Airline Industry in India

454 airports and airstrips

(includes Operational, Non Operational,
Abandoned and
Disused Airports)
127 are owned & operated by AAI
16 - international, 7 custom airports, 28 civil
enclaves
Scheduled domestic air services - available
from 82 airports
May 2007- May 2008
25.5 million domestic & 22.4 million
international passengers
20% growth – highest in the world
Growth Rate Projections (for next 5 yrs)
15% p.a (Passenger Traffic)
11.4% p.a (Cargo Traffic)
 History
•1911 First commercial flight
Airmails from Allahabad to Naini(10 km)
•
•1932 The Aviation Department of Tata Sons Ltd.
established
•
•1938 Tata Airlines (successor to aviation division of
tatasans)
•
•1946 Tata Air Lines converted into a public Company and
renamed Air India Limited
•1948 Air India International incorporated
•
•
•1953 Nationalization of Aircraft Industry
•
Air India (serving the international sectors)
indian Airlines (serving domestic sectors)
1986 Private Sector Players permitted as Air
taxi operators
Players including Jet, Air Sahara, NEPC, East
West,
Modiluft,etcstarted service

1990 Open Sky Policy

1994 Private Carriers permitted to operate scheduled

services

2003 Entry of low-cost carriers

2007 Merger of Indian Airlines into Air India

Acquisition of Air Sahara by Jet Airways
Regulatory Authorities

•Ministry of Civil Aviation

Responsible for the formulation of policy, development and

regulation of Civil Aviation. Its functions also extend to
overseeing airport facilities, air traffic services and carriage of
passengers and goods by air

•Other Attached/Autonomous Organizations:

Directorate General of Civil Aviation (DGCA)

Promote safe and efficient Air Transportation through
regulation and proactive
safety oversight system
Bureau of Civil Aviation Security (BCAS)
Regulatory authority for civil aviation security in India
 Jet Airways
Founded in 1993, Chairman - Mr.Naresh Goyal

•HQ in Mumbai
Country’s second largest international airline
Largest domestic airline - 31%
•
•Primary base - Mumbai's Chaatrapathi
Shivaji Airport
Secondary hubs - Bangalore, Brussels, Chennai,
Delhi,Hyderabad, Kolkata and Pune.

April,2007 - Acquired Air Sahara - JetLite

Now JetLite integrated into Jet Airways
 Cost
Structure
Domestic Network
Fleet Plan
Jet Airways - Performance

Annual Revenues - Rs.9481.5 crores

(2007-08)

Rs.7401 crores (2006-07)

Profit(Loss) After Tax - Rs.253
crores loss (2007-08)

Rs.27 crores profit (2006-07)

- All Other Domestic Players showed
Jet Airways vs . Domestic Players ( 2006 )
Jet Airways vs . International Players
( 2006 )
 STP
Primary Segments (Geographic) - Domestic & International

•Customer Segments
First class, Premiere(Business) class & Economy class
•
•Target Segments

Premiere(Business) class
Business travelers, contribute 48% of passengers & 66% of
revenues, ready to pay higher prices, last time booking, don’t
like transit
Economy class
Leisure travelers, prefer low cost airlines, ready for transit
if there is cost advantage, large % of passengers

Seat Allocation – Yield Management Technique

Positioning – High value for High price
Seating in flights for Segments
 Flower of Services

•Information - Reg. the org., flight schedules, ticket fares, promotion

schemes etc.
Through website, call service, sms, employees etc.
•Consultation - Reg. the choices of class, routes to a destination &special
menus for frequent fliers
•Order taking - Booking - through phones, fax and internet
- Ticket Office, Call Centres, Company Website & Agents
•Hospitality - Most important differentiating factor (from ticketbooking
t o post flight help)
Safe keeping - Luggage & Children
•Exceptions - Special requests reg. meal preferences, special amenities
for elderly people or children, medical needs etc.
•Billing - Charges split, E-mail bills etc.
•Payment - Credit card, Travellers cheque, Special payment privileges
 Promotion
qOffers
Companion Free Offer, One Fare, Concessional
fares, JetPrivilege Offers, Jet Airways Citibank
Credit Cards, Corporate Deal Offers, International
Specials, Camp Rock contest, Festival specials,
Student specials, Surprises etc.
•
•
•Advertising and Branding
üHoardings
üBrand Ambassadors
üSponsorships
 Partners
ØAirline Partners - Air France, American Airlines, ANA, Austrian Airlines,
Brussels Airlines, Cathay Pacific, Dragonair, Etihad Airways, Gulf Air,
JetLite,
KLM, Lufthansa, Northwest Airlines , Qantas, South African Airways,
SWISS,
United Airlines and Virgin Atlantic.
Ø
ØCode Share Partners - Air Canada, All Nippon Airways, American Airways,
Brussels Airlines, Etihad Airways and Qantas
Co-Brand Cards - CitiBank
Ø
ØConversion Partners - BarclayCard, CitiBank, Deutsche Bank AG, HDFC
Bank,
HSBC, ICICI Bank, SBI Card & Tata Cards
Car Rental Partners - Avis, Hertz
Ø
ØHotel Partners - Global Hotel Alliance, Hilton Family Hotels, Hyatt Hotels
&
Resorts, InterContinental Hotel Groups, ITC etc.
Ø
 Competitors
vInternational market - British Airways
& South West Airlines

vDomestic market - King fisher, Indian

Airlines, GoAir,Spicejet & Indigo
Service Quality
Service
Quality
PEST Analysis
vPolitical Issue
üLicense issue for international
operation
üInfrastructural constraint
üATF price policy
vEconomic Effects
üRising income level
üReduced fare but yet not enough
vSocial Effects
üSound Pollution
üPlane hijacking
ü9/11 Incident
vTechnology Effects
üModernization of aircrafts
üModern technology like CAT3
and ILS
 SIMULATED STRIKE ACTION BY
R08/09/2009 PILOTS
130 flights of Jet Airways cancelled from the four major
metros after a large chunk of pilots failed to report
 

115 flights out of the total 345 failing to take off while
at least 10 flights of Jet Airways and its subsidiary
JetLite were cancelled
 
09/09/2009
Goyaltold TOI "I will not hesitate to close down the
airline if the people who work for it no longer believe in
its philosophy of discipline, guest care, safety and
punctuality that has taken Jet where it is today,"
two pilots sacked earlier allegedly for forming a union.
Jet has said it’s going to dismiss three more pilots,
including the chief of its association of Indian pilots.
10/09/2009
Chief labour commissioner S K Mukhopadhyay will facilitate
conciliation talks between the Jet Airways and its striking
pilots here
 
As the impasse continued for the third day running, the carrier
was forced to cancel 230 flights.
The strike has caused nearly 700 flights to be cancelled since
Tuesday and has inconvenienced over 28,000 passengers

11/09/2009
150 Jet Airways flights, including 15 international, remained
cancelled on Friday, the fourth day of the ongoing strike by the
airline pilots
 
The airline on Thursday had cancelled nearly 240 services across
the network as over 500 pilots reported 'sick.'
 
four-day strike has led to the cancellation of nearly 700 flights,
causing hardship to over 28,000 passengers
 
12/09/2009
Jet Airways on Saturday cancelled 281 flights, 21 of them
international, as the strike by the pilots entered the fifth day
after
 
Girish Kaushik, :The management is ready to take back four sacked
pilots but wants pre-conditions to be applied to the NAG," a member
of the pilots' union said. "But we want the law of the land to
dictate the fate of NAG,"
13/09/2009
 
MUMBAI: Nearly 100 of the 400 agitating pilots of Jet Airways
reported for duty here on Sunday as the airlines said that its
flight operations will
return to normalcy soon.

172 domestic and 72 international flights. So far, 98 pilots have

already reported fit.
 
Jet Airways limped back to normalcy after a five-day stir by over
500 pilots, the stand-off has proved costly for the
airline - a loss of over Rs.2 billion ($40 million).

14/09/2009
Jet airlines slash fares by 50% for all passenger.  

15/09/2009
Jet Airways' pilots and the management met the regional labour
commissioner on Monday to complete their pending conciliation
sessions.

16/09/2009
All Airlines slash fares by 50% for 3 days.
THANK YOU