AIRWAYS

JET

Airline Industry in India

454 airports and airstrips (includes Operational, Non Operational, Abandoned and Disused Airports)
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127 are owned & operated by AAI
 16 - international, 7 custom airports, 28 civil enclaves

Scheduled domestic air services - available from 82 airports

May 2007- May 2008
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25.5 million domestic & 22.4 million international passengers 20% growth – highest in the world

Growth Rate Projections (for next 5 yrs)
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15% p.a (Passenger Traffic) 11.4% p.a (Cargo Traffic)

History
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1911 1932 1938 1946 1948

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First commercial flight Airmails from Allahabad to Naini(10 km) The Aviation Department of Tata Sons Ltd. Established Tata Airlines (successor to aviation division of Tata Sons) Tata Air Lines converted into a public Company and renamed Air India Limited Air India International incorporated Nationalization of Aircraft Industry
Air India (serving the international sectors)  Indian Airlines (serving domestic sectors)  Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Services of India

1953

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History
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1986

Private Sector Players permitted as Air taxi operators

Players including Jet, Air Sahara, NEPC, East West, Modiluft,etcstarted service

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1990 1994 2003 2007 2008

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Open Sky Policy Private Carriers permitted to operate scheduled services Entry of low-cost carriers Merger of Indian Airlines into Air India Acquisition of Air Sahara by Jet Airways Kingfisher acquired 49% stake in Deccan Aviation

air traffic services and carriage of passengers and goods by air    Other Attached/Autonomous Organizations:  Directorate General of Civil Aviation (DGCA)  Promote safe and efficient Air Transportation through regulation and proactive safety oversight system Regulatory authority for civil aviation security in India  Bureau of Civil Aviation Security (BCAS)    Airport Authority of India (AAI)  Accelerate the integrated development. expansion and modernization of the operational. Its functions also extend to overseeing airport facilities.Regulatory Authorities  Ministry of Civil Aviation  Responsible for the formulation of policy. terminal and cargo facilities at the airports   . development and regulation of Civil Aviation.

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

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Market Share in Domestic Market In Post Consolidation Jet includes Air Sahara & Kingfisher includes Air Deccan §Market Share is based on their Capacity Source: B&K Securities .

com/mbaaviation.Price High Service vs . Jet Airways Kingfisher Indian Airlines Full Service Air Deccan SpiceJet Go Air Indigo Low Low Price High Source : http://www.html .foolonahill.

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

Kolkata and Pune. Chennai. Hyderabad.31%  Primary base .Mumbai's Chaatrapathi ShivajiAirport Secondary hubs . Brussels. April. Chairman .Acquired Air Sahara .Naresh Goyal HQ in Mumbai     Country’s second largest international airline Largest domestic airline .Mr.JetLite Now JetLite integrated into Jet Airways      .Bangalore. Delhi.2007 .Jet Airways   Founded in 1993.

International Network .

Domestic Network .

Fleet Plan .

9481.All Other Domestic Players showed loss(2006-07)   .27 crores profit (2006-07)  .7401 crores (2006-07) Profit(Loss) After Tax .Jet Airways .Rs.Rs.253 crores loss (2007-08)  Rs.Performance    Annual Revenues .5 crores (2007-08) Rs.

428.307 69.5% 10.726.698 12.3 .Operational Highlights Operational Parameters 2007-08 2006-07 Number of departure Available Seat Kilometers (ASKMs) Million 126.874 56.1 Revenue Passenger Kilometers (RPKMs) 16.910 66.2% 11.447 119.676 24.914 Million Passenger Load Factor % Revenue Passengers (Numbers) Average Fleet Size 69.369 17.

Revenues & Expenditure Split up .

Domestic Players ( 2006 ) .Jet Airways vs .

Jet Airways vs . International Players ( 2006 ) .

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

Seating in flights for Segments .

Fleet Size Air craft No. Seats per flight First Premiere Economy Airbus 330-200 ATR 72-500 Boeing 737-400 Boeing 737-700 Boeing 737-800 Boeing 737-900 Boeing 777-300ER Total 11 11 04 13 33 02 10 84 08 30 24 16 24 28 30 190 62 112 96 120 132 274 .

Flower of Services .

Charges split.through phones. Information . E-mail bills etc. employees etc. promotion schemes etc.   Consultation . Special payment privileges for frequent fliers             . routes to a destination & special menus for frequent fliers Order taking . fax and internet . the org..  Through website. sms. call service.Special requests reg. the choices of class. .Reg.Most important differentiating factor (from ticket booking to post flight help) Safe keeping .Credit card.Reg. medical needs etc. Company Website & Agents Hospitality .Luggage & Children Exceptions Billing Payment . ticket fares. Call Centres. special amenities for elderly people or children. .Booking . Travellers cheque. flight schedules.Ticket Office. meal preferences.

Impact of IT on Ticket Booking .

Levels of Product .

Smoke detectors. Web Check-in. Kiosk Check-in. TV programmes.First class.Jetscreen– Movies. First Aid. Through Check-in  Airport Lounges  Coach Services    In-flight Services  Classes of Service . life jackets & seat cushion  Cuisines  Entertainment . Child Care. Online magazines etc.Product .Service  On Ground Services   Check in options . Inflight communicator. Premiere class & Economy class  Convenience & Safety -Towels.Airport check-in. Reading material. Pillows & Blankets. Tele Check-in. Music.  . SMS Check-in. Games. One Time Check-in on Return Journey. Bassinets. Check-in while walkin.

expectant mothers. wheel chair assistance. medical emergencies.Product .Service  Special Services o Infant and child care. unaccompanied minors. travelling with animals & carriage of stretchers      JetMobile JetKids JetEscapes Cargo  .

ANA. Blue Plus. prior to departure Waiver on cancellation fees Membership Tier Bonus  Earning & Redeeming JP Miles  Eg: Chennai to Thiruvananthapuram (Earn Mile-383 & Redeem Mile-6894)  Airline Partners . Etihad Airways. Northwest Airlines . South African Airways. Silver. JetLite. KLM. Austrian Airlines. United Airlines and Virgin Atlantic. Lufthansa. Gold & Platinum         Personalized web access JP Miles .JetPrivilege – Frequent Flyer Program  Membership tiers – Blue. Brussels Airlines. Qantas. American Airlines. SWISS.13 quarters validity Bonus JPMiles on e-Services Additional baggage allowance Guaranteed reservations up to 24 hrs. Dragonair.Air France. Gulf Air. Cathay Pacific.  .

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

Aircraft Various Destinations  .Place   Place of Service .

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

Engineers. Securities. Customer Service Agents. Sales & Reservation employees   Customers  .People  Employees   Pilot. Marketing. Cabin Attendants.

Etihad Airways. American Airlines. Dragonair.Ferns n Petals Telecommunication . Hyatt Hotels & Resorts. United Airlines and Virgin Atlantic. American Airways. Lifestyle Partners . The Economist and TIME Retail Partners .Matrix Cellular Services . South African Airways.Air Canada.          Brussels Airlines.Globus and Golf Fee Card International Publishing Partners . SWISS.Fortune.Partners  Airline Partners . Code Share Partners . ICICI Bank.Global Hotel Alliance. Austrian Airlines. Etihad Airways and Qantas Co-Brand Cards . KLM.BarclayCard. InterContinental Hotel Groups.Air France.Avis. ANA. HDFC Bank. Deutsche Bank AG. All Nippon Airways. Hilton Family Hotels. JetLite. HSBC. ITC etc.CitiBank Conversion Partners . Gulf Air. Cathay Pacific. Hertz Hotel Partners . Qantas. SBI Card & Tata Cards Car Rental Partners . Northwest Airlines . CitiBank. Brussels Airlines. Lufthansa.

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

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

& Ticket Booking Agents Virtual Servicescape .Org.Elaborate       Flight Offices .Interpersonal  Complexity of Servicescape .Physical Evidence  Servicescape Servicescape usage .

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

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

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

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

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

SWOT Analysis  Strengths      Market driver Experience exceeding 14 year Only private airline with international operation Market leader Largest fleet size  Opportunities Untapped air cargo market  Scope in international service and tourism       Weaknesses Loosing domestic market share  Old fleet with average age around 4.79 years  Scope for improvement in in-flight service  Weak brand promotion   Threats Strong competitors  Fuel price hike  Overseas market competition      .

THANK ‘U’ .

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