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Jet airways
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 Jet airways

Introduction

Jet Airways is a major Indian airline based in Mumbai, Maharashtra. It is

India's largest airline and the market leader in the domestic sector. It operates
over 400 flights daily to 67 destinations worldwide. Its main hub is Chhatrapati
Shivaji International Airport, with secondary hubs at Delhi, Chennai,
Bengaluru, Pune and Kolkatta.

Jet Airways' original livery was Navy Blue, Light Grey and Chrome Yellow.
The top and bottom of the aircraft were painted in light grey and had the flying
sun logo in the navy blue background.

2007–present

Jet Airways' current livery was introduced in 2007. The design retained the
dark blue and gold-accented colour scheme of Jet Airways' previous
corporate identity, along with the airline's "flying sun" logo. The new livery,
created with Landor Associates, added yellow and gold ribbons. A new yellow
uniform was simultaneously introduced, created by Italian designer Roberto
Capucci. Jet Airways introduced its new identity in conjunction with a global
brand re-launch which included new aircraft and seating.

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Fleet information

 Airbus A330-200 landing at

Birmingham International
Airport.

 ATR 72-500

 Boeing 737-700 taking off from the Cochin International Airport

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  Jet Airways Boeing 777-300ER at San Francisco International Airport.

 Jet Airways Airbus A340-300E at London Heathrow Airport in 2005

with the 1993-2007 livery

 Jet Airways Boeing 777-300ER with the present livery

The Boeing customer code for Jet Airways is 5R. The airline is known for
constantly maintaining its average fleet age below 10 years with regular
phasing out of aircraft which are over 10 years of age.

As of May 2011, the Jet Airways fleet consists of the following aircraft with an
average age of 5.4 years:

Jet Airways Fleet

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Aircraft In Orders Passengers Notes
Service P J Y Total
Airbus A330- 12 5 0 30 190 226 10 owned
200 0 18 236 254 Two dry-leased from ILFC
Airbus A330- – 5 TBA All leased from Intrepid Aviation
300 Group
Deliveries starting 2011[24]
ATR 72-500 20 – 0 0 62 62 All are dry-leased
Boeing 737-700 11 – 0 16 102 118 6 owned
5 dry leased
Boeing 737-800 42 19 0 16 138 154 18 owned
0 8 162 170 24 dry leased
Boeing 737-900 2 – 0 28 138 166 Both owned
Boeing 777- 10 2 8 30 274 312 4 dry leased to Turkish Airlines
300ER 3 dry leased to Thai Airways
International
Boeing 787-8 – 10 TBA Deliveries starting 2014
Total 97 41

Networks

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Key dates

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 iet lite

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Pest analysis

A PEST analysis is an analysis of the external macro-environment that affects

all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and
Technological factors of the external macro-environment. Such external
factors usually are beyond the firm's control and sometimes present
themselves as threats.

Political  License issue for international operation

 Infrastructure constraints
 ATF price policy
Economic  Rising income level
 Reduced fare but yet not enough
Social  Sound pollution
 Plane hijacking
 Issues that concern terrorism and bombing
Technology  Modernization of aircrafts
 Modern technology like CAT 3 and ILS

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SWOT analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project
and identifying the internal and external factors that are favorable and
unfavorable to achieve that objective. Reference

Strengths  Market driver

 Experience exceeding 14 year
 Only private airline with international operation
 Market leader
 Largest fleet size
 restructure is paying off
Weakness  Loosing domestic market share
 Old fleet with average age around 4.70 years
 Scope for improvement in in-flight service
 Weak brand promotion
 Brand confusion
Opportunities  Untapped air cargo market
 Scope in international service and tourism
 Growth option limited to short haul
Threats  Strong competitors
 Fuel price hike
 Overseas market competition
 Competitive tension
 Ongoing competitive weakness

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Marketing strategy

Market segmentation

Market the different classes on board the airline which is the

 Economic class
 Business class
 Premium class

Focus on the targeted customers who are the within the

 Business class
 Economic class

Also by providing those with promotional activities like:

 Free tickets
 Concessional fares for different students
 Jet lite surprises
 Corporate deal offers

Their site is also used within their marketing strategy by promoting unique
selling techniques like having strong customer relationships and being always
on time and accurate when it comes to take off and landing in order to preserve
its outstanding services and keep attracting large groups of people.

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Financial statement of jet airways 2007 - 2010

A. Balance sheet

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' Mar '
07 06
Sources of funds
Owner's fund
Equity share capital 86.33 86.33 86.33 86.33 86.33
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 740.68 1,208.32 1,765.42 2,018.48 2,057.53
Loan funds
Secured loans 3,973.68 4,775.92 1,612.75 742.46 206.02
Unsecured loans 9,923.30 11,547.6 10,402.2 5,313.84 4,689.58
1 9
Total 14,723.9 17,618.1 13,866.7 8,161.11 7,039.46
9 8 9
Uses of funds
Fixed assets
Gross block 17,932.7 18,763.7 16,591.0 5,713.83 4,312.07
5 4 9
Less : revaluation reserve 1,814.97 1,862.30 2,699.90 132.44 162.02
Less : accumulated 3,502.83 2,501.80 2,506.92 2,416.34 2,249.58
depreciation
Net block 12,614.9 14,399.6 11,384.2 3,165.05 1,900.47
5 4 7
Capital work-in-progress 299.60 583.17 1,223.28 3,994.52 2,725.66
Investments 1,745.00 1,745.00 1,475.35 68.93 187.23
Net current assets
Current assets, loans & 3,782.20 4,350.70 4,145.67 3,402.32 4,091.31
advances
Less : current liabilities 3,717.76 3,460.33 4,361.78 2,469.71 1,865.21
& provisions
Total net current assets 64.44 890.37 -216.11 932.61 2,226.10
Miscellaneous expenses - - - - -
not written
Total 14,723.9 17,618.1 13,866.7 8,161.11 7,039.46
9 8 9
Notes:
Book value of unquoted 1,645.00 1,645.00 1,465.00 - -
investments
Market value of quoted 100.01 100.02 10.35 69.01 190.06
investments
Contingent liabilities 14,656.1 16,325.9 14,284.9 6,624.43 9,736.40
9 0 7
Number of equity 863.34 863.34 863.34 863.34 863.34
sharesoutstanding (Lacs)

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 B. Profit and loss account

Mar ' 10 Mar ' 09 Mar ' Mar ' Mar '
08 07 06
Income
Operating income 10,438.5 11,571.1 8,811.10 7,057.78 5,693.73
7 5
Expenses
Material consumed - - - - 63.12
Manufacturing expenses  5,265.69 7,446.48 5,129.92 3,667.20 2,456.60
Personnel expenses 1,226.55 1,410.50 1,205.18 938.55 567.81
Selling expenses 984.91 1,098.17 982.86 800.85 774.02
Adminstrative expenses 853.94 1,017.54 739.24 616.12 420.02
Expenses capitalised - - - - -
Cost of sales 8,331.09 10,972.6 8,057.20 6,022.72 4,281.57
9
Operating profit 2,107.48 598.46 753.90 1,035.06 1,412.16
Other recurring income 152.04 112.27 115.23 90.36 77.36
Adjusted PBDIT 2,259.52 710.73 869.13 1,125.42 1,489.52
Financial expenses 1,824.74 1,450.86 1,056.03 909.70 691.24
Depreciation  961.96 899.81 777.80 414.10 406.41
Other write offs - - - - -
Adjusted PBT -527.18 -1,639.94 -964.70 -198.38 391.87
Tax charges  78.97 22.21 -160.73 23.42 270.22
Adjusted PAT -606.15 -1,662.15 -803.97 -221.80 121.65
Non recurring items 97.78 331.48 522.01 225.25 289.38
Other non cash 40.73 928.33 28.90 24.49 41.01
adjustments
Reported net profit -467.64 -402.34 -253.06 27.94 452.04
Earnigs before -729.08 -261.44 208.91 525.37 601.71
appropriation
Equity dividend - - - 51.80 51.80
Preference dividend - - - - -
Dividend tax - - - 8.80 7.27
Retained earnings -729.08 -261.44 208.91 464.77 542.6

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 C. Cash flow

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' Mar ' 06
07
Profit before tax -467.55 -469.62 -412.59 51.36 722.26
Net cashflow-operating 1,651.42 -376.30 862.66 687.46 607.48
activity
Net cash used in investing 160.10 - - -786.08 -
activity 1,153.65 6,176.80 2,471.56
Netcash used in fin. - 1,242.12 5,123.22 732.33 1,587.83
activity 2,083.52
Net inc/dec in cash and -272.00 -287.83 -190.92 633.71 -276.25
equivlnt
Cash and equivalnt begin 382.72 670.55 861.47 227.76 504.01
of year
Cash and equivalnt end of 110.72 382.72 670.55 861.47 227.76
year

D. Ratio of shares

Liquidity ratios
Current ratio 1.02 1.26 0.95 1.38 2.19
Current ratio (inc. st 0.33 0.37 0.60 1.07 1.66
loans)
Quick ratio 0.86 1.09 0.77 1.18 1.97
Inventory turnover ratio 4,349.40 7,370.1 2,143.8 5,601.41 4,951.07
6 2

 Current ratio = Current assets/current liabilities

 Working capital = Current assets/current liabilities
 Working Capital to Sales Ratio = (current assets – current
liabilities)/total sales
 Days in sales receivable = gross receivable / (net sales / 365)

Profitability ratios
Operating margin (%) 20.18 5.17 8.55 14.66 24.80
Gross profit margin (%) 10.97 -2.60 -0.27 8.79 17.66
Net profit margin (%) -4.41 -3.44 -2.83 0.39 7.83
Adjusted cash margin (%) 3.35 -6.52 -0.29 2.69 9.15
Adjusted return on net worth (%) -73.29 - -43.41 - 5.67
128.38 10.53
Reported return on net worth -56.54 -31.07 -13.66 1.32 21.08
(%)
Return on long term funds (%) 12.12 -1.41 0.74 9.53 16.80

 Net profit margin = net income after tax / net sales

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 Total assets turnover = net sales / avg total assets
 Return on assets = (income after tax / avg total assets) * 100

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 Conclusion

The strategy of jet airlines is quite clear and straight forward when jet airways
tries its best to perform on top quality and make sure that the customers
understand their motives and their good intentions to becoming one of the
world's leading airlines.

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Bibliography

 http://www.scribd.com/doc/8718529/Jet-Airways
 http://money.rediff.com/companies/jet-airways-india-
ltd/16600015/dividend
 http://en.wikipedia.org/wiki/SWOT_analysis

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