Good morning

JET AIRWAYS
About Jet Airways :
Jet Airways (India) Private Limited is India's leading
private airline.
It boasts a market share of about 29 percent.
Jet operates a relatively young fleet of Boeing 737 jets and
ATR72 turboprops.
It carries about seven million passengers a year.
Its reputation for punctuality and outstanding service
attracts a large
 Light on Naresh Goyal: Founder and
CEO
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
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 jet
lite.
 Principal Competitors:
International Market :
- British Airways
- South West Airlines
Domestic Market :
- King Fisher
- Indian Airlines
- Go Air
- Spice jet
- Indigo
Marketing Strategy: STP for Jet
airways.
 Market Segmentation:
 Economic Class
 Business Class
 Premium class
 Target customers
 Business Class
 Economic class (Jet lite)
 Promotional Activities
For promotions they use tactics like
i) Offering free tickets
ii) Concessional fares for students
iii) Jet lite surprises
iv) Corporate deal offers
FLIGHTS OF JET AIRWAYS

 It operates over 400 daily flights to 65 destinations

worldwide.

 Provides services in:

 44 domestic destinations in India

 21 international destinations in 17 countries

across Asia, Europe & North America.
International destinations include Colombo,
New York, Toronto, Singapore etc.
FLEETS OF AIRCRAFTS IT INCLUDES
IT HAS 84 AIRCRAFTS
 Airbus330-200* - (12)

 Atr72-500 - (14)

 Boeing737-700 - (13)

 Boieng737-800 - (33)

 Boeing737-900 - (2)

 Boeing777-300er* - (10)

 * Includes aircraft that have been leased to other airlines

 Annual results in brief
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sales 11,476.98 8,811.10 7,057.78 5,693.73 4,338.01

Operating -306.75 187.55 362.08 928.53 1,210.66

profit
Interest 738.03 492.75 240.15 241.60 253.69

Gross -734.88 365.21 465.46 1,128.67 1,039.13

profit
EPS (Rs) -46.60 -29.17 3.24 52.36 45.41

(Rs crore)
Market Share
Recent problems :
 In oct 2008 around 1900 employees were fired
out of which 800 were laid off.
 It started voice from politicians , staff , senas ,
public.
 Later in the same week they were taken back.
 N.A.G( NATIONAL AVIATORS GUILD )
formed on 24th July claiming a membership of
680 ,President Girish Kaushik , Gen.Sec.Captain
Sam Thomas.
 Due to which two senior pilot were fired .
Captain Sam Thomas(g.s)
Captain D Balaraman.

 On Aug. 23rd the Guild (NAG) warned that they

would go on strike from Sep. 7th if both the
pilots are not reinstated.
 But on 8th sep. 432/1056 pilots
reported sick in violation of Bombay
high court orders a day earlier
restraining them against any kind of
strike in countries largest pvt. Carrier.
 Pilots were demanding the
reinstatement of their colleagues.
 Situation created huge problems for
passengers .80% of them were
accommodated to other airlines for rest
entire fare was refunded.
 Chief justice Swatanter Kumar and Justice
AM Khanwilkar issued a notice against
NAG seaking a reply in 2 weeks.
 Later 2 more pilots were sacked
 Civil aviation secretory Madhavan
Nambiar said govt. has nothing to do
between both, but they has taken serious
view of the inconvenience to public and
asked DGCA to take action.
 CEO told he is open for talk but he told
company does not recognize NAG. and
pilots are behaving like terrorists.
 Fortunately after “loss of crores
and goodwill” on 13th sep. strike Back to work
ended after 5 days when Naresh
Goyal reinstated the sacked
pilots and paved the way for
possible recognition of a pilots
union.
Strike: A Huge Loss

From 8 to 13 September:
 Jet Airways lost 200 crores in just five days.

 Cancellation of 134 domestic and 32 international

Flights

 Average passenger per day dropped from 23000/day to

14000/day.
Strike: A Huge Loss

 Jet has to accommodate 80% of the

passenger on the other carriers.

 For the rest entire fare has been refunded.

 Loss of goodwill is not measurable.

Can Pilots Form A union?

 It is written in our Constitution that it is a fundamental

right of every citizen to form groups or union.

 Under IDA pilots are classified as workmen.

 Under WCA members of any company, organization or

Industry can form a trade union if they are more then
100 people.
IS IT STRIKE?
IS PILOTS
ARE ON SICK
LEAVE?
OR IS IT
SOMETHING
ELSE?
Actually it is a
strike.
Illegal Strike

According to INDUSTRIAL DISPUTE ACT:

 Any strike without giving notice during
conclusion processing is prohibited.
 Even if they have given a notice then also they
have to wait for 14 days. Then only they can go
on strike.
 After the conclusion on consolation proceeding
they have to wait for 7 days before they can go
on strike.
Advantage of jet airways crisis for other
airlines
 Jet Airways transferred as many as 60 percent of
the passengers booked on its flights to Air India,
the national carrier, and other airlines during the
strike.
 Rival carriers began to charge fares at almost
double the usual rates after the strike hampered
Jet Airways operations.
 A big competitor was out, therefore it was a big
advantage to other airlines
Advantage of jet airways crisis for other
airlines
 Jet Airways transferred as many as 60 percent of
the passengers booked on its flights to Air India,
the national carrier, and other airlines during the
strike.
 Rival carriers began to charge fares at almost
double the usual rates after the strike hampered
Jet Airways operations.
 A big competitor was out, therefore it was a big
advantage to other airlines
Advantage of jet airways crisis for other
airlines
 Jet Airways transferred as many as 60 percent of
the passengers booked on its flights to Air India,
the national carrier, and other airlines during the
strike.
 Rival carriers began to charge fares at almost
double the usual rates after the strike hampered
Jet Airways operations.
 A big competitor was out, therefore it was a big
advantage to other airlines
 Current Situation

1. The standoff between the airline and its pilots ended

late Saturday after the company agreed to reinstate
four pilots who were fired for trying to form a pilot’s
union.
2. Jet airways has reduced its fares to 50%.With
discounts, the cost of air tickets dropped close to air-
conditioned II tier Rajdhani Express fares.
3. Jet airways witnessed a 10 per cent switch from low-
cost carriers to jet.
4. The airline is operating on full schedule of services
on its domestic and international flights with all crew
reporting for duty
5. Jet offered a full refund to passengers whose flights
were canceled.

 The sacked pilots are rehired and a consultative group

is being formed comprising representatives of the
company and pilots to continue the process of
dialogue to resolve all their problems.
 Jet Airways suffered a loss of nearly US$8 million a
day during the strike. and the number of passengers
came down from 23,000 per day to 7,500.
 No punitive action against any one who participated
in the agitation
9. Shares of Jet Airways rose as much as 4.6
percent, the most in two weeks.
10. Airline losses globally may total $9 billion this
year, according to the International Air
Transport Association, almost double the
group’s previous forecast.
THANK YOU