYSIS OF OPERATIONAL PERFORMANCE FISCAL 2008 COMPARED TO

FISCAL 2007
Revenues
 Our total revenues increased by 28.1 % from Rs.74, 013 million Fiscal 2007
to Rs.94,815 million Fiscal 2008. This increase was primarily due to increase in
Passenger and Cargo Revenues.
Passenger Revenues
 Passenger revenues increased by 24.3% from Rs. 64,378 million in Fiscal 2007 to
Rs.80, 030 million in Fiscal 2008. This increase was primarily due to the significant
Increase in international flights which led to higher revenue earnings per passenger.
As also a 6.5% increase in revenue passengers in Fiscal 2008 as compared to Fiscal
2007. The airline commenced operations on a number of new international routes,
Particularly long-haul routes, including flights to Toronto, Newark and New York via
Brussels. The Available Seat Kilometers (ASKMs) offered in Fiscal 2008 increased
by 38.1% vs. Fiscal 2007. We generated revenues of Rs. 17,418 million from fuel
Surcharge (as compared to Rs. 7,507 Million in FY 2007) largely due to increases
in fuel surcharge rates in Fiscal 2008 on domestic routes to offset the continuous
increases in ATF prices.
Revenues from Excess Baggage and Courier
 Excess Baggage and Courier revenues when taken together, declined by 33.4% from
69
Rs.334 million in Fiscal 2007 to Rs.223 million in Fiscal 2008. Whilst excess baggage
revenues showed a marginal increase of 1% from Rs.221 million in Fiscal 2007 to Rs.
223 million in Fiscal 2008, The Company did not earn any revenues from carriage
of on-board courier traffic, because the airline has progressively discontinued such
traffic on domestic routes with effect from August 2006. However, such courier
traffic has instead been carried as cargo, and accounted for as cargo revenue.
(4.19) REVALUATION OF ASSETS
The Company revalued, as on 31st March, 2008, the Leasehold Land based on a valuation
Report obtained from a registered valuer and revalued Narrow Body Aircraft based on valuation
Reports prepared by International Aircraft Valuers. The resultant appreciation in respect of land
Is Rs. 148,119 lac and on account of Narrow Body Aircraft is Rs. 118,133 lac. An aggregate
Amount of Rs. 266,252 lac has been credited to Revaluation Reserve.
(4.20) Notes To Accounts
1. Estimated amount of Contracts remaning to be executed on capital account net of advances, not
provided
For
Tangiable Assets--------------------- Rs.1,360,679 lac (Previous year rs-648,508 lac)
2. Contingent
a) Unprovided Income Tax demands which are under appeals Nil [Previous Year Nil (Rupees 5,387/-)].
b) Unprovided Service Tax demands which are under appeals Rs. 109 lac (Previous Year Rs. 310 lac).
c) Unprovided Sales Tax demands which are under appeals Rs. 6 lac (Pr
Unprovided claims against the Company, pending Civil and Consumer suits of Rs. 1,056 lac
(Previous Year Rs. 1,140 lac).
e) Unprovided Inland Air Travel Tax demands which are under appeal Rs. 473 lac (Previous Year Rs.
473 lac) against which the amount of Rs. 117 lac (Previous Year Rs. 117 lac) is deposited with the
Authorities.
f) Unprovided claims for Octroi amounts to Rs. 2,899 lac (Previous Year Rs. 2,899 lac).
g) Disputed claims against the company towards Ground Handling charges amount to Rs. 4,564 lac
(Previous Year Rs. 3,836 lac).
Letters of Credit outstanding are Rs. 57,181 lac (Previous Year Rs. 37,920 lac) and Bank Guarantees
Outstanding are Rs. 49,555 lac (Previous Year Rs. 182,432 lac).
i) Rs. 55,120 lac Corporate Guarantee given to Bank and Financial Institution against credit facilities
Extended to Subsidiary Company.
The Company is a party to various legal proceedings in the normal course of business and does not
expect the outcome of these proceedings to have any adverse effect on its financial conditions,results
of operations or cash flows.
70
3. Aircraft Lease Rentals are stated net of sub-lease rentals of Rs. 1,229 lac (Previous Year Rs. 1,740
lac).
4. During the Year ended 31st March, 2008, the Company has taken delivery of Nineteen aircraft, which
includes sixteen Wide Body aircraft. These aircraft are different from the Narrow Body aircraft in
terms of technology and other efficiency parameters based on long haul operations and are being used
primarily on
International routes as compared to Narrow Body aircraft which are mostly deployed on Domestic
routes.
In view of this, such Wide Body aircraft are depreciated at the rates prescribed as per Schedule XIV
of the
Companies Act, 1956 on Straight Line method as against Written Down Value method followed for
Narrow
Body aircraft held by the Company
5. During the year, in order to reflect the current reinstatement cost / market value, the Company
revalued
the Leasehold Land and Narrow Body aircraft (including aircraft revalued in the year ended 31st
March,
2002) owned by the Company as at 31st March, 2008. Such revaluation for aircraft has been carried
out
by International Aircraft valuers and for Leasehold Land by
market / reinstatement value and considering the book value of such assets as at 31st March, 2008.
Accordingly, the resultant appreciation in respect of land of Rs. 148,119 lac and in respect of aircraft
of Rs. 118,133 lac has been added to respective assets and the aggregating amount of Rs. 266,252 lac
has been credited to Revaluation Reserves. Since the valuation of the aforesaid assets has been
carried out as
on 31st March, 2008, there is no additional charge on account of depreciation on the assets so
revalued.
Depreciation includes Rs. 1,563 lac (Previous Year Rs. 2,958 lac) on the aircraft revalued in the
earlier year,
which has been withdrawn from the Revaluation Reserve as per the Revaluation Reserve as per the
accounting policy followed.
71
(4.21) Price Quotes as on July-2009
JET AIRWAYS (JET) Price quotes as on July
Live NSE Quotes Jul 2, 2009 (Close)
Price (Rs) Open (Rs) High (Rs) Low (Rs)

237.95 236.00 240.00 228.50
% Change Volume Value (Rs) 52-Week

1.73 499,313 117,894,304 H/L
560.00 /
118.00
Table 3.2
Table 3.3
Live BSE Quotes Jul 2, 2009 (Close)
Price (Rs) Open (Rs) High (Rs) Low (Rs)

238.85 238.20 241.00 228.55
% Change Volume Value (Rs) 52-Week

1.57 184,424 43,579,800 H/L
567.00 /
118.10
72
Fig-III
73
Chapter V
Findings, Suggestion
And
Conclusion
74
(5.0) Findings
 In all the years the debt equity is more, when compared with borrowings. Hence the company is
maintaining its debt position.
 The Net profit from the year 2006-07 is very less and in the year 2007-08 the company made a
loss.
 Reported Net profit has been reduced from 100% to 7.12 % in the year 2006-2007 where as it fall
down to negative i.e. 64.55 in 2008.
 During the period of study the total income was less than the total expenditure which is not good
for the company.
 The sales figure increasing year after year. It increased about Rs.8,057.20 Crores . Administrative
and other expenses were fluctuating. The other income of the company was increased year by
year.
 The administration and selling expenses during 2007-08 is very high when compared to previous
year's %age as they were in between 13-20% of sales. This may also be one of the reasons to a net
loss in that year.
(5.1) Reasons for losses

Jet Airways got maximum loss in last three years. Decreasing domestic traffic is also responsible for the
losses of these airlines. For the fourth quarter ended March 2008, Jet incurred a loss of Rs 221.18 crore
compared to a net profit of Rs 88 crore for the corresponding quarter in the previous fiscal as fuel prices
touched a record high. Sales for the period increased 37% to Rs 2,727 crore as compared to Rs 1,989 crore.
According to these companies the fuel prices are quite high in India. Jet fuel prices are about three-quarters
higher as compared to international standards due to local taxes. This increase in fuel price will end in
increase fuel surcharges on tickets. The increase in fuel prices has increased operating costs of these airways
from 45% to 90%. India’s scheduled aviation Companies are expected to double their combined losses to Rs
8,000 crore from Rs 4,000 crore last fiscal, the minister for civil aviation, Praful Patel said earlier this month.
This hike has sent a wave of gloom in airways that are already suffering due to cut-throat competition and
reduced domestic traffic.
"The next few quarters are expected to be impacted negatively by very high fuel prices, very high oil prices
are affecting demand on international sectors to some extent
75
5.2) Suggestions
1.Jet Airways should expand overseas routes to compensate for the losses.
2. The company's profit over the years has been decreasing when compared to previous years and it incurred
loss in the year 2008. The company must increase the profit in future. The company must take steps to
increase the profit level.
3. The Gross Profit ratio can be improved by increasing the gross profit and the factors decreasing the gross
profit ratio should be thoroughly checked timely whither they are operating factors or any misleading factors.
4. The sales of the organization can be further increased by improving the quality through optimum
utilization of company's resources (i.e. assets, raw materials, credit system, etc.) and that in turn will increase
the overall profits of the organization.
5. The Management must also study the market position and it also find the demand prevailing in the market
for the products and thus this will guide them to enhance their sales volume.
76
(5.3)Conclusions
I would like to conclude that Jet Airways Company which is providing Services should Increase its
Overseas routes to get full fledge global recognition, and more over the services offered by jet airways
should be improved in terms of quality. Finally this is a very great company because in recession also jet
airways stood up strongly in the market and it created trusty image in the minds of investors and also it acts
as the core competitor for all other aviation companies in Recession period.
77
Chapter VI
REFERENCE
78
6.0 Reference
6.1 Books Refered

 Kotler, Philip. Marketing Management, 2002 edition.
 Marketing Research – Text and Cases- Boyd, Westfall and Stasch.
 Reprint Edition 2001.
 Foundations of Advertising – Theory and Practice – S.A.Chunawalla
 & K.C.Sethia, McGraw-hill, 3rd edition 2003.
 International Marketing Management, Keegan.
6.2 Websites
http://www.jetairways.com
http://www.sharetermpapers.com
http://findarticles.com/p/articles/mi_gx5202/is_1994/ai_n19122366
http://goindia.about.com/od/gettingaround/gr/jetairways.htm
http://www.nytimes.com/2006/01/20/business/worldbusiness/20air.html
http://www.airlinequality.com/Airlines/9W.htm
http://www.investopedia.com/terms/r/retentionratio.asp
http://www.managmentparadise.com
6.3 Reports
Annunal Reports Of Jetairwys .Ltd
79
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CHAPTER I

2.1 Company History:

Surviving and Thriving in the Mid-1990s

Late 1990s Price Wars

Changes in the Early 21st Century

Naresh Goyal The founder Chairman of Jet Airways

1999: A regional network is launched with turboprop aircraft.

2004: The first international services are started.

2.4 MISSION STATMENT

2.9 Takeover of Air Sahara

2.10 Airline agreements

Jet Airways has commercial agreements with the following airlines:

- Opportunities • Strong competitors

(2.13) Key Developments:

Jet Airways to launch low-fare Jet Konnect:

Jet Airways (India) Limited Lays Off 110 Employees

Jet Airways (India) Limited May Further Reduce Capacity

(e). Magazine: Now read your favorite magazine at a click of a button.

Flight Delays/Cancellations due to Fog/Weather:

Fog / Weather Related delays:

Helpline numbers for real-time flight status:

Flight status:To check Flight Status for same day of travel:

SMS: JET Flight No (e.g. JET 301) to 6388.

Reply: Jet Mobile: 9W 301 BOM 0700AM DEL 0855AM On Time.

In the event of a delayed flight:

Reply: Jet Mobile: 9W 301 BOM 0700AM DEL 0855AM Delayed.

• To check Flight Status for a particular date of travel:

SMS: JET Flight No mm/dd (e.g. JET 301 08/30) to 6388

• Set Flight Alert for the same day of travel:

SMS: JETALERT Flight No (e.g. JETALERT 301) to 6388

• Set Flight Alert for a particular date of travel:

• Unsubscribe the Alert service for the same day

SMS:JETCAN Flight Number ( JETCAN 301) to 6388.

• Unsubscribe the Alert service for a particular date

SMS:JETCAN Flight Number mm/dd ( JETCAN 301 08/30) to 6388.

Table no- 1.1 List of Jet Airways Cargo offices

Table no- 1.2 The international contact numbers are:

International Cargo Station Phone number(s) Fax number(s)

Safety inside the aircraft

Using your Mobile Phone

Safety in case of Hazardous Situations

Economy class on Jet's Airbus A330-200, Boeing

(2.18) Jet Airways Top Competitors

Air India Mumbai, India

1. Airbus 330-200 12 aircrafts

Cruise Speed 870 kmph

Engine Type Rolls

First Class Premiere Economy

- 30 Seats 196 Seats

First Class Premiere Economy

- 30 Seats 190 Seats

Engine Type PW127F

First Class Premiere Economy

Boeing 737-400 1 aircraft

Engine Type CFM56 3C1

First Class Premiere Economy

Engine Type CFM56 7B22

First Class Premiere Economy

4. Boeing 737-800 34 aircraft

Engine Type CFM56 7B24

First Class Premiere Economy

- 24 Seats 120 Seats

First Class Premiere Economy

- 16 Seats 124 Seats