Jet Airways

History
Jet Airways was incorporated on April 1, 1992 as a private company with limited liability under
the Companies Act. We commenced operations as an Air Taxi Operator on May 5, 1993 with a
fleet of four leased Boeing 737 aircraft. We were granted scheduled airline status on January 14,
1995. Jet Airways became a deemed public company on July 1, 1996. On January 19, 2001, Jet
Airways was reconverted into a private company. Jet Airways became a public company on
December 28, 2004. 

This serves domestic as well as international routes. It commenced its operations as an air taxi
operator in 1993 with four aircraft; it was granted the scheduled airline status in January 1995.
Jet Airways, which started with 24 flights per day across 12 destinations, now operates over 320
daily flights. The company was a 100-per cent subsidiary of Tail Winds Limited till it listed its
equity shares on the National Stock Exchange of India Limited and the Stock Exchange,
Mumbai, in March 2005. Jet Airways connects 49 destinations across the globe – 44 destinations
within India and five international destinations that include London, Kuala Lumpur, Singapore,
Kathmandu and Colombo. The company has multiple reservation and ticketing networks
comprising global distribution suppliers, travel agents and sales agents in India and 74 other
countries. It has a wide cross section of partnerships and alliances, some of with are, with airlines
such as British Airways, KLM Royal Dutch Airlines, Northwest Airlines, Austrian, Lufthansa
and Swiss International; Indian and international hotel groups such as The Hyatt, Swissotel, The
Oberoi, ITC-Welcomgroup and Hilton; banks such as Citibank; car rental companies such as
AVIS and Hertz and telecommunication and other service providers. Jet Airways became the
first airline in India to receive the ‘World Travel Market Global Award’ at the global travel event
in London. It has won the ‘H&FS Domestic Airline of the Year Award’ four times since its
inception. It has also received the Boeing Company's ‘Pride in Excellence’ award for
maintaining 'Best Technical Despatch Reliability' in 2003 and 2004.

Jet Airways currently provide regular scheduled services to 38 destinations in India operating
1,924 flights weekly. Our aircraft fleet has grown from four aircraft in 1993 to currently 42
aircraft comprising 34 Boeing 737 aircraft and eight ATR 72-500 aircraft.

Milestones
2004

-South African Airways ties up with Jet Airways

-Jet Airways inks pact with Hertz India to offer new services

-Jet Air announces launch of 'check fares' scheme

2005

-Jet Airways Limited has filed its draft Red Herring Prospectus with the Securities and
Exchange Board of India (Sebi) to enter the capital market with its initial public offering. The
company will offer 17,266,801 (1.72 crore shares) equity shares of Rs 10 each for cash at a
price to be decided through the book-building process. It is learnt that the value of each share
will be Rs 870. The IPO proceeds will essentially be used to fund its international expansion
plans.

- The price band of Jet Airways' IPO has been fixed between Rs 950 and Rs 1,125. The issue
opens for bids on February 18 and closes on February 24. The total offer is for 1,72,66,801
equity shares of Rs 10 each for cash at a premium to be decided through a book-building
process

- Jet Airways IPO was subscribed 4.25 times on the first day of the offer. At 7:50 pm, a total
of 7.32 crore bids were received on the first day. FIIs accounted for 69.93 per cent of the total
issue and mutual funds accounted for 28.69 per cent of the total. Insurance companies
accounted for 0.61 per cent of the total bids and FIs for 0.36 per cent.

-Jet Airways signs lease agreement with South African Airways

- Jet Airways launches its first inter-continental flight by linking Mumbai with London
Heathrow by a non-stop day flight here on May 23, 2005.

-Jet Airways executes purchase agreement with The Boeing Company, USA

-Jet Airways introduce an Inflight Safety Manual in Braille

-Jet Airways signs pact with Gulf Air

-Jet Airways wins Avaya GlobalConnect Customer Responsiveness Award

2006

-Jet Airways has signed a special code sharing (SPA) agreement with American Airlines, the
world's largest carrier, for India-US flights.

-Jet Airways signs contract with CAE for Boeing 777 & Airbus A330 simulators

-Jet Airways wins three Avion global Awards for In-flight Entertainment

-Jet Airways to buy Sahara for $500 mn in cash

2007

- Jet Airways India Ltd has signed the Memorandum of Understanding (MoU) with
Lufthansa Technik AG, Germany for A330/B777 Component Works, Personnel Assignment
Services and Maintenance Management Services.

- Jet Airways inks $238mn aircraft lease agreement.

-Jet Airways India Ltd announces the introduction of its first flight from Chennai to Toronto,
via its hub in Brussels.

-Jet Airways signs MoU with Lufthansa Technik AG, Germany

-Jet Airways wins "Most Innovative Product Launch" Award for its 'First Class' Suites
onboard its Boeing 777-300ER

2008

- Jet Airways has launched daily direct flights between Mumbai and Bangkok with effect
from May 14.This will be its third service to Bangkok from the country, a press release
stated. The air-carrier already operates daily services to Bangkok from Delhi and Kolkata
respectively.

-Jet Airways India Ltd has appointed Ms. Monica Chopra as the Company Secretary with
effect from October 01, 2008.

- Jet Airways India Ltd has won the 2008 Galileo Express Travelworld Best Domestic Full
Service Airline Award for the sixth year in a row

-Jet Airways wins the "Best Cargo Airline of Central Asia" Award

-Jet Airways Wins the 2008 Galileo Express Traveworld 'Best Domestic Full Service Airline'
Award for the sixth year in a row

2009

-Jet Airways introduces "Jet Airways Konnect" a new All Economy No-Frills services

2010

- IBM has inked a 10-year business transformation and information technology (IT) services
deal worth $62 million with Jet Airways.

2011

- CNBC awards Jet Airways as “Best domestic Airlines&rdq.

- Jet Airways - Jet Airways Takes Delivery of 100th Aircraft.

- Jet Airways - Jet Airways declared "Best Domestic Airline".

- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated January 28, 2011
titled "Jet Airways wins prestigious customer and brand loyalty award 2011"

- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated April 19, 2011
titled "Jet Airways conferred "Air Cargo Award of Excellence 2011" by Air Cargo World
Magazine".

- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated October 14,
2011 titled "Jet Airways conferred 3 prestigious awards at the Times Travel Honours 2011".

-Registered Office of the Company has been shifted to Siroya Centre Sahar Airport
Road,Andheri - (East) Mumbai -400 099

2012

- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated August 27, 2012
titled "Jet Airways and ICICI bank launch Co-branded credit cards Exclusive Travel and
Lifestyle benefits await the Country's Frequent Flyers".

- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated February 02,
2012, titled "Jet Airways Declared "Favourite Full-Service Airline" At The Outlook Traveller
Awards 2011".

- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated February 03,
2012, titled "Jet Airways Declared Winner For Customer & Brand Loyalty In "Domestic
Commercial Airlines Sector"".

- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated March 22, 2012,
titled "Jet Airways Rated best on time Performer amongst scheduled Domestic Airlines in
February 2012".

- Jet Airways (India) Ltd today said it, in a meeting held on May 24, 2012, appointed
Gaurang Shetty as an Additional Director and Manager of the Company with effect from
today only.

- Jet Airways (India) Ltd has informed BSE regarding a Press Release dated January 09, 2012
titled "Jet Airways wins Prestigious "NDTV Profit Business Leadership Award 2011".

2013 -Jet Airways Jet privilege Inks Partnership with the Mobile Store. -Jet Airways and
HDFC Bank join hands to launch ‘Jet Privilege-HDFC Bank World Debit Card. -Jet Airways
enters into a Reciprocal Frequent Flyer partnership with Air New Zealand. -Jet Airways
launches daily direct flight from Mumbai to Singapore

2014 -Jet Airways Launches Daily Direct Service From Mumbai To Paris -Jet Airways Wins
Prestigious ICC Supply Chain and Logistics Excellence Awards 2014. -Jet Airways Launches
Inaugural Service between Mumbai and Paris -Jet Airways Jetprivilege Programme wins
double honours at the prestigious CNN Flyertalk Awards 2014. -Jet Airways wins Best
Domestic Airline award 2014.

2015 - Jet Airways designated as the Official Airline Partner for the Vibrant Gujarat Summit
2015. - Jet Airways designated as the Official Airline Partner for the Vibrant Gujarat Summit
2015. - Jet Airways bags Henry Spira Humane Corporate Progress Award - Jet Airways to
launch daily flights to Amsterdam from Mumbai, Delhi and Toranto. - Jet Airways launches
non-stop services b/w India, Amsterdam.

2017 -Jet Airways introduces pre-paid pass for travellers -Jet Airways and app-based cab
aggregator Uber have joined hands to provide first and last mile connectivity to air travellers.
-Jet Airways signs MoU with Aeromexico for codeshare flights -Jet Airways signs
cooperation agreement with Air France-KLM
Product/Service Portfolio
Jet Airways operates flights to 19 international destinations and 38 destinations that
span the length and breadth of India, thus offering you a better choice in the skies.
International Destinations

Abu Dhabi Dubai

Amsterdam Bahrain

Bangkok Colombo

Dammam Dhaka

Doha Hong Kong

Jeddah Kathmandu

Kuwait London Heathrow

Manchester Paris Charles de Gaulle

Riyadh Singapore

Toronto

Destinations within India

 Ahmedabad

 Allahabad

 Amritsar

 Aurangabad

 Bagdogra

 Bengaluru

 Bhopal

 Bhuj

 Chandigarh

 Chennai

 Coimbatore

 Dehradun
 Delhi

 Goa

 Guwahati

 Hyderabad

 Indore

 Jaipur

 Jodhpur

 Khajuraho

 Kochi

 Kolkata

 Kozhikode

 Leh

 Lucknow

 Mangalore

 Mumbai

 Nagpur

 Nashik

 Patna

 Pune

 Rajkot

 Srinagar

 Thiruvananthapuram

 Udaipur

 Vadodara

 Varanasi
Jet Airways has three classes of service: First, Première (Business) and Economy

First class is available only in Boeing 777-300ER aircraft. The first class offers private suites;
it features seats convertible to a fully flat bed, personal LCD TVs and in-seat power supply.

Première class available on long-haul international flights operated by Airbus A330-200 and
Boeing 777-300ER aircraft features recliner seats, fully flat beds with personal LCD TVs and
in-seat power. Premiere class in domestic flights offers recliner seats with larger leg room in
2-2 configuration.

Economy class on long-haul aircraft has a 32 inches (810 mm) seat pitch with a footrest and
the cabin is configured in 2-4-2 on the Airbus A330-200 and 3-4-3 on the Boeing 777-
300ER. Economy seats on the Airbus A330 and Boeing 777 have a personal 10.6 inches (270
mm) touchscreen LCD TV. Domestic flights operated by Boeing 737 aircraft have Première
and Economy classes and the ATR 72–500 have an all-economy class configuration
Economy class on Boeing 737 have a 30 inches (760 mm) seat pitch with personal LCD
behind each seat. Meals are not served in economy class on domestic routes.

In-flight entertainment

Jet Airways has a Panasonic eFax flight entertainment system on board the Boeing 737
aircraft and Panasonic eX2 entertainment system on board the Airbus A330 and Boeing 777
aircraft. The system, known as Jet Screen, offers on-demand programming and operates via
an individual touchscreen monitor on each seat. In 2012, the airline introduced a feature
called export on their Airbus A330s, which allows passengers to plug-in their personal Apple
devices. In February 2016, Jet Airways announced the introduction of an in-flight
entertainment service for streaming of entertainment content directly to Wi-Fi enabled
personal devices of the passengers.

Frequent flyer programme

Jet Privilege is the airline's Frequent-flyer program. A member can earn JP Miles during
travel which can be redeemed during future bookings. Jet Privilege offers five classes
namely: Blue, Blue plus, Silver, Gold and Platinum. Gold and Platinum members get access
to Jet Airways' lounges and can avail additional benefits such as priority check-in, extra
baggage allowance and priority baggage handling.
Airport lounges

Jet Airways offers lounge service to First and Première class passengers, along with Jet
Privilege Platinum and Gold members. Premier lounges are available at Bangalore, Chennai,
Delhi, Hyderabad, Kochi, Kolkata and Mumbai in India and all international destinations.

With an average fleet age of 5.19 years, Jet Airways has one of the youngest aircraft
fleets in the world.

Jet Airways currently operates a fleet of 101 aircraft.

Boein
Airbu Boein Boein Boei Boein
Airbus ATR ATR g
Aircraft s g g ng g
330- 72- 72- 777-
Type 330- 737- 737- 737- 737-
200 500 600 300E
300 700 800 900 900ER
R
Number
of 8* 4 15 3 5 52 2 10* 2
aircraft
Rolls
Royce
Trent- CF6- CMF5
Engine PW1 PW1 CFM56 CFM56 GE90- CFM
772B/ 80E1A 6
Type 27F 27 7B22 7B24 115B 56-7
CF6- 4/B 7B24
80E1A
4/B
511 511
Cruise 870 870 838 835 835 905 905
kmp kmp
Speed kmph kmph kmph kmph kmph kmph kmph
h h
Aircraft 57.512 62.83 27.1 27.1 33.60 39.5 41.9 73.86 42.11
Length m m 7m 7m m m m m m

Wing 60.304 60.304 27 27.0 35.8 35.7 34.3 64.8

35.8 m
Span m m m 5m m m m m
0/30/1 0/0/ 0/16/1
Configur 90 0/34/2 62 0/0/ 0/16/1 38 0/28/ 8/30/2 0/8/17
ation# 0/18/2 59 0/0/ 68 02 0/8/16 138 74 8
36 68 2
* Includes aircraft that have been wet leased / dry leased to other airlines.
# Configuration: First Class / Premiere / Economy
JET AIRWAYS Income Statement Analysis (Sales Comparison)

 Operating income during the year rose 8.0% on a year-on-year (YoY) basis.
 The company's operating profit decreased by 94.8% YoY during the fiscal.
Operating profit margins witnessed a fall and stood at 0.3% in FY18 as against 6.6%
in FY17.
 Depreciation charges and finance costs decreased by 7.5% YoY and 1.1% YoY,
respectively.
 Other income declined by 55.0% YoY.
 Net profit for the year declined by 142.5% YoY.
 Net profit margins during the year declined from 6.2% in FY17 to 2.5% in FY18.

JET AIRWAYS Income Statement 2017-18

12 Mar- 12 Mar-
No. of Mths Year Ending % Change
17* 18*

Net Sales Rs m 226,926 245,107 8.0%

Other income Rs m 14,825 6,668 -55.0%

Total Revenues Rs m 241,751 251,775 4.1%

Gross profit Rs m 14,930 784 -94.8%

Depreciation Rs m 6,716 6,211 -7.5%

Interest Rs m 8,587 8,489 -1.1%

Profit before tax Rs m 14,453 -7,249 -150.2%

Tax Rs m -2 0 -100.0%

Profit after tax Rs m 14,987 -6,365 -142.5%

Gross profit
% 6.6 0.3
margin

Effective tax rate % 0.0 0.0

Net profit margin % 6.2 -2.5

 Revenue Growth and Profit History

The company is listed in the Bombay Stock Exchange. 51% of the stock is owned by Naresh
Goyal through his company Tailwinds International and the remaining 49% by other
investors. [The following table presents the key trends for Jet Airways and its subsidiaries:

2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenue (₹:
122.3 147.2 170.6 174.0 177.1 202.8 229.0 236.7 251.8
INR bn)

Profit (₹:
−16.4 −17.3 −14.2 −4.8 −36.7 −18.1 11.7 4.4 −6.4
INR bn)

Departures 131,108 146,876 175,646 169,254 173,723 176,406 202,816 202,265 211,964

Number of
passengers 12.0 14.6 17.3 16.8 17.2 19.4 23.4 24.4 27.2
(mn)

Load Factor
77.4 78.6 79.3 78.8 78.2 82.4 82.6 81.4 83.5
(%)

Number of
aircraft (at 86 97 102 95 101 107 116 113 112
year end)
Organization Structure
Chairman

Mr. Naresh Goyal

Mr. Naresh Goyal, the founder Chairman of Jet Airways, India’s premier airline, has over 40
years of experience in the Civil Aviation industry. With his vast experience in the field of
aviation, Mr. Goyal is the recipient of several national and international awards. Mr. Goyal
currently serves on the prestigious International Air Transport Association (IATA) Board of
Governors.

Director

Ms. Rajshree Pathy

Ms. Rajshree Pathy is the Chairman of Rajshree Sugars and Chemicals Limited. She is a
Graduate in Commerce, has completed the Owner President Management Program (OPM),
Harvard Business School, Harvard University, U.S.A. as well as the program on Strategic
Alliances & Corporate Ethics, INSEAD, Fontainebleau, France. The Government of India
conferred Ms. Rajshree Pathy the prestigious Padma Shree award in the field of Trade and
Industry in 2013. She has also been awarded several distinctions at National and Global
platforms.

Whole Time Director

Mr. Gaurang Shetty

Mr. Gaurang Shetty, an Indian national, is a Bachelor in Science with over 32 years’
experience in the aviation industry. He joined the Company in 1996 as General Manager-
Marketing and was promoted to Vice President – Marketing in 2004 and then as Sr. Vice
President – Commercial in 2011, being responsible for all commercial activities related to In-
Flight Services and Customer Services, including Cargo, for both domestic and international
operations. On 24 May 2012, he was appointed on the Board of Directors of the Company as
Director and Manager and was re-designated as whole-time director on 25 May 2015. In his
present role, he is responsible for the management of the affairs of the Company subject to
superintendence, control and directions of the Board of Directors of the Company. Prior to
joining the Company, he was with British Airways as its Marketing Manager –South Asia,
where he was responsible for passenger marketing, customer service and cargo.

Director

Mr. Robin Kamark

Mr. Robin Kamark is responsible for leading Etihad Aviation Group’s minority equity
investment strategy, and optimising business performance, revenue and cost synergies
between Etihad Airways and its equity partner airlines around the world. He handles strategic
leadership for airline partners where Etihad Airways has management responsibility.
Director

Mr. Kevin Knight

Mr. Kevin Knight joined Etihad as Group Chief Strategy & Planning Officer in March 2011.
In this role Kevin is responsible for fleet planning, government and international affairs and
the overall corporate strategy, planning and the development of the Etihad Aviation Group.

Director

Mrs. Anita Goyal

Mrs. Anita has been associated with Jet Airways (India) Limited (the Company) since
inception and served the Company in various capacities in the Sales and Marketing
Department including as a Vice President - Sales and Marketing from 1998 to 2004. She was
appointed as Executive Vice - President - Marketing and Sales in 2005.

Director

Mr. Ashok Chawla

Mr. Ashok Chawla obtained his Masters in Economics from the Delhi School of Economics
in 1972 and joined the Indian Administrative Service in 1973. He has been a distinguished
civil servant with over 40 years of experience in various sectors of the Indian economy as
well as in International Multilateral agencies. He started his career in the State of Gujarat
where he held various positions, including Chief Executive of several important State-Owned
enterprise(s).

Director

Dr. Nasim Zaidi

Dr. Nasim Zaidi possesses a Master's degree in Public Administration from Kennedy School
of Government, Harvard University and has been a Mason Fellow for Public Policy at
Harvard Institute for International Development. He has a Post Graduate Diploma in
Business Finance from Indian Institute of Finance and also holds PhD in Bio Chemistry with
several publications to his credit.

Director

Mr Sharad Sharma

Mr. Sharad Sharma, a career banker with over 40 years of banking experience, was the
Managing Director of State Bank of Mysore w.e.f. August, 2012 to April, 2016, where he
was seconded from State Bank of India. He joined Union Bank of India as an Officer in 1975
and thereafter SBI as a Probationary Officer in September 1977, from where he
superannuated in April 2016.
Market Share

Jet Airways Share

The Jet Airways is the second largest airline in India with a market share of 15.4 percent. It
was established on 1st April, 1992 and started operations on 5th May, 1993. Chhatrapati
Shivaji International Airport, Mumbai is the main hub of Jet Airways.

The revenue of Jet Airways is US$3.7 billion and profit US$ -92 million as of 2017-2018. It
is one of the largest employers in India in airline sector with more than 16015 employees.
The fleet size of Jet Airways is 121 aircraft and ordered another 233 new fleet to expand the
network.

Facts About Jet Airways

Revenue: Rs. 252 billion (US$3.7 billion) (FY 2017–18)

Net income: Rs. -6.3 billion (US$-92 million) (FY 2017–18)s

Employees: 16,015 (March 2017)

Fleet Size: 121, Orders: 233

BCG MATRIX

The over-all average market growth of passenger flights was recorded Positive while the
average growth of passenger flights of Jet Airways was also recorded positive. But the Profit
is Negative. Given this figure, the organization fell under the Question Mark Quadrant
(second quadrant) in the BCG Matrix.

On several occasions, a company might come up with an innovative product which

immediately gains good growth rate. However, the market share of such a product is
unknown. In the case of Jet Airways, the added features and constant upgrade in the services
through technological innovations would result to gains in growth rate. However, as new
entry products with high growth rate, the growth rate needs to be capitalized to be liquidated
to a high market share product. New Customer acquisition strategies are the best strategies
for converting Question marks to Stars or Cash cows. Furthermore, frequent market research
would aid in determining consumer psychology
SWOT Analysis

Strength

Jet Airways management team is built of tycoons and professionals with substantial local and
international experience in the airline and other airline related industries. The powerhouse
team builds a phenomenal and well-developed network. Jet benefits from the chairman’s
knowledge of the sector.

The massive pool of loyal customers secures the organization’s position in the airline and
aviation industry. The organization’s ability to survive major economic downfall especially
amidst global recession is considered of an excellent notch in the field of airline and airline
related industry.

The organization’s strength also relies on the exceptional research and marketing strategies
employed by Jet in analysing what the customers would value in a service.

Weakness

The inability of Jet to foresee the adverse effects of it decision and investment may upset the
company’s growth. In relation to the problems from the messy buyout of Air Sahara to
simply outsmart Kingfisher from acquiring it damages the company. The outlandish offer of
the company of Rs 23 billion was too much for the airline.

Another weakness of the organization was the lack of concern that it has for its people. Jet
Airways centres everything to the founder. Without the founder the company will fall. In
addition, the organization has very high disregard for its employee and consider them as
dispensable.

Opportunities

With the civil aviation ministry opening international routes to private carriers, Jet can take
advantage of this as a natural extension.

The strong brand name that Jet Airways has created for itself enables them to enjoy the thrust
given by international lending companies. This even enables Jet to pass the adverse inquiry of
lenders.

Threat

The centralized style of management leads to loss of valuable resource for the company. In
fact this is the reason why many middle and senior management level executives of Jet
Airways left the organization.

Another threat in business operation is the increasing price of fuel that would generally and
greatly affect operation. Likewise, travel restrictions imposed on many international
destinations also affects operation by decreasing revenue for the organization
Value Chain of Jet Airways
Strategy of Jet Airways: - Marketing Mix
Product in the Marketing Mix of Jet Airways:

Jet Airways started as an air-taxi operator and in the year 1995, it started conducting full-
fledged operations. International flights were added to its roster in the year 2004 and in the
year 2007; it acquired another company Air Sahara. Jet Airways has a diversified portfolio
that includes both intangible and tangible products like-

 Jet Airways has a fleet of 117 carriers that include Boeing 777-300ER, Boeing 737-
700, ATR72-500 and others.
 On-ground services include check-in option that is possible via mobile, the internet or
by calling or visiting airport officials. It has fully operational airport lounges for
passengers that offer capable and efficient staff assistance. Special services are
offered to expectant mothers, infant, unaccompanied minor, people with medical
issues and guest with any disabilities.
 In-Flight services include three types of seating options. First Class has private suites
with the closing door, private wardrobe, lie-in-bed seat and 23-inch television with
Headphone. Business Class seats are extra wide with personal screen and reading
light. Economy class has comfortable seats and international flights have a reading
light and 10.6-inch screen television. Airways offer several foods, beverage and
entertainment options in flight.

Place in the Marketing Mix of Jet Airways:

Jet Airways operates its flights both in domestic front and in international arena from its
main hub located at Chhatrapati Shivaji International Airport in Mumbai and its
secondary hubs located at Kolkata, New Delhi, Chennai, Bangalore, Abu Dhabi and
Amsterdam. Its operations include three hundred daily flights to nearly forty-eight
domestic ones and twenty global destinations to seventeen countries in North America,
Europe and Asia. In the year 2004, Jet Airways commenced its first international flight to
Colombo and its first long-haul flight was to London in the year 2005.

Brussels Airport has been its scissors hub since the year 2007 for transatlantic
connections to the United States and Canada but later Brussels was replaced by
Amsterdam Schiphol Airport since 2016, 27th March. Jet Airways has a wide-spread
distribution network that ensures accessible offices and prompt services related to
reservation, cancellation, confirmation and enquiries. It also offers mobile and internet
services to suit individual needs and requirements.

Price in the Marketing Mix of Jet Airways:

Pricing plays a decisive role in the airline industry because of intense competition. Jet
Airways has adopted a fair pricing strategy. It has three different classes of services and
pricing policy is based on individual service for that class. For instance, ticket prices for
first class passengers are much higher because of extra services and benefits allotted to
 customers. Moreover, prices for business class and economy class are gradually lower
because of fewer services. Jet Airways offers concessional fares to students, patients,
senior citizens and armed forces so that they are encouraged to fly with this airline. It also
offers additional benefits to its regular flyer to maintain their loyalty towards Jet Airways.

Promotion in the Marketing Mix of Jet Airways:

Jet Airways has adopted quite a few promotional plans for its airlines. It has launched
several ad campaigns that are shown via television, newspaper and magazines. It also
relies heavily on mouth publicity and its travel agents. Jet Airways has realised the
potential of star marketing and has roped in Indian film actor Shahrukh Khan as its brand
ambassador. He is seen in various ad campaigns thus creating a positive hype and
visibility for the company.

To its regular customers, Jet Airways offers Visa Card from Citibank that collects points
after every flight and can be redeemed at later date. The company has been the recipient
of awards and recognition. It received Most Respected Company in the year 2004, Best
Domestic Airline in the year 2005, Best Airline Award in the year 2007, Program of the
year in 2008 and Best Cargo Airline in the year 2016.

The tie ups or the code share agreements that Jet Airways has is a strategic marvel. It has
entered into long term agreements with airlines throughout the world such as Air Canada,
Malaysia Airlines, American Airlines etc. Under this, for example if a passenger wants to
fly from Surat to New York, he can buy single Jet Airways ticket. What essentially would
happen at the backend would be that the passenger would fly a Jet flight from Surat
(which is a spoke destination) to Mumbai (which is a hub destination). From here, he
would be automatically transferred to an American Airlines flight which would take him
to New York.

In addition to this, Jet Airways also has frequent flyer tie ups with airlines such as Air
France, Delta Airlines and KLM. Under this, no matter what airlines the passenger
travels, he can accumulate and redeem his frequent flyer miles with any of the above
airline.

One of the strategies that Jet Airways is following:

removing a row to gain passenger space

After having removed a row of seats from some of its planes to increase overall leg room for
passengers, Jet Airways (India) Ltd is using an innovative, three-dimensional billboard
campaign to sell the concept.

Developed by Mudra Group’s outdoor unit Prime site, the Mumbai billboards have images of
two chairs sitting close to each other, and then one drifting on railings to reveal the message:
“We’ve removed a row to give you more space.”
The row of seats has been done away with in Jet’s 737-800s series planes. Removal of rows
to create space for cramped passengers isn’t a new idea as many airlines, especially in the
US, have used similar tactics and messages to differentiate their planes from rivals. Several
other companies, such as auto makers (with sections of cars) and even coffee companies (Bru
used chairs and tables) have used three-dimensional billboards to stand out.

Frequent Flier Programme

Known as Jet Privilege it helps to redeem points earn for miles traversed.

Jet Mall

This is the unique mall provided by the Jet Airways to shop souvenirs at 30000 feet.

Jet Wings

Jet Wings is the inflight magazines.

Jet Travel

Jet has alliance with a number of hotels Such as Leela and Taj where the passengers can get
discounts if they are privilege members of the Jet. They provide special service for infants,
olds, medical emergencies, expectant mothers and animals. Check in can be done by SMS, on
Net, and Kiosks. Their Website has the option to choose from a plethora of language to cater
to understanding of people from different parts of world.
Competitive Strategy
Spice Jet
It has tied up with the finest hotels that bring you a host of great offers. It includes hotels such
as Sheraton, Golkonda, Trident, Ista, Maidens, Rain Tree, The Park and the Kenilworth Goa.
To avail the programme on need to member of Privilege Pass. For the service men and
women Spice Jet gives special discount upto100% discount on base fare.

Corporate Benefit Program

addresses the business traveller’s needs. The program is customized program designed to
provide maximum cost savings to the organization while offering loads of benefits for the
individual business traveller. The tickets are provided at discounted price of up to 50% and
are coupled with various other incentives on volume basis. Similarly, volume based
incentives are also available for group bookings. Spice Jet has tied up with State Bank of
India and its debit card can be used to book tickets. In this context it is to be mentioned that
most of the airlines provide the booking facilities only against credit cards. It has appointed

i-Vista Digital Solutions

to handle its online marketing initiatives.

Services

Spice Jet does not provide complimentary food; however, they have the facility to buy on
board. Mineral water is provided free of charge. There are no entertainment facilities. One of
the most innovative programme started by Spice Jet is that they take care of the
unaccompanied minor from the take-off airport to the destination airport without any extra
charge. This means now one can even leave their young ones also under the guardianship of
SpiceJet.The website provides all the information regarding PNR status, flight status,
bookings, and also web check in, besides the promotional offers and corporate governance
activities

Others

AirAsia, relatively a new entrant in Indian Airlines industry already has its competition to
respond in all out price wars. The incumbent market leader, Indigo is not silent an observer
and is responding tooth and nail it to the aggressive strategies followed by AirAsia. Even Mr.
Fernandes, AirAsia CEO has acknowledged that Indigo is making life difficult for them.
Indigo has countered every move made by AirAsia in India, be it by cutting fares or adding
more flights on existing routes where AirAsia flew its own. On each new route started by
AirAsia, Indigo has followed suit, setting off a price war. Indigo also launched several flights
from the cities AirAsia was aiming at, looking to the AirAsia’s efforts to tap niche routes.
When AirAsia announced a non-stop flight between Bengaluru and Chandigarh, Indigo took
off on the route before AirAsia could. Indigo has taken competition head-on, not making it
easy for new entrants.

Last December, AirAsia launched a direct flight between two cities (Pune to Jaipur), adding
5,000 seats per month on the route. The Indian carrier also offered ‘all-inclusive, one-way’
fare from as low as 699 for flights from Bengaluru to Chennai, Kochi, Goa, Jaipur and
Chandigarh and vice versa. On the Bengaluru to Kochi route, Indigo had to cut its fares,
which were around 4,000. After AirAsia started a week-long sale offering promotional tickets
priced as low as 380 (all-inclusive) on travel dates between June 10, 2015, and January 17,
2016, Indigo announced special fares starting as low as 1,647 (all-inclusive).
The fare quoted by AirAsia was less than half the price of AC bus tickets that run on the
routes. Similarly, Indigo announced all-inclusive fares starting 1,499 to take on rival SpiceJet
earlier this year, 100 lower than the latter is 1,599 offer. In January this year, Vistara debuted
Delhi-Ahmedabad and Mumbai-Ahmedabad routes. Soon, Indigo added a fifth daily flight
between Delhi and Ahmedabad and a sixth daily service between Mumbai and Ahmedabad.
Indigo does not initiate fare wars, but tend to match the fares offered. It has also been more
selective on a case-to-case basis rather than offering blanket discounts. Indigo looks at
discounts from the point of view of capacity availability. If it has a high load factor, it cannot
match the offers. Typically, Indigo matches promotions of this kind on weaker routes.