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 (successor to aviation division of Tata Sons) 1946 Tata Air Lines converted into a public Company and renamed Air Limited International incorporated 1948

Nationalization of Aircraft Industry 1953  Air India (serving the international sectors)  (serving domestic sectors)  Deccan Airways, Airways India, Bharat Airways, , , Indian National Airways and HisHistorytory

1986 Private Sector Players permitted as Air taxi operators  Players including Jet, Air Sahara, NEPC, East West, ,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 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 §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  Country’s second largest international  Largest domestic airline - 31%

Primary base - Mumbai's Chaatrapathi ShivajiAirport Secondary hubs - , Brussels, , , Hyderabad, and .

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  , Premiere(Business) 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 - , American Airlines, ANA, Austrian Airlines, Brussels Airlines, Cathay Pacific, Dragonair, , , JetLite, KLM, , , , , SWISS, United Airlines and . 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 - , , 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’