Prepared By: Prashant Abitkar(1) Swati Gokhle Ishan Kelvalkar(71) Vitthal Ankita Mistry(93) Anis Madraswala(115) Shruti Satam

Introduction
Started by Naresh Goyal as Air Taxi Operator in April 1992 Started Indian commercial airline operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft Scheduled airline status was granted on 4 January 1995 Initial investment of US$10 million 100%of its share controlled by Naresh Goyal Jets parent company, Tail Winds Ltd. Began international operations to Sri Lanka in March 2004. Jet, is headquarters in Mumbai, India

Current Service Offerings

Jet Privilege

Blue

Silver

Platinum

Blue Plus

Gold

JPMiles The number of Base JPMiles earned is the direct travelled distance between the origin and destination city-pair. JPMiles earned are based on the fare and cabin travelled.
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On-board Services
Check-In options Airport lounges Bus Services Cuisines Entertainment

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SWOT ANALYSIS
Strengths largest market share high reputation and a strong brand image operates over 400 flights reaching 76 destinations across the world Gained unshakable trust among Indian flyers by registering 91.8% on-time performance The debt recovery plan and the rebranding exercise has added new hopes to Jet Airways Jet Airways has strong partnership alliances with international brands like Barista Lavazza to promote its brand

Weakness

The competition for Low cost carriers is increasing Too Many Brands Dilute the brand resonance; Customers are confused with its subsidiaries Jet Konnect (Lcc) and Jet Lite JetLite operating low cost carriers with premium features would increase operating cost and slowdown the revenues The share prices of Jet Airways is constantly fluctuating which is not attracting new investors

Opportunity
Jet airways total debts in the year 2009 was Rs. 16,323.53 2009 Cr and has come down to Rs.13, 480.39 Cr in 2011.
The effective recovery plan has helped Jet Airways to gain many investors Jet Airways has entered strategic partnership with United Colors of Benetton for its frequent flyer program, Jet Privilege Jet Airways has good presence over International Routes The number of Tourists visiting India is on the raise and its is expected to go up to 1,747 Million in 2021 The passenger traffic in India has grown up to 15 in the FY2011 the domestic traffic is expected to rise to 56% in the next FY2013

Threats Jet Airways faces threat from Low Cost carriers, which is attracting huge customers Increasing fuel prices and operation costs impose new challenges to this industry Certain media reports accuse Jet Airways regarding service tax issues and spoil the reputation with stake holders The global economic crisis has urged companies to reduce air travels to cut their costs Jet Airways also faces threats from new Lcc like Jagson Airways Indian Aviation sector including Government-owned Air India faces heavy loss for past two financial years, while international players like Indigo Airlines make huge profits

Porter's 5 Forces

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Bargaining power of Buyer - High

Standard product and services Several options available to customers No switching cost customer need a reason to stay Customer can research easily using the internet Customer incentives such as JPMiles which allow customers to earn rewards, book flight in an easier/faster manner, and stay on top of the upcoming event/sales Customer loyalty does not come cheaply the average Indian flier expects more by paying less.

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Bargaining power of Supplier - High

Cost of fuel has risen in the years Airplanes are mostly created by 2 manufacturers : Boeing and Air-Bus Aviation personnel are very few in number. The pay demanded are very high.

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Threat from substitutes - High

Numerous other low-cost airlines Switching costs among other transportation option are high for everything but short distance (Train, bus etc) High exiting barriers regulated by ministry of civil aviation Trains are the most preferred modes of transport when it comes to domestic travel

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Threat from new entrants - Low

Very high cost or capital required for entry Low profit margin Difficult to differentiate product & services Brand image and loyalty is important New airlines must be seen as safe and reliable Large airlines are very aggressive Premature domestic market

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Competitive rivalry - High

Competitors like Kingfisher, Indian Airlines, Indigo In times of low or moderate industry growth, the competition gets fiercer as each one tries to nab customers from the other in order to keep their capacity utilizations at acceptable levels The industry is extremely sensitive to economic cycles Ambush marketing campaigns

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Porter Competitive Model

Airline Industry Analysis - North American Market
Aircraft Manufacturers Aircraft Leasing Companies Labor Unions Food Service Companies Fuel Companies Airports Local Transportation Service FAA Hotels

Potential New Entrants

Foreign Carriers Regional Carrier Start ups Cargo Carrier Business Strategy Change

Bargaining Power of Suppliers

Intra-Industry Rivalry
SBU: American Airlines Rivals: United, Delta, US Air, Northwest, Southwest

Bargaining Power of Buyers

Travel Agents Business Travelers Federal Government Pleasure Travelers Charter Service U.S. Military Cargo and Mail

Alternate Travel Services Fast Trains Boats Private Transportation Videoconferencing Groupware

Substitute Products and Services

Figure 4-2

SWOT Analysis
Strengths
Experience exceeding 14 years International operations Large fleet size Among top 3 in India

Weaknesses
Losing domestic market share Old fleet with average age - 4.79 years Need improvement in in-flight service Weak brand promotion

Opportunities Untapped air cargo market Scope in global service and tourism Increasing salaries of people

Threats Strong competitors Fuel price hike Overseas market competition Regulations

Recommendations
Improvise on branding strategies lagging behind Indigo Look into newer geographical regions Improving technology to overcome unfavorable weather conditions Improve on Time delay in Flights

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Thank You

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