1.

A Brief History of Indian Aviation

2. India is the second largest aviation industry of the

world

3. FDI Policy in Indian Aviation

Strengths… 

1. Flying to about 10 – 12 airports where it has

monopoly 

2. In-House simulators to reduce training costs

3. First mover advantage in terms of access to

airport infrastructure during peak periods

4. Deccan – Kingfisher control almost 30% of the

domestic market
Weaknesses…
1. Weak Balance Sheet
Year ended June ‘08
Total Revenue
21,423.09
Net Profit after tax
(4,195.76) 
Earning per share
(44.24)
2. Dependence on leased aircrafts- 3 aircraft, so incurs
higher inventory cost
3. Poor perception regarding service quality and reliability
4. The strategy of flying to previously unconnected routes
Threats…
1. Over capacity in the sector leading to
deteriorating yields  
2. Increasing competition 
3. Low Entry Barriers leading to entry of new
players in LCC segment
4. High fuel prices in India
5. Shortage of trained manpower
Opportunities… 
1. Growing middle class population and increased
standard of living 
2. Change in perception of air travel as a necessity
rather than a luxury
3. Increase in tourism
4. Improvement in airport infrastructure
5. Potential Demand and Development of Tier II & Tier
III cities
Business
Segments
DECCAN
AVIATION
LIMITED

Deccan
Air Deccan DALPL
Aviation
Air Deccan Cargo
(48% JV with
(Helicopter &
(LCC Model) (Proposed Sri Lankan
Charter
Cargo Airline) Companies)
Service)
 First mover advantage
 Simplify!
 Strong management team, with leading low-cost
carrier expertise.
 Naresh Goyal is the founder and Chairman of Jet
Airways, India's largest domestic airline.

 In May 1974, Naresh Goyal founded Jet air

(Private) Limited to look after Sales and
Marketing operations of foreign airlines in India.

 Naresh Goyal took advantage of Open Skies

Policy of the Government of India and set up Jet
Airways for the operation of schedule
 Jet Airways was established on 3 May 1991 with a
fleet of 4 Boeing 737-300 aircraft, with 24 daily
flights serving 12 destinations.

 The Group has 85 aircrafts which includes 4

Boeing 777-300 ER, 49 classic and next
generation Boeing 737-400/700/800/900 aircraft,
4 Airbus A330-200 aircraft and 8 modern ATR 72-
500 turboprop aircraft and 20 new wide-bodied
Boeing 777 and Airbus 330 aircrafts. The Group
provides services in 8 international destinations
including Europe, the United States and Asia.
 Right from the start, Jet Airways focused
more on customer service than anything else.
It was because of its superior customer
service that Jet Airways had become the
most popular airlines in India.
 1993: Jet Airways begins domestic
 operations flying Boeing 737 jets.

 1997: Kuwait Airways and Gulf Air

 sell their stakes in Jet Airways.

 1999: A regional network is

 launched with turboprop aircraft.

 2004: The first international services

 are started.

 2007: Acquired Air Sahara and re-launched it as jet lite.

1. Jet Airways wins customer and brand loyalty award for the second consecutive time

2. Jet Airways wins ‘airline with best first-class service in the world’ award at Business Traveller's
20th annual ‘best in business travel’ awards gala in the USA

3. Jet Airways wins the 2008 Galileo Express Travel world ‘best domestic full service airline’
award for the sixth year in a row

4. Jet Airways wins the ‘BEST CARGO AIRLINE OF CENTRAL ASIA’ award

5. Jet Airways' Jet Privilege wins Top Honours with Seven Awards at the prestigious Freddie
Awards 2007

6. Jet Airways wins Double Honour at the 18th TTG (Travel Trade Gazette) Travel Awards 2007

7. Genius of the Web Awards 2007 for the Best Airlines website

8. Jet Airways (INDIA) LTD. awarded TOP HONORS at World Airline Entertainment Association
(WAEA) AVION AWARDS second year in a row!

9. Jet Airways' Chairman Mr. Naresh Goyal honoured with the TATA AIG - Lifetime Achievement
Award
9. Jet Airways won the SAP ACE 2007

10. The Freddie Award - Highest Honour For Jet Airways

11. 'Best Full Service Carrier' category from Galileo Express TravelWorld Awards, 2006

12. Jet Airways once again voted India’s best airline at the TTG Travel Asia Awards (Oct 2006)

13.  Jet Airways wins three Avion global Awards for In-flight Entertainment, 2006

14. Jet Airways voted India’s Leading Airline at the World Travel Awards, 2006

15. Jet Airways’ frequent flyer programme Jet Privilege wins laurels at the 18th Freddie

Awards, 2007

16. Jet Airways recognized for its popularity and spectacular growth by the Travel and Tourism

fraternity

17. Star Of The Industry Awards for the Best Domestic Airline For The Year 2005

18. Hero Mindmine’s First BML Munjal award for excellence in learning & development
19. Jet Airways wins coveted award for Emerging Company of the year’ at the
Economic Times awards for Corporate Excellence (Nov 2005)

20. Jet Airways bags the coveted TTG Travel Asia's Award for the Best Domestic
Airline for 2005

21. Emerging Company of the year for Corporate Excellence, 2005

22. Jet Airways wins Freddie Awards (Apr 2005)

23.  Jet Airways is 'India's Best Domestic Airline' for the second consecutive year (Nov
2004)

24.  TTG Travel Award - The Best Domestic Airline, Asia Pacific (Oct 2004)

25.  Jet Airways Bags Business world's 'Most Respected Company' Award For The
Second Consecutive Year (Oct 2004)

26.  Galileo-Express Travel & Tourism Award for ‘India’s Best Domestic Airline (Dec
2003)
27. ‘Super brand’ Aug 2003
28. Boeing Company Award for maintaining ‘Best Technical Despatch Reliability’ for 2002

29. India’s Most Respected Company in the Travel and Hospitality Sector (Jan 2003)

30.  Best Domestic Airline’ of Asia by Travel Trade Gazette’s (TTG) Asia (Oct 2002)

31.  Best Domestic Airline of the Year’ 2001 (Sep 2002)

32.  Award in the Co-branded/Affinity Programme category at the MasterCard Annual

Meeting Asia-Pacific 2001

33. Air Transport World Market Development Award (Feb 2001)

34.  Best Domestic Airline of the Year 1999 - H&FS (Mar 2000)

35.  Vocational Excellence Award by Rotary Club of Mumbai (Jan 2000)

36.  Best Domestic Airline of the Year 1998- H&FS (Dec 1998)
37. India’s Best Domestic Airline at the International Brand Summit (Nov 1998)

38. Best Domestic Airline Award for Service Excellence (Nov 1997)

39. 'Best' Airline by Rangaswamy Tourism Foundation associated with the Karnataka Tourism
Development (Sep 1997)

40. Best Airline of the Year 1996-97 Award (Jan 1997)

41. Best Domestic Airline of the Year Award (Dec 1996)

42. The World Travel Market Global Award (Oct 1996)

43. Great Management Show Award (Oct 1996)

44. Citibank Diners Club Blue Moon Award for Service Excellence (Sep 1995)

45.  Service Excellence Award (Oct 1994)

 International Market :
 - British Airways
 - South West Airlines

 Domestic Market :
 - King Fisher
 - Indian Airlines
 - Go Air
 - Spice jet
 - Indigo
 Total Revenues of INR 30.6 Billion (USD 628.8
Million)

 Loss Before Tax of INR 2,498 Million (USD 51.3

Million)

 Loss after Tax of INR 2,142 Million (USD 44.0

Million)

 Revenue Passengers carried 2.56 Million

 Achieved Seat Factor of 66.2%

 Addition of 1 A330 and 3 ATR aircraft to fleet

 Economic slowdown

 26/11 terror attack

 Agents Boycott (India) - December 2008

 Lease out of 3 B777’s (Turkish airlines) and 2

A330’s (Gulf Air)
Traffic Parameters Oct 08-Dec 08

Number of Departures 32,247

Passenger Load Factor % 66.2%
Revenue Passengers (Million) 2.56
Break Even Seat Factor (%) 71.6%
Break Even Seat Factor (%) w/o Fuel 42.2%

Average Gross revenue per passenger in INR 10,374

Average fleet size during period 85.5
Average Head Count 13,710
 Oct 08-Dec 08 Oct 07-Dec 07 Variance %
(INR millions) (INR millions)

Total Revenues 30,631 25,172 21.7%

PROFIT / (LOSS)
AFTER TAXATION (2,498) (1,304) -91.6%

EBITDAR
3,577 2,907 23.1%
 As on 31- As on 31-
Dec-08 Mar-08
INR Million INR Million
I SOURCES OF FUNDS
Shareholders' Funds 35,168 45,517
Loan Funds 1 45,221 1 16,025
Deferred payments towards Jet Lite 4,125 4,125
Investments 1,602
Deferred Tax Liability
TOTAL SOURCES OF FUNDS 184,514 167,269
II. APPLICATION OF FUNDS
Net Fixed Assets: 1 65,900 1 53,075
Investments 17,423 14,754
Current Assets, Loans & Advances 42,196 39,642
Less: Current Liabilities & Provisions 45,542 40,201
Net Current Assets (3,346) (559)
Profit & Loss Account 4,537
TOTAL APPLICATION OF FUNDS 184,514 167,269
 Revised fare structure to maximize the load factor and
Yield

 Zero Commission effective November

 Capacity reduced by 22~25%

 Integrated the services between Jet Airways and Jetlite

 Changes in livery and new branding exercise nearly

complete
 Total Revenues of INR 4,741 Million (USD 97.3 Million)

 Loss Before Tax of INR 216 Million (USD 4.4 Million)

 Loss after Tax of INR 220 Million (USD 4.5 Million)

 Positive EBITDAR of INR 509 million (USD 10.5 million)

 Unit costs down by 30.8%

 Revenue Passengers carried 0.8 million

 Achieved Seat Factor of 67.8%

 Breakeven seat factor down to 71% for the quarter

 Lower oil prices have reduced pressure on costs in the short term

 Current apex fares introduced by airlines is expected to stimulate

additional demand in domestic market

 Increased focus on corporate and broad basing the corporate reach;

tactical offerings in business class

 Promoting web and direct booking channels with tactical and promotions

 Domestic capacity expected to be flat or even negative for the next few

quarters

 Capacity on international routes have been rationalized and the lease out

of surplus aircraft will reduce impact on breakeven

 Dr. Vijay Mallaya is the Chairman and CEO of Kingfisher

- Airlines.
 Kingfisher Airlines Limited launched scheduled airline
services on May 9, 2005 with 4 daily flights between
Mumbai & Bangalore.
 It is a major Indian luxury airline operating an extensive
network to various destinations.
 Currently the Kingfisher airline operates the aircraft like the
airbus A320, A319 – 100 and ATC- 72.
 After acquiring the Deccan Airways, Kingfisher has started
a new fleet known as Kingfisher Red.
 A brand new fleet.

 Personal video screens in every seat

 The largest comparable seat amongst domestic airlines.

 Assigned seating through advance internet reservations.

 “ India’s No.1 Airline in customer satisfaction” – Business -
World.
 “ Rated amongst India’s 25 Innovative Companies”- Survey
conducted by Planman Media.
 Kingfisher Airlines, has been conferred the `5 - Star Airline
Status`, the most prestigious award that honors airline
Product and Service Quality Excellence, by Skytrax, the
world`s leading, independent travel forum and air travel
information organization.
 Economic Times Avaya Award 2006 for Excellence in
“Customer Responsiveness.”
Strengths:-
1. Strong brand value and reputation.
2. Quality of service.
3. First airline to have new fleet of airbuses.
4. Continuous Innovation.

Weaknesses:-
1. High ticket pricing.
2. Facing a tough competition from competitors.
Opportunities:-
1.The expanding tourism industry.
2. The non penetrated domestic market.
3. Untapped air cargo market.

Threats:-
1. Competitors
2. Infrastructure Issues.
3. Fuel Price Hike.
4. Economic Slowdown.
 Net loss of Rs 626 crore for the quarter ended December 31,
2008.

 Sales stood at Rs 1,447 crore.

 Interest expenses during the quarter increased by Rs 103

crore.

 The company paid Rs. 30 crores as lease rentals and Rs.174

crores as initiation costs of international operations.
 DECEMBER 08 March 08
Total Income 607.66 1,452.11
Total Expenses 766.36 1,856.08
Operating Profit -208.75 -408.25
PBT -198.24 -626.24
Net Profit -199.65 -413.39
 As on 30- As on 31-
June - 07 Mar-08
Rs. In Crore Rs. In Crore
I. SOURCES OF FUNDS
Equity Share Capital 135.47 135.80
Reserves 249.23 63.07
916.71 934.38
Total Debt

TOTAL SOURCES OF FUNDS 1,301.41 1,133.25

II. APPLICATION OF FUNDS
Net Fixed Assets: 307.03 278.78
Investments 0.41 0.00
Current Assets, Loans & Advances 1,063.68 1,188.42
Less: Current Liabilities & Provisions (456.09) (696.83)
Net Current Assets 607.59 491.59
Miscellaneous Expenses 28.75 16.64
TOTAL APPLICATION OF FUNDS 1,301.41 1,133.25