8/3/2019 Performance of Jet Airways

http://slidepdf.com/reader/full/performance-of-jet-airways 1/8

Ratio Analysis for Jet

Airways

2/15/2012

K.J. Somaiya Institute Of Management Studies and Research

Prepared By: Akanksha Raje

MMS-B - 158

PreparedFor: Prof.Sonal Ved

8/3/2019 Performance of Jet Airways

http://slidepdf.com/reader/full/performance-of-jet-airways 2/8

 TABLE OF CONTENTS

TABLE OF CONTENTS..........................................................................................2

INTRODUCTION..................................................................................................3

PERFORMANCE OF THE COMPANY.......................................................................3

INFORMATION ABOUT THE AVIATION SECTOR......................................................5

INFORMATION ABOUT THE AVIATION SECTOR

8/3/2019 Performance of Jet Airways

http://slidepdf.com/reader/full/performance-of-jet-airways 3/8

INTRODUCTION

 Jet Airways is the largest Indian airline based out of Mumbai, Maharashtra. It

operates over 400 flights daily to 76 destinations worldwide. Its main hub is

Mumbai, with secondary hubs at Delhi, Chennai,

Cochin, Ahmedabad, Bengaluruand Kolkata. It has an international hub at Brussels

Airport, Belgium. Jet Airways is owned by Naresh Goyal.

 Jet Airways started operations on 5th May, 1993 and quickly went on to become

one of the foremost players in the market. With a standard fleet age of 5.53 years,

 Jet Airways has one of the youngest aircraft fleet in the world consisting. Jet Airways

presently operates a fleet of 98 aircraft, which also includes: 

1. 12 Airbus A330-200 aircraft

2. 20 modern ATR 72-500 turboprop aircraft.

3. 55 classic and next generation Boeing 737-700/800/900 aircraft

4. 11 Boeing 777-300 ER aircraft

It began international operations from Chennai to Colombo in March 2004. The

company is listed on the Bombay Stock Exchange, but 80% of its stock is controlled

by Naresh Goyal (through his ownership of Jet’s parent company, Tailwinds). It has

10,017 employees (as at March 2007).

PERFORMANCE OF THE COMPANY

 The Jet Group continues to maintain its leadership position in the Indian aviation

industry, with an estimated market share of 25.4% during the year ended

31stMarch, 2011 (as per DGCA data). Additionally, the specific initiatives

undertaken by the Company, coupled with improvements in infrastructural facilities

and measures implemented by the Ministry of Civil Aviation in the area of air trafficcontrol procedures, has enabled the company to record a better on-time

performance in our domestic operations at 88.4% vs. 76.6% in the previous year.

Despite the sharp increase in the price of Aviation Turbine Fuel (ATF) particularly

during the fourth

quarter of the financial year, the Company was successful in reporting a record

profit before tax of 

8/3/2019 Performance of Jet Airways

http://slidepdf.com/reader/full/performance-of-jet-airways 4/8

Rs.466 million as against a pre-tax loss of Rs.4,676 million in the previous year. The

Company achieved

a seat factor of 78.6% on its system-wide operations and carried 14.7 million

passengers on its services,

which was 22% higher than in 2009-10. The Company achieved an EBITDAR of Rs.24.8 billion, 19%

higher than the previous year.

According to the Directorate General of Civil Aviation (DGCA), the Indian domestic

traffic for the year

continued to show an impressive growth rate of 21%, thereby expanding the

available air traffic market

base of the country.

 The international business of Jet Airways continues to be robust. In 2010-11,revenues from international operations accounted for 57.2% of the Company’s total

revenues. They have continued to achieve high seat factors on our internationalroutes. Since the Indian economy is expected to continue to achieve a high GDPgrowth of 8% to 9%, there is no reason to expect a slowdown in the growth of theIndian aviation market. They have therefore planned to induct six additional narrowbody aircraft for deployment on the domestic and regional routes.In a few months from now, they will also get back four of our B777-300ER aircraft on

expiry of the dry

lease agreements with Turkish Airlines. The Company has decided to lease out two

of these aircraft to

 Thai International Airways. Following this, a total of five of the Company’s B777-300

ERs will be on

lease to Thai International Airways. They have decided to operate the remaining twoB777-300ER aircraft returned by Turkish Airlines ourselves, thereby upgrading our

services to Hong Kong and the US.

 The below graphs highlights the Financial developments of Jet Airways over a period

of 5 years -

8/3/2019 Performance of Jet Airways

http://slidepdf.com/reader/full/performance-of-jet-airways 5/8

8/3/2019 Performance of Jet Airways

http://slidepdf.com/reader/full/performance-of-jet-airways 6/8

INFORMATION ABOUT THE AVIATION SECTOR

 This industry deals with the transport of passenger and cargo from one place to

another using the aerial route. The Public Player in this Industry is Indian Airlines

whereas the Private players include Jet Airways, KingFisher Airlines, Spice Jet, AirDeccan and a few others.

 The Market Share of these players can be depicted as –

8/3/2019 Performance of Jet Airways

http://slidepdf.com/reader/full/performance-of-jet-airways 7/8

 This shows that the top 3 players are Air India, Kingfisher and Jet Airways.

India is poised to be among the top five aviation nations in the world in the next 10

years. Currently, India is the 9th largest civil aviation market. The Indian AviationIndustry is exploring opportunities to improve connectivity and is also looking at

enhancing the number of Indian carriers to various countries n the last decade,

domestic air traffic has quadrupled from 13 million to 52 million and international

traffic more than tripled to 38 million. A similar trend is observed in the cargo

sector. The rapidly expanding aviation sector handles 2.5 billion passengers across

the world in a year; moves 45 million tonnes of cargo through 920 airlines, using

4,200 airports and deploys 27,000 aircraft. Today, 87 foreign airlines fly to and from

India and five Indian carriers fly to and from 40 countries. Passengers carried by

domestic airlines during Jan-Nov 2011 were 55.03 million as against 46.81 million

during the corresponding period of previous year thereby registering a growth of 

17.6 per cent, according to data released by Directorate General Civil Aviation

(DGCA). The air transport (including air freight) in India has attracted foreign direct

investment (FDI) worth US$ 423.31 million from April 2000 to September 2011,

according to the data provided by Department of Industrial Policy and Promotion

(DIPP).

8/3/2019 Performance of Jet Airways

http://slidepdf.com/reader/full/performance-of-jet-airways 8/8

 The year under review also saw the fruition of several of the Government’s

infrastructure facilities in

support of the aviation industry – the best example being the opening of the new

terminal - T3, in

New Delhi. Green field airports in Hyderabad, Bengaluru and New Delhi and the on-going upgradation

of terminals in Mumbai has been a turning point in the history of India’s civil

aviation industry as for the

first time, the country truly has been able to offer facilities comparable to the best

in the world to

passengers travelling to, from or transiting through, India.

 The availability of the modern upgraded facilities has enabled us to consciously

promote the development and use of New Delhi and Mumbai airports as transit

hubs connecting the western markets of Europe, UK and North America with points

in SAARC region and East Asia. Mumbai and New Delhi are fast turning into efficient

hubs for our domestic traffic as well. India now successfully competes as a transit

hub with Dubai, Doha, Singapore, Bangkok and Kuala Lumpur, which are used by

well-known

international airlines.