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Submitted To: Prof.

Sachin Khare Prepared By: Sneha Varma (193) Mayank Shah (202) Ritu Singh (59) Swatanu Mohan Satpathy ( 108 )

July 30, 2013

Introduction
Started by Naresh Goyal as Air Taxi Operator in April 1992 Started Indian commercial airline operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft Scheduled airline status was granted on 4 January 1995 Initial investment of US$10 million 80%of its stake controlled by Naresh Goyal Jets parent company, Tail Winds Ltd. Began international operations to Sri Lanka in March 2004. Jet, is headquarters in Mumbai, India

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Introduction
Operates over 370 daily flights to about 68 destinations both in India and international (abroad) Listed in the NSE in the year 2005 Includes major cities like Mumbai, Delhi, Chennai, Jaipur, etc. Second Leg cities like Aurangabad, Patna, Nagpur, etc. 21 international destinations in 17 countries across Asia, Europe & North America International destination includes cities like San-Francisco, New York, Singapore, London (Heathrow), Hong Kong, Colombo, Abu Dhabi, Dubai, etc.

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Financials
Annual Revenues Rs 9481.5 crores (2009-10) Rs 7401.3 crores (2010-11) Profit After Tax (PAT) - Rs 253 crores (2009-10) Rs 27 crores (2010-11)

Average Passenger Load 69.1% (2009-10) 84.3% (2010-11)


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Fleets Of Aircrafts
98 Airplanes in total Airbus330--200--(12) ATR72 --500--(14) Boeing737--700--(11) Boeing737--800--(42) Boeing737--900--(2) Boeing777300ER*--(11)

Airbus330

*Includes aircraft that have been leased to other airlines

Boeing 737-700

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Current Service Offerings


Jet Privilege

Blue

Silver

Platinum

Blue Plus

Gold

JPMiles The number of Base JPMiles earned is the direct travelled distance between the origin and destination city-pair. JPMiles earned are based on the fare and cabin travelled.
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Current Service Offerings


Jet Konnect Launched on 8 May 2009 to close down loss making routes Divert planes to more profitable routes with higher passenger load factors. Started 54 flights a week, rose to 125 flights, target of 160 flights a week Jet Escapes A holiday package to a particular destination Option to earn JPMiles on each holiday availed
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Current Service Offerings


Jet Mobile Access information such as flight status, schedules, set alerts or automatically receive flight delay messages Request for your JetPrivilege account details Search for the lowest fares on Jet Airways Jet Viva Interaction forum for women travelers Modern fashion trends, spa getaways, high end cosmetics
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Current Service Offerings


Jet Lite Acquisition of Sahara Airlines Low cost carrier Wider reach Jet Kerala/ Jet2IncredibleMP

Tourism packages to Kerala and Madhya Pradesh Special offers during summer vacations and new year

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On-board Services
Check-In options Airport lounges Bus Services Cuisines Entertainment

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Market Share

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Competitor Analysis
Domestic Market International Market

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Porter's 5 Forces

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Bargaining power of Buyer - High


Standard product and services Several options available to customers No switching cost customer need a reason to stay Customer can research easily using the internet Customer incentives such as JPMiles which allow customers to earn rewards, book flight in an easier/faster manner, and stay on top of the upcoming event/sales Customer loyalty does not come cheaply the average Indian flier expects more by paying less.

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Bargaining power of Supplier - High


Cost of fuel has risen in the years Airplanes are mostly created by 2 manufacturers : Boeing and Air-Bus Aviation personnel are very few in number. The pay demanded are very high.

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Threat from substitutes - High


Numerous other low-cost airlines Switching costs among other transportation option are high for everything but short distance (Train, bus etc) High exiting barriers regulated by ministry of civil aviation Trains are the most preferred modes of transport when it comes to domestic travel

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Threat from new entrants - Low


Very high cost or capital required for entry Low profit margin Difficult to differentiate product & services Brand image and loyalty is important New airlines must be seen as safe and reliable Large airlines are very aggressive Premature domestic market

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Competitive rivalry - High


Competitors like Kingfisher, Indian Airlines, Indigo In times of low or moderate industry growth, the competition gets fiercer as each one tries to nab customers from the other in order to keep their capacity utilizations at acceptable levels The industry is extremely sensitive to economic cycles Ambush marketing campaigns

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The 7 Ps
Product Airline service travel Price Discounted fare for senior citizens, defense personnel Economy & Club Premiere Fare Advance Passenger Excursion

Place Place of Service Aircraft Various Airports Jet lounge


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The 7 Ps
Promotion Companion Free Offer, Concessional fares Jet Privilege frequent-flier programme Jet Airways Citibank Credit Cards Corporate Deal Offers Festival specials, Student specials

Advertising and Branding Hoardings and advertisements Brand Ambassadors Sponsorships Event Organization
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The 7 Ps
Process People Processing Greeting method and standard procedure of treatment for customers for each class Booking tickets made online and in counters Flights sticking to schedules In flight service baby care, disabled care Travelling with pets

Possession Processing Cargo Luggage


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The 7 Ps
Physical Evidence Cuisine In-flight entertainment facilities Kiosks check-in counters Jet boutique in flight fashion apparel Jet kids in flight kids programme Jet mall in flight shopping

People Trained cabin crew Immigration & transportation


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SWOT Analysis
Strengths
Experience exceeding 14 years International operations Large fleet size Among top 3 in India

Weaknesses
Losing domestic market share Old fleet with average age - 4.79 years Need improvement in in-flight service Weak brand promotion

Opportunities Untapped air cargo market Scope in global service and tourism Increasing salaries of people

Threats Strong competitors Fuel price hike Overseas market competition Regulations

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Gap Model

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Gap 1
Customer Expectation Management Perception Seat allotment More variety in harder products

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Gap 2
Management Perception Service Quality Specification Reclining Feature Check-In baggage

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Gap 3
Service Quality Specification Services Delivered Unfriendly Check-In Unhygienic conditions

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Gap 4
Service Delivered External Communication Time delay in Flights Emergency services

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Gap 5
JET AIRWAYS KINGFISHER INDIAN AIRLINES

RELIABILITY
ASSURANCE TANGIBLES EMPATHY RESPONISVENESS

1
1 2 1 1

2
2 1 2 2

3
3 3 3 3

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Recommendations
Concentrate on the gaps created Improvise on branding strategies Look into newer geographical regions Improving technology to overcome unfavorable weather conditions

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Thank You

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