JEJETT AAIRIRWWAAYSYS AirAirlinlinee IIndndustustryry iinn InIndiadia
454 airports and airstrips (includes Operational, Non Operational, Abandoned and Disused Airports) 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 25.5 million domestic & 22.4 million international passengers 20% growth – highest in the world
Growth Rate Projections (for next 5 yrs) 15% p.a (Passenger Traffic) 11.4% p.a (Cargo Traffic) HisHistorytory 1911 First commercial flight Airmails from Allahabad to Naini(10 km) 1932 The Aviation Department of Tata Sons Ltd. Established 1938 Tata Airlines (successor to aviation division of Tata Sons) 1946 Tata Air Lines converted into a public Company and renamed Air India Limited Air India International incorporated 1948
Nationalization of Aircraft Industry 1953 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 HisHistorytory
1986 Private Sector Players permitted as Air taxi operators Players including Jet, Air Sahara, NEPC, East West, Modiluft,etcstarted service 1990 Open Sky Policy 1994 Private Carriers permitted to operate scheduled services 2003 Entry of low-cost carriers 2007 Merger of Indian Airlines into Air India Acquisition of Air Sahara by Jet Airways 2008 Kingfisher acquired 49% stake in Deccan Aviation RegRegulaulattooryry AAuutthhoorriitiesties
Ministry of Civil Aviation Responsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing airport facilities, 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
Bureau of Civil Aviation Security (BCAS) Regulatory authority for civil aviation security in India
Airport Authority of India (AAI) Accelerate the integrated development, expansion and modernization of the operational, terminal and cargo facilities at the airports PPolicoliciesies
Open Sky Policy FDI Airports 100% for green field operations 74% for existing airports - 100% with special permissions 100% tax exemptions for 10 yrs.
Airlines 49% in domestic airlines - 100% for NRI’s 74% in cargo & non-scheduled airlines
MMaarkrketet SShhaarree inin DomDomeesstictic MMaarkrketet
In Post Consolidation Jet includes Air Sahara & Kingfisher includes Air Deccan §Market Share is based on their Capacity Source: B&K Securities
ServServicicee vvs.s. PricPricee
High Jet Airways
Kingfisher Indian Airlines
Full Service Air Deccan SpiceJet
Go Air Indigo Low Low High Price
Source : http://www.foolonahill.com/mbaaviation.html CCoostst StrStrucucturturee
Source : http://www.foolonahill.com/mbaaviation.html JJeett AAirwirwaaysys
Founded in 1993, Chairman - Mr.Naresh Goyal
HQ in Mumbai Country’s second largest international airline Largest domestic airline - 31%
Primary base - Mumbai's Chaatrapathi ShivajiAirport Secondary hubs - Bangalore, Brussels, Chennai, Delhi, Hyderabad, Kolkata and Pune.
April,2007 - Acquired Air Sahara - JetLite
Now JetLite integrated into Jet Airways InInternternationationalal NetwoNetworkrk DDomesomestictic NNeetworktwork FleetFleet PlaPlann JetJet AirwAirwaaysys -- PerformPerformanancece
Annual Revenues - Rs.9481.5 crores (2007-08) Rs.7401 crores (2006-07)
Profit(Loss) After Tax - Rs.253 crores loss (2007-08) Rs.27 crores profit (2006-07) - All Other Domestic Players showed loss(2006-07) OpOperationerationalal HigHighlihlighghtsts ReRevveennuueses && ExExpenpenditurediture SSpliplitt-- upup JetJet AAirwirwaayyss vsvs.. DDomeomeststicic PlaPlayeyersrs (2(2000606)) JetJet AAirirwawayyss vvs.s. InIntternaernattionionaall PlaPlayeyersrs ((2020006)6) STPSTP Primary Segments (Geographic) - Domestic & International
Customer Segments First class, Premiere(Business) class & Economy class
Target Segments Premiere(Business) class Business travelers, contribute 48% of passengers & 66% of revenues, ready to pay higher prices, last time booking, don’t like transit Economy class Leisure travelers, prefer low cost airlines, ready for transit if there is cost advantage, large % of passengers
Seat Allocation – Yield Management Technique Positioning – High value for High price
Unique Selling Price – Customer relationship and Punctuality SeSeaatintingg inin flflighightsts forfor SeSeggmenmentsts FFleetleet SizeSize FloFlowerwer ofof ServicServiceses Information - Reg. the org., flight schedules, ticket fares, promotion schemes etc. Through website, call service, sms, employees etc.
Consultation - Reg. the choices of class, routes to a destination & special menus for frequent fliers
Order taking - Booking - through phones, fax and internet - Ticket Office, Call Centres, Company Website & Agents
Hospitality - Most important differentiating factor (from ticket booking t o post flight help) Safe keeping - Luggage & Children
Exceptions - Special requests reg. meal preferences, special amenities for elderly people or children, medical needs etc.
Billing - Charges split, E-mail bills etc.
Payment - Credit card, Travellers cheque, Special payment privileges for frequent fliers ImImppactact ooff ITIT oonn TicTickketet BookingBooking LLevelsevels ooff PrProduoducctt PrProduoducctt -- SeSerrvicvicee On Ground Services Check in options - Airport check-in, Tele Check-in, Web Check-in, Kiosk Check-in, SMS Check-in, Check-in while walk-in,
One Time Check-in on Return Journey, Through Check-in Airport Lounges Coach Services
In-flight Services Classes of Service - First class, Premiere class & Economy class Convenience & Safety -Towels, Pillows & Blankets, Reading material, First Aid, Smoke detectors, Bassinets, Child Care, life jackets & seat cushion Cuisines Entertainment - Jetscreen– Movies, TV programmes, Games, Music, In-flight communicator, Online magazines etc. JetWings (in-flight magazine), JetBoutique (in-flight shopping catalogue) PrProduoducctt -- SeSerrvicvicee
Special Services o Infant and child care, wheel chair assistance, expectant mothers, unaccompanied minors, medical emergencies, travelling with animals & carriage of stretchers
JetMobile
JetKids
JetEscapes
Cargo JetJetPrPrivilivilegeege –– FFrrequentequent FlyerFlyer PrProogrgramam Membership tiers – Blue, Blue Plus, Silver, Gold & Platinum Personalized web access JP Miles - 13 quarters validity Bonus JPMiles on e-Services Additional baggage allowance Guaranteed reservations up to 24 hrs. 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 - Air France, American Airlines, ANA, Austrian Airlines, Brussels Airlines, Cathay Pacific, Dragonair, Etihad Airways, Gulf Air, JetLite, KLM, Lufthansa, Northwest Airlines , Qantas, South African Airways, SWISS, United Airlines and Virgin Atlantic. PricPricee
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 PPlacelace
Place of Service - Aircraft
Various Destinations PromPromototionion
Offers Companion Free Offer, One Fare, Concessional fares, JetPrivilege Offers, Jet Airways Citibank Credit Cards, Corporate Deal Offers, International Specials, Camp Rock contest, Festival specials, Student specials, Surprises etc.
Advertising and Branding
Hoardings Brand Ambassadors Sponsorships Event Organization PeopPeoplele
Employees Pilot, Cabin Attendants, Engineers, Customer Service Agents, Securities, Marketing, Sales & Reservation employees
Customers PPartnartneerrss
Airline Partners - Air France, American Airlines, ANA, Austrian Airlines, Brussels Airlines, Cathay Pacific, Dragonair, Etihad Airways, Gulf Air, JetLite, KLM, Lufthansa, Northwest Airlines , Qantas, South African Airways, SWISS, United Airlines and Virgin Atlantic. Code Share Partners - Air Canada, All Nippon Airways, American Airways, Brussels Airlines, Etihad Airways and Qantas Co-Brand Cards - CitiBank Conversion Partners - BarclayCard, CitiBank, Deutsche Bank AG, HDFC Bank, HSBC, ICICI Bank, SBI Card & Tata Cards Car Rental Partners - Avis, Hertz Hotel Partners - Global Hotel Alliance, Hilton Family Hotels, Hyatt Hotels & Resorts, InterContinental Hotel Groups, ITC etc. Lifestyle Partners - Globus and Golf Fee Card International Publishing Partners - Fortune, The Economist and TIME Retail Partners - Ferns n Petals Telecommunication - Matrix Cellular Services CCoompmpeetititorstors
International market - British Airways & South West Airlines
Domestic market - King fisher, Indian Airlines, GoAir, Spicejet & Indigo ProcProcessess
People Processing
People physically enter the service system to receive the service. Aircraft is the service factory where service is delivered.
Possession Processing
Cargo Luggage & Courier PPhyhysicsicalal EvEvididencencee
Servicescape Servicescape usage - Interpersonal Complexity of Servicescape - Elaborate
Flight Offices - Org. & Ticket Booking Agents Virtual Servicescape ServServicicee QQualualityity
Source : http://www.foolonahill.com/mbaaviation.html ServServicicee QQualualityity
Source : http://www.foolonahill.com/mbaaviation.html SSttratrateeggiesies ttoo mamanagenage tthehe CapaCapacitcityy && DDemaemandnd
Check Fares Automated Rostering System Planning and Scheduling Systems Code Sharing Outsourcing ramp handling, passenger handling, ticket checking, 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 CCorporporateorate SocSocialial RRespesposibosibilityility Magic Box Fund raising inside the flight for disaster relief, 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) PPESTEST AnaAnalyslysiiss
Political Issue Social Effects License issue for international Sound Pollution operation Plane hijacking Infrastructural constraint 9/11 Incident ATF price policy
Economic Effects Technology Effects Rising income level Modernization of aircrafts Reduced fare but yet not enough Modern technology like CAT3 and ILS SWSWOTOT AnaAnalyslysisis Strengths Market driver Opportunities Experience exceeding 14 year Untapped air cargo market Only private airline with Scope in international service and international operation tourism Market leader Largest fleet size
Weaknesses Threats Loosing domestic market share Strong competitors Old fleet with average age around Fuel price hike 4.79 years Overseas market competition Scope for improvement in in-flight service Weak brand promotion THANK ‘U’