jet airways
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April 8, 2023 1
SERVICE OPERATION PRESENTATION
Prepared By:
Sneha Varma (193)
Mayank Shah (202)
Ritu Singh (59)
Swatanu Mohan Satpathy ( 108 )
Submitted To: Prof. Sachin Khare
April 8, 2023 2
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
• 80%of its stake controlled by Naresh Goyal
• Jet’s parent company, Tail Winds Ltd.
• Began international operations to Sri Lanka in March 2004.
• Jet, is headquarters in Mumbai, India
April 8, 2023 3
Introduction• Operates over 370 daily flights to about 68 destinations both
in India and international (abroad)• Listed in the NSE in the year 2005• Includes major cities like Mumbai, Delhi, Chennai, Jaipur, etc.• Second Leg cities like Aurangabad, Patna, Nagpur, etc.• 21 international destinations in 17 countries across Asia,
Europe & North America• International destination includes cities like San-Francisco,
New York, Singapore, London (Heathrow), Hong Kong, Colombo, Abu Dhabi, Dubai, etc.
April 8, 2023 4
Financials• Annual Revenues
Rs 9481.5 crores (2009-10)
Rs 7401.3 crores (2010-11)
• Profit After Tax (PAT)
- Rs 253 crores (2009-10)
Rs 27 crores (2010-11)
• Average Passenger Load
69.1% (2009-10)
84.3% (2010-11)
April 8, 2023 5
Fleets Of Aircrafts98 Airplanes in total
• Airbus330--200--(12)• ATR72 --500--(14)• Boeing737--700--(11)• Boeing737--800--(42)• Boeing737--900--(2)• Boeing777—300ER*--(11)
*Includes aircraft that have been leased to other airlines
Airbus330
Boeing 737-700
April 8, 2023 6
Current Service Offerings
Jet Privilege
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.
Blue Silver Platinum
GoldBlue Plus
April 8, 2023 7
Current Service Offerings
Jet Konnect
• Launched on 8 May 2009 to close down loss making routes• Divert planes to more profitable routes with higher passenger
load factors.• Started 54 flights a week, rose to 125 flights, target of 160
flights a week
Jet Escapes
• A holiday package to a particular destination• Option to earn JPMiles on each holiday availed
April 8, 2023 8
Current Service Offerings
Jet Mobile
• Access information such as flight status, schedules, set alerts or automatically receive flight delay messages
• Request for your JetPrivilege account details• Search for the lowest fares on Jet Airways
Jet Viva
• Interaction forum for women travelers• Modern fashion trends, spa getaways, high end cosmetics
April 8, 2023 9
Current Service Offerings
Jet Lite
• Acquisition of Sahara Airlines• Low cost carrier• Wider reach
Jet Kerala/ Jet2IncredibleMP
• Tourism packages to Kerala and Madhya Pradesh• Special offers during summer vacations and new year
April 8, 2023 10
On-board Services • Check-In options• Airport lounges• Bus Services• Cuisines • Entertainment
April 8, 2023 11
Market Share
April 8, 2023 12
Competitor Analysis
Domestic Market International Market
April 8, 2023 13
Porter's 5 Forces
Bargaining power of buyerHIGH
Threat from new entrantsLOW
Bargaining power of supplier
HIGH
Threat from substitutesHIGH
Competitive rivalryHIGH
April 8, 2023 14
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.
April 8, 2023 15
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.
April 8, 2023 16
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
April 8, 2023 17
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
April 8, 2023 18
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
April 8, 2023 19
Product
• Airline service – travel
Price
• Discounted fare for senior citizens, defense personnel• Economy & Club Premiere Fare• Advance Passenger Excursion
Place• Place of Service – Aircraft • Various Airports – Jet lounge
The 7 P’s
April 8, 2023 20
The 7 P’sPromotion
• Companion Free Offer, Concessional fares• Jet Privilege frequent-flier programme• Jet Airways Citibank Credit Cards• Corporate Deal Offers• Festival specials, Student specials
• Advertising and BrandingHoardings and advertisementsBrand AmbassadorsSponsorshipsEvent Organization
April 8, 2023 21
The 7 P’sProcess
People Processing• Greeting method and standard procedure of
treatment for customers for each class• Booking tickets made online and in counters• Flights sticking to schedules• In flight service – baby care, disabled care• Travelling with pets
Possession Processing• Cargo• Luggage
April 8, 2023 22
The 7 P’sPhysical Evidence
• Cuisine• In-flight entertainment facilities• Kiosks – check-in counters• Jet boutique – in flight fashion apparel• Jet kids – in flight kids programme• Jet mall – in flight shopping
People
• Trained cabin crew• Immigration & transportation
April 8, 2023 23
SWOT Analysis
Strengths
Experience exceeding 14 yearsInternational operationsLarge fleet sizeAmong top 3 in India
Threats
Strong competitorsFuel price hikeOverseas market competitionRegulations
Weaknesses
Losing domestic market shareOld fleet with average age - 4.79 yearsNeed improvement in in-flight serviceWeak brand promotion
Opportunities
Untapped air cargo marketScope in global service and tourismIncreasing salaries of people
April 8, 2023 24
Gap Model
April 8, 2023 25
Customer Expectation – Management Perception
• Seat allotment• More variety in harder products
Gap – 1
April 8, 2023 26
Gap – 2
Management Perception – Service Quality Specification
• Reclining Feature• Check-In baggage
April 8, 2023 27
Gap – 3
Service Quality Specification – Services Delivered
• Unfriendly Check-In• Unhygienic conditions
April 8, 2023 28
Gap – 4
Service Delivered – External Communication
• Time delay in Flights• Emergency services
April 8, 2023 29
Gap – 5
JET AIRWAYS KINGFISHER INDIAN AIRLINES
RELIABILITY 1 2 3
ASSURANCE 1 2 3
TANGIBLES 2 1 3
EMPATHY 1 2 3
RESPONISVENESS 1 2 3
April 8, 2023 30
Recommendations• Concentrate on the gaps created• Improvise on branding strategies• Look into newer geographical regions• Improving technology to overcome unfavorable weather
conditions
April 8, 2023 31
Thank You