Jet Airways – How she came to rule the Indian Skies and what's beyond!

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In 15, a new dream took shape - to air-link the vast South Asian subcontinent by a single, modern, and efficient airline. The then Airline was Indian Airlines. It has many firsts to its credit, including introduction of the wide-bodied A00 aircraft on the domestic network, the fly-by-wire A0, Domestic Shuttle Service and Walk-in Flights. Its unique orange and white logo emblazoned on the tails of all its aircraft is perhaps the most widely recognized Indian brand symbol that has, over the years, become synonymous with service, efficiency and reliability.

It is a known fact that between the years 15 and 1, Indian Airlines enjoyed monopoly in the airline industry market. However, as compared to the service the company provides today, their standard then, was not very high. Moreover, there were not many schemes that they offered as promotional methods to lure the consumers to select their service out of the other service providers of the time.

But there was a paradigm shift in 1 when the government decided to have a free entry in the airline industry and open up the industry to private players. The first entrants of the industry from the private enterprises constituted

Buy cheap Jet Airways – How she came to rule the Indian Skies and what's beyond! term paper

• Damania Airways

• Jet airways

• Sahara Airlines

With his sudden shift, there was more emphasis laid on the time factor. Many a times, the delay in flights worked as a negation against the goodwill of Indian Airlines and with this began the price wars. Moreover, extra benefits to consumers like 'Air Miles' came into being for domestic travel as well.

At lower prices and more benefits Damania started soaring for a while. The in-flight customer service always guaranteed satisfaction to the end consumer. However, the company did not realize that this was being done at the expense of the bottom line. The rising losses only made survival difficult. The company only later realized that had it concentrated it's energies on the bottom line; they could have achieved better results in the long run by ploughing back the profits into the company to ensure better quality service.

The latest entrant in the field has been Deccan Air. With the very low priced tickets, the company aims at attracting the masses and not the classes. But the only contradicting factor that is working against the company is the payment for services on the flight. This means that the passenger would even have to pay for a glass of water had on flight. Hopefully, the industry norms will change and balance themselves to become beneficial not only to the company and industry but also the end consumer.

THE JET SAGA

Jet Airways is the biggest success story in the Indian aviation industry and one of the fastest growing airlines in the world.

It began operations with the mission of becoming the most preferred domestic airline in the country. Today, its a matter of pride that Jet is widely recognised as Indias Best and world-class Domestic Airline.

Where they started

On May 5, 1, Jet Airways was set up with the objective of becoming the most preferred domestic airline in the country by providing high quality and reliable air travel in India. A very high percentage of the Indian domestic air traffic comprised business travellers. Therefore, Jet's focus from the very beginning was to emerge as the Businessmans Preferred Airline.

This led to a product and service design that aimed at world class norms in professional service and efficiency, beginning with the choice of aircraft itself.

Jet's operations began with a fleet of four Modern Generation Boeing 77-00 aircraft. Jet's operation of these aircraft marked the first time they had flown Indian skies.

Jet used the training facilities of Ansett (Australia) for the training and conversion of Jet's pilots and engineers.

To help Jet achieve world class norms in service, Speedwing (a British Airways subsidiary), assisted Jet in conducting a programme on Customer Service Excellence for staff across functions at all levels.

To ensure accurate and efficient reservation systems, Jet tied up with and is co-hosted with SABRE - one of the worlds best reservations systems.

Within three months of operation, Jet also became an associate member of IATA, a party to the IATA multilateral interline agreement and a member of the IATA clearing house. SWOT ANALYSIS

Strengths

1. Jet Airways commands 4.4% of market share as on June 00. This is followed by Indian Airlines at 4% and Sahara at 1%. Clearly, Jet has evolved into a major player in the Indian skies.

. One of Jet's major strengths has been to hire expatriates for critical functions like flight operations, flight engineering and service quality.

a. Even current CEO Prock-Schaur, is from the Austrian Airways and used to be the chairman of the Star Alliance, one of the biggest airline groupings in the world.

b. Anita Goyal Naresh Goyal's wife, is the vice-president (sales and marketing) of Jet. She takes all the pricing and routing decisions.

c. Saroj Datta Executive Director with strong analytical capabilities. Handles aircraft acquisition and leasing.

d. Ananth Iyer Was responsible for swinging the US Exim bank guarantee deal in 17.

Also on the Jet board are Ali Ghandour, former chairman of he Royal Jordanian Airlines and an adviser to King Hussein of Jordan. Then there is Vic Dungra, the executive vice president of Philippine Airlines.

Infact the Jet board is very involved in the company and Naresh Goyal often gets their opinion even on operational issues like route planning.

. Another plus for Jet is the very fact that it is a private airline; unlike bureaucratically run Indian Airlines by the Government of India.

4. Jet runs a lot of promotional offers. And the best part is that it caters to a diverse set of fliers. It has got promotions right from the business traveller to the guy who would have opted for rail travel.

5. Being private, has another major advantage. In the minds of fliers, Jet also stands for security and trust besides its high service quality. It is boosted by the fact that Jet has not had a single mishap in its 10 years of operations.

6. Finally, Jet enjoys a strong brand name in everyone's minds, as an excellent service organization.

Weaknesses

1. In the last years Jet has lost 50% of its ground staff. This is due to better paying foreign airlines that pick high quality people from the Jet stable. The induction of new crew all the time is also bringing down crew experience with the airline.

. Due to losses that crept in after September 11, Jet has been able to give only a negligible pay hike this year. This compounded the exit of many ground staff from Jet.

. Behind the entire aura created by Jet airways has been its founder and chairman Naresh Goyal. But today the very management style of Naresh Goyal that took Jet to its heights is being questioned. Then the Jet fleet was small and its staff strength was small too. But the behemoth that jet is today, Naresh Goyal's single handed operation has brought Jet under the fire. Cause the very good intentioned idea of managing Jet like a family is backfiring. Naresh Goyal is unable to let loose his hold of the company to professional managers usual promoter's dilemma.

4. Before the wake of /11, Jet had purchased 7 new aircrafts. But the /11 attacks put a cork in Jet's high flying adventure. To maintain operational efficiency Jet required a minimum of 75% occupancy in its flights. But this fell down due to the /11 incident to 60%. Blowing up jet's profits and bringing Jet to red.

5. Lack of in-flight entertainment is another weakness of Jet. When relatively new airlines like Sahara has differentiated itself with the induction of in-flight entertainment, it would have been wise for jet to induct it too. Of course, Jet was in the red for the last few years. This combination of problems put jet into a dilemma, stagnating customer service.

Opportunities

1. To counter Sahara's in-flight entertainment Bid and Win, Jet has come out with its own version of on-board auction with a tie up with ContestWin. (albeit a year after Sahara's launch)

. Jet has embarked on renegotiation of its contracts with vendors and caterers, to reduce its day to day costs this should boost Jet's efficiencies.

. Naresh Goyal finally seems to have the intent to relieve control of the organization to professionals. It has got a new CEO and COO at the helm of maters at Jet.

4. Jet's pivotal hope is to expand into international markets one day! But current regulations by the GOI do not allow such things to happen. But knowing Naresh Goyals relations with the government flouted in newspapers from time to time, - who knows!

5. Another strategy would be to increase air links between metros and other cities.

Threats

1. Loosing both cabin crew & ground staff to better paying airlines like Gulf Air.

. To garner more market share Sahara has been firing from all barrels, causing a threat to Jet especially in times of trouble that Jet is facing today.

. Jet has cut back on refresher training and made only safety training mandatory to bring down costs. It has also asked 6 expatriates (jet's original success reasons) to resign.

4. Customer service has been stagnating. Jet has not come out with new and innovative customer service ideas after the losses stemming in after /11 Jet was always the pioneer in this arena.

5. One reason why Naresh Goyal is not releasing management control is his fear of unionisation of Jet - Currently jet is managed like a family is.

6. Top this with some more trouble coming from newly launched airlines Deccan air in the south (Mangalore, Bangalore sectors) and Jackson Airlines in the North both of them are a no frills airline (which means you have to pay even for the water you get inside the cabin. (On the flip side you are charged almost 50% of current air fares!)

7. Finally the fare war that was sprung by Sahara and later followed suit by Indian Airlines has left Jet high and dry. Jet lost about $5 on every passenger on an average again multiplying Jets woes. Its continuation will only spell doom for Jet. WHAT JET DOES TO INCREASE SALES?

Jet has lined up a slew of promotional offers that cater to a diverse range of customers from the business traveller to the guy who would opt to go by rail.

(Annexure 1)

• Anniversary upgrade offer

• American express offer

• Citibank 4 + 1 offer

• Everyone can fly super apex fares

• Night saver flights

• Jet airways Citibank gold card offer

• Jet escapes

• Jet elite

• Concessional fares

Customer Loyalty Programme

• Entitles you to a range of rewards and privileges that no domestic frequent flyer programme in India offers.

• Only airline in the country to offer a three-tier frequent flyer programme - JP Blue, JP Silver and JP Gold.

• Depending on the number of JPMiles accumulated from the flights flown, JPMiles earned can be exchanged for free flights across the world on British Airways, KLM and Northwest Airlines.

Community Services - Annexure

• Flight of fantasy

• The Magic Box program to support the

efforts of Save the Children India

• Relief operations at Bhuj

• CRY.

WHERE JET IS TODAY!

• Jet Airways operates over 50 flights daily to 40 destinations across the country.

• It has the youngest fleet of aircraft in India.

• It is an ISO 001 certified company.

• Unbeatable record of on-time flights.

• Proud recipient of the prestigious Air Transport World Award 001 for Market Development, H&FS award for the domestic airline for the year 001.

• Alliances with British Airways, KLM Royal Dutch Airlines and Northwest Airlines.

and will add many more feathers to its caps From Jetairways.com

Annexure 1

PROMOTIONS

1. ANNIVERSARY UPGRADE OFFER

Book your ticket 10 days in advance, and enjoy Club Premieres unmatched luxury by only paying an additional amount of Rs.500-Rs.100, on the normal Economy Class fares.

. AMERICAN EXPRESS OFFER

Now American Express Corporate Card members, who are frequent fliers, can earn a free Club Premiere class upgrade with this exclusive offer.

Just 4 flights on Jet Airways in Economy Class gets you one complimentary upgrade to Club Premiere class. All tickets must be purchased on the American Express Corporate Card and endorsed in the name of the Card member. This offer is valid only for Card members enrolled on the Jet Privilege programme.

To avail of the upgrade, the Card member has to hold a confirmed Economy ticket and request for an upgrade at least 6 hours before the flight. All upgrades are subject to availability. Upgrade vouchers can only be used on full fare tickets. The vouchers cannot be used for travel on any discounted, award or Apex/Super Apex tickets.

This offer is valid from 1st July to 0th September 00.

. CITIBANK 4 + 1 OFFER

Citibank and Jet Airways bring a special offer for the seasoned traveller. Simply fly four times with Jet Airways across any of its 40 destinations before October 15, 00 and enjoy the fifth flight, absolutely free!!

All one needs to do to take advantage of this special offer is to buy four full fare Club Premiere (Business Class) tickets using your Citibank Platinum at any of Jet Airways ticketing counters.

4. EVERYONE CAN FLY SUPER APEX FARES

Fly by plane. Pay like train……

These fares will be available to passengers on select flights, on a limited and first-come-first-served basis. All one needs to do is to plan the trip and purchase the tickets 0 days in advance to avail these fares.

The validity of the Super Apex fares is now extended till March 1, 004.

These fares are also applicable for return travel (Fare for a return leg e.g. Pune -Mumbai is the same as Mumbai-Pune. Fare for a return sector e.g. Mumbai-Pune-Mumbai is double the one-way sector). The mentioned fares are inclusive of all applicable taxes.

5. NIGHT SAVER FLIGHTS

The Night Saver flights offer you the dual advantages of convenience and value. One gets a full working day - no curtailed meetings, no unfinished work - and you fly a world class airline at a fare thats great value for money.

Night Saver flights were introduced on the Mumbai-Delhi sector on May 5, 18. So far these flights have met with an overwhelming response. They are getting increasingly popular, and Jet plans to extend them to other routes

6. JET AIRWAYS CITIBANK GOLD CARD OFFER

Jet now offers Jet Privilege members an opportunity to earn free flights even faster with the Jet Airways Citibank Gold Card. In association with Citibank N.A. and MasterCard International, this is the countrys first co-branded credit card.

About the Card the membership fee for the primary card is Rs. 000 p.a. One also gets add-on cards for up to two members of your family (above 18 years of age) at a special fee of Rs. 1000 p.a., per card.

7. JET ESCAPES

As the schools close and another glorious summer sets in, Jet Airways has exclusive plans for those on holiday trail.

The exciting Jet Escapes holiday packages designed this year make for a memorable Indian summer. One can choose from the host of fascinating destinations around India Cochin, Bangalore, Rajasthan, Port Blair, Ooty, Trivandrum, and Goa.

Every Jet Escapes holiday gives you a taste of true luxury. Fly in world-class comfort and stay at some of the India's finest hotels. All the prices that will help you unwind and enjoy a relaxed holiday.

8. JET ELITE

Jet Elite is a unique offer in which your Jet Airways boarding pass takes care of lodging too. All one needs to do is present the boarding pass when one check in at any of the participating hotels across the country, and avail of great discounts.

Also present are special offers for the JP Gold and Silver members.

. CONCESSIONAL FARES

• Students

A 50% concession is available for students on the basic adult fare in Economy Class on all sectors operated by Jet Airways. All that needs to be done is fill up the students concession form, have it authorized by your school / institution authority, and submit it with a photograph and your identity card.

Students, age 1 through 5 years and who have enrolled for a full time course at a Government recognized establishment can avail student concession. All taxes are paid as applicable to Adult passenger.

• Senior Citizens

Senior Citizens 65 years and above are entitled for concession on basic adult fare in Economy Class on all sectors operated by Jet Airways. To avail of this concession, fill the Concession Form and submit it along with a photograph and proof of age. All taxes are paid as applicable to Adult passenger.

Senior Citizens concession forms are available with your local Travel Agent, any Jet Airways offices or to download it online, Jet Airways also offers Senior Citizens identity cards, which can be used to avail Senior Citizens concession for future travel on Jet Airways flights. Annexure

At Jet Airways, there is equal emphasis on both commercial success and social responsibility. From 17, they have raised a considerable amount of money for 'Save the Children India', an NGO working for underprivileged children. They also extended our hand to significantly help in the relief operations at Bhuj. The Flight of Fantasy organized every year gives underprivileged children a chance to experience the joy of flying. Jet Airways recently sponsored a painting competition for children from Mobile Crèches, organized by CRY. The Magic Box program, an in - Flight charity collection, was started by Jet Airways in 17 to support the efforts of Save the Children India (STCI). More than 40,000 passengers have contributed close to 18 million rupees through the program. On the morning of the 6th of January 001, as the nation readied to celebrate its 51st Republic Day, an earthquake of great intensity hit Gujarat, burying tens of thousands alive. It destroyed property worth millions and set one of the most developed states of India back many years. This catastrophe shook not just Bhuj but the entire country. However, all of India came forward to pool its resources to help. Donations and support also poured in from all quarters of the world, giving the grief stricken and shocked people of Bhuj some hope.

While all this relief was well meant, past experiences have shown that due to factors such as slow implementation, lack of proper co-ordination between agencies, both Government and relief, as well as the sheer enormity of the task, it does not reach the affected when needed most.

This is why Jet Airways and Nivara Hakk Welfare Centre, with invaluable support from ATR, got together in a bid to provide support to the quake hit in Gujarat. Working for over 10 weeks with nearly 50 volunteers from Mumbai, we were able to provide temporary quake-resistant accommodation for the entire village of Ramvav and tented hostels for staff and students of three schools in Nilpar, both in the Rapar taluka of Kutch district.Flight of Fantasy is organised by Jet Airways every year, where we invite groups of underprivileged children to spend a day with us. The day includes an air ride, fun and games, and celebrities, who generously spend some time with these children. Jet Airways would like to share some of the Flight of Fantasy trips that we have been on.

CRY

Jet Airways sponsored a painting competition for children from Mobile Crèches on November 11, 18. The painting competition was organized in co-operation with Child Relief and You (CRY), an Indian NGO working for the cause of underprivileged children and communities in the country.

At the competition, the children were asked to visualise their interpretations of The Joy of Flying. Transportation, painting material, and food, among other things were provided for. The children were delighted when gifts were given out to all participants. Three winners were nominated.

Jet Airways will now use these paintings to design our New Year greeting cards. The event was a huge success and this was yet another moment of pleasure that Jet Airways will cherish.

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