INTRODUCTION.

The aviation industry is the business sector dedicated to manufacturing and

operating all types of aircraft.
Aviation or air transport refers to the activities surrounding mechanical flight and
the circuit industry. Aircraft includes fixed – wing and rotary wing types, morphable wings,
wingless lifting bodies, as well as lighter than air craft such as balloons and airships.
Indian Aviation Industry is one of the fastest growing airline industries in the world.
The private airlines accounting for more than 75% of the sector of domestic aviation market
with a compound annual growth rate (CAGR) of 18% and 454 airports and airships in place in
the country, of which 16 are designs as international airports. It has been stated that that
aviation sector will witness revival by 2011.
There is a primarily attributed because of the increase in the share of revenue from
Delhi International Airport Limited (DIAL) and Mumbai International Airport Limited (MIAL). As
the industry has grown and aviation technology has improved, pioneers have pushed
themselves to the limit in breaking a series of records.

HISTORY.
On December 17, 1903 Orville and Wilbur Wright capped four years of research
and design efforts with a 120 – feet, 12 – second flight at Kitty Hawk. The first powered flight is
North Carolina was heavier than air machine. Prior to that, people had flown only in balloons
and gliders. The first person to fly as a passenger was Leon Delagrange who rode with French
pilot Henri Farman from a meadow outside of Paris in 1908. Charles Furnas became the first
airplane passenger when he flew with Orville Wright as Kitty Hawk later than year.
Now coming to the Indian history of Aviation Industry, it get started in December
1912 with its first domestic air route between Karachi and Delhi. It was opened by the Indian
Air Services in collaboration with UK based Imperial Airways as an extension of London –
Karachi flight of the Imperial Airways. TATA Sons Ltd., the first Indian Airline started a regular
airmail service between Karachi and Madras three years later without any backing from the
Indian Government.
During the period of Independence, G air transport companies were carrying both
air cargo and passengers in Indian Territory. In 1948, the Indian Government and Air India
setup a joint sector company, Air India International further strengthen the Aviation Industry
in India. As a part of nationalization in 1953 of Indian Airlines (IA) brought the domestic civil
aviation sector under the purview of Indian Government. Later till the mid 1990’s government
owned airlines dominated Indian aviation industry. When the government adopted the open –
sky policy in 1990 and other liberalization policies the Indian Aviation Indian made underwent
a rapid and dramatic transformation.
By the year 2000 several private airlines have entered into the aviation business in
succession and many more were about to enter into the arena.
 TYPES OF AVIATION INDUSTRY SERVICES

TYPES OF AVIATION INDUSTRY.

The Indian aviation sector can be broadly divided into the following main categories.
1. Scheduled air transport services includes domestic and international airlines.
2. Non – Scheduled air transport services consist of charter operation and air taxi
operators.
3. Air Cargo services, which includes air transportation of cargo and mail.

SCHEDULED AIR TRANSPORT SERVICES.

It is an air transport service undertaken between two or more places and operation according
to a published timetable includes:
 Domestic Airlines, which provide scheduled flight within India and to select international
destinations.
Air Deccan, Spice Jet, Kingfisher are some of the industry.
 International Airlines operate from scheduled international air services to and from
India.

NON - SCHEDULED AIR TRANSPORT SERVICES.

It is an air transport service other than the scheduled one and may be on charter basis
and or non – scheduled basis. The operator is not permitted to publish time schedule and issue
tickets to passengers.

AIR CARGO SERVICES.

It is an transportation of cargo and mail. It may be scheduled or non - scheduled basis.
These operators are to destinations within India, the operator has to take specific permission
of Directorate General of Civil Aviation demonstrating his capacity for conducting such an
operation.
OBJECTIVES OF AVIATION INDUSTRY IN INDIA.
 Delineate the most important current issues surrounding passenger expectation.
 The sources of passenger expectation of services including those that are controllable
and uncontrollable by marketers.
 Recognize that passengers have different types of expectations for service performance.
 To act as a catalyst by offering a platform for exchange of innovative ideas and concept
amongst the airports, airline and various stakeholders.
 To improve and economize airport operation.
 Consider all issues connected with the airport operations and to initiate or support
necessary action in connection therewith, to cover the overall interest of the members
of Association.

TRENDS IN AVIATION INDUSTRY.

 Consolidation in aviation sector: In Aviation industries the rise the number of
alliances will help in promote the growth of aviation sector in India.
( Example of JET Sahara merger in just the beginning Indian aviation industry is
looking forward to more consolidations )

 The number of passengers travelling by air on the rise: By 2025 passenger

boarding expected to double and by the same time aircraft operations are
expected to triple, the number of passengers travelling by air is on rise.

PRODUCT PROFILE.

The main objective of the aviation industry is to promote better services to their
customers. So service is the primary product of Industry.
The Airline / Aviation industry has been accomplish to provide better service quality to
the passengers. These flying services of Indian airlines are divided into three stages
1. Pre – flight services
2. In – flight services
3. Post – flight services
I found that the passengers of Indian airlines has satisfied with service quality of Indian
airline. The aim of the company is to provide the better service quality to passengers
and the management in particular is very responsible for this. Through passengers of
airlines the management is getting proper information about the services which are
providing at pre-flight, in-flight, post- flight services. And to find out the areas where the
company needs to improve to service quality of the airlines.

MARKET SIZE.

Indian passenger traffic grew at 16.52% year on year to reach 308.75 million. It was
noticed at CAGR (Compound Annual Growth Rate) of 12.72% during financial year 2006
to 2018.
Domestic passenger traffic grew by 18.28% to reach 243 million year 2018 and is
expected to become 293.28 million in financial market year 2020. International
passenger grew by 10.43% to reach 65.48 million in this year and traffic is expected to
become 76 million in financial year 2020.
This year domestic freight traffic stood at 1,213.06 million tonnes, while international
freight traffic was at 2,143.97 million tonnes.
Indian domestic and International aircraft movements grew 14.40% and 9.40% to
1,886.63 thousand and 437.93 thousand during 2017-18.

CURRENT SITUATION OF THE MARKET.

During Arp-Aug 2018, passenger traffic in India stood at 141.77 million. Out of which
domestic passenger traffic stood at 113.44 million while international traffic stood at
28.32 million. Total freight handled in India stood at 1.49 million tonnes

During April-August 2018, domestic aircraft movement stood at 0.89 million while
international aircraft movement stood at 0.19 million. As of May 2018, there are nearly
558 commercial aircraft in operation in India.

Indian domestic aviation market has become the third largest in the world and overall
civil aviation market in India is all set to become the world’s third largest by 2024.

By 2020 passenger traffic at Indian airports is expected to increase to 421 million. As

Of May 2018 588 airplanes were in-service in the fleet of Indian airlines. It is further
expected to grow to 1,100 planes by 2027.

[The government of India has launched regional connectivity scheme named UDAN
(Ude Desh Ka Aam Nagrik) to make flying affordable for common man]

AAI is going to invest RS. 15,000 crores in 2018-19 for expanding existing terminals and
constructing 15 new ones. It has opened airport sector to private participation six
airports across major cities are being developed under the PPP model.
The Airport Authority of India (AAI) aims to bring around 250 airports under operation
across the country by 2020. It is expected to be tune of RS. 420-450 (US$5.99 to 6.41
billion) in Indian airport infrastructure between financial year 2018-13

INVESTMENT IN AVIATION INDUSTRY.

According to data released by the Department of Industrial Policy and Promotion (DIPP),
FDI inflows in India’s air transport sector (including air freight) reached US$ 1,658.23
million between April 2000 and June 2018. The government has 100% FDI under
automatic route in scheduled air transport services, regional air transport services and
domestic scheduled passenger airline. However FDI over 49% would require
government approval.

Indian aviation industry is expected to writers RS. 1 lakh crore (US$ 15.52 billion) worth
of investment in next five years.

The Indian government is planning to invest US$ 1.83 billion for development of airport
infrastructure along with aviation navigation services by 2026.

KEY INVESTMENT AND DEVELOPMENT IN INDIA’S AVIATION INDUSTRY INCLUDE:

 AAI (Airport Authority of India) is going to invest RS. 15,000 crore in 2018-2019 for
expanding existing terminal and constructing 15 new one.
 In June 2018, India has signed an open sky agreement with Australia allowing
airlines on either side to offer unlimited seats to six Indian metro cities and
various Australian cities.
 The AAI plans to develop Guwahati as on inter-regional hub and Agartala, Imphal
and Dibrugarh as intro-regional hubs.
 Indian aircraft Manufacture, Repair and Overhead (MRO) services providers are
exempted completely from customs and countervailing duties.
GOVERNMENT INITIATIVES.

Some major initiatives undertaken by the government are:

 Allocation to civil Aviation Ministry has been tripled to RS. 6,602.86 crore (US$1,019.9
million) under Union Budget 2018-19.
 Regional Connectivity Scheme (RCS) has been launched under this government policy.
 In February 2018, the Prime Minister of India launched the construction of Navi Mumbai
Airport which is expected to be built at a cost of US$ 2.58 billion .The first phase of the
airport will be completed by the end of 2019.
 In September 2018, Odisha and Pakyong in Sikkim were inaugurated the first ever
greenfield airport construction.
 The Government of Andhra Pradesh is to develop Greenfield airports in six cities they
are as follows :
1. Nizamabad
2. Kurnool
3. Nellore
4. Ramagudam
5. Tadapalligudam
6. Kothagudam under PPP model.

CURRENT SCENARIO OF AVIATION SECTOR IN INDIA.

Since the airline deregulation took place in the year 1994, a new business model has
emerged in the Indian aviation industry. It has caused a shift in the way people travel
within India with the launch of private airlines and increase in the number of aircraft,
the need for aviation maintenance has increased. Also the low cost carrier model of
commercial aviation has opened up avenues for third party independent maintenance,
repair and overhaul facilities (MRO). The low cost carrier business model includes only
line maintenance to be done in house and all other maintenance jobs are outsourced to
be independent MROs. As the aircrafts get older, the need for maintenance would
increase, thus creating opportunities entrepreneurs to enter into independent aviation
maintenance business.

The competition among the airlines and charter operators, has focused these operators
to consider cost cutting measures.

1. Maintenance being one of the major cost in the total operation of an Aircraft local or
nearby MROs would be preferred to save the aircraft ferrying, crew and fuel costs.

2. The deregulation also opened up the skies for small business jets to fly across the
length and breadth of the country, which created opportunities for Air Charter business
in India.

3. The emergence of rich business class in last 2 decades, air charter has seen steady
demand and business travel has shifted from flying by commercial airlines to travelling
by private jets.
4. Travelling by charter or private aircrafts not only gives luxury and privacy, but also
save time and effort.

5. The upcoming successful businessman prefer to hire a charter plane than owning one
due to the regulatory and operational hassles involved in it.
It also gives them the flexibility of hiring different types of charter planes as per their
travel needs and the airports of which they intend to land.
HOW AVIATION INDUSTRY IS EFFECTING INDIAN ECONOMY.

10 YEARS back there were just 2 airlines. Both state owned in the last 10 years the economy
has opened up. India has experienced growth rate of 8% per year.

 The main factors which effect the Indian Economy.

 Increased number of domestic airlines.
 Low cost airlines.
 India’s improving economy.

 Others factors.
 Increased in number of business travelers to different countries.
 Increased number of incoming tourist and business enterprise.

FACTORS INFLUENCING THE GROWTH RATE.

 Increased Inward and Outward tourism.
 Increased competition has driven down prices and margin.
 Additional purchasing power due to rapidly rising incomes amongst the middle
class.
 Increased business trade due to the rapidly growing economy and free agreement
with neighbouring countries.
 Favourable Government policies and tax reforms.

UPCOMING CHALLENGES.
 Initializing privatization in the airport activities.
 Modernization of the airlines fleet to handle the pressure of competition in the
aviation industry.
 Rapid expansion plans for the major airports for increased flow of air traffic.
 Development for the growing regional airports.
 Waving of Tax Exemption on leasing from government.
 Cost Pressure (ATF Price and Staff Cost).

FDI POLICIES.
The Reserve Bank of India announced that foreign investors might have shareholding more
than the limited 49% in the domestic sectors.

AIRPORTS.
 Foreign equity up to 100% is allowed by the means of automatic approvals
pertaining to establishment of Greenfields airports.
  Foreign equity up to 74% is allowed by the means of special automatic approval
pertaining to the existing airports.
 Foreign equity up to 100% is allowed by the means of special permission from
Foreign Investments Promotion Board (FIPB), Ministry of Finance pertaining to the
existing airports.
 100% tax exemption for airport project for a period of 10 years.

AIR TRANSPORT SERVICES.

 Up to 49% of Foreign equity is allowed by the means of automatic approvals
pertaining to the domestic air transport services.
 Up to 100% of NRI investment is allowed by the means of automatic approvals
pertaining to the domestic air transport services.
 75% FDI is permissible in Cargo and Non-Scheduled airlines.
 JET AIRWAYS

INTRODUCTION.
JET AIRWAYS is a major Indian International airline based in Mumbai. In order 2017, it was the
second-largest airlines in India after Indigo with a 17.8% passenger market share. It operates
flights to 67 destinations from its main hubs at Chhatrapayi Shivaji International Airport and
second hubs at Indira Gandhi International Airport and Kempegowda International Airport.
The Jet Airways was incorporated in April 1992 as limited liability company, the airline began
operations as on air taxi operator in 1993. It began full-fledge operations in 1995 with
international flights added in 2004. The airline went public in 2005 and in 2007, it acquired Air
Sahara. It became the largest carrier by passenger market share in the country by 2010, a
position is held until 2012.

HISTORY.
(1992 – 2005)
JET AIRWAYS was incorporated as a limited liability company on 1st April, 1992 with capital
investment obtained from Tail winds, a company registered as Isle of Man by his children
Nivaan Goyal and Namrata Goyal. It started operations as an air taxi operator on 5th May, 1993
with a feet of four leased Boeing 737-300 aircraft. The airline was granted a scheduled airline
status on 14th January, 1995.
On 12th May, 1994 all the shares were transferred to Tailwinds International, whose equity
capital was held by Naresh Goyal (60%), Gulf Air (20%) and Kuwait Airline (20%).
In October 1997, as per the directive of Ministry of Civil Aviation forbidding foreign investment
in passenger airlines, Goyal took control of the entire company. The airline launched its first
international flight in March 2004, from Chennai to Colombo.
The Company was listed on the Bombay Stock Exchange and became public company on 28th
December 2004, with Goyal retaining 51% ownership of the stock.

GROWTH AND EXPANSION.

In January 2006, Jet Airways announced its intention to acquire Air Sahara for US$ 500 million
in all cash deal; however the deal fail through in June 2006.
On 12th April, 2007 the deal was back on track with Jet Airways agreeing to pay RS. 14.5 billion
(US$ 200 million).
On 16th April, 2007 Air Sahara was renamed as Jet Lite and was marketed between low cost
carrier and full service airline. Jet Lite became the wholly owned subsidiary of Jet Airways.
In August 2008, Jet Airways laid off 1,900 of its employees, who were later re-instated due to
intervention from the Ministry of Civil Aviation.
In October, 2008 Jet Airways entered into an alliance with rival Kingfisher Airlines from code-
sharing on domestic and international flights, collaboration on frequent flight program and
sharing crew and ground handling equipment.
On 8th May 2009, Jet Airways launched another low cost brand, Jet Konnect. It operated a fleet
of Boeing 737 next generation and Air 72 aircraft and operated on profitable short haul routes
with higher passenger load factors.

AMALGAMATION

In the third quarter of 2010, Jet Airways became the largest airline in India with a passenger
market share of 22.6%. In July 2012, the airline officially sought government approval to join
Star Alliance (Shukla, Tarun on 1st August, 2012 Jet Airways seeks government nod to joint Star
Alliance live Mint Archived from the original on 3rd September, 2012).
Jet Airways is not a member of Star Alliance as of 2017. In June, 2011 it became the first
domestic airline in India to ban meat product and liquids in check in baggage Jet Airways
merged the JetLite brand into Jet Konnet on 25th March, 2012 and started offering business
class seats after the demise of Kingfisher Airlines. In 2013, Etihad Airways planned to buy stake
in the airline following the government’s announcement in September, 2012 that foreign
airlines could take a stake of up to 49% in Indian carriers. On 24th April, 2013 Jet announced
that it was ready to sell a 24% stake in the airline of Etihad for US$ 379 million. The deal which
was expected to be signed in January 2013 was postponed and was completed on 12th
November, 2013.

On 2013, the airline lowered prices and entered into fare war with low-cost carriers Indigo and
Spice Jet due to falling passenger demand. In February, 2013 the airline market dropped by RS.
4.84 billion (US$ 67 million) Jet Airways made profit in the third quarter of the financial year
2013-14 after posting losses over the previous year. The Jet Airways announced on 11th August
2014 that it would phase out Jet Konnect by the end of the year as part of plans to re-position
itself as a uniform full-service operator.

On 1st December 2014, Jet Konnect was fully merged with Jet Airways, making it the third full-
service airline in India besides Air India and VIstara. In December, 2015 Jet Airways announced
the closure of its scissor hub at Brussels Airport by March 2016 and the opening the new hub
at Amsterdam Schipol Airport effective 27th March, 2016. As of February, 2016 it is the second
largest airline in India after Indigo with a 21.21% passenger market share.

As of November 2018, Jet Airways has been reported as facing a negative financial outlook due
to increasing losses. Therefore cost cutting measures as well as talks have been started with
potentials investors or buyers.
CORPORATE PROFILES

 BOARD OF DIRECTORS
 SENIOR MANAGEMENT
 VISION AND MISSION STATEMENT
 CODE OF CONDUCT
 SOCIAL IMPACT

BOARD OF DIRECTORS

Mr. Naresh Goyal (Chairman)

Mr. Goyal the founder chairman of Jet Airways, India’s premium airline, has over 40 years of
experience in the civil aviation industry with his vast experience in the field of aviation Mr.
Goyal is the recipient of several national and international awards Mr. Goyal currently serves
on the prestigious International Air Transport Association (IATA) Board of Governors.

Ms. Rajshree Pathy (Director)

Ms. Rajshree Pathy is the chairman of Rajshree Sugar and Chemicals Ltd. She is a Graduate in
commerce, has completed the owner president management program (OPM) Harvard
Business School, Harvard University, U.S.A as well as the program on strategic Alliance and
Corporate Ethics, INSTEAD, Fountain, France. The Government of India conferred Ms. Rajshree
Pathy the prestigious Padma Shree Award in field of Trade and Industry in 2013.

Mr. Gaurang Shetty (Full Time Director)

Mr. Gaurang Shetty is an Indian national, is a Bachelor in science with over 32 years of
experience in the aviation industry. He joined the company in 1996 as General Manager-
Marketing and promoted to Vice-President in 2004 and then as a senior Vice President –
commercial activities related to In-Flight services and customers services for both Domestic
and International operation.

Mr. Robin Kamark

Mr. Robin Kamark is responsible for leading Etihad Aviation Group’s minority equity
investment strategy and optimizing business performance revenue and cost synergies
between Etihad Airways and its equity partner airline around the world.
He handles strategic leadership for airlines partners where Etihad Airways has management
responsibility.
Mr. Robin Kamark holds a Bachelor in Business and Master in Business Administration from
Norwegian School of Mangement Robin spend 17 years at Scandinavian Airlines System (SAS
Group)
Mr. Kevin Knight (Director)
Mr. Kevin Knight joined Etihad as Group strategy and planning officer in March 2011. In this
role Kevin is responsible for feet planning government and the development of the Etihad
Aviation group. Mr. Kevin has more than 30 years of experience in the airline industry,
including business development strategic planning and operation. Before joining Etihad he
spend 17 years at United Airlines, the last five years as senior Vice President Planning.

Mrs. Anita Goyal (Director)

Mrs. Anita Goyal has been associated with Jet Airways (Limited Company) since inception and
served the company in various capacities in the sales and Marketing Department including as a
Vice-President – Sales and Marketing from 1998 to 2004.
In 2005 she was appointed as Vice President of Marketing. During the tenures she has been a
part of the spectacular growth in the network and consolidating towards maintaining the
“MOST Preferred Airline” status, due to the high quality of its product customer loyalty and
various fare scheme.

Mr. Ashok Chawla (Director)

Mr. Ashok Chawla obtained his Masters in economics from the Delhi School of Economics in
1972 and joined the Indian Administrative Services in 1973. He has been distinguished civil
servant with over 40 years of experience in various sector of Indian economy as well as
international Multinational agencies.
Mr. Chawla has also held leadership position in corporate sector. He has been chairman of
Managing Director of Indian Petrochemicals Corporate Limited and Director on the Oil and
Natural Gas Commission (ONGC)

Dr. Nasim Zaidi (Director)

Dr. Nasim Zaidi processed a Master’s degree in Public Administration from Kennedy School of
Government Harvard University and been follow for public policy.
He served as a long time civil servant and has extensive experience serving in the civil Aviation
in various capacities. Dr. Nasim Zaidi has vast experience in International Air Transport and
Regulation .
He was elected as an election commissioner of India from 2012 to 2015 and as Chief
Commissioner of India from 2015 to 2017.

Mr. Sharad Sharma (Director)

Mr. Sharad Sharma a career banker with over 40 years banking experience was the managing
Director of State Bank of Mysore with effect from August, 2012 to April, 2016 where he was
seconded from State Bank of India.
His major interest has been primarily in the corporate and infrastructure financing segment
were he has spent over twenty years of his career. Besides he has also had opportunity to
work in global markets / risk management areas at corporate level and for three and a half
years in the Bank’s wholly-owned subsidiary, SBI (Canada), Toronto.

SENIOR MANAGEMENT / TOP MANAGEMENT TEAM

Companies require annual performance review to assist with deciding how to distribute
annual raises. Evaluations help increases an employee commitment to productivity of the
organization. The main activity which is performed by the senior management teams are as
follows:
 Ensuring the organization is effective and successful by taking on responsibility for
implementation of an appropriate strategy that the organization can adopt to.
 Effectively managing the demand of stakeholders.
 Giving clear definitions of what constitutes effectiveness and success.
 Ensuring the implementations of the strategy and the targeting of resources toward
success.
 Reviewing if their actions are relevant to the organization’s overall goals.

VISION AND MISSION STATEMENT.

CORPORATE MISSION
 Jet Airways will be renowned for reaching out to all guests with a heart-warning spirit
that is unique Indian hospitality.
 Try to delight the guest with genuine care and personalized quality service, along with
consistent reliable and efficient operations.
 Jet Airways will be the most sought after place to work.
 Jet Airways will achieve these objectives whilst simultaneously ensuring sustainable
profitability for all stakeholders.

CORPORATE VISION.
 To be amongst the most innovative and admired brands renowned for service
excellence.

CODE OF CONDUCT.
This code covers a wide range of business practices and procedures and serves as a guide to
ethical decision making. This code does not cover every issue that may arise, but it sets out
basic policies to guide directors and employees of the company and its affiliates.
This covers a duty of the Board of Directors along with management is to ensure that the
company is well managed in the interest of its shareholders. It is the company decision-making
authority on all matters except those reserved to shareholders or delegated to the
management. The code of con duct undertakes following points in consideration.
 Conflict of interest.
  Corporate business opportunities.
 Confidential Information.
 Fair Dealing.
 Compliances with laws and regulation.
 Insider Trading
 Encouraging the reporting of illegal and Unethical behavior.
 Record keeping, reporting.
 Waivers and Amendments.

PARTNERSHIPS.

A partnership is a form of business were two or more people share ownership as well as the
responsibility for managing the company and the income and losses the business generate
that income is paid to partners , who then claim it on their personal tax return. Partnership
present the involved parties with complex negotiations and special challenges that must be
navigated into agreements. There are 4 types partnerships.
 Codeshare Partners
 Interline Partners
 Through check-in-partners
 Jet Privilege Partners.

FINANCE.
The company is listed in the Bombay Stock Exchange of 51% of the stock is owned by
Naresh Goyal through his company Tailwinds International and the remaining 49% by
other investors. The financing for the purchase of private aircraft is similar to a mortage
or automobile loan. A basic transaction for small personal or corporate aircraft may
proceed as follows:
 The lender performance an appraisal of the aircraft value.
 The borrower provides basic information about themselves and their prospective
aircraft to the lender.
 At closing, loan documentation is excluded and then funds are title are tranfered.
The following table presents the key tends for Jet Airways and it’s subsidiaries.
Table

Jet Airways Ltd, incorporated in the year 1992, is a Mid cap Company (having a market cap of
RS. 3136.42 crore) operating in Transport sector.
Jet Airways Ltd, key product / Revenue segment includes Income (Airlines) which contributed
RS. 20309.88 crores to sale value (87.21% of total sales), Cargo income which contributed RS.
1789.14 crores to sales value (7.68% of Total Sales), other operating revenue which
contributed RS. 956.97 crores to sales value (4.10% of Total Sales), Bagasse which contributed
RS. 172.07 crores to sales value (0.73% of Total Sales) and export incentives which contributed
RS. 58.47 crores to sales value (0.25% of Total Sales) for the year ending 31st March, 2018.

For the quarter ended 30-09-2018, the company has reported a standalone Sales of RS.
6161.15 crores, up 2.51% from last quarter sales of RS. 6010.46 crores and up 9.50% from last
year same quarter sales of RS. 5626.61 crores company has reported net profit after tax (PAT)
of RS. 1297.46 crores in latest quarter.
The company top management includes Mr. Ashok Chawla, Mr. Gaurang Shetty, Mr. Kevin
Knight, Mr. Naresh Goyal, Mr. Robin Kamark, Mr. Sharad Sharma, Mrs. Anita Naresh Goyal,
Mrs. Rajshree Pathy. Company has DTS and associates as its audio RS. as on 30-09-2018, the
company has a total of 113,597,383 shares outsourcing.
ANALYSIS WITH HELP OF FORMULAS.

Financial ratio analysis uses formulas to gain insight into the company and its operation,
For the balance sheet, using financial ratio can be show you better idea for the
company’s financial condition along with its operational efficiency:

1. CROCI = EBITDA / Total value of equity.

2. Debt-Equity Ratio = Total liabilities / Shareholder’s equity.
3. P/B Ratio = Stock Price / Total Assets – Intangible Assets and Liabilities.
4. ROA = Net Income / Avg.Total Assets.

FINDINGS.

1. The study of comparative trends and common size analysis is also very good and
profitability in the Jet Airways Ltd, at during the year 2003-2014.
2. The value of current ratio of Jet Airways Ltd, is irregular year after year and the ratio is
more than the ideal value for the five year.
3. The liquidity position of Jet Airways is satisfactory.
4. The net profit ratio shows that the Jet Airways is in favourable position.
5. The fixed assets to net worth ratio shows that the owner’s funds are more than the
other fixed assets.

SUGGESTIONS.

 Proper Control over various expenses may increase the profit generation of a company.
 To purchase raw material at lower cost will reduce the cost of material.
 The company can reduce the cost of production and try to improve its profitability.
 The company has to give importance to maintenance and consumption of raw material
which would otherwise result in the overstocking and leads to obsoleocence.
 In order to overcome the expenses the firm may reduce the operating expenses such as
laboring cost, material cost and other overheads are reduced so as to improve the
profitability of the company.

STRATEGIC PLANNING.

The purpose of report begins by analyzing the current internal and external environment of Jet
Airways.

SWOT ANALYSIS.

 STRENGTH
  Market driver

 Experience exceeding 14 years.

 Only private airline with international operation.

 They have a strong brand value and their reputation is very high in the mind of
customers.

 The service quality is good.

 Largest foot size.

 There is a continuous innovation in their business.

WEAKNESS
 Loosing domestic market share.

 Old fleet with average age around 4.79 years.

 Scope for improvement in in-flight services.

 High ticket pricing.

 Facing a tough competition from the competitors.

OPPORTUNITIES
 Untapped air cargo market.

 Scope in International service and tourism.

 The non-penetrated domestic market.

THREATS
 Strong competitors

 Fuel price hike.

 Overseas market competition.

 Infrastructure issues.
  Tourism saturation

 Economic slowdown.

 Promotion and sponsorship declining.

PESTEL ANALYSIS
 Airline acquisition and the leading cost.

 The sudden change and the unexpected behavior of the climate and to depend upon the
atmosphere.

 Modernization and Privatization of the airports.

 Satellite based navigation system.

 Modern technology like CAT3 and ILS.

 There is an increase in global warming.

 The growth of the middle income group family affects the aviation sector.

 There is a rise in the cost of fuel.

 100% through special permission.

 Infrastructural constrain.

 The income level is rising.

CONCLUSION.

The purpose of this paper is to evaluate a successful and well organized strategic planning for
airlines industry providing Jet Airways strategic plan.
Jet Airways is the India’s market leader in airline industries, however has faced increasing
competition over the last decade resulting attrition in their market share.
The Jet Airways started as a small organization with Limited capital. The company has become
a large-scale organization with multi various products. It has got a reputation among its
customs.
The management of the organization is very keen in introducing sophisticated technology to
upgrade the quality of the product. It has made proper plan for future development.
SPICE JET

INTRODUCTION

Spice Jet is a low cost airline head quatered in Gurgaon, India. It is the fourth largest airline in
the country by number of domestic passenger carried, with a market share of 13.03% as of
October 2017. The airline operates 312 daily flights to 55 destinations, including 47 Indian and
7 International destinations from its hubs at Delhi, Kolkata, Mumbai and Hyderabad.
It was established as air taxi provider Modi Luft in 1994, the company was acquired by Indian
entrepreneur Ajay Singh in 2004 and re-christened as Spice Jet. The airline operated its first
flight in May 2005. The Indian media baron Kalanidhi Maran acquired a controlling stake in
Spice Jet in June 2010 through Sun Group which was sold back to Ajay Singh in January 2015.
The airline operates a fleet of Boeing 737 and Bombardier Dash aircraft.

HISTORY (SPICE JET)

 Earlier known as Royal airways, Spice Jet is reincarnation of Modi Luft, one of India’s
first post-deregulation airlines launched in 1994 and shut down in 1996.
 Spice Jet was launched in May 2005 and is being promoted by Ajay Singh and the
Kansagra Family.
 The goal of the airline is to compete with the Indian Railways air conditioned coached
and obviously, offer a better deal to its passengers.
 Spice Jet aircraft are named after spices.
 In 2009, Spice Jet won world Travel Market.
 By 2008, Spice Jet became India’s second largest low-cost airline in terms of market
shares.
 In October 2010, after spice Jet was allowed to commerce international flights by the
airports Authority of India, the first international flight took off from the Delhi to
Kathmandu followed by flights from Chennai to Colombo.
 In April 2011, Spice Jet chose as the first and primary base for its new fleet of
Bombardier Q400 next gen aircraft Hyderabad Rajeev Gandhi International airport from
where it launched flights to Aurangabad, Belgaum, Bhubaneshwar, Goa, Indore,
Madurai, Nagpur, Nasik, Raipur, Tirupati and Vijayawada.
 In early 2012, Spice Jet suffered losses as fuel prices were repeated to have increased by
as high as 90%. The money spent on fuel exceeded well over 50% spiraling the airline
into losses.
 In December 2013, spice Jet launched its first interline agreement with Tiger Air. For the
movement interline booking can only be purchased at www.spicejet.com.
 For the month of December 2013, as per DGCA statistics, Spice Jet was #1 in on-time
performance on-time performance of scheduled domestic airlines is computed by the
DGCA for six metro airports.
 (Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai)
EXPANATION IN REGIONAL CONNECTIVITY.

In 2004, the company was acquired by Ajay Singh and the airline planned to restarted the
operations as Spice Jet following the low cost model.
Spice Jet leased two Boeing 737-800 aircraft in 2005 and planned to order 10 new aircraft for
expansion.
Spice Jet opened bookings on 18 May 2005 and the first was operated between Delhi and
Mumbai on 24th May 2005. By July 2008, it was India’s third largest low-cost carrier in terms of
market share after Air Deccan and Indigo.
The airline ordered 30 Boeing 737-800 aircraft worth US$ 2.7 billion July 2010 and further 15
Bombardier (D4 Dash Short Haul Aircraft worth US$ 446 million in December 2010)
In January 2015, the Sun Group sold its entire shareholding and transferred control to Ajay
Singh.
In late September 2017, the airline announced that it had placed a firm order for 25 Q400
turboprop aircraft.

CODE OF CONDUCT

Spice Jet Limited has a vision for total customer satisfaction and enhancing stakeholder value.
Spice Jet mission is to become India’s preferred airline with the highest consumer value
through honest and ethical conduct of the business.
The company philosophy on corporate governance around fair and transparent governance
and disclosure practices. This includes respect for human values, individual dignity and
adherence to honest ethical and professional conduct.
The following are the covenants of the code of conduct for board members and senior
management.
 Honest and Ethical code of conduct.
Senior officers are expected to comply with all applicable laws, rules and regulations and
all applicable policies and procedures adopted by the company with the highest
standard of personal and professional integrity honesty and ethical conduct.

 Confidential Information
Senior officers have to seam, preserve safeguard and use discreetly confidential
information in the best interest of the company with not divulge or communicate such
information to third parties except when authorized for the business reasons.

 Gratuities and Gifts

The company policy prohibits the receipt of gifts and gratuities particularly from
individuals or firm with which the company has business dealings. The only exception is
the receipts of complementary items that carry company’s name printed or embossed
on it so as to clearly establish that is a sales promotional item. To the extent possible all
 such gifts or hospitalities must be declined so as to ensure that senior officers are not
put in an obligatory position vis-à-vis the company customer, supplier or trader.

 Anti-Harassment Policy.
The Senior officers should adhere to and facilitate effective functioning of the company
mechanism for redressal of complaints of harassment of any nature as per laid down
policies and principles.

 Related parties.
Senior officers should avoid conducting company business in any significant way with
relative (as defined in the companies act 1956) or with a business in which a close
relative is associated without intimating to the board of directors.

 Insider Trading
Senior Management should abide by company’s insider trading policy in compliance
with the SEBI Regulations 1992, as adopted by the Board of Directors of the company.
Spice Jet Ltd, incorporated in the year 1984, is a midcap company (having a market
capital of RS. 4876.53 crores) operating in Transport sector.

Spice Jet Ltd, key product / revenue segments include income (Airlines) which
contributed RS. 7409.50 crores to sale value (95.05% of Total Sale). Cargo income which
contributed RS. 270.06 crores to sales value (3.46% of Total Sales) other operating
revenue which contributed RS. 71.68 crores to sale value 0.91% of Total Sales) and
Beverage and food which contributed RS. 43.85 crores to sales value (0.56% of Total
Sales) for the year ending 31st March, 2018.

For the quarter ended 31-03-2018, the company has reported a 8 consolidated sales of
RS.2004.78 crores, down -3.04% from last quarter sales of RS. 2067.59 crores and up
24.22% from last year same quarter sales of RS. 1613.93 crores company has repeated
net profit after tax of RS. 40.51 crores in latest quarter.

The Company’s top management includes Dr. Harsha Vardhana Singh, Mr. Ajay Singh,
Mr. Anurag Bhargava, Mrs. Shiwani Singh company has SR Batliboi and Associates LLP as
its auditors as on 31-12-2018. The company has total of 599,450,183 share outstanding.
 SWOT ANALYSIS

STRENGTH

 Spice Jet has strong backing by its promoters.

 LCC Segment is ever growing in the country.
 Spice Jet is one of the largest low cost carriers in India,
 Has a reach to around 35 Indian destinations.
 Good presence in the market due to its branding and advertising.
 Spice Jet has got an interactive website allowing bookings, hotels etc.
 Presence of the brand on ticket booking websites has helped the business grow.

WEAKNESS
 Low market share of Spice Jet due to presence of significant competition.
 Has limited destinations and no international presence.

OPPORTUNITIES
 Middle class taking to the skies is a huge opportunity for spice Jet.
 More opportunities to grow on popular routes and destinations.
 International tie-ups would boost brand image and reach.

THREATS
 Strong competitions in LCC segment.
 Rising fuel costs can decrease margins for Spice Jet.
 Changing govt. policies and international pressure affects brand operations.
INDIGO

HISTORY

 Indigo was founded in 2006 as private company by Rahul Bhatia of Inter Globe
Enterprises and Rakesh Gangwal, a United States based NRI. Inter Globe Enterprises has
51.12% stake in Indigo and 47.88% was by Gangwal’s Virginia based Company
investment Indigo placed a firm order for 100 Airbow A320-200 aircraft in June 2005
with plans to commence operations in mid-2006. Indigo took delivery of its first Airbus
aircraft on 28th July, 2006 nearly one year after placing the order. It commenced
operations on 4th August, 2006 with a service from New Delhi to Imphal via Guwahati.
By the end of 2006 the airline had six aircraft and nine more aircraft were acquired in
2007.

 In December, 2010 Indigo replaced stake-run carrier Air India as the third largest airline
in India, behind Kingfisher airlines and Jet airways with passenger market share of
17.3%. In 2011 Indigo placed an order for 180 Airbus A320 aircraft in deal worth US$ 15
billion. In January 2011, after completing five years of operations the airline got
permission to launch International services in September, 2011. In December, 2011 the
DGCA express reservations that the rapid expansion could impact passenger safety. In
February 2012, Indigo took delivery of its 50th aircraft less than 6 years after it began
operations in 2006.

 For the quarter ending March, 2012 Indigo was the most profitable airline in India and
became the second largest airline in India in terms of passenger market share. On 17th
August, 2012 Indigo become the largest airline in India in terms of market share
surpassing Jet Airways, six years after commencing operations. In January 2013, Indigo
was the second fastest growing low-cost carrier Asia behind Indonesian airline lion Air.
In February, 2013 following the announcement of civil aviation ministry that it would be
allow Indigo to take delivery of only five aircraft that year, the airline planned to
introduce low-cost regional flights by setting up a subsidiary. Later, Indigo announced
that it plans to seek permission form the ministry to acquire four more aircraft,
therefore taking delivery of nine aircraft in 2013.

 As of March 2014, Indigo is the second largest low-cost carrier in Asia in terms of seats
flow. In August 2015, Indigo placed an order of 250 airbus A320 neo, Aircraft worth $27
billion making it the largest single order ever in Airbus industry.

 Indigo announced a RS. 3,200 crores (US$ 480 million) initial public offering on 19th
October 2016, it is the largest airline in India in terms of passengers carried with a 42.6%
market share.
CORPORATE AFFAIRS AND IDENTITY

Indigo is head quartered in Gurgaon, India. Twenty dots arranged in the shape of aircraft
serves as the logo of airline. The airline uses a two tone blue livery on a white background with
the belly of the aircraft painted in Indigo with the logo in white.

The flight attendants were a single-piece navy blue tunic with a cap and then Indigo belt
designed by fashion designer Rajesh Pratap Singh and make-up artist Ambika Pillai. The airline
has the tagline on-time focusing on punctuality.
Indigo placed an order for 100 Airbus A320-200 aircraft worth US$ 6 billion in June 2005
during the Paris Air show with plans to commence operations in mid-2006. The airline received
its first A320 in July, 2006 and planned to induct 100 aircraft by 2015-2016. Indigo signed a
memorandum of understanding for an additional 180 airbus A320 aircraft including 150with
the New engine option (NEO) worth US$ 15 billion on 11th January 2011. In 2012, the airline
took delivery of its 50th aircraft and the 100th aircraft was delivered on 4th November, 2014
completing its initial order ahead of Schedule.

The Airbus A320 neo family aircraft ordered in 2011 were to be delivered starting 2015.
However due to delay in the production and delivery of those aircraft, Indigo dry-leased a total
of 22 used aircraft to cope with the demand. On 15th October, 2014 Indigo expressed its
intention to order a further 250 A320 neo aircraft worth US$ 25.7 billion at list prices. On 15th
August, 2015 Indigo confirmed the order for 250 A320 neo aircraft for US$ 26.5 billion. The
order of 250 jets was Airbus single largest order by number of aircraft. Indigo received first
A320 neo in March 2016.
Indigo Aviation Ltd. Key products / Revenue segments include income (Airlines) which
contributed RS. 22353.1 crores to sales value (97.09% of Total Sales) other operating revenue
which contributed RS. 520.37 crores to sales value (2.26% of Total Sales) and Traded Goods
which contributed RS. 147.45 crores to sales value (0.64% of Total Sales) for the year ending
31st March, 2018.

For the quarter ended 30-09-2018 the company has reported a standalone sale of RS. 6185.31
crores, down -5.02% from last quarter sales of RS. 6511.97 crores and up 16.90% from last
year same quarter sales of RS. 5290.98 crores company has reported net profit after tax of RS.
-652.13 crores in latest quarter.

The company top management includes Dr. Anupam Khanna, Mr. Anil Parashar, Mr. Rahul
Bhatia, Mr, Rakesh Gangwal, Mrs. Rohini Bhatia.
Company has BSR and CO.LLP as its audit to RS. As on 31-12-2018, the company has a total of
384,406,838 shares outstanding.