DIRECTOR’S CERTIFICATE

This is to certify that, Mr Arindam Roy (FPB1820/051) is a bona fide student of Indus
Business Academy, Bangalore and is presently pursuing a Post Graduate Diploma in
Management.
Under my guidance, he has submitted his project entitled “Snake Lader Game of Jet
Airways” in partial fulfilment of the requirement for the Market Research Paper during the
Post Graduate Diploma in Management.
To the best of my knowledge, this report not has been previously submitted as part of another
degree or diploma of another business school or university.

_______

Dr. Subhash Sharma

(Director & member of Academic Advisory Council)
Indus Business Academy
Lakhmipura, Thataguni Post
Kanakpura main road,
Bangalore – 560082
 Abstract
This study aims to understand the role of passenger preference and the changing trends in this
era of globalization with evolving aspirations and changing socio-economic landscape. The
industry has witnessed a rise and fall trend and has a great future risk. This presents before us
a vast opportunity for the recent fall of one of the leading domestic career Jet Airways. This
research will help to understand the customer choice and preference in aviation industry. The
research reviews the reported literature in last 3 decades, and comprehends the important
areas of research in Indian aviation industry.

Jet Airways: Background

Jet Airways (India) Private Limited was a reputed private airline in India with an average
fleet age of 4.45 years. Jet flew to 63 destinations spanning the length and breadth of India
and beyond, including New York (both JFK and Newark), Toronto, Brussels, London
(Heathrow), Hong Kong, Singapore, Kuala Lumpur, Colombo, Bangkok, Katmandu, Dhaka,
Kuwait, Bahrain, Muscat, Doha, Riyadh, Jeddah, Abu Dhabi and Dubai. The Airline carried
1.28 million passengers out of 4.08 million passengers carried by the whole airlines industry.
It enjoyed a reputation for punctuality and outstanding service and consequently attracted a
large proportion of business travelers. Currently it operates a fleet of 97 aircrafts, which
includes 12 Airbus 330-200; 20 ATR 72-500 aircraft;11 Boeing 737-700;42 Boeing 737-800;
2 Boeing 737- 900 and 10 Boeing 777-300 ER. The management had ambitious plans to
develop its own maintenance hangers and pilot training centers

Jet Airways: Origins

Recipient of several business and leadership awards, Company founder Naresh Goyal
completed his graduation in Commerce in 1967 and joined the travel business at the age of 18
as a general sales agent (GSA) for the Lebanese International Airlines. From 1967 to 1974 he
learnt the intricacies of the travel business through his association with several foreign
airlines. On March 22, 2004 Jet Airways and rival private airlines in India were free to begin
flying outside the country. Jet had borrowed about $800 million to finance new aircrafts. Jet
was poised to profit from an expected extension of flying rights throughout Asia. Colombo,
Sri Lanka, was the first such international destination. Flights to Bangladesh and Nepal
followed soon after. An initial public offering of 25 percent of shares, discussed since 1995,
was also in the works. Over the next few years Jet established itself as a leading Indian
player, becoming a case study for in-flight excellence. Possibly excited by this euphoria,
industry insiders say, the management made its first big gamble by eying Air Sahara in 2006.
Apart from Jet and Air India, Air Sahara was among the only three Indian carriers that flew
abroad during that period. Naresh Goyal moved in to buy Sahara a year later for Rs 1,450
crores. Jet Airways fulfilled its desire to be the only private Indian carrier to fly abroad in
2006. Acquiring Sahara meant a huge drain on Jet’s resources, both on financial and
management fronts. All this happened at a time when the concept of low-cost carriers was
completing two years in India. The domestic aviation market was growing at 30-40% and
players like Air Deccan were challenging the might of full service carriers.
 Literature Review
Payal Mehra, Year :- 2018. Jet had been constantly incurring losses since 2007-08."Buying
Sahara was a big strategic mistake by Jet. This happened at a time when Jet was growing
aggressively on the international front and facing tremendous competition in local market’,
said the India head of the Centre for Asia Pacific Aviation (CAPA). The first sign of real
trouble in Jet became apparent in 2008 when Naresh Goyal entered into an operational tie-up
with arch rival Vijay Mallya’s Kingfishe
Industry Report, Year:- 2018. Etihad Airways no longer jittery about investment in Jet
Airways. FRPT- Finance Snapshot. Abstract:- The article focuses on the status of Etihad
Airways' investment to Jet Airways after the change of guard in the Indian government under
the administration of India Prime Minister Narendra Modi. It mentions the view of James
Hogan, chief executive officer (CEO) of Etihad Airways regarding the safe investment in Jet
Airways
Paul, Cuckoo, Year:- 2019. At JET AIRWAYS’ HEADQUARTERS IN Mumbai, they still
believe that there can be no such thing as a low-cost carrier in India. That belief within the
top management at India’s largest airline by market and revenue share is because the country
offers LCCs few of the traditional advantages, such as cheaper secondary airports, that are
available elsewhere. Though Jet has the DNA of a full-service network carrier, the living-in-
denial seems a bit incongruous; beginning in October, two-thirds of its domestic capacity will
operate under Jet Konnect, a low-fare brand it launched earlier this year.

MITRA, KUSHAN, Year:- 2016. Having given up the largest domestic carrier status to
Kingfisher, Jet Airways Chairman Naresh Goyal is breathing a tad easier. Even though Jet’s
annual losses were Rs 961 crore, a Rs 53-crore profit in the last quarter has saved Goyal the
ignominy of a Rs 1,000-crore loss for the year. By leasing out some of its aircraft, it has
managed to keep high overhead costs off its books. It has reduced flights in the domestic
market as well With an operating margin of 20.8 per cent and lower fuel costs expected in the
coming year, things might just be looking up for Jet. Analysts, however, still have
misgivings, not least because of Jet Konnect, Jet’s latest “low-cost” initiative which, they
feel, will burden the brand. The only solace for Jet: Kingfisher is in a bigger hole, with
aircraft parked at airports all over India. Things are so bad that Mallya’s airline is yet to
declare Q4 results
Jet Airways (India) Ltd., Year:- 2017. India’s largest domestic airline is on the way to
becoming its largest international carrier as well with service to 18 destinations in Europe,
North America, Asia and the Middle East. Last year it introduced Newark, Toronto and New
York JFK, all routes that flow over Brussels, where it is building a connecting hub to capture
European-originating traffic in cooperation with Brussels Airlines. This April it launched a
daily Mumbai-Hong Kong service, bringing to four the number of destinations served in the
Asia/Pacific. In the same month it launched Abu Dhabi from Mumbai and Delhi, Kochi-
Doha.
Thehindubusinessline, Year:- 2019. The survival of 25-year-old Jet Airways, founded by
entrepreneur Naresh Goyal, is crucial for a host of companies from which it leases over 100 of its fleet
of 124 planes. The airline also has 225 Boeing Co 737 MAX jets on order. Jet, which owes money to
vendors and employees alike, needs to urgently raise funds in order to meet its payments, a banking
industry source said.
 Peter, Year:- 2019. Aviation fuel contracts are possible, but with counter‐party risk. Most
major passenger airlines with sufficient cash and credit now hedge at least part of their future
needs. Hedging does protect profits against a sudden upturn in crude prices caused by
political and consumer uncertainty leading to slower economic growth. However, if higher oil
prices are induced by strong economic growth and oil supply constraints, hedging increases
volatility with hedging gains reinforcing improved profits from higher traffic and improved
yields. If hedging does not reduce volatility, it may still have an accounting role in moving
profits from one time period to another, insure against bankruptcy, and signal the competence
of management to investors and other stakeholders.
Anushree Banerjee, Year:- 2019. The environment was not very good to HRD due to the
indifference of employees as per the survey. There is a dearth of research studies on the
development of human resources in Tourism Industry particularly in post liberalization era.
The present study is an endeavour of the author to present the varied dimensions and facets of
developing the human resources in Tourism Industry with special reference to Jet Airways (I)
Ltd. The case study of Jet Airways (I) Ltd. would successfully represent the concept and
applicability of HRD in Tourism Industry in India.
Payal Mehra, Year:- 2018. Jet cancelled 21 international flights operating on South East
Asia sector to Bangkok, Hong Kong and Singapore. The airlines services to Gulf countries,
the US and Europe were also badly affected. In Delhi, about 15 flights remained cancelled by
virtue of flight cancellations and unavailability in other flights. "Due to continued pilot
agitation, disruptions are expected on the Jet Airways network and consequently, certain
flights have been cancelled. On disrupted flights, guests will get full refund or they can
reissue/rebook flights without any penalty," a Jet Airways spokesperson said. “Jet Airways is
endeavoring to make alternative arrangements on other airlines wherever possible and the
airport teams of the airlines will assist its guests to the fullest extent”, she said. The airlines
also tried to accommodate its passengers in its low-cost arm JetLite. The airlines management
combined 12 Jet flights with JetLite.
Manoj Gupta, Year :- 2017. The research by Adey & Lin (2014) suggest that we can
anticipate a further emergent area of social and cultural geographies of air transport.
However, a visible extension of this study would be to explore the influence of such socio
cultural and even economic factors on aviation growth. A study by Debagge(2014) discusses
about the liberalization of air space and the open market mechanism in the light of
globalization and liberal versus protectionist philosophy, yet falls short of suggesting any
roadmap or possible solutions to overcome. The opportunity to assess the impact on aviation
growth is a compelling motivation. Looking at the role of airports and infrastructure in
particular, a study is reported by Grahm & Ison (2014). The study deals with the patterns of
airport traffic, both passenger and cargo and the complexities involved in bringing together
these activities.It states the opportunity of looking at what drives the infrastructure in
aviation,especially in the context of India.
 Objectives of the Study
 To acknowledge the issues and problems faced by the employees of Jet Airways.
 To identify the boundaries that prevent Jet Airways to enter Low-Cost airline
services.
 To acknowledge the customer preference between Jet airways and Indigo.

Hypothesis
H0: - Customer do not prefer jet airways over low cost airlines for free meal.
H1: - Customer prefer Jet Airways over low cost airlines for free meal.
H0: - There is no significant difference in satisfaction level of air travellers in regard to safety
provided by Indigo and Air India.
H1: There is significant difference in satisfaction level of air travellers in regard to safety
provided by Indigo and Air India.