Group 7

Roll No. Name

180101147 Ashish Tripathi
180101143 Piyush Kr Jha
180103049 Arpit Gupta
180103070 Deepak Panwar
180103057 Aviral Agarwal
 Introduction
> Jet Airways (India) Ltd. is an
Indian international airline based
in Mumbai
> It suspended on 17 April 2019 all
its flight operations
> It had 17.8% passenger market
share and was the second largest
airline service in India
> Jet Airways was listed on the
Bombay Stock Exchange and
became public company on 28
December 2004.
> Jet Airways was listed on the
Bombay Stock Exchange and
became public company on 28
December 2004,after relaxation in
FDI
> IPO in February 2005, which
offered 20% of the airline's stock,
saw strong interest from investors
leading to oversubscription in retail,
non-institutional and institutional
tranches and raised Rs 18.9 billion,
instantly making Naresh Goyal a
paper billionaire
2
 Industry Scenario

 India has 464 airports and airstrips, of which 125 airports are owned by
Airport Authority of India (AAI). These 125 AAI airports manage close to
78% of domestic passenger traffic and 22% of international passenger
traffic
 India remained the fastest growing domestic Aviation market in the
world in 2017. India has 86 scheduled international airlines comprising of 3
5 Indian carriers and 81 foreign carriers, which ensure that India is well
connected with most major countries
Major Competitors & events that’s triggered Downfall

Major Competitors:

 Air India

 Indigo

 Go Air

 SpiceJet

 Air Asia India

 Vistara
4
Sequence of Events
When What

Apr-18 Bows out of bidding for Air India citing the complex process.

The government refuses to approve Jet’s merger with its subsidiary JetLite,
May-18
nearly three years after the proposal was made.

Jet announces new check-in baggage norms. The 15kg of free check-in
Jun-18 luggage for the economy class will have to be in one bag. Business class
passengers can carry 30kg in two bags.

Aug-18 Considers a 25% pay cut for employees.

Indefinitely defers announcement of financial results for the April-June quarter

Aug-18
of the financial year 2019.

On Aug. 12, the Directorate General of Civil Aviation announces an audit to

Aug-18 assess Jet’s financial health. State Bank of India asks the firm to provide
enough collateral for emergency funding.

5
Sequence of Events

6
Possible reasons for downfall(Based on secondary
research):
 Aviation turbine fuel burden
The rising cost of aviation turbine fuel (ATF) took a heavy toll on many
airlines, especially Jet Airways, as it flies on international routes as well
 Reduced operations
Jet Airways is expected to stop flight operations to Gulf routes due to its
badly-hit finances. Flight operations to Dubai, Abu Dhabi, Doha and Muscat
including Doha-Kochi, Abu Dhabi-Mangalore, Mangalore-Dubai, Delhi-
Muscat, and Abu-Dhabi-Lucknow, will be affected
 Non-payment of staff salary
The airline has failed to pay salary to several members of their staff,
including senior pilots and even external vendors.it had to cancel 14 flights in
a single day after some pilots called in sick over non-payment of
remuneration.
 Cutthroat competition
Very intense competition from no-frills operators forced Jet to offer full
service at a highly discounted fares for a sustained period
 Rupee devaluation
 Mismanagement
A major reason for the downfall of jet airways is mismanagement at top level 7
Financial Performance comparison:

Jet Airways Share performance on BSE/NSE:

Closing Price
1000

900

800

700

600

500

400

300

200

100

8
Financial Performance comparison:

Weekly Percentage Changes for Jet Airways Vs Indigo Vs Spicejet

Percentage Change
40

30

20

10

0
4
7
1

67
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
55
58
61
64

70
73
76
79
82
85
88
91
94
97
100
103
106
-10

-20

-30

-40

-50

Jet Airways Indigo Spicejet

9
Primary research

Objective
The main research objective is to understand consumer perception regarding Jet Airways. Objective
will be clarified after getting answers to the following questions implicitly:
1. What is the awareness level of Jet Airways among people who have travelled by air at least once? 2.
Does the perception of Jet Airways vary across age group?
3. What are the other underlying factors influencing the perception of Jet Airways among consumers?
4. As Jet Airways was a full-service type airline, what is the perception of a traveller?
5. After Jet Airways removed some of the free services does perception changed?
6. What are the services traveller like most and are ready to pay for it.
7. How people see Jet Airways compare to other airlines(Indigo, SpiceJet, Air India, Vistara)
Research Methodology:

Questionnaire Methodology: A questionnaire was prepared with various question to find out any
pattern for fall of Jet and find out above question.

Exploratory Interviews: One on one interview conduct to get insights from frequent traveller and
person who travelled before and after fall of Jet Airways

11
12
Survey Results:

13
14
15
Test Case 1:
Want big impact?
To identify parameters and preferences that a traveller look before booking a flight. Check if there is a
correlation between parameters Use big image.
[On time
[Seating [Luggage [Cleanliness arrival/departur [Staff
comfort] Space] ] e] behaviour] [Meals] [Ticket Fare]
[Seating 0.8530502 0.3602775 0.27602
comfort] - 4 7 0.097053794 0.047404546 622 0.183206151
[Luggage 0.30638
Space] 0.853050235 - 0 0.003239913 0.04724861 168 0.179585258
0.3879413 0.38448
[Cleanliness] 0.360277573 1 - 0.766271845 0.403138996 621 0.229552507

[On time
arrival/departur 0.8947 0.431802
e] 0.097053794 0.00323991 0.76627184 - 84762 0.449625854
71
[Staff 0.89478476 0.376190
behaviour] 0.047404546 0.04724861 0.403139 2 - 0.327653987
81
0.43180270 0.3761
[Meals] 0.276026224 0.30638168 0.38448621 6 90815 - 0.442484893
0.44962585 0.3276 0.442484
[Ticket Fare] 0.183206151 0.17958526 0.22955251 4 53987 89 -

16
Highly Correlated:
 Luggage Space and Seating Comfort
 Cleanliness and On time arrival/departure
 Staff behaviour and On time arrival/departure
Low correlation:
 On time arrival and Luggage Space
 Ticket Fare and Luggage Space
Jet should have focused on providing highly correlated services and avoided low correlation one.

 Null Hypothesis: Financial performance of a company does not play a major role before selecting
a flight by a traveller:

17
We got a mixed response for this question. 57.5 % said no and 42.5% said yes. After detailed interview
with some frequent flyer with got to conclusion that till financial performance are really bad and there is
a situation of bankruptcy it does not play a major role. So, when Jet faced initial losses they should
have made some changes as flyer were not as affected by Financial performance
18
 Null Hypothesis:

89,526,124$
H0:There is no significant change in travellers perception about Jet Airways after the removal of free
services:
H1: There is a significant difference change in travellers perception about about Jet Airways after the
That’s a lot of money
removal of free services:

185,244 users
P value is 0.2577
which is more than
0.05 confidence level.
And a lot of users

100%
Total success!
19
Null Hypothesis: There is no significant difference between inflight services of Jet Airways and Inflight
services of IndiGo and other low-cost airlines

20
 Thanks!
Any questions?
Find me at @username & user@mail.me

21