SIR M.

VISVESVARAYA INSTITUTE
OF
MANAGAMENT AND RESEARCH

NAME: - AKSHAY A. KOTKAR

ROLL NO: - 05

SUBJECT: - MARKETING MANAGEMENT

TOPIC: -
INDUSTRY MARKET REPORT
(AVAITION INDUSTRY)

Contents

Sr.no Topic
1 Executive Summary
2 History of aviation industry
3 Economic scenario of industry
4 Technological development
 5 Market leader(Jet Airways) and
brief information

6 Competitors of Jet Airways

(Kingfisher Airline, Air India, Spice
Jet) and Brief Information of them.

7 Competitive Analysis of Aviation

industry
8 Reasons for Jet Airways
Leadership position in Aviation
industries.
9 Future plans of Indian Airlines
10 Conclusion
11 Webliography

Executive Summary

The Aviation industry in India encompasses a wide range of services related to air
transport such as passenger and cargo airlines, unscheduled service operators --- private
jets and helicopters, airport management, and support services like Maintenance, Repairs
and Overhaul (MRO), ground handling, in-flight catering, and training.

The Aviation sector has reaped massive benefit from the entry of private carriers,
especially from those of the low fare ones. The growth of the airlines sector has caused a
sharp upturn in demand for allied services including MRO, ground handling, and catering
services. The booming aviation industry, along with its tertiary services, has wreaked a
major talent crunch, boosting opportunities for training service providers. The ever-
expanding Indian economy and increased demand for trade has pushed the need for air
cargo services to a new high. Increasing number of entrants in the sector has forced
airports to expand their cargo handling capacities.

The aviation sector is still a small part of the travel and transportation services sector in
India. 2006-07 posted annual passenger traffic of about 96 million, as compared to nearly
6 billion passengers carried by the railways. The industry has already bumped into
several challenges; inadequate infrastructure being the most crucial. The airlines suffered
losses of around USD 500 million in 2006-07 and the situation is expected to deteriorate
in 2007-08. The high cost of operations, intense competition, and unsustainably low fares
have contributed to these losses. While initiatives have been taken to remove bottlenecks
to growth, a need for further investments in capacity is felt more than ever. A recent spate
of mergers, however, has come to some relief.

The decelerating profit margin does not entail a slump in revenue generation. It is the
increasing costs that have thrown the aviation industry into the present plight. India’s
aviation sector stands up to the crisis and races against its fastest growing global
competitors. Improved affordability and connectivity add to the expected improvement in
both passengers and cargo traffic. Large public and private investments in air travel
infrastructure, supported by government initiatives, are expected to pour in.
History of Aviation Industry

1932: JRD Tata launches India’s first scheduled airline, Tata Airlines,
by piloting the first flight himself from Karachi to Mumbai via Ahmedabad on a
single-engine. Puss Moth with a load of airmail. Nevill Vintcent, a former Royal
Air Force pilot and JRD’s collegue, flies the plane to Chennai via
Bellary thus completing the flight.

1933: In its first year of operation. Tata Airlines flies 160,000 miles, carries 155
passengers and 10.71 tonnes of mail. In the next few years, Tata Airlines
continues to rely for its revenue on the mail contract with the Government of
India for carriage of surcharged mail, including a considerable quantity of
overseas mail brought to Karachi by Imperial Airways.Tata Airlines launches its
longest domestic flight: Mumbai to Trivandrum with a six-seater Miles Merlin.
1945: India a second domestic airline, Deccan Airways, is founded Seventy-one
per cent is owned by the Nizam of Hyderabad, 29 per cent by Tata Sons.
Deccan Airways is the first of a bunch of new airlines to serve domestically in
India. It flies in the Hyderabad region, using a fleet of 12 Douglas DC-3s. The
first services began in July 1946.

1946: Tata Airlines changes its name to Air India. In 1947, Air India signs an
agreement with the government of India to operate international services
under a new company called Air India International Ltd. Established as a joint
sector company with a capital of Rs 2 crore and a fleet of three Lockheed
constellation aircraft. The new name is inaugurated on March 8, 1948. Three
months later on June 8, Air India International inaugurated its international
services with a weekly flight from Bomabay to London via Cairo and Geneva.
The airline is nationalized in 1953.

1953: Indian Airlines and Air India International are set up after legislation
comes into force to nationalize the entire airline industry in India. Eight former
independent domestic airlines; Deccan Airways, Airways India, Bharat Airways,
Himalayan Aviation, Kalinga Air Lines, Indian National Airways, Air India, Air
Services of India, are merged to from the domestic national carrier. Air India
International takes over the international routes. Indian Airlines Corporation
inherits a large fleet of 74 DC-3 Dakotas, 12 Vikings, 3 DC-4s and various
smaller craft.

1956: Durba Banerjee is inducted as the first woman pilot of Indian Airlines.

1960: India enters the jet age when Air India begins operating its first Boeing
707-437. It also marks the year in which USA is first connected to India by an
Indian airliner.
1985: Captain Saudamini Deshmukh commands the first all-women crew flight
on an Indian Airlines Fokker Friendship F-27 on the Calcutta-Silchar route. She
also commands the first Boeing all-women crew flight on September 1989 on
the Mumbai-Goa sector.

1989: Indian Airlines becomes one of the earliest airline in the world to induct
the revolutionary fly-by-wire A320s made by France’s Airbus Industrie
into its fleet. The airline’s first pure-jet was a Caravelle, inducted in
1964.

1990: East West Airlines becomes the first national level private airline to
operate in the country after 37 years, after the government decided to end
Indian Airlines’ monopoly over domestic civil aviation.

Capt Nivedita Bhasin of Indian Airlines at 26 becomes the youngest pilot in civil
aviation history to command a jet aircraft when she pilots IC-492 on the
Bombay-Aurangabad-Udaipur sector on January 1. Bhasin also becomes the
country’s first woman check-pilot on an Airbus A300 aircraft.

Air India is commended in the Guinnes Book of World Records for the largest
evacuation effort by a civil, when it flew over 111,000 people from Amman to
Mumbai in 59 days, operating 488 flights just before the first Gulf War.

1992: The Indian Air Force (IAF) decided to recruit women pilots. It advertises
for eight vacancies and receives 20,000 applications. The first pilots enter
service in July 1994.

1997: A group of army aviation professionals gets together to set up Deccan

Aviation, which will soon grow to become India’s largest privately
owned helicopter charter company.
1998: Dr Kalpans Chawla becomes the first Indian-born woman to fly to space,
as part of a NASA team.

1999: Flying Officer Gunjan Saxena, who was among the first women pilots in
the IAF, becomes the first woman to fly in a Combat Zone when she takes part
in air operations during the Kargil war.

2003: Air Deccan, India’s first ever budget airline begins operations on
25th August. The first flight is from Bangalore to Mangalore.

2004: On August 26, Air Deccan turns into the first truly national budget carrier
with the launch of its A320 flights on the Delhi – Bangalore route.

Economic scenario:-
1. Economic factors affecting the industry:-
The economic factors affecting the Indian
airline industry are as follows:-

• How shifts and price elasticity of supply and demand affect the aviation
industry
Supply and demand price elasticity of airline carriers may vary depending on the
nature of the industry. For new and emerging industries such as the Indian
aviation sector, then price elasticity of demand and supply is near perfect. The
number of carriers being added into their markets are largely affected by the
nature of demand for the commodity the country underwent rapid economic
growth in the late nineties thus setting the stage for a shift in the country’s
business arena. Many people within India had a renewed need for utilizing
aviation services because of internationalizing their businesses. However in
 traditionally developed countries such as the US, supply has exceeded demand.
Consequently, air tickets go for much lower prices than they should. Besides that,
aircrafts are reducing their capacity to cope with decreasing demand for the
service. They are even trying to cut down on labor costs so as to cope with this
low demand in the service. This also makes it very difficult for new entrants to do
well in the industry and severely impedes their success.

• Effect of positive and negative externalities

One of the major positive externalities that one has to consider when examining
the aviation industry is its effect on the economy. Many experts have asserted that
the aviation industry has numerous effects on the GDP of the country under
consideration. For instance, a carrier provides employment to a substantial
percentage of its country’s unemployed. This means that the aviation industry
reduces unemployment rates. Also, it boosts the tourism sector and the hospitality
industry in general.

The aviation industry has the capability of exposing a certain country to new
markets. The overall effect of this is an increase in the following

• Trade improvement

• Business efficiency

• Increasing number and quality of growth sectors

• Boosts investments

• Improves other aspects of the economy

It should be noted that there are some negative externalities as well. Top on this
list is environmental emission. The aviation industry utilizes the highest amount
of fuel in the transport sector. Consequently, it is also responsible for the rising
amount of carbon emissions into the atmosphere. This is the reason why many
governments have passed laws intended on regulating the quantity of emissions
emanating from aircrafts. Aircraft companies are responding to increasing
concern for environmental sustainability by changing the designs of the engines.
 Due to technological changes, many carriers can now access engines that use as
much as seventeen percent less fuel than they did in the past. On top of this, it is
now possible to create aircrafts that encourage laminar flow thus utilizing less
fuel. However, these technological changes do not come with a price. The airline
industry was affected by this because they were the ones that had to cover costs of
these improved security measures.

Another externality affecting the aviation industry is the issue of noise regulation.
Airports are known for their noise because aircraft engines have to burn a lot of
fuel in order to take off from their respective destinations. The consumption of
fuel energy has to be countered by another form of energy i.e. sound. This is what
constitutes that heavy noise. Many airports built near residential areas have a
tendency of disrupting lives in residential areas. This is especially so during
nighttime.

• Effect of monetary and fiscal policies

Taxes within any country have a direct bearing on the performance of domestic or
foreign carriers. This is because whenever the government chooses to impose
higher taxes on the industry, then these additional costs are carried forward to the
consumer in terms of ticket prices. On the other hand, airline operators may
choose to minimize their labor costs by reducing the number of employees that
operate under their wing. The airline industry is also particularly vulnerable to
charges made by government bodies. These include issues such as air traffic
control charges and track access charges. Most of the costs incurred with regard to
the type of scheme under consideration have affected the aviation industry
negatively since these contribute to higher production costs.

Countries in which airline companies are operated by the government tend to

under-perform. These carriers are not susceptible to market forces and passengers
have very little say in the sector. However, when governments decide to liberalize
their aviation industries, then this creates a very positive impact upon airline
 operators. It encourages privately owned airlines who compete on the basis of
their quality of service rather than on monopolistic forces. A perfect example of
such a fiscal policy was in the Asian continent in India specifically. India made
the choice to liberalize their aviation industry and hence witnessed tremendous
growth within the sector. The country now boasts of seventy-five percent share
attributed to private carriers. It has also grown by a whooping twenty percent this
year.

The amount of infrastructural investment within the aviation sector has a

substantial effect on the performance of the industry. For instance, if the
government makes large investments in infrastructural facilities that support
airlines such as building more airports or improving the ones that exist, then
chances are that such an industry will perform well. It should be noted that
monetary policies are determined by governments and directly affect allocation of
resources. This is the reason why infrastructural development is usually likened to
government policy. Besides this, the government should also goes out of its way
to ascertain that most of the infrastructure necessary to make the aviation industry
successful is available for instance, building access roads to airports.

• Wage inequality and the aviation industry

The airline industry has some characteristic wage inequality issues currently.
Experts indicate that due to this wage inequality, the aviation industry has been
recording negative performance in terms of employee turnover. Most of the
employees affected by these inequalities tend to look for other alternatives outside
of the aviation industry. Generally, workers are not happy with what they are
making in the aviation sector and the situation is particularly evident in the United
States.

However, it should be noted that airline wage costs were deregulated by most
western states. Consequently, wage payments have been left in the hands of
airline operators themselves. Some of the problems faced by workers in the airline
industry today were largely determined by deregulation of these labor costs.
Research studies on employee earnings in the nineties (after wages were
 deregulated) indicated that employees began earning less. This was true in almost
all sectors, more especially in aviation. For instance, it was found that secretaries,
managers, pilots and flight attendants all registered lower earnings at that time.

Wage inequality between firms was largely evident in certain professions. For
instance what pilots earn in one particular company differs tremendously from
what they will earn in another company. This trend is especially highlighted when
one analyzes some of the union data available within the country.

• Overall summary of how the economy affects airline industry / Conclusion

The aviation industry causes positive externalities such as; encouraging tourism,
heightening employment and boosting investment within any one country. This
could bring about an overall increase in the GDP. However, some of the negative
externalities associated with the industry include emission of noise, excessive
emission of harmful gasses into the atmosphere thus causing pollution.

The aviation industry is affected by monetary and fiscal policies in that

government decisions to tax airlines eats into their operating costs. Also
investments in infrastructure have a large role to play. It can also be asserted that
the decision to liberalize the aviation industry can bring about many positive
effects into the industry. Closely linked to fiscal and monetary policy is the issue
of wage inequality. Companies that operate in countries with job losses are likely
to witness the same within aviation. However, statistics show that inter-firm
disparities in wages are quite high especially with regard to pilots. Lastly, the
aviation industry is affected by elasticity in supply and demand depending on the
size of the industry and how long it has been in operation.
PEST ANALYSIS

Political Factors

- Liberalization of the Sector

- Excise Duty and Sales Tax on Aviation Turbine Fuel

- Modernization of Airports

- Interface form Other Agencies

- Entry Barriers for New Players

Economic Factors

- Contribution to Economy

- Rising Fuel Costs

- Investments in the Sector

Social Factors
 - Developments in Airport Cities

- Employment Opportunities

- Ensuring a Level Playing Field

- Safety Regulation

Technological Factors

- Growth of Electronic Ticketing

- Satellite based Navigation Systems

- Technical Cooperation with EU

SWOT Analysis

Strengths:
*Growing tourism
* Rising income levels
* Liberal Environment
* Modern Fleet
* High Quality
* Economic Growth
* Political Stability

Weakness:
* Under penetrated Market
* Untapped Air Cargo Market
* Infrastructural constraints
* Airport Infrastructure
* Airways Infrastructure
* National Carrier
* Deep Pockets
* High Cost Structure
* Skilled Resources

Opportunities:
* Expecting investments
* Expected Market Size
* Market Growth
* Geographic Location
* Lower Costs, Higher Quality

Threats:
* Shortage of trained Pilots
* Shortage of Airports
* High prices
* Middle East Aviation
* Terrorism

Domestic air traffic development and market

share of Indian airlines:-

India’s air travel market has bounced back spectacularly in the second half of
2009 with year-on-year growth in the domestic market consistently over 20%. However,
given the dramatic collapse in demand in the second half of 2008 what this really
represents is a return to the demand levels seen in 2007.
Source: Airports Authority of India

During 2009 Kingfisher lost its position as the leading domestic airline to Jet Airways
(when combined with demand for its Jet Lite operation). However, these two carriers still
account for around half of all domestic traffic.
Source: DGCA India

Indian Airlines gained market share in 2009, as did GoAir which saw its share of the
domestic market double from 2.5% in January to over 5% in December. Indigo and
Spicejet also made small gains in market share as MDLR ceased operations at the
beginning of October.

Current Market Share of Indian Airlines Industry

Jet Airways and Jet Lite 26.9%
Kingfisher Airlines 19.8%
NACIL 18.7%
IndiGo 16.2%
SpiceJet 12.6%
GoAir 5.8%

Technological Developments

Aircraft makers are focused on reducing fuel consumption, and operating costs in
general, in the battle to win orders from airlines. Fuel costs, which can account
for 50% of an airline’s operating costs, can make or break an airline. Boeing says
that its 787 Dreamliner will cut fuel use by 20%, thanks to new engines, and the
use of lightweight composite materials. Meanwhile, EADS says that the A380 is
the first long-haul aircraft to consume less than three liters of fuel per passenger
over 100km, a rate comparable to an economical family car. It claims that the
A380’s efficiency and advanced technology result in 15–20% lower seat-mile
costs than those of competitor aircraft. Fuel-efficient engines and the use of
advanced composite materials have played a vital role in reducing the
A380’s operating costs. The airframe is made up of some 25% composite
material, by weight, while the Airbus A350XWB, due to enter production in 2010,
will comprise around 50% composite material.

Boeing and Airbus are also engaged in developing alternative fuels. The engine makers,
Pratt & Whitney, Rolls-Royce, and General Electric are all involved, and the momentum
is being maintained, even though oil prices have fallen considerably from their mid-2008
peaks. In January 2009, Alan Epstein, Vice-President of Technology and Environment at
Pratt & Whitney, said, “It’s the first time in the history of jet aviation that the world is
seriously considering going to a totally new fuel.” IATA has a goal of 10% alternative
fuels by 2017, while in the US, the Federal Aviation Administration is encouraging the
use of new fuels. Several flights have already taken place using biofuels. In January
2009, for example, Air New Zealand flew a four-engine Boeing 747 with one engine on a
50% biofuel mix. During the same month, a Japanese Airlines 747 flew with one engine
powered by a biofuel made primarily from camelina.

MARKET LEADER
(JET AIRWAY)

Company profile:-
 Jet Airways, an airline based in India, serves
domestic as well as international routes. It commenced its operations as an air
taxi operator in 1993 with four aircraft; it was granted the scheduled airline status
in January 1995. Jet Airways, which started with 24 flights per day across 12
destinations, now operates over 320 daily flights.The company was a 100-per
cent subsidiary of Tail Winds Limited till it listed its equity shares on the National
Stock Exchange of India Limited and the Stock Exchange, Mumbai, in March
2005.Jet Airways connects 49 destinations across the globe – 44 destinations
within India and five international destinations that include London, Kuala
Lumpur, Singapore, Kathmandu and Colombo. The company has multiple
reservation and ticketing networks comprising global distribution suppliers,travel
agents and sales agents in India and 74 other countries. It has a wide cross
section of partnerships and alliances, some of with are, with airlines such as
British Airways, KLM Royal Dutch Airlines, Northwest Airlines, Austrian,
Lufthansa and Swiss International; Indian and international hotel groups such as
The Hyatt, Swissotel,The Oberoi, ITC-Welcomgroup and Hilton; banks such as
Citibank; car rental companies such as AVIS and Hertz and telecommunication
and other service providers. Jet Airways became the first airline in India to
receive the ‘World Travel Ma at the global travel event in London. It has won the
‘H&FS Domestic Airline of the Year Award’ four times since its inception. It has
also received the Boeing Company's ‘Pride in Excellence’ award for maintaining
'Best Technical Despatch Reliability' in 2003 and 2004. In India, Jet Airways is
the leading airline in terms of revenue passengers; it holds a 36-per cent share in
the market.

History

Jet Airways is one of India's premier private airlines. It was incorporated as an ?

air taxi? operator in April, 1992. Jet Airways started its commercial airline
operations on 5 May 1993 with a fleet of 4 Boeing 737-300 aircrafts and 24 daily
flights serving 12 destinations. In January 1994 a change in the law enabled Jet
Airways to apply for scheduled airline status, which was granted on 4 January
1995. It began international operations to Sri Lanka in March 2004.

Jet Airways was set up by Naresh Goyal, who owned Jetair Private Limited
which provided sales and marketing for foreign airlines in India. Jet Airways was
started as a full-service scheduled airline that would give competition to state-
owned Indian Airlines, who had enjoyed monopoly in the domestic market since
1953. Jet Airways acquired its scheduled airline status in January 1994, when
the Air Corporations Act (1953) was repealed.

In January 2006, Jet Airways announced its decision to buy Air Sahara, the only
other major private airline, making it the biggest takeover in Indian aviation
history. The resulting airline would have been the country's largest, but the deal
fell through in June 2006. However, a modified deal went through in January
2007.

SWOT ANALYSIS

Strengths

• Market driver
• Experience exceeding 16 years
• Only private airlines with international operation
 • Market leader
• Largest fleet size

Weakness
• weak brand promotion
• scope for improvement in in-flight service
• old fleet with average age around 4.79 years

Opportunities

• untapped air cargo market

• scope in international service and tourism

Threats

• strong competitors
• fuel hike price
• overseas market competition

PEST ANALYSIS

Political Issues

• ATF price policy

• Infrastructural constraints
• License issues for international operation.
Economic Effects
• Rising income level
• Reduced fare but not enough

Social Effects

• Hi-jacking
• 9/11 incident
• Sound pollution

Technology Effects

• Modernization of aircrafts
• Modern technology like cat3 and Ils

Jet Airways (India) Ltd. -

Balance sheet
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds
Owner's fund

Equity share capital 86.33 86.33 86.33 86.33 86.33

 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 740.68 1,208.32 1,765.42 2,018.48 2,057.53

Loan funds
Secured loans 3,973.68 4,775.92 1,612.75 742.46 206.02

Unsecured loans 9,923.30 11,547.61 10,402.29 5,313.84 4,689.58

Total 14,723.99 17,618.18 13,866.79 8,161.11 7,039.46

Uses of funds
Fixed assets

Gross block 17,932.75 18,763.74 16,591.09 5,713.83 4,312.07

Less : revaluation reserve 1,814.97 1,862.30 2,699.90 132.44 162.02

Less : accumulated depreciation 3,502.83 2,501.80 2,506.92 2,416.34 2,249.58

Net block 12,614.95 14,399.64 11,384.27 3,165.05 1,900.47

Capital work-in-progress 299.60 583.17 1,223.28 3,994.52 2,725.66

Investments 1,745.00 1,745.00 1,475.35 68.93 187.23

Net current assets

Current assets, loans & advances 3,782.20 4,350.70 4,145.67 3,402.32 4,091.31

Less : current liabilities & provisions 3,717.76 3,460.33 4,361.78 2,469.71 1,865.21

Total net current assets 64.44 890.37 -216.11 932.61 2,226.10

Miscellaneous expenses not written - - - - -

Total 14,723.99 17,618.18 13,866.79 8,161.11 7,039.46

Notes:
Book value of unquoted investments 1,645.00 1,645.00 1,465.00 - -

Market value of quoted investments 100.01 100.02 10.35 69.01 190.06

Contingent liabilities 14,656.19 16,325.90 14,284.97 6,624.43 9,736.40

Number of equity sharesoutstanding (Lacs) 863.34 863.34 863.34 863.34 863.34

Jet Airways (India) Ltd. -

Profit loss account(Rs crore)
 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Income
Operating income 10,438.57 11,571.15 8,811.10 7,057.78 5,693.73

Expenses
Material consumed - - - - 63.12

Manufacturing expenses 5,265.69 7,446.48 5,129.92 3,667.20 2,456.60

Personnel expenses 1,226.55 1,410.50 1,205.18 938.55 567.81

Selling expenses 984.91 1,098.17 982.86 800.85 774.02

Adminstrative expenses 853.94 1,017.54 739.24 616.12 420.02

Expenses capitalized - - - - -

Cost of sales 8,331.09 10,972.69 8,057.20 6,022.72 4,281.57

Operating profit 2,107.48 598.46 753.90 1,035.06 1,412.16

Other recurring income 152.04 112.27 115.23 90.36 77.36

Adjusted PBDIT 2,259.52 710.73 869.13 1,125.42 1,489.52

Financial expenses 1,824.74 1,450.86 1,056.03 909.70 691.24

Depreciation 961.96 899.81 777.80 414.10 406.41

Other write offs - - - - -

Adjusted PBT -527.18 -1,639.94 -964.70 -198.38 391.87

Tax charges 78.97 22.21 -160.73 23.42 270.22

Adjusted PAT -606.15 -1,662.15 -803.97 -221.80 121.65

Non recurring items 97.78 331.48 522.01 225.25 289.38

Other non cash adjustments 40.73 928.33 28.90 24.49 41.01

Reported net profit -467.64 -402.34 -253.06 27.94 452.04

Earnigs before appropriation -729.08 -261.44 208.91 525.37 601.71

Equity dividend - - - 51.80 51.80

Preference dividend - - - - -

Dividend tax - - - 8.80 7.27

Retained earnings -729.08 -261.44 208.91 464.77 542.64

Jet Airways (India) Ltd. –
Share holding
Share holding pattern as on : 30/09/2010 30/06/2010 31/03/2010

Face value 10.00 10.00 10.00

No. Of Shares % Holding No. Of Shares % Holding No. Of Shares % Holding

Promoter's holding

Indian Promoters 11548 0.01 11548 0.01 11548 0.01

Foreign Promoters 69057210 79.99 69057210 79.99 69057210 79.98

Sub total 69068758 80.00 69068758 80.00 69068758 79.99

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 2788469 3.23 2904959 3.36 2894959 3.35

FII's 6126218 7.10 5508431 6.38 5749428 6.66

Sub total 14525232 16.82 13469257 15.60 13144412 15.22

Other investors

Private Corporate Bodies 482863 0.56 1132926 1.31 956260 1.11

NRI's/OCB's/Foreign Others 80076 0.09 106516 0.12 140141 0.16

Others 112331 0.13 69180 0.08 182791 0.21

Sub total 675270 0.78 1308622 1.52 1279192 1.48

General public 2064751 2.39 2487374 2.88 2851649 3.30

Grand total 86334011 100.00 86334011 100.00 86344011 100.00

Jet Airways (India) Ltd. -
Quarterly results in brief(Rs crore)
Sep ' 10 Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09

Sales 3,105.04 2,965.01 2,777.87 2,885.59 2,325.02

Operating profit 470.79 402.29 419.20 508.51 44.24

Interest 249.30 274.47 264.87 248.00 236.54

Gross profit 257.09 186.02 253.63 311.34 -136.35

EPS (Rs) 1.44 0.41 6.79 12.26 -47.11

Quarterly results in details

Sep ' 10 Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09

Other income 35.60 58.20 99.30 50.83 55.95

Stock adjustment - - - - -

Raw material - - - - -

Power and fuel 994.21 995.92 846.30 887.86 780.00

Employee expenses 320.86 306.53 306.42 289.76 301.92

Excise - - - - -

Admin and selling expenses 318.60 269.65 215.38 292.39 250.84

Research and development expenses - - - - -

Expenses capitalized - - - - -

Other expenses 1,000.58 990.62 990.57 907.07 948.02

Provisions made - - - - -

Depreciation 233.96 226.38 236.04 243.74 235.87

Taxation 0.03 0.02 0.02 0.05 -

Net profit / loss 12.40 3.52 58.58 105.80 -406.69

Extra ordinary item -10.70 43.90 41.01 38.25 -34.47

Prior year adjustments - - - - -

Equity capital 86.33 86.33 86.33 86.33 86.33

Equity dividend rate - - - - -

Agg.of non-prom. shares (Lacs) 172.65 172.65 172.65 172.65 172.65

Agg.of non promotoholding (%) 20.00 20.00 20.00 20.00 20.00

OPM (%) 15.16 13.57 15.09 17.62 1.90

 Sep ' 10 Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09

GPM (%) 8.19 6.15 8.82 10.60 -5.73

NPM (%) 0.39 0.12 2.04 3.60 -17.08

Jet Airways (India) Ltd. -

Annual results in brief(Rs crore)
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sales 10,359.69 11,476.98 8,811.10 7,057.78 5,693.73

Operating profit 1,153.74 -306.75 187.55 362.08 928.53

Interest 993.01 738.03 492.75 240.15 241.60

Gross profit 423.96 -734.88 365.21 465.46 1,128.67

EPS (Rs) -54.17 -46.60 -29.17 3.24 52.36

Annual results in details

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Other income 263.23 309.90 670.41 343.53 441.74

Stock adjustment - - - - -

Raw material - - - - -

Power and fuel 3,151.65 4,915.01 - - 1,678.93

Employee expenses 1,226.55 1,410.50 1,205.18 938.12 567.15

Excise - - - - -

Admin and selling expenses 984.91 1,098.17 336.18 241.95 208.76

Research and development expenses - - - - -

Expenses capitalized - - - - -

Other expenses 3,842.84 4,360.05 7,082.19 5,515.63 2,310.36

Provisions made - - - - -

Depreciation 961.96 899.81 777.80 414.10 406.41

Taxation 0.09 -67.28 -160.73 23.42 270.22

Net profit / loss -467.64 -402.34 -251.86 27.94 452.04

Extra ordinary item 70.45 1,165.07 - - -

Prior year adjustments - - -1.20 - -

Equity capital 86.33 86.33 86.33 86.33 86.33

Equity dividend rate - - - - -

Agg.of non-prom. shares (Lacs) 172.65 172.65 172.65 172.66 172.66

Agg.of non promotoHolding (%) 20.00 20.00 20.00 20.00 20.00

 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

OPM (%) 11.14 -2.67 2.13 5.13 16.31

GPM (%) 3.99 -6.23 3.85 6.29 18.40

NPM (%) -4.40 -3.41 -2.66 0.38 7.37

Jet Airways (India) Ltd. -

Ratios(Rs crore)
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Per share ratios

Adjusted EPS (Rs) -70.21 -192.53 -93.12 -25.69 14.09

Adjusted cash EPS (Rs) 41.21 -88.30 -3.03 22.27 61.16

Reported EPS (Rs) -54.17 -46.60 -29.31 3.24 52.36

Reported cash EPS (Rs) 57.26 57.62 60.78 51.20 99.43

Dividend per share - - - 6.00 6.00

Operating profit per share (Rs) 244.11 69.32 87.32 119.89 163.57

Book value (excl rev res) per share (Rs) 95.79 149.96 214.49 243.80 248.32

Book value (incl rev res) per share (Rs.) 306.02 365.67 527.21 259.14 267.09

Net operating income per share (Rs) 1,209.09 1,340.28 1,020.58 817.50 659.50

Free reserves per share (Rs) 79.35 133.52 198.05 227.36 231.88

Profitability ratios
Operating margin (%) 20.18 5.17 8.55 14.66 24.80

Gross profit margin (%) 10.97 -2.60 -0.27 8.79 17.66

Net profit margin (%) -4.41 -3.44 -2.83 0.39 7.83

Adjusted cash margin (%) 3.35 -6.52 -0.29 2.69 9.15

Adjusted return on net worth (%) -73.29 -128.38 -43.41 -10.53 5.67

Reported return on net worth (%) -56.54 -31.07 -13.66 1.32 21.08

Return on long term funds (%) 12.12 -1.41 0.74 9.53 16.80

Leverage ratios
Long term debt / Equity 11.94 9.33 5.63 2.75 2.21

Total debt/equity 16.80 12.61 6.49 2.88 2.28

Owners fund as % of total source 5.61 7.34 13.35 25.79 30.45

Fixed assets turnover ratio 0.59 0.62 0.53 1.28 1.38

 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Liquidity ratios
Current ratio 1.02 1.26 0.95 1.38 2.19

Current ratio (inc. st loans) 0.33 0.37 0.60 1.07 1.66

Quick ratio 0.86 1.09 0.77 1.18 1.97

Inventory turnover ratio 4,349.40 7,370.16 2,143.82 5,601.41 4,951.07

Payout ratios
Dividend payout ratio (net profit) - - - 216.89 13.06

Dividend payout ratio (cash profit) - - - 13.70 6.88

Earning retention ratio - - - 127.32 51.45

Cash earnings retention ratio 100.00 - - 68.49 88.82

Coverage ratios
Adjusted cash flow time total debt 39.06 - - 31.49 9.27

Financial charges coverage ratio 1.24 0.48 0.82 1.24 2.15

Fin. charges cov.ratio (post tax) 1.27 1.34 1.50 1.49 2.24

Component ratios
Material cost component (% earnings) - - - - 1.10

Selling cost Component 9.43 9.49 11.15 11.34 13.59

Exports as percent of total sales 39.11 42.29 29.47 26.39 24.10

Import comp. in raw mat. Consumed - - - - -

Long term assets / total Assets 0.79 0.79 0.76 0.67 0.53

Bonus component in equity capital (%) 10.89 10.89 10.89 10.89 10.89

Jet Airways (India) Ltd. –

Capital structure(Rs crore)

From Paid Up Shares Paid Up Face

Year To Year Class Of Share Authorized Capital Issued Capital (Nos) Value Paid Up Capital

2009 2010 Equity Share 180.00 86.33 86334011 10 86.33

2008 2009 Equity Share 180.00 86.33 86334011 10 86.33

2007 2008 Equity Share 180.00 86.33 86334011 10 86.33

2006 2007 Equity Share 180.00 86.33 86334011 10 86.33

2005 2006 Equity Share 130.00 86.33 86334011 10 86.33

From Paid Up Shares Paid Up Face
Year To Year Class Of Share Authorized Capital Issued Capital (Nos) Value Paid Up Capital

2004 2005 Equity Share 130.00 86.33 86334011 10 86.33

2003 2004 Equity Share 100.00 72.09 72088900 10 72.09

Competitors of Jet Airways

(Kingfisher Airline, Air India, Spice Jet)

1. Kingfisher Airline

Company profile:-
Kingfisher Airlines Ltd is the largest charter aviation
company in India. Their principal activity is to provide commercial passenger
airline and private helicopter and airplane chartering services in India. Their
business unit Air Deccan, is India's low cost carrier. Kingfisher Airlines Ltd was
incorporated in June 15, 1995 as a private limited company with the name
Deccan Aviation. The company was promoted by G R Gobinath, K J Samuel and
Vishnu Singh Rawal. In January 2005, the company was converted into a public
limited company. In September 1997, the company opened their first base at
Jakkur and launched their first Helicopter. In June 1998, they opened their
second base in Hyderabad and in December 1998, they commenced offshore
flying operations. In June 2001, the company introduced first fixed wing aircraft
and in November, they introduced the second fixed wing aircraft. In August 2003,
first Air Deccan flights take place on Bangalore to Hubli and Bangalore to
Mangalore. In December 2003, the company incorporated Deccan Aviation
(Lanka) Pvt Ltd, which is a joint venture company. The company was established
as a 52% subsidiary company to undertake helicopter services and airline
operations in Sri Lanka. In August 2004, they introduced first Airbus A 320. In
March 2005, Air Deccan, entered into tie up arrangement with Club HP. In June
27, 2005, Deccan Aviation (Lanka) Pvt Ltd ceased to be a subsidiary consequent
to the transfer of 4% of their share to Srilanka nationals.
In March 2007, they forayed into Air Cargo Business through a wholly owned
subsidiary. The company hived off Charter Services into a separate entity and
also transfers the Maintenance and Repair Facility into a separate entity. The
Airline business of Kingfisher Airlines Ltd merged with the company with effect
from April 1, 2008 and the name of the company was changed to Kingfisher
Airlines Ltd.

History

Kingfisher Airlines began its operations on 9 May 2005, following the lease of
four Airbus A320 aircraft. The inaugural flight was from Mumbai to Delhi. On
June 15, 2005, it became the first (and only) Indian airline to order the Airbus
A380. It placed orders for five A380s, five Airbus A350-800 aircraft and five
Airbus A330-200 aircraft in a deal valued at over $3 billion. Delivery of the A330s
was due to start in late 2007, followed by the A380s in 2010 and the A350s in
2012.

Ever since its launch in May 2005, Kingfisher Airlines has blazed a trail of
innovations and introduced a range of market-firsts that have completely
redefined the whole experience of flying. By elevating its customers to a level of
being ‘guests’ and not just passengers, Kingfisher Airlines has endeared itself to
consumers. Kingfisher Airlines was the first Indian airline to introduce in-flight
entertainment (IFE) system on domestic flights. Passengers on-board are
provided complimentary ‘welcome kit’ that contains a pen, facial tissue and
headphone to use with the IFE system. Kingfisher Airlines has made alliance with
Dish TV to provide live TV entertainment to passengers.

As of July 2007, Kingfisher operates only on domestic routes; however it started

its international operations on 3rd September, 2008 with a flight between
Bangalore and London, and later on added new international destinations,
namely Hong Kong, Dhaka, Colombo, Singapore, Dubai and Bangkok. However,
on 15th September 2009, Kingfisher Airlines withdrew the London service.

On December 19th, 2007 Air Deccan and Kingfisher Airlines decided to merge.
Kingfisher Airlines’ parent company United Breweries (UB Group) have acquired
46% of Air Deccan’s parent Deccan Aviation, which possesses 52% of the total
stakes.

In May 2009, Kingfisher Airlines carrier over a million passengers that provided it
the highest market share among the airlines in India.
SWOT ANALYSIS

Strengths
• Strong brand value and reputation in minds of customers.
• Quality of service
• Innovation
• Route rationalization
• First airline to have a new fleet of airbuses.

Weakness
• High ticketing price
• Facing a tough competition with competitors

Opportunities
• Expanding tourism industry
• Untapped air cargo market.
• Non penetrated domestic market

Threats
• Competitors
• Fuel price hike
• Infrastructure issues
• Promotions and sponsorship declining
PEST ANALYSIS

Political factors:-
• Open sky policy
• FDI limits : 100% for Greenfield airports
74% for existing airports
100% through special permission
49% for airlines

Economic factors:-
• Contribution for Indian economy
• Rising cost of fuel
• Investment in the sector of aviation
• The growth of middle income group family affects the aviation sector.

Social factors:-
• Employment opportunities
• Safety regulations
• Developments of city leads to better services and airports.
• The status symbol attached to a plane travel.

Technological factors:-
 • The growth of e-commerce and e- ticketing
• Satellite based navigation system
• Modernization and privatization of the airports

Kingfisher Airlines Ltd.

Balance sheet(Rs crore)
Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Sources of funds
Owner's fund

Equity share capital 265.91 265.91 135.80 135.47 98.18

Share application money 7.48 8.11 10.09 - -

Preference share capital 97.00 97.00 - - -

Reserves & surplus -4,268.84 -2,496.36 52.99 249.23 125.95

Loan funds
Secured loans 4,842.43 2,622.52 592.38 716.71 448.16

Unsecured loans 3,080.17 3,043.04 342.00 200.00 3.50

Total 4,024.15 3,540.21 1,133.26 1,301.41 675.80

Uses of funds
Fixed assets

Gross block 2,048.14 1,891.80 322.33 340.77 247.33

Less : revaluation reserve - - - - -

Less : accumulated depreciation 493.62 316.29 43.55 33.74 16.40

Net block 1,554.51 1,575.52 278.78 307.03 230.93

Capital work-in-progress 980.61 1,630.95 346.25 357.62 286.53

Investments 0.05 0.05 - 0.41 0.41

Net current assets

Current assets, loans & advances 5,298.13 4,189.37 1,188.41 1,063.68 558.83

Less : current liabilities & provisions 3,954.80 3,860.18 696.83 456.09 439.98
 Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Total net current assets 1,343.34 329.19 491.58 607.59 118.85

Miscellaneous expenses not written 145.64 4.51 16.64 28.75 39.08

Total 4,024.15 3,540.21 1,133.26 1,301.41 675.80

Notes:
Book value of unquoted investments 0.05 0.05 - 0.41 0.41

Market value of quoted investments - - - - -

Contingent liabilities 23,135.77 27,468.70 6,797.11 7,485.33 8,935.97

Number of equity sharesoutstanding (Lacs) 2659.09 2659.09 1357.99 1354.70 981.82

Kingfisher Airlines Ltd. -

Profit loss account(Rs crore)
Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Income
Operating income 5,067.92 5,269.17 1,456.28 1,800.21 1,285.42

Expenses
Material consumed 40.89 51.19 43.79 45.94 36.73

Manufacturing expenses 2,911.81 3,715.47 1,297.51 1,597.06 1,050.93

Personnel expenses 689.38 825.42 244.96 247.72 163.04

Selling expenses 687.02 683.82 85.00 17.90 13.48

Adminstrative expenses 489.10 546.47 110.20 154.00 134.68

Expenses capitalised - - - - -

Cost of sales 4,818.20 5,822.36 1,781.46 2,062.61 1,398.86

Operating profit 249.72 -553.19 -325.17 -262.40 -113.44

Other recurring income 72.08 594.43 48.64 29.98 8.45

Adjusted PBDIT 321.80 41.24 -276.54 -232.42 -104.98

Financial expenses 2,245.59 2,029.33 434.44 466.05 250.72

Depreciation 162.80 133.20 18.28 17.67 13.34

Other write offs 54.49 38.39 18.31 26.25 18.94

Adjusted PBT -2,141.08 -2,159.68 -747.57 -742.39 -387.99

Tax charges -770.69 -546.38 -494.45 3.40 3.75

Adjusted PAT -1,370.39 -1,613.30 -253.12 -745.79 -391.73

 Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Non recurring items -405.38 4.47 64.98 312.12 51.19

Other non cash adjustments 31.28 - -0.97 14.09 -

Reported net profit -1,744.49 -1,608.83 -189.10 -419.58 -340.55

Earnigs before appropriation -4,321.08 -2,576.59 -967.76 -778.65 -359.08

Equity dividend - - - - -

Preference dividend - - - - -

Dividend tax - - - - -

Retained earnings -4,321.08 -2,576.59 -967.76 -778.65 -359.08

Kingfisher Airlines Ltd. –

Share holding
Share holding pattern as on : 30/09/2010 30/06/2010 31/03/2010

Face value 10.00 10.00 10.00

No. Of Shares % Holding No. Of Shares % Holding No. Of Shares % Holding

Promoter's holding

Indian Promoters 147537424 55.48 147537424 55.48 147537424 55.48

Foreign Promoters 28680501 10.79 28680501 10.79 28680501 10.79

Sub total 176217925 66.27 176217925 66.27 176217925 66.27

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 1293095 0.49 1295720 0.49 1336620 0.50

FII's 14725123 5.54 13625643 5.12 11778061 4.43

Sub total 32888072 12.37 27194348 10.23 29335502 11.03

Other investors

Private Corporate Bodies 22328981 8.40 26582412 10.00 28020230 10.54

NRI's/OCB's/Foreign Others 5610034 2.11 1578816 0.59 1442267 0.54

Others 621364 0.23 2200082 0.83 2360570 0.89

Sub total 27854579 10.48 29655510 11.15 31117267 11.70

 No. Of Shares % Holding No. Of Shares % Holding No. Of Shares % Holding

General public 28242507 10.62 32135300 12.09 28532389 10.73

Grand total 265203083 99.73 265203083 99.73 265203083 99.73

Kingfisher Airlines Ltd. -

Ratios(Rs crore)
Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Per share ratios

Adjusted EPS (Rs) -51.54 -60.67 -18.64 -55.05 -39.90

Adjusted cash EPS (Rs) -43.36 -54.22 -15.94 -51.81 -36.61

Reported EPS (Rs) -61.95 -60.50 -13.85 -30.97 -34.69

Reported cash EPS (Rs) -53.78 -54.05 -11.16 -27.73 -31.40

Dividend per share - - - - -

Operating profit per share (Rs) 9.39 -20.80 -23.95 -19.37 -11.55

Book value (excl rev res) per share (Rs) -156.01 -84.05 12.68 26.27 18.85

Book value (incl rev res) per share (Rs.) -156.01 -84.05 12.68 26.27 18.85

Net operating income per share (Rs) 190.59 198.16 107.24 132.89 130.92

Free reserves per share (Rs) -166.01 -94.05 2.68 15.46 8.08

Profitability ratios
Operating margin (%) 4.92 -10.49 -22.32 -14.57 -8.82

Gross profit margin (%) 1.71 -13.02 -23.58 -15.55 -9.86

Net profit margin (%) -32.04 -27.43 -12.50 -22.92 -26.31

 Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Adjusted cash margin (%) -22.43 -24.58 -14.38 -38.34 -27.78

Adjusted return on net worth (%) - - -147.04 -209.52 -211.67

Reported return on net worth (%) - - -109.29 -117.87 -184.01

Return on long term funds (%) 4.76 -7.90 -36.52 -36.27 -22.19

Leverage ratios
Long term debt / Equity - - 3.54 0.98 1.76

Total debt/equity - - 4.95 2.38 2.02

Owners fund as % of total source -99.65 -63.14 16.80 29.56 33.16

Fixed assets turnover ratio 2.53 2.85 4.61 5.37 5.24

Liquidity ratios
Current ratio 1.34 1.09 1.71 2.33 1.27

Current ratio (inc. st loans) 0.78 0.64 0.96 0.79 1.01

Quick ratio 0.57 0.52 0.87 2.20 1.14

Inventory turnover ratio 4,659.30 5,738.39 - 28.80 21.59

Payout ratios
Dividend payout ratio (net profit) - - - - -

Dividend payout ratio (cash profit) - - - - -

Earning retention ratio - - - - -

Cash earnings retention ratio - - - - -

Coverage ratios
Adjusted cash flow time total debt - - - - -

Financial charges coverage ratio 0.14 0.02 -0.63 -0.49 -0.41

Fin. charges cov.ratio (post tax) 0.36 0.29 0.65 0.19 -0.22

Component ratios
Material cost component (% earnings) 0.80 0.97 3.00 2.55 2.85

Selling cost Component 13.55 12.97 5.83 0.99 1.04

Exports as percent of total sales 13.79 4.54 3.42 18.56 8.65

Import comp. in raw mat. consumed - - - - -

Long term assets / total Assets 0.31 0.43 0.34 0.38 0.48

Bonus component in equity capital (%) 10.26 10.26 20.09 20.14 27.78

Kingfisher Airlines Ltd. -

Capital structure(Rs crore)
From Paid Up Shares Paid Up Face
Year To Year Class Of Share Authorized Capital Issued Capital (Nos) Value Paid Up Capital

2009 2010 Equity Share 900.00 265.91 265908883 10 265.91

2008 2009 Equity Share 400.00 265.91 265908883 10 265.91

2007 2008 Equity Share 400.00 135.80 135798503 10 135.80

2006 2007 Equity Share 150.00 135.47 135470118 10 135.47

2005 2006 Equity Share 125.00 98.18 98182007 10 98.18

2004 2005 Equity Share 60.00 31.06 1501298 1 0.15

2004 2005 Equity Share 60.00 31.06 1604890 100 16.05

2003 2004 Equity Share 32.00 30.39 1501298 1 0.15

2003 2004 Equity Share 32.00 30.39 1537160 100 15.37

2002 2003 Equity Share 10.00 10.00 200000 100 2.00

2002 2003 Equity Share 10.00 10.00 800000 1 0.08

Kingfisher Airlines Ltd. -

Quarterly results in brief(Rs crore)

Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09 Jun ' 09

Sales 1,640.58 1,259.78 1,352.46 1,142.15 1,313.54

Operating profit 82.50 -335.55 -95.67 -350.55 -117.60

Interest 321.24 374.67 288.99 262.43 170.42

Gross profit -194.56 -550.15 -366.67 -598.69 -277.24

EPS (Rs) -7.05 -21.28 -15.79 -15.75 -9.13

Quarterly results in details

Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09 Jun ' 09

Other income 44.18 160.07 17.99 14.30 10.77

Stock adjustment - - - - -

Raw material - - - - -

Power and fuel 585.57 483.86 444.55 460.63 413.95

Employee expenses 163.40 190.05 170.08 172.37 156.26

Excise - - - - -

Admin and selling expenses - - - - -

Research and development expenses - - - - -

 Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09 Jun ' 09

Expenses capitalised - - - - -

Other expenses 809.11 921.42 833.50 859.71 860.92

Provisions made - - - - -

Depreciation 64.89 96.62 53.82 33.73 33.12

Taxation -76.52 -238.89 -218.13 -232.77 -80.90

Net profit / loss -187.35 -565.77 -419.96 -418.78 -242.71

Extra ordinary item -4.42 -157.89 -217.60 -19.13 -13.26

Prior year adjustments - - - - -

Equity capital 265.91 265.91 265.91 265.91 265.91

Equity dividend rate - - - - -

Agg.of non-prom. shares (Lacs) 896.91 896.91 896.91 896.91 896.91

Agg.of non promotoholding (%) 33.73 33.73 33.73 33.73 33.73

OPM (%) 5.03 -26.64 -7.07 -30.69 -8.95

GPM (%) -11.55 -38.75 -26.76 -51.77 -20.93

NPM (%) -11.12 -39.85 -30.64 -36.21 -18.33

Kingfisher Airlines Ltd. -

Annual results in brief(Rs crore)
Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Sales 5,067.92 5,269.17 1,441.39 1,774.55 1,236.39

Operating profit -899.37 -1,396.54 -742.44 -677.61 -387.98

Interest 1,096.51 696.23 50.38 62.40 31.95

Gross profit -1,792.75 -1,784.47 -688.77 -372.25 -304.52

EPS (Rs) -61.95 -60.50 -13.85 -30.97 -34.69

Annual results in details

Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Other income 203.12 308.30 104.05 367.76 115.41

Stock adjustment - - - - -

Raw material - - - - -

Power and fuel 1,802.99 2,602.62 889.30 979.50 625.45

Employee expenses 688.75 823.85 254.69 251.79 170.62

Excise - - - - -

Admin and selling expenses - - - 131.27 109.12

 Mar ' 10 Mar ' 09 Mar ' 08 Jun ' 07 Jun ' 06

Research and development expenses - - - - -

Expenses capitalised - - - - -

Other expenses 3,475.55 3,239.24 1,039.84 1,089.60 719.18

Provisions made - - - - -

Depreciation 217.29 133.20 18.28 43.92 32.28

Taxation -770.69 -546.38 -494.45 3.41 3.75

Net profit / loss -1,647.22 -1,608.83 -188.14 -419.58 -340.55

Extra ordinary item -407.88 -237.54 24.46 - -

Prior year adjustments - - - - -

Equity capital 265.91 265.91 135.80 135.47 98.18

Equity dividend rate - - - - -

Agg.of non-prom. shares (Lacs) 896.91 1048.08 448.84 1133.08 760.20

Agg.of non promotoHolding (%) 33.73 33.73 33.05 83.64 77.43

OPM (%) -17.75 -26.50 -51.51 -38.18 -31.38

GPM (%) -34.01 -31.99 -44.57 -17.38 -22.53

NPM (%) -31.25 -28.85 -12.17 -19.59 -25.19

2. Air India

Company profile:-
Air-India began operating in 1932 as Tata Airlines,
named after J. R. D. Tata, its founder. The line carried mail and passengers
between the Indian cities of Ahmadabad, Bombay, Bellary, and Madras, and
Karachi, Pakistan. Within a few years Tata Airlines' routes included the Indian
cities of Trivandrum, Delhi, Colombo (in Sri Lanka), Lahore, and other locations
in between.

In 1946, at the conclusion of World War II, the airline became a public company
and was renamed Air-India Limited. In just two years, with the government
having a 49 percent share in the company, the airline was flying further outside of
India, with regular flights to Cairo, Geneva, and London. The line's name
changed again to reflect its new scope of operations, becoming Air-India
International Limited. India enjoyed more success in the airline industry than
most other developing countries for a number of reasons. Whereas others had to
rely on foreign pilots to fly their planes, Air-India used mostly native-born pilots.
Similarly, skilled Indians were plentiful enough to maintain India's fleet as well as
to train and supervise its personnel; many other countries had to go outside for
this kind of expertise. Air-India benefited from these advantages along with its
sister carriers.

Air-India first encountered competition for its routes in the early 1950s. No fewer
than 21 airlines had been established, with 11 of them licensed to fly the skies of
India. A 1985 article in the Economist cited Tata's foresight of what this plethora
of airlines could lead to: "The scene was well and truly set for the ultimate
debacle."

Indian Airlines Corporation, which merged Air-India Limited with six smaller lines,
served the country's domestic travel needs. Air-India International Corporation
flew routes overseas. By 1960 the international airline had routes to Singapore,
Sydney, Moscow, and New York. By 1962, when the name was shortened to Air-
India, it had become the world's first all-jet airline.

History

The national flag carrier of India with a worldwide network of passenger and
cargo services, Air India is the only state-owned airline in the country, having
recently merged with Indian Airlines. With its main base at Chhatrapati Shivaji
International Airport, Mumbai and Indira Gandhi International Airport, Delhi, Air
India connects 146 international and domestic destinations around the world,
including 12 gateways in India with Air India Express, a fully-owned subsidiary of
Air India. Air India plans to join Star Alliance and has ordered 27 Boeing 787 (+7
options), to be delivered after 2009.

In 1932, Air India began its journey under the aegis of Tata Airlines, a division of
Tata Sons Ltd. (now Tata Group). Following World War II in 1946, regular
commercial service was restored in India and Tata Airlines became a public
limited company under the name of Air India. Under the Air Corporations Act of
1953, the Government nationalised the air transportation industry and Air India
International Limited was born. In 1960, Air India flew its first international flight to
New York via London. In 1962, Air India became the world's first all-jet airline and
its name was officially truncated to Air India.

In 2007, Air India and Indian Airlines merged into one airline, with its name
remaining Air India. Air India is now a part of Star Alliance and is supposed to be
joined by Alliance Air and Air India Express soon.

SWOT ANALYSIS

Strengths

• Air India has been the largest air carrier in India in terms of traffic volume
and company assets.
• It owns the most updated fleet and competent repairs and maintenance
expertise.
• Its information systems are advanced and compatible with its operation
and service.
• It has a good reputation in both international and domestic markets,
quality service.
• Has financial backing of the Government
Weaknesses

• Air India is operating across broad international and domestic markets

competing with world leading giant airlines as well as local small operators.
This lack of clarity on the strategic direction largely dilutes its capabilities
and confuses its brand within markets.
• Low profitability and utilization of capacity.
• Growing Competitor base and entry of Low-Cost Carriers (LCC’s)
• The airline’s high-cost structure and the compulsions of being a public
sector unit are the reasons and it had been making a loss and shall
continue to make losses for some more quarters.

Opportunities

• India airline industry is growing faster and will continue to grow as the
GDP increases, and the trend is predicted to continue once the slowdown
recedes.
• Worldwide deregulations make the skies more accessible; the route
agreement is easier to be achieved. The number of foreign visitors and
investors to India is increasing rapidly.
• Complementary industry like tourism will increase demand for airline
service. The Civil Aviation Ministry’s strong regulation and protection
provides opportunities for consolidation and optimization.
• Customers are getting wealthier, tend to be less price-conscious and
prefer to choose quality service over cost.
• Best time for introducing LCC’s
Threats

• Air India faces imminent aggressive competition from world leading

airlines and price wars triggered by domestic players.
• The Indian Railway Ministry has dramatically improved speed and
services in their medium/long distant routes, attracting passengers away
from air service, with prices almost at par with the low cost carriers

Air India Ltd.

Balance sheet(Rs crore)

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sources of funds
Owner's fund

Equity share capital 145.00 145.00 153.84 153.84 153.84

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 63.35 5,668.13 -261.97 185.96 171.12

Loan funds
Secured loans 2,365.95 2,891.75 1,846.69 1,243.24 565.95

Unsecured loans 28,542.07 15,521.65 5,818.41 2,378.67 695.74

Total 31,116.37 24,226.53 7,556.97 3,961.71 1,586.65

 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Uses of funds
Fixed assets

Gross block 24,329.40 18,654.56 6,471.27 7,109.88 7,121.60

Less : revaluation reserve - - - - -

Less : accumulated depreciation 1,838.05 760.12 4,366.85 4,914.43 4,641.18

Net block 22,491.35 17,894.44 2,104.42 2,195.45 2,480.42

Capital work-in-progress 5,011.37 3,972.63 2,994.75 1,185.33 21.91

Investments 123.18 90.12 90.70 87.02 58.26

Net current assets

Current assets, loans & advances 8,746.02 7,478.95 4,386.48 3,164.77 2,116.88

Less : current liabilities & provisions 5,255.55 5,209.61 2,019.38 2,670.86 3,090.82

Total net current assets 3,490.47 2,269.34 2,367.10 493.91 -973.94

Miscellaneous expenses not written - - - - -

Total 31,116.37 24,226.53 7,556.97 3,961.71 1,586.65

Notes:
Book value of unquoted investments 122.42 89.36 90.05 - -

Market value of quoted investments 43.03 47.07 36.78 - -

Contingent liabilities 25,918.42 26,340.93 25,994.75 - -

Number of equity sharesoutstanding (Lacs) 1450.00 1450.00 1538.36 1538.36 1538.36

Air India Ltd. -

Profit loss account(Rs crore)
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Income
Operating income 13,224.52 13,638.35 8,438.86 8,833.71 7,588.17

Expenses
Material consumed - - - - -

Manufacturing expenses 7,060.64 6,252.51 3,527.42 5,067.63 3,920.38

Personnel expenses 3,338.85 3,224.50 1,340.51 1,244.37 1,182.03

Selling expenses - - - 462.12 403.45

Adminstrative expenses 7,271.07 7,615.59 4,603.36 1,085.50 1,002.08

Expenses capitalized - - - - -
 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Cost of sales 17,670.56 17,092.60 9,471.29 7,859.62 6,507.94

Operating profit -4,446.04 -3,454.25 -1,032.43 974.09 1,080.23

Other recurring income 254.86 1,619.12 780.39 235.40 21.76

Adjusted PBDIT -4,191.18 -1,835.13 -252.04 1,209.49 1,101.99

Financial expenses 1,665.88 701.30 239.44 1,027.77 715.57

Depreciation 1,225.89 761.66 398.75 406.19 426.03

Other write offs - - - 1.44 3.52

Adjusted PBT -7,082.95 -3,298.09 -890.23 -225.91 -43.13

Tax charges -1,641.54 -1,071.93 -93.37 -2.51 -46.22

Adjusted PAT -5,441.41 -2,226.16 -796.86 -223.40 3.09

Non recurring items - - - -9.97 -30.10

Other non cash adjustments -106.85 - 348.93 248.31 123.37

Reported net profit -5,548.26 -2,226.16 -447.93 14.94 96.36

Earnigs before appropriation -7,774.42 -2,226.16 -353.98 94.05 96.36

Equity dividend - - - - 15.38

Preference dividend - - - - -

Dividend tax - - - - 1.57

Retained earnings -7,774.42 -2,226.16 -353.98 94.05 79.41

Air India Ltd. -

Ratios(Rs crore)
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Per share ratios

Adjusted EPS (Rs) -375.27 -153.53 -51.80 -14.52 0.20

Adjusted cash EPS (Rs) -290.73 -101.00 -25.88 11.98 28.12

Reported EPS (Rs) -382.64 -153.53 -29.12 0.97 6.26

Reported cash EPS (Rs) -298.09 -101.00 -3.20 27.47 34.19

Dividend per share - - - - 1.00

Operating profit per share (Rs) -306.62 -238.22 -67.11 63.32 70.22
 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Book value (excl rev res) per share (Rs) 14.37 400.91 -7.03 22.09 21.12

Book value (incl rev res) per share (Rs.) 14.37 400.91 -7.03 22.09 21.12

Net operating income per share (Rs) 912.04 940.58 548.56 574.23 493.26

Free reserves per share (Rs) - -153.53 -17.38 11.74 10.78

Profitability ratios
Operating margin (%) -33.61 -25.32 -12.23 11.02 14.23

Gross profit margin (%) -42.88 -30.91 -16.95 6.42 8.62

Net profit margin (%) -41.16 -14.59 -4.85 0.16 1.26

Adjusted cash margin (%) -31.27 -9.59 -4.31 2.03 5.68

Adjusted return on net worth (%) -2,611.66 -38.29 - -65.74 0.95

Reported return on net worth (%) -2,662.95 -38.29 - 4.39 29.65

Return on long term funds (%) -17.40 -10.71 -8.61 29.49 65.88

Leverage ratios
Long term debt / Equity 148.35 3.17 - 7.00 2.14

Total debt/equity 148.35 3.17 - 10.66 3.88

Owners fund as % of total source 0.66 23.99 -1.43 8.57 20.48

Fixed assets turnover ratio 0.54 0.73 1.30 1.24 1.07

Liquidity ratios
Current ratio 1.66 1.44 2.17 1.18 0.68

Current ratio (inc. st loans) 1.66 1.44 2.17 0.50 0.44

Quick ratio 0.93 1.02 1.81 1.01 0.56

Inventory turnover ratio 13.72 13.62 11.48 117.92 186.90

Payout ratios
Dividend payout ratio (net profit) - - - - 17.59

Dividend payout ratio (cash profit) - - - - 3.22

Earning retention ratio - - - 100.00 -448.54

Cash earnings retention ratio - - - 100.00 96.09

Coverage ratios
Adjusted cash flow time total debt - - - 19.66 2.92

Financial charges coverage ratio -2.52 -2.62 -1.05 1.18 1.54

Fin. charges cov.ratio (post tax) -1.59 -1.09 0.79 1.41 1.73
 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Component ratios
Material cost component (% earnings) - - - - -

Selling cost Component - - - 5.23 5.31

Exports as percent of total sales 0.16 0.13 0.11 - -

Import comp. in raw mat. consumed - - - - -

Long term assets / total Assets 0.75 0.74 0.54 0.52 0.54

Bonus component in equity capital (%) - - - - -

3. Spice Jet

Company profile:-
SpiceJet Ltd is India's best low cost airline, delivering
the lowest air fares with the highest consumer value. The company operates 119
flights daily to 18 cities, namely Ahmedabad, Bangalore, Bagdogra, Chennai,
Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kochi, Kolkata,
Mumbai, Pune, Srinagar, Varanasi and Visakhapatnam. Spicejet Ltd was
incorporated in the year 1984 with the name Genius Leasing Finance and
Investment Company Ltd. In the year 1993, the company ventured into domestic
aviation operations under technical partnership with Deutsche Lufthansa AG. In
the year 1994, the name of the company was changed from MG Express to
ModiLuft Ltd. In June 1994, the company entered into a management agreement
with Lufthansa to manage their entire Airline operations. The company started
their commercial operations of domestic flight services on May 23, 2005 with
three leased Boeing 737-800 aircraft. During the year 2004-05, they signed an
agreement with Boeing for acquiring 20 (737-800) aircrafts and in May 4, 2005,
the company changed the name of the company from Royal Airways Ltd to
SpiceJet Ltd. In May 5, 2005, they entered into a strategic tie up with Indian Oil
Corporation Ltd. During the year 2005-06, the company integrated with various
travel related website like Indiatimes, makemytrip, travelguru and cleartrip to
boost their sales through internet. They also entered into a sale and lease back
agreement with Bacock & Brown Aircraft Management along with its long-term
strategic partner Normura Babcock & Brown Co Ltd covering sixteen brand new
Boeing 737-800/-900ER aircraft valued at over USD 1.1 billion based on the
manufacturer's list prices. They also launched their services to two new spice
cities namely, Jammu and Srinagar. In March 27, 2006, the company launched
their first co-branded credit card with State Bank of India in association with
MasterCard International. During the year 2006-07, the company inducted five
new aircraft to their fleet taking the total fleet strength to eleven aircraft. They
started sale of food on board during the year. In August 17, 2006, the company
launched Spicejet Hotels, with the aim of providing a dedicated online Web hotel
reservation services to their customers. In October 2006, they launched new
flights between Kolkata and Guwahati. In January 2007, they introduced two new
additional daily flights on the Bangalore - Mumbai - Hyderabad routes. During the
year 2007-08, the inducted eight new aircraft to their fleet taking the total fleet
strength to nineteen aircraft. Out of eight, two were Boeing 737-900, the largest
capacity domestic aircraft having seating capacity of 212 passengers. In May
2007, the company made a tie up with Tata AIG General Insurance to cover
travel related risks of the airlines' domestic passengers. The insurance cover
would be provided for accidental death, emergency medical treatment, trip
cancellation, baggage loss, flight delays and trip interruption. In October 2007,
the company signed an agreement with Air India for the wet lease of two of the
Company's Boeing 737-800 aircrafts, for operating daily flights between
Lucknow, Varanasi, Jaipur and Nagpur & Jeddah. In January 2008, the company
made a tie up with BillDesk, which provides the SpiceJet customers an additional
option to purchase and pay for their tickets, through their Internet Banking
Accounts Online.
History
SpiceJet is a low cost airline based in Delhi, India. It began service in May 2005
and by 2008, it was India’s second-largest low-cost airline in terms of market
share.SpiceJet was voted as the best low-cost airline in South Asia and Central
Asia region by Skytrax in 2007. As a reaffirmation of SpiceJet’s focused
commitment to passenger comfort and satisfaction, SpiceJet have been voted
the best low fare airline in the HT MaRS study for 2009.

SpiceJet has been given the highest satisfaction ratings on key parameters
covering the efficiency of SpiceJet’s ground services and the warmth and
friendliness of SpiceJet’s in-flight services, putting SpiceJet way ahead of IndiGo,
JetLite, Kingfisher Red and GoAir. SpiceJet are also proud to be acclaimed as
the most preferred airline out of Chennai and Delhi, ahead of full service carriers
like Jet Airways and Kingfisher.

The Hindustan Times MaRS consumer survey was carried out amongst 1,330
flyers who had taken at least four flights over the past year. The survey was
conducted across 10 cities – Delhi, Lucknow, Kolkata, Guwahati, Mumbai, Pune,
Ahmedabad, Chennai, Bangalore and Hyderabad.
SpiceJet look forward to welcoming you back on board SpiceJet, India’s most
preferred airline.

SWOT ANALYSIS:-
At present it has a market share of 13%. This
indicates huge potential of growth compared to other low cost airlines in India.

STRENGTH

• “offering low everyday spicy fares”

 • Compete with Indian Railway AC Segment

WEAKNESS

• A fixed-cost perishable product

• Limited sectors (Concentrated at only North-West-South Indian Sector)

• Small Load Efficiency compared to Air Deccan

OPPORTUNITIES

• Future Fleet Expansion will increase its Market Share.

• Attractive fares and up to date Quality service will generate a huge

customer base comprising frequent flyers.

• Huge Market Potential: We have 12 million people who travel by air every
year against 3million passengers who fly everyday in the US, even though
its population is one-fourththat of India.

• The number of daily flights in India averages just about 400 a day, as
against 40,000 flights a day in the US.

THREATS

• High Attrition Rate

• Killer competition– The Indian skies are witnessing a bloody battle for
market shares. A much anticipated fare war has broken out across Indian
skies
 • Oil price fluctuations– Oil price hikes spare no airline. Aviation turbine fuel
(ATF) costand other operational costs (all government controlled) are the
same for all airlines,whether it is a low cost airline or not

PEST ANALYSIS

Political factors
• National and airport security
• Freedom to determine fares
• Up gradation of airport infrastructure

Economic factors
• Income for salaried class up 14 to 16%
 • Nil import tariff on aircraft
• Seat inventory price
• Oligopoly structure of the market-customer view
• International petroleum prices

Social factors
• Increases traveling lifestyles
• Growing middle class
• LCC as mass transport media
• Increasing business traveling

Technological factors
• IT revolution
• e-ticketing
• safety measures
• night landing facilities

Spice jet Balance Sheet

Particular 2010 2009 2008 2007 2006

Source of Funds

Share Capital 241.88 241.02 240.65 240.65 184.34

Reserves & Surplus -590.12 -676.53 -212.67 -56.07 -197.11

Shareholders Funds -348.24 -435.51 27.99 184.58 -12.77

Secured Loans 34.13 33.27 166.67 357.45 359.64

Unsecured Loans 404.16 455.54 364.95 74.70 61.09

Total Debt 438.29 488.81 531.61 432.15 420.73

Total Liabilities 90.05 53.30 559.60 616.73 407.95

Application of Funds

Fixed Assets

Gross Block 100.98 94.04 84.74 60.39 48.67

Less : Accumulated Depreciation 33.98 26.47 19.67 12.24 7.04

Provision for impairment of Assets 0.00 0.00 0.00 0.00 0.00

Net Fixed Assets 67.00 67.57 65.07 48.15 41.62

Capital Work In Progress 324.91 185.28 498.91 694.58 370.31

Total Fixed Assets 391.92 252.84 563.99 742.73 411.94

Investments 0.00 0.00 0.36 81.22 0.00

Current Assets

Inventories 15.90 13.65 12.32 9.18 4.64

Sundry Debtors 18.96 12.39 1.64 5.62 3.72

Cash & Bank Balances 450.70 308.00 599.51 352.71 65.10

Loans & Advances 112.76 165.09 174.17 115.32 79.88

Total Current Assets 598.32 499.13 787.63 482.84 153.34

Current Liabilities & Provisions

Current Liabilities 748.26 571.78 721.67 645.62 149.60

Provisions 151.92 126.89 70.72 44.44 17.10

Total Current Liabilities & Provision 900.18 698.67 792.38 690.06 166.70

Net Current Assets -301.86 -199.54 -4.75 -207.22 -13.36

Miscellaneous Expenditure written off 0.00 0.00 0.00 0.00 9.38

Total Assets 90.05 53.30 559.60 616.73 407.95

Spice jet Profit And Loss Statement

Particular 2010 2009 2008 2007 2006
Income

Sales 2181.08 1689.45 1294.99 643.80 419.65

Other Income 62.58 124.80 143.59 111.64 39.93

Increase/Decrease in stocks 0.00 0.00 0.00 0.00 0.00

Total Income 2243.66 1814.25 1438.58 755.44 459.58

Expenditure

Total Expenditure 2156.82 2140.22 1548.11 815.09 487.37

Operating Profit 86.84 -325.97 -109.54 -59.65 -27.79

Interest 11.38 16.02 13.72 4.25 4.16

Gross Profit 75.46 -341.99 -123.26 -63.90 -31.95

Depreciation 7.64 7.25 7.82 5.85 8.16

Profit Before Tax 67.82 -349.25 -131.07 -69.75 -40.11

Provision for Tax 6.37 0.00 0.00 0.00 0.00

Deferred Tax 0.00 0.00 0.00 0.00 0.00

Fringe Benefit Tax 0.00 3.32 2.42 0.99 1.31

Net Profit 61.45 -352.57 -133.50 -70.74 -41.42

Adjustments Below Net Profit 0.00 23.81 0.00 0.00 0.00

Statutory Appropriations 0.00 0.00 0.00 0.00 0.00

Profit & Loss Brought Forward -883.82 -507.45 -373.95 -303.20 -261.78

Appropriations 0.00 0.00 0.00 0.00 0.00

Profit & Loss Carried Forward -822.38 -883.82 -507.45 -373.95 -303.20

EPS (in Rs) 2.54 -14.63 -5.55 -2.94 -2.25

Book Value (in Rs) -14.40 -18.07 1.16 7.67 -0.69

Preference Dividend (in Rs) 0.00 0.00 0.00 0.00 0.00

Equity Dividend in % 0.00 0.00 0.00 0.00 0.00

Equity Dividend in (Rs.) 0.00 0.00 0.00 0.00 0.00

Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00

Contingent Liability 2606.51 3682.65 4608.20 7472.19 5762.02

Extra-Ordinary Items 14.93 61.79 43.84 44.20 17.71

Spicejet Quarterly Results

UnAudited UnAudited UnAudited UnAudited
Particular 201009 201006 200912 200909
2Q 1Q 3Q 2Q
Net Sales 628.17 707.86 642.09 450.39

Other Income 12.62 16.04 11.30 14.90

Total Income 640.79 723.90 653.39 465.29

Total Expenditure 624.60 651.62 540.81 563.85

PBIDT 16.18 72.28 112.58 -98.56

Interest Paid 1.37 1.32 1.69 1.52

Gross Profit 14.81 70.96 110.89 -100.09

Depreciation 2.18 2.00 1.94 1.89

Profit Before Tax 12.63 68.96 108.95 -101.98

Tax 2.52 13.74 0.00 0.00

Deferred Tax 0.00 0.00 0.00 0.00

Fringe Benefit Tax 0.00 0.00 0.00 -0.69

Net Profit After Tax 10.11 55.22 108.95 -101.29

Extra-Ordinary Items 0.00 0.00 0.00 0.00

Net Profit Margin 1.61 7.80 16.97 -22.49

Operating Profit Margin 2.58 10.21 17.53 -21.88

Earning Per Share 0.27 2.11 4.52 -4.20

Dividend (%) 0.00 0.00 0.00 0.00

Equity Paid Up 385.22 328.04 241.17 241.02

Face Value (in Rs) 10.00 10.00 10.00 10.00

Reserves & Surplus 0.00 -333.91 -620.90 0.00

Spice jet Key Financial Ratios

Particular 201003 200903 200803 200703 200605

Liquidity Ratios
Debt/Equity Ratio 0.00 0.00 4.53 4.96 0.00

Current Ratio 0.69 0.86 0.86 0.74 1.00

Turnover Ratios

Inventory Turnover Ratio 147.61 130.13 120.47 111.76 109.18

Fixed Assets Turnover Ratio 22.37 18.90 17.85 14.17 13.15

Debtors Turnover Ratio 139.13 240.82 356.70 165.36 153.24

Interest Coverage Ratios 6.96 -20.80 -8.55 -15.42 -8.63

Profitability Ratios

Operating Profit Margin 3.98 -19.29 -8.46 -9.27 -6.62

PAT/Total Income 2.74 -19.43 -9.28 -9.36 -9.01

NPM (Net Profit Margin) 2.82 -20.87 -10.31 -10.99 -9.87

Return on Capital Employed 110.49 -108.74 -19.95 -15.34 -14.88

Return on Networth 0.00 0.00 -125.61 -98.82 0.00

Spice jet Share Holding Pattern

Particular No.Of Shares Percent Shares(%)

Promoter Holding
Indian Promoters 0 0.00

Foreign Promoters 31077500 8.07

Non-Promoter holdings (Other than Public)

Financial Institutions/Banks 0 0.00

FII/Foreign Fin Inst/Foreign Banks 55774472 14.48

Corporate Bodies 148933066 38.66

Government Holdings 0 0.00

OCB 15360715 3.99

NRI 0 0.00

Mutual Funds 72352516 18.78

Other Foreign Holdings 11031616 2.86

General Public

Individual Holding Upto Rs. 1 lakh 26155575 6.79

Individual Holding Excess of Rs. 1 lakh 22534736 5.85

Others 2004769 0.52

Total 385224965 100.00

Competitive analysis of aviation industry:-

Consolidation in the domestic aviation Sector. From a fragmented sector with more than
10 players, today there are 3 major players, a and a couple of other smaller players in the
LCC space. The top four players together have a combined market share around 78%.and
plan is to improve airport infrastructure in India. Nad increases fleet size.

Company Fleet size

Jet airways 91
Kingfisher airlines 66
Air India 31
Spice jet 22
indigo 35

Reasons for Jet Airways Leadership Position in Aviation

industry are as follows:-
1. Firstly jet Airways has maximum market share in this sector i.e. (26.9%)
compared to other competitors.

2. The Airline carried 1.28 million passengers out of 4.08 million passengers
carried by the whole Indian Airlines industry.

3. They have also increases their fleet size.

4. During the year under review, your Company fully implemented a state-of-the-
art Yield Management System. This system enables us to implement a dynamic
pricing policy, depending on the available capacity on each flight, with a view to
neutralizing the effects of lower yields by maximizing revenues per flight. As
Company is already seeing the positive results of this yield management system
as we measure our passenger numbers and load factors against the new
entrants in the domestic sector. As Company will continue to leverage this
system to maintain market leadership.

5. As Company will additionally enhance market leadership and reduce costs

through greater use of on-line bookings which was introduced in April 2004. The
results of a recent promotion that Company has launched to expand on-line sales
have been encouraging, with the number of bookings on our online booking
website doubling within a few days.

Future plans of Indian airlines:-

1. Air India plans to restructure strategy to fly out of financial troubles:-
The Maharaja
of Indian aviation will restructure strategy to end its financial troubles. Air India,
the country’s third-largest airline by market share, on Sunday announced its
turnaround strategy due for completion by 2014. the company will aim to achieve
a positive balance sheet by 2014-15. “The focus of the plan is on reducing the
cost of debt to the company and replacing high-cost debt with low-cost ones. The
carrier will restructure the working capital loan through a mix of bonds
guaranteed by the government over the next four years and will infuse additional
capital through sale of land or buildings or use them as security for loans.

2. Boeing raises India market forecast; economic growth fuelling travel demand:-

Boeing
forecasts that the Indian aviation market will require 1,150 commercial jets
valued at approximately USD130 billion over the next 20 years, to represent
more than 4% of Boeing Commercial Airplanes’ worldwide forecast. “There is
strength and resilience in the Indian commercial aviation sector over the long
term. The potential for future growth of air travel, both domestically and
internationally, is among the greatest in the world and Boeing will continue its
efforts to be India’s preferred partner and aerospace provider.”

3.Spice Jet is due to start with flights to Kathmandu, Dhaka and Colombo in
June.

4. Domestic airlines in India operate 336 aircraft, with another 293 ordered and
expected to be delivered over the next three years. Consultancy Ernst & Young
forecasts that domestic and international passenger numbers from India are
expected to increase 20% and 16% annually respectively over the next few
years.

5. Domestic traffic is projected to increase by around 15% this year, capacity is

likely to grow by only 10%. International traffic is also expected to grow steadily.
The increase in yields should help the airlines return to the black over the next
two years, and boost cashflows. Low-cost operations will dominate the domestic
market, although Air India will keep its focus on the full-service segment to
capitalise on the appeal of its fleet renewal plans and the strong support it gets
from India's civil servants. But debt will remain an issue, and CAPA estimates
that Air India, Jet and Kingfisher are likely to require up to $12 billion over the
next three years to finance their aircraft purchases.

6. Spice Jet swings to profit, plans regional services next year.

7. Spice Jet to hire 150, plans to enter overseas markets.

8. Spice Jet expects LCCs to capture three quarters of domestic market in five
years:-

Spice Jet Director and interim CEO, Kishore Gupta, stated he expects Indian
LCCs to "capture three-fourths" of the price-sensitive domestic market in the next
five years, as LCCs expand aggressively while their full-service counterparts take
a more cautious approach to capacity, as they focus on minimizing losses and
improving profitability.

Conclusion
I agree that jet airways will keep their market leadership for future also. And the
reasons for that are as follows: -

Maximum market share.

Maximum fleet size.
They have international operations with private airlines.
They have modernization of aircrafts and modern technology.

The reasons that would impact its leadership position are: -

Fuel price:- Recently fuel price is rising very high so it can impact the leadership
position.
In-flight service: - Jet airways have to improve their in-flight service to attract the
customers.
Infrastructural constraints
Monetary and fiscal policies
The company can be affected by elasticity in supply and demand depending on
the size of the industry and how long it has been in operation.
.

Webliography
www.jetairways.com

www.airindia.nic.in

www.spicejet.com

www.kingfisherairlines.com

www.google.com

www.rediff.money.com