Académique Documents
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Airlines
49% in domestic airlines - 100% for NRI’s
74% in cargo & non-scheduled airlines
Market Share in Domestic
Market
In Post Consolidation Jet includes Air Sahara & Kingfisher includes Air Deccan
§Market Share is based on their Capacity Source: B&K Securities
Service vs. Price
High
Jet Airways
Full
Service
Air Deccan
SpiceJet
Go Air Indigo
Low
Low High
Price
Source : http://www.foolonahill.com/mbaaviation.html
Cost Structure
Source : http://www.foolonahill.com/mbaaviation.html
Jet Airways
Founded in 1993, Chairman - Mr.Naresh Goyal
HQ in Mumbai
Country’s second largest international airline
Largest domestic airline - 31%
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
In-flight Services
Classes of Service - First class, Premiere class & Economy class
Convenience & Safety -Towels, Pillows & Blankets, Reading material,
First Aid, Smoke detectors, Bassinets, Child Care, life jackets & seat cushion
Cuisines
Entertainment - Jetscreen– Movies, TV programmes, Games, Music, In-flight
communicator, Online magazines etc.
JetWings (in-flight magazine), JetBoutique (in-flight shopping catalogue)
Product - Service
Special Services
o Infant and child care, wheel chair assistance, expectant mothers,
unaccompanied minors, medical emergencies, travelling with animals &
carriage of stretchers
JetMobile
JetKids
JetEscapes
Cargo
JetPrivilege – Frequent Flyer
Program
Membership tiers – Blue, Blue Plus, Silver, Gold & Platinum
Personalized web access
JP Miles - 13 quarters validity
Bonus JPMiles on e-Services
Additional baggage allowance
Guaranteed reservations up to 24 hrs. prior to departure
Waiver on cancellation fees
Membership Tier Bonus
Various Destinations
Promotion
Offers
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.
Hoardings
Brand Ambassadors
Sponsorships
Event Organization
People
Employees
Pilot, Cabin Attendants, Engineers, Customer Service Agents, Securities,
Marketing, Sales & Reservation employees
Customers
Partners
Airline 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.
Code Share Partners - Air Canada, All Nippon Airways, American Airways,
Brussels Airlines, Etihad Airways and Qantas
Co-Brand Cards - CitiBank
Conversion Partners - BarclayCard, CitiBank, Deutsche Bank AG, HDFC Bank,
HSBC, ICICI Bank, SBI Card & Tata Cards
Car Rental Partners - Avis, Hertz
Hotel Partners - Global Hotel Alliance, Hilton Family Hotels, Hyatt Hotels &
Resorts, InterContinental Hotel Groups, ITC etc.
Lifestyle Partners - Globus and Golf Fee Card International
Publishing Partners - Fortune, The Economist and TIME
Retail Partners - Ferns n Petals
Telecommunication - Matrix Cellular Services
Competitors
People physically enter the service system to receive the service. Aircraft is the
service factory where service is delivered.
Possession Processing
Cargo
Luggage & Courier
Physical Evidence
Servicescape
Servicescape usage - Interpersonal
Complexity of Servicescape - Elaborate
Flight
Offices - Org. & Ticket Booking Agents
Virtual Servicescape
Service Quality
Source : http://www.foolonahill.com/mbaaviation.html
Service Quality
Source : http://www.foolonahill.com/mbaaviation.html
Strategies to manage the Capacity &
Demand
Check Fares
Automated Rostering System
Planning and Scheduling Systems
Code Sharing
Outsourcing ramp handling, passenger handling, ticket
checking, cargo and loading and unloading in Delhi and
Mumbai
Automation to drive efficiency and improve response time
Faster page and application download times for its site
Corporate Social
Resposibility
Magic Box
Fund raising inside the flight for disaster relief, education &
healthcare for poor and programmes to prevent exploitation
of women
Flights of Fantasy
Underprivileged children and children with special needs are
taken on specially organized flights (on Children’s Day)
PEST Analysis
Political Issue Social Effects
License issue for international Sound Pollution
operation
Plane hijacking
Infrastructural constraint
9/11 Incident
ATF price policy
Weaknesses Threats
Loosing domestic market share Strong competitors
Old fleet with average age around Fuel price hike
4.79 years Overseas market competition
Scope for improvement in
in-flight service
Weak brand promotion
THANK