Submitted to: Submitted by:

Prof Ajit Parulekar Group 8A

Goa Inst. Of Mgmt. Pritam Patnaik (43)
Ribandar, Goa Radhika kayal (44)
Rahul Batta (45)
Rahul Singh (46)
Richa Ahuja (47)
Ramesh Jain (48)
 CONTENTS

Page

1. INTRODUCTION 3

2. MAJOR PLAYERS 5

3. MACRO ENVIRONMENT ANALYSIS 6

4. PORTER’S FIVE FORCE ANALYSIS 12

5. THE SWOT ANALYSIS FOR FIAT 15

6. FUTURE OF THE INDUSTRY 19

7. PROJECTIONS FOR THE INDUSTRY 23

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1. INTRODUCTION

1.1 GENESIS / HISTORY

The birth of civil aviation in India began happened on Feb 18, 1911 when Henri
Piquet flew a Humber biplane. In 1932, JRD Tata, a visionary launches India’s
first scheduled airline, Tata Airline and also piloted its first innaugral fight. In early
1948, a joint sector company, Air India International Ltd. was established by the
Government of India and Air India (earlier Tata Airline) with a capital of Rs 2 crore
and a fleet of three Lockheed constellation aircraft. The joint venture was headed
by J.R.D. Tata.
After the Second World War as many as eleven private domestic airlines
operated in India. The supply-demand was not in balance as the Indian aviation
market was still in a fledgling state. Many of these airlines were making heavy
losses as a result of which the government decided to nationalise the airlines by
forming one domestic carrier and one international flag carrier. In 1953 Air-India
International (name truncated to Air-India in 1962) became a public sector
corporation along with Indian Airlines Corporation (catering to domestic and
regional routes). Eight erstwhile private airlines were merged to form Indian
Airlines Corp., namely Deccan Airways, Bharat Airways, Air India, Himalayan
Aviation, Kalinga Airlines, Indian National Airways, Air Services of India and Air-
Services India. The fleet was fairly big consisting of 73 DC-3 Dakotas, 12 Vikings,
3 DC-4s and some other smaller aircraft. (*)
(Source :(*) www.knowindia.net)

1.2 TODAY

There has been a marked change in the civil aviation scenery in India. Whereas
prior to 1992 when the two public sector airlines, namely Air-India and Indian
Airlines enjoyed a monopoly in the domestic sector, today a dozen airlines are
competing for a market share. The Indian civil aviation industry is expanding by
leaps and bounds. A slew of low-cost airlines is operating or will commence
operations during the current year. India's main airports are beginning to face
capacity constraints and are in the process of being modernized. Indian airlines
have lately placed a record number of aircraft orders. As an example, ATR
received firm orders for 90 new aircraft in 2005 of which India's (Kingfisher
Airlines and Air Deccan) share was 55 per cent.

1.3 INDIAN AIRPORTS

A government controlled body AAI (Airports Authority of India) manages 127

airports in the country comprising 15 international airports, 7 restricted
international airports, 80 domestic airports and 25 civil enclaves at defence
airfields. Indian airports handled 51.9 million domestic, 22.4 million international
passengers and 1.4 million tons of cargo in the year ended March 2006.
projected traffic for 2012 is 130 million passengers.
(Source : PPT by Exec Dir (AAI) at Airport forum in Dubai)

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1.4 INFRASTRUCTURE

The government of India has recognised the need to improve the aviation
infrastructure in the country. Airports account for 40 per cent of India's trade by
value and 95 per cent of international travel to and from India takes place through
this mode. According to estimates, the present infrastructure can support a 20
per cent growth in passenger traffic and 10 per cent growth in cargo traffic. The
ministry of civil aviation estimates that there is a need for an investment of Rs
260 - Rs 360 billion . The restructuring of the first phase of Delhi airport is
expected to be completed by 2009 at a cost of Rs 1.9 billion. Expansion and
upgradation of the current facility at Mumbai is already under way. Work has
started on a new international airport at Bangalore. Apart from strengthening of
the Hyderabad runway at a cost of Rs 700 million, a new international airport is
also being planned at a cost of Rs 13 billion. The government has also decided
to modernise 25 airports in non-metro cities. Improvement of another 55 airports
is also on the anvil.
(Source : icfdc.com)

1.5 FDI

Forty nine per cent foreign direct investment (FDI) is permitted in financing airport
infrastructure as well as in airport ground handling. The government has recently
increased FDI from 40 per cent to 49 per cent in domestic air carriers. However
foreign airlines are not permitted to pick up a stake directly or indirectly. Non-
resident Indians and corporate bodies are allowed to hold up to 100 per cent
equity in domestic airlines.
(Source : icfdc.com)

1.6 AVIATION REGULATOR

The Civil Aviation Ministry plans to table a Bill to establish an independent Civil
Aviation Economic Regulatory Authority (CAERA). The new regulator would be
responsible for formalising all charges to be levied on operators and ensuring a
level playing field for all players. Its tasks would include fixing of tariff, finalising
parking and user charges, issuing broad guidelines to service providers, settling
disputes among stakeholders in new airports and arbitrating between various
users and service providers, including airlines. Initially the scope of the regulator
would be limited to regulating the economic aspects of Delhi, Mumbai, Bangalore
and Hyderabad airports where there is private participation and AAI is a
stakeholder. Henceforth, the AAI too would be answerable to the new regulator.
To start with, CAERA is expected to be a single-member regulator assisted by
technical staff. The Bill seeks to expand its role in the days ahead. That may
become necessary anyway, given the liberalisation initiatives underway in the
sector.

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2. MAJOR PLAYERS

Domestic market can be divided into 2 segments :

Premium – Indian, Jet, Sahara, Kingfisher
No Frills – Deccan, Spicejet, GO Air

The Domestic Aviation Market Share

Jet Airways
2% 6% 0%
8% Indian
34%
8% Deccan
Sahara
KingFisher
GoAir
21% SpiceJet
21%
Chartered Flights

(Compiled from respective websites)

AIRLINE CURRENT ACQUISITION INVESTMENT

FLEET PLANS US$ billion
Jet Airways 53 30 by 2012 2.0
Air Deccan 29 79 by 2010 2.7
Kingfisher 11 100 by 2012 4.5
Spice Jet 6 38 by 2010 1.9
GoAir 4 33 by 2008 2.4
Indian 55 50

(Source : PPT by Exec Dir (AAI) at Airport forum in Dubai)

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3. MACRO ENVIRONMENT ANALYSIS

Macro environment analysis refers to study of those factors which affect an

organization but are beyond the control of an organization. These factors are
uncontrollable.

Macro environment consist of following six broad areas:

• Political environment
• Economic environment
• Social environment
• Technological environment
• Demographic environment
• Natural environment

3.1 POLITICAL ENVIRONMENT

Indian political scenario has, is and will undergo various changes. Following are
the various policy changes which might have an impact on aviation industry in
coming years:

Open Sky Policy

India had this agreement with 40 countries and lately it signed the policy with UK,
USA and European Union. According to this policy, The signatories are allowed to
fly over the skies of India. Under this arrangement, airlines from EU member
nations will be allowed to operate flights to India from any of the 25 EU nations
regardless of the carrier's country of origin.
Effect: Tourist arrivals in India are expected to grow exponentially, especially due
to the open sky policy between India and the SAARC countries and the increase
in bilateral entitlements with European countries, and the US. The increase in
number of international tourists will percolate down to increase in domestic
passengers.
.
Deregulation
Year of the Number of May May provide Who can Service Fares:
Amendme Aircraft provide service when
nt Seats service to:
1986 Max. of 10 Notified 2 hrs before/ National and non- Regulated by
Airports Only after National scheduled National
Airline Airline
9.8.1989 Max. of 50 55 Notified
seats airports
May- Min of 15/ No All airports Prior approval Ownership expanded Fare
December max (93) of flight times- to: Citizens, NRI restriction
1990 abolished Government abolished

25th Feb 1993 40 % foreign Equity

allowed
1st March 8.3.94 A company/ body
1994 A max. of 30 registered in India*
seats for new
entrants
24th Jan 1997 No restrictions No No restrictions Anyone in the NO
restrictions aforementioned restrictions
categories*
02 Feb 2006 do do do FDI 49% airline No Restric. 6
100% airport
Prior to 1991, aviation was nationalized and heavily regulated In 1953, the Air
Corporation Act, 1953, changed the landscape of the airline industry in India.It
was in 1994 that the Air Corporation Act was repealed and thus this allowed
private operators to operate in the domestic airline and aviation industry.
Requirements to become a scheduled operator air carrier in India have being
reformed, the reduced restrictions on foreign direct investment is 49% for flights
and 100% for airports
Effect: Entry into the air travel industry is not only cheaper, but also affordable to
new operators

Modernization of Airports
The Indian Cabinet has approved a proposal mandating the state-run airport
operator to modernise 35 airports in second-tier cities within the next two years.
The modernisation process will cost the government between Rs. 70 to 80 billion.
Delhi (Rs.8,700 cr) to GMR and Mumbai Airport Modernisation (Rs.6,400 cr)to
GVK are two biggest investment projects . Total investment on hand in airport
infrastructure crossedRs.35,000 crore in the quarter ended January 2006.This
investment was spread over 89 projects.Upgradation of Kolkata and Chennai
airports is on anvil.. Simultaneously, 20 non-metro airports will be developed.
Two biggest active projects are the Bangalore International Airports Authority Ltd
(Rs.1.5 crore)and GMR Hyderabad International Airport Ltd (Rs.1.5 crore).
Effect: Improved infrastructure would lead to rise in no. of travellers and also so
would encourage more operators.

Abolishment of Taxes
Foreign Travel Tax (FTT) Rs500 and 15% inland air travel tax (IATT) charged on
Basic airfare has been abolished by the government wef from January 9,2004 to
reduce fares.

Reduction on Exise Duty

From January 9,2004, the excise duty on ATF was reduced from 16 to 8 per cent
The average domestic price of ATF is 99 per cent higher than prices in foreign
countries and affects domestic airlines drastically as ATF accounts for 30 to 40
per cent of operating costs
Effect : It would lead to low fares thus giving a boost to air travel

The government has reduced the average age of aircraft being imported into
India for commercial airline operations by five years.
Effect: It would lead to increase in imports of aircraft thus can discourage more
operators coming in and improve services

Landing Charges abolished

Landing charges for aircraft with less than 80 seats were abolished and landing
charges for larger aircraft have been reduced by 15% with effect from February
11,2004.

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3.2 ECONOMIC ENVIRONMENT

India,ranked tenth in the world in 2004,is expected to be holding eighth rank in

the world by 2014 and fourth rank in next years with a GDP of $1.15-1.4 trillion
and $2.1-3 trillion respectively,and a projected growth rate of 6-8%.
Effect: This rise in income levels along with introduction of no-frills flights will
lead to
• rise in no of travellers,
• more investments in aviation,
• more competition and
• rise in industrialization leading to more need of air transport

3.3 SOCIO-CULTURAL ENVIRONMENT

Change in Lifestyle
Average income of middle class household is expected to rise to 194000 Rs by
2010 from 169000 Rs in 2001-02.No of households projected to be 43.6million in
2010. Effect: So there is going to be change in lifestyle and spending of people
Due to this change people will prefer Low cost airlines instead of Railways first
airconditioned thus rise in air traffic

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Rise in Leisure travel
Tourism industry grew 8.8 per cent over 2003- highest growth rate in the world.
3.2 million foreign tourists visited India last year.There has been an increase in
leisure travel by tourists of 15% in 2004.
Effect : It will lead to rise in no of tourist passengers thus more encouragement
for new operators.

3.4 TECHNOLOGICAL ENVIRONMENT

Introduction Of Airbus A380

The double deck Airbus A380 is the most ambitious civil aircraft program yet was
launched in December 2000. An all new design Superjumbo, the Airbus A380 is
the world's first twin-deck, twin-aisle airliner.It could be outfitted for special
passenger uses such as sleeper cabins, business centers or even child care
service. In a one-class configuration, the A380 could accommodate as many as
840 passengersAdvantages of the A380 include lower fuel burn per seat and
lower operating costs per seat. Airbus states the A380 will use 20% less fuel and
will fly quieter, cheaper and more environmentally friendly than the 747

ILS-Instrument Landing System

Instrument landing system (ILS) facilities are a highly accurate means of
navigating to the runway under low visibility conditions Various runway
environment lighting systems serve as integral parts of the ILS system to aid the
pilot in landingWhen using the ILS, the pilot determines aircraft position by
instruments. ILS is classified according to capabilities of the ground equipment.
Category I ILS provides guidance information down to a decision height (DH) of
not less than 200 ft. Improved equipment (airborne and ground) provide for
Category II ILS approaches.(DH of not less than 100feet)

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3.5 DEMOGRAPHIC ENVIRONMENT

Changing Structure of Consumers

Middle class population of India was 300 million in 2005 and is projected to be
400 million for 2010.
Effect : For aviation, this growth is a remarkable achievement and a sign that the
industry can only expand as more people gain the ability to purchase airline
travel,supported by introduction of low-cost carriers.

High %age of young population

India has highest percentage of people in age group of 20-50, with high earning
potential.Also younger segment has more mobility needs due to education or
work,So it shows high probability of rise in Domestic air travel.

Higher number of literates

Due to rise in education awareness, there has been rise in no. of graduates and
those pursuing higher studies.which translates into higher earning potential and
higher spending on travel in future.

Nuclear Families
Due to lesser number of joint families and increasing nuclear families, there
would be rise in air travel by children to meet their grandparents.

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3.6 NATURAL ENVIRONMENT

The average domestic price of ATF is 99 per cent higher than prices in foreign
countries and affects domestic airlines drastically as ATF accounts for 30 to 40
per cent of operating costs After a fall in ATF in nov and dec by 2%, and 11%,
for the 2nd consecutive month,ATF price in February soared by 3.5 % to the
price prevailing in Jan 2006.(from Rs.35 a litre to Rs.36.2 a litre.)
Earlier, under the fuel pricing mechanism the subsidy given to
Kerosene/diesel was loaded onto ATF. While this has been phased out, States
are now levying heavy Sales Tax on ATF which made it costly.
Effect: Due to high factor costs, short haul operations are rendered unviable.It
would lead to low profits thus discouraging new operators.

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4. PORTERS FIVE FORCE ANALYSIS

4.1 THREAT OF NEW ENTRANTS

The entry is easy but various regulations make the launch of a new airline
difficult. The factors which make the execution difficult are
• The capital requirement-An airline is required to have capitalization
of minimum thirty crores without which it is not allowed to takeoff.
• Expected retaliation-The market is concentrated in the hands of a
few players thus any new player would to face stiff competition and
retaliation from the existing players such as Jet Airways and Indian.
• Legislation or government action-Along with the equity restrictions
for floating an airline they also compel the airlines to operate on
uneconomical routes such as
• Inadequate airport infrastructure often makes it difficult for the
existing airlines to function smoothly and thus deters new ones
from entering the market. Shortage of pilots and high fuel costs also
pose a threat as the existing demands itself are not being fulfilled.
• Exit barriers-The high capital requirement makes it difficult for the
companies to exit the market but being a growing industry the
existing players are willing to acquire and make exit for an operator
less difficult.

4.2 POWER OF BUYERS

• The power of buyers is low because they are large in number and
highly fragmented. The increasing GDP and the introduction of low
cost airlines has not only increased the existing number of buyers
but opened the doors for a huge opportunity of growth.
• However the power is not as low as it could be because of minimal
switching cost and alternatives available. A customer does not have
to incur an cost to move from one airline to another he might incur a
cost if he has signed a contract otherwise no costs are involved
which increases the power of the buyers. Along with this the various
options available between airlines and even other modes of
transport helps the buyers.
• Further there is no differentiation among the players in the same
segment example the differences between Air Deccan and Spice
Jet is minimal.

4.3 POWER OF SUPPLIERS

The power of the suppliers are limited and thus their power is high.
• Concentration of suppliers-The suppliers of pilots and ATF are
highly concentrated which increases their power.

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 • Switching costs-If we look at the aircrafts there are only two
suppliers Boeing and Air Bus thus the options available with the
airlines to switch between is very limited and thus the switching
costs are high but sometime the competition between the two
manufacturers reduces the costs to some extent.
• Brand value-Less number of suppliers results in a high brand value
which works in their favor and increases their bargaining power.
• Forward integration-The airlines also face a threat of forward
integration. Though such an instance has not taken place in the
past it may take place in the future as the suppliers have or know
about most or the technical aspects of the industry.
• There is an acute shortage of pilots which makes the industry
dependent on them.
• High fuel costs-Fuel accounts for nearly 35% of the total cost and
the cost of fuel is increasing rapidly posing a threat to the
companies profits.

4.4 AVAILABILITY OF SUBSTITUTE

• Product for product substitution-Consumers have various options in

terms of airlines to choose from. They may also switch to other
modes of transport such as road and rail.
• Substitution for need- With the advent of technology options such
as video conferencing and conference calls reduces the need to
travel thus the option of substitution of need in present but it is
marginal as it is not possible to totally do away with traveling.

4.5 COMPETITIVE RIVALRY

The competition in the industry in high but the intensity of the competition has
been reduced as it is an expanding market.
• The number of airlines is increasing which increases the level of
competition among airlines. Earlier when we thought of airlines the
only name would be Indian Airlines but today the list is long and
growing with new carriers like Goair trying to make a mark in the
industry. More over six new low cost airlines are expected to come
up.
• High fixed costs and input constraints also add to the competitive
pressures in the industry.
• Like every industry mergers and acquisitions take place here too
which increases competitive rivalry between airlines which in turn
force more airlines to opt for mergers and acquisitions thus forming
a viscous circle of competition.

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• Low level of differentiation between the services offered by the
different airlines increases the risk of switching and thereby adds to
the competition.
• The industry is expected to grow at 22% which actually gives scope
to the existing players and new ones to operate and reduces the
extent of competition.

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6. FUTURE OF INDIAN AVIATION

According to A World Travel and Tourism Council report, India will be the fastest
growing travel market in the world over the next decade (Financial Express,
2001). The study expects the Indian travel market will triple to $51 billion by 2011
from the $16.3 billion currently. Air Travel in India grew by 20% last year and
Boeing has raised its 20 year market forecast for Aircraft purchases from $ 25
Billion to $ 35 Billion.
More than 3 million Tourists visited India last year and the tourism industry
grew by 8.8% YOY, highest in the world. The International Airlines are vying with
each other and planning to increase there frequencies three fold. Apart from this
various schemes are being used to attract more and more customers and also
attract the customers of AC classes of Trains. Some of the methods that are
being used are as follows:

• Low Price Tags

• Apex Fares
• Internet Auctions
• Bulk Purchases
• Last Day Fares

6.1 GROWTH INDICATORS

• World Passenger traffic grew to 52.12 million in the last fiscal, from 43.47
million in 2004-05, to register a growth of 19.9 percent.
• Robust growth of 24 % in last fiscal in Indian Aviation Industry.
• Sector expected to expand by at least 16% annually for the next 5 years,
riding on the overall economic growth of 8%.

Forecast: Growth In Air Traffic

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Surging Air Traffic in Indian Metros

6.2 EXPANSION PLANS

The Burgeoning industry also demands fleet acquisition. Boeing has raised its
20-year market forecast for India for aircraft purchases from US$ 25 billion to
US$ 35 billion. Both Airbus and Boeing are waiting for the next big order,
expected from Air India. The airline is evaluating medium and large capacity
aircraft and is expected to order 50
wide-body jets, worth almost $5 billion at list prices. Airbus has been the
beneficiary of a
large chunk of the new orders announced in 2004. The European consortium will
sell about 100 planes to Indian Airlines, Air Deccan and Kingfisher Air, and now
says it wants to give something back to India by setting up a state-of-the-art
training cum-
Maintenance centre. The company is awaiting government clearance for Indian
Airlines' $4 billion order for 43 Airbus aircraft, a decision that was made two years
ago.

6.3 ROADBLOCKS
• Infrastructure Constraints
• Shortage of Pilots
• Obsolete Navigation Facilities
• Inadequate Safety Norms
• Congestion Problems
• High Operating Costs

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6.4 POSITIVES
• Greenfield airports –Bangalore/Hyderabad
• J/Vs for Ground Handling and MRO facilities
• Highly advanced GPS aided Geo augmented
• navigation (GAGAN) system operational this year.
• AAI set up more radar stations – to bring entire
• Indian airspace under radar monitoring.
• Training more Pilots and Air Traffic Controllers.
• Raising retirement age of pilots to 65 from 61.

6.5 NEW ENTRANTS

The aviation sector is likely to see the launch of many new airlines, including:

• Premier Airways
• Star Air
• East West Airlines
• Indigo
• Jagson
• Magic Air
• Indus Air

6.6 FUEL PRICES

The government has raised the fuel prices by 7.5% in January 2006.Prices
increased from Rs. 32.56 a liter to Rs. 35 liter. Aircraft Fuel forms a major chunk
of the revenue and hence any changes in the fuel prices effects the revenues in
a major way.

Rise in ATF Prices (Rs/Kg)

A possible way of dealing with these rising fuel prices is FUEL HEDGING which
as used extensively and very successfully by Southwest Airlines. They booked
Future options of fuel and hence even when the fuel prices soared, they were
able to procure fuel at very handsome prices.

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6.7 RECOMMENDATIONS
Some recommendations to deal with the inefficiencies as suggested by WTC
report are as follows:

• Allow all Indian Carriers, Public or Private-to operate International routes.

• Lower the cost of aviation turbine fuel.
• Lower the Landing and airport charges.
• Strengthen and promote short haul tourism for business development,
trade and tourism.
• Encourage of Proactive involvement of overseas investors and technical
managers in the privatization of airports.
• Encourage commercial activities within airports such as hotel, restaurants
etc.
• Ensure a healthy growth in traffic to the private airports.

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7. PROJECTIONS

Summary Table of the operating profit and loss of the Jet Airways
Years
2006-07
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
(Projection)
Particulars
Sales
1982 2500 2526 2876 3447 4338 5238
Cost of goods sold
1163.82 1520.01 1474.16 1765.52 1755.52 2168.07
Contribution
817.94 980.04 1052.13 1110.4 1691.9 2169.94
Promotional Exp.
532.45 612.94 669.23 693.06 827.82 959.32
PBDIT
285.49 367.1 382.9 417.34 864.08 1210.62
Depreciation 457
208.61 260.03 348.83 473.27 515.15 (calculated from
% figure)

PBIT No definite
78.88 107.07 34.07 -55.93 348.93 753.62
Trend.

Notes:
1. The above figures are picked, according to the objective of use, so the PBDIT
figure and the PBIT figures may differ from what the company has published in
its annual report.
2. We have considered the items which affects the core business, items related to
other business of the company other that operations i.e. investments etc, are not
included in projecting the companies performance for the year 2006-07.
3. Some figures are not very accurate, because it has been derived from the
percentage figure of the whole sales and so.
4. This is just an estimate and gives an idea of companies progress, so please be
careful in using it as reference for some sensitive decisions.

Interpretation:
1. In this table it is evident that the sales of the jet airways has increased by 25% in
the year 2001-02 but has suddenly stopped for the year 2002-03 in which year it
appeared to be increased by only 1%. but this is not the true indicator of the
companies performance in that year because, this is the year in which most of the
companies has shown losses and had withdrawn their service after sluggish ness
in the airline business because of the attack on the WTC, in sept. 11, 2001.

2. In the year 2002-03, though there was sluggishness in the market the company
had increased its service to some more flights and more locations.
3. Coming down to the performance of the company again we can see that the

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 company has recovered very soon and has posed a profit of approx.12.5% and has
shown a similar trend of 20% increase in the net revenue.
4. Thus if we consider the performance of the company in the year of the crisis to assess
the future performance of the company it will represent a faulty projection for the
company. So by excluding and projecting according to the trend that the company has
shown it comes out to be a growth of 20% and thus will generate revenue of around
5238 crore.
5. In the year 2005-06 the company has introduced some aircrafts (Boeing 337-700,
A340-300E), and due to soaring prices of ATF the company has incurred higher
amount of expenses. It is difficult to determine whether company is going to increase
more aircrafts and also the fluctuating oil prices. So, we could not predict the COGS
of the company.
6. Another major reason, why the projection of the company is increasingly difficult is
because, it has recently been allowed to operate overseas and for this company has
been entering into many new contracts and trying to make acquisition like Sahara
Airlines (which failed, though), in fact the company has also start operating in certain
countries, in which it had not been earlier. Thus, it makes very difficult to come up
with the projection of promotional expenses and other items of the P/L A/c and
B/sheet.
7. But, if we presume that the company will be only as efficient as earlier years and
there would not be any dramatic change in the market share of the company we can
come up with the following projection table:

year Jet’s Market Total Domestic Market Share Market Jet Airways
Share Market Growth(%) Market growth(%)
2000-01 1982 5223 38
2001-02 2500 5275 47 1 26
2002-03 2526 6009 42 14 1.04
2003-04 2876 7204 40 20 13
2004-05 3447 9063 38 25 19
2005-06 4338 11900 36 31 25
2006-07 5238 14994 35 26 20.75

8. Facing the same problem of an abnormal year of crisis which impacts the airline
business heavily, we have averaged the growth of the four years only except 2000-01
and 2002-03 and got the simple average of 20.75 % and have been projecting it as the
possible growth of the company for 2006-07.But the growth of the company may
even be higher because our projection goes conservative because we have have not
acknowledged the slow growth of the year 2003-04 and have considered it as a
normal year.
So, we conclude that the market share of the jet airways will grow at 20.75 % with
certain assumptions made above and because of the highly fluctuating ATF (Aviation
Turbine Fuel), and growing competion and no definite trend in the different costs we
decided not make any projection for the profit, which may be highly faulty.

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