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Strategic Human Resource Management

Group – 3
10th March, 2011
Introduction

Jet Airways was started by Naresh Goyal as Air Taxi Operator in April
1992

1993, it started Indian commercial airline operations with a fleet of


four leased Boeing 737-300 aircraft.

1994, a change in the law enabled Jet Airways to apply for


scheduled airline status, which was granted on 4 January 1995.

Began international operations to Sri Lanka in March 2004.


Introduction
Has the 2nd largest fleet size (88).

As of June 2008, it operated over 370 daily flights to about 68


destinations both in India and international (abroad).

Jet Airways national destinations includes all major cities

Jet Airways international destination includes major cities like San


Francisco, New York, Singapore, London (Heathrow), Hong Kong,
Colombo, Abu Dhabi, Dubai,.. Etc.
Mission
Jet Airways will be the most preferred domestic airline in India. It
will be the automatic first choice carrier for the travelling public
and set standards, which other competing airlines will seek to
match. Jet Airways will achieve this pre-eminent position by
offering a high quality of service and reliable, comfortable and
efficient operations. Jet Airways will be an airline which is going to
upgrade the concept of domestic airline travel - be a world class
domestic airline. Jet Airways will achieve these objectives whilst
simultaneously ensuring consistent profitability, achieving healthy,
long-term returns for the investors and providing its employees
with an environment for excellence and growth.
Code of Conduct
Guidelines for conduct of directors

Corporate business opportunities

Conflicts of interest

Company property

Confidential information

Fair dealing

Compliance with laws and regulations


Code of Conduct
Insider trading

Encouraging the reporting of illegal or unethical behavior

Record keeping and reporting

No rights created

Waiver and amendments


Strategy
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F
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Purchase and Introduction of New Aircrafts

Decided To Purchase Aircrafts From Boeing, ATR And Airbus to avoid


customer outflow to arch rival Kingfisher Airlines which had complete
new feet of aircrafts.

Start new services and new routes.

Maintain market position and goodwill.

Orders Placed In Early 2007.


a
Measures opted by Jet Airways

Wet Lease present feet to other airlines.


Wet and Dry Lease help the airline to earn at least US$ 2 million
after every BOEING and US$ 2.2 million after every air bus each
Month. Aircraft No. Leased Out To Airlines

ATR 72 – 500 14 Unknown


Airbus A330 - 200 2 of 12 Oman Air
Boeing 737 - 700 7 of 13 Unknown
Boeing 737 - 800 19 of 38 Unknown
Boeing 777 – 300ER 7 of 10 Royal Brunei
Airlines
25

20.6

20
17.7 17.6
16.3

15 12.9
Series 1

10
7.7

0
Jet airways jet lite kingfisher indigo NACIL(I) spicejet

• Figure 1: Market share of airlines in India


SWOT
Strengths Weaknesses

Motivated workforce and proven Perceived drop in stds when pitted


management team against Kingfisher

Massive pool of loyal customers Loosing domestic market share

Market driver and Leader Political interferences

Experience of years Weak brand promotion

Struggling with the carcass of Air


largest fleet size Sahara
SWOT
Opportunities Threats
Ongoing economic weakness
Ongoing economic weakness

Growth options limited to short-


haul
Strong competitors

Untapped air cargo market

Fuel price hike


Scope in international service
and tourism

Overseas market competition


18
16.5
15.58
16 14.9 14.71
14.17
13.3 13.1
14 12.8
11.6 11.9
12

10
jet airways
8 kingfisher

0
mar '06 mar '07 mar '08 mar '09 mar '10

Figure 2: employee investment % of total expense


a
Alignment of Human Resources with Business
Strategy using VRIO Framework

Values

Rarity

Inimita Organiza
bility tion
a

HR Functions
Recruitment

Line personnel
Operations
Maintenance
Sales and marketing

Internal Recruitment
External Recruitment
Management of outsourced employees
Training
Identification of Training needs through the PMS system

Cabin crew are required to go through refresher training courses each


year.
1 ●
● Service procedure

2 ●
● Customer Care

3 ●
● Safety

4 ●
● Grooming

5 ●
● Applicable laws
Training

Jet Airways' Type Rating Training Organization- Training


pilots, flight engineers and flight dispatchers(since 1995)
Endorsement training on B737 NG, B777 & A330 A/C.
Refresher/Re-current training on B737 NG, B777 & A330 A/C.
Checks & specialized operations on B737 NG, B777 & A330 A/C

Seamless Customer Care- to make each employee fully


aware of his or her role in achieving excellence in every
area of service delivery to the customer.
Motivation &
Retention

Query resolution on various issues related to conditions of


employment, career options, and matters related to Employee benefit.

Query discussion on Transfer requests, job rotation.

Conducting Exit Interviews

Reward it when they see it

Job design and job enrichment

Try & resolve issues pertaining to employee motivation in the work


field
a
Airline captains undergo simulator check rides (proficiency checks) every 6 months &
includes emergency procedures such as
-V1 cuts
-engine out missed
-a LOE which simulates a revenue flight with some sort of
malfunction
A failure goes on the permanent record, but he get several attempts to pass before he
is placed on probationary leave or fired.
A first officer who unsuccessfully attempts to upgrade to captain 2 or 3 times is
usually forced to resign

360 degree appraisal has four integral components:

1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal
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