Jet Airways
Jet Airways
Jet Airways
Naman Agrawal-11609031
Nidhi Sharma-11609032
Nikisha Gupt-11609033
Nishant Kaushik-11609034
Parth Bhasin-11609035
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Table of contents
Introduction 2
History 4
Organizational Structure 7
SWOT Analysis 8
Culture of organization 21
References 23
2
Introduction
Jet Airways
Type Public
Industry Transportation
Subsidiaries JetLite
3
Company Background
Jet Airways, an airline based in India, 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,
Swiss hotel, 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. 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. In
India, Jet Airways is the leading airline in terms of revenue passengers; it holds
a 36-per cent share in the market. The company grew its capacity at a CAGR of
50 per cent during FY 2001-06. It began its international operations in March
2004; the contribution of international operations to the company’s total
revenues has registered a continuous growth since then. The company
generated revenues of EUR 1.06 billion in FY 2006, with international
operations accounting for nearly 12 per cent of its total revenues.
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History
Early years
Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started
Indian commercial airline operations on 5 May 1993 with a fleet of four
leased Boeing 737-300 aircraft. In January 1994 a change in the law enabled Jet
Airways to apply for scheduled airline status, which was granted on 4 January
1995. It began international operations to Sri Lanka in March 2004. The
company is listed on the Bombay Stock Exchange, but 80% of its stock is
controlled by Naresh Goyal (through his ownership of Jet’s parent company,
Tailwinds). It has 10,017 employees (as at March 2007).
Naresh Goyal – who already owned Jetair (Private) Limited, which provided
sales and marketing for foreign airlines in India – set up Jet Airways as a full-
service scheduled airline to compete against state-owned Indian Airlines.
Indian Airlines had enjoyed a monopoly in the domestic market between 1953,
when all major Indian air transport providers were nationalised under the Air
Corporations Act (1953), and January 1994, when the Air Corporations Act was
repealed, following which Jet Airways received scheduled airline status.
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ground handling, and joint utilisation of crew and sharing of similar frequent
flier programmes.
On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The
decision to launch a new brand instead of expanding the JetLite network was
taken after considering the regulatory delays involved in transferring aircraft
from Jet Airways to JetLite, as the two have different operator codes. The
brand was launched on sectors that had 50% or less load factor with the aim of
increasing it to 70% and above. Jet officials said that the brand would cease to
exist once the demand for the regular Jet Airways increases.
According to a PTI report, for the third quarter of 2010, Jet Airways
(Jet+JetLite) had a market share of 26.9% in terms of passengers carried, thus
making it a market leader in India, followed by Kingfisher Airlines with 19.9%
Jet Airways in UK
Jet Airways operates flights to London from Mumbai, Delhi and Amritsar in
India. On this route, the company has acquired a 20-per cent market share
with a load factor of over 70 per cent.
Factors for Success India – An Investment Destination
India is emerging as a preferred investment destination for various industries
that are planning to expand their operations. The investment by foreign firms
in India is increasing at a brisk pace as a result of the country’s low labour costs
and the availability of talented professionals. Various European firms are
scouting for alliances with Indian companies. This has increased the air traffic
to India, and Jet Airways is capitalising on this opportunity to expand its
international operations to the EU and other regions.
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Tapping the NRI market
With its international operations, Jet Airways has tapped the large non-
resident Indians (NRIs) segment that resides in the USA and Europe. The
company’s advantage of being an early entrant has helped it in tapping this
segment. It is leveraging its established brand name in the domestic market,
and has developed a good hold in the market Abroad.
ORGANIZATIONAL STRUCTURE
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MISSION , VISION & VALUES
The Mission statement says “Jet Airways going to upgrade the concept of
domestic airline travel to that of a LI world-class airline.
Vision Statement: Organization vision is to become the “Best Airline in the
World”.
Values:
• Sustained efforts to enhance customer value and quality
• Ethical and professional service
• Compliance and respect for all community, environment and legal
requirements.
SWOT ANALYSIS
Jet Airways has come off another difficult financial year, but an extensive cost
reduction programme launched in the second half of its latest financial year is
bearing some early fruit with a return to profit in the fourth quarter. This
SWOT Analysis reviews Jet Airways' internal strengths and weaknesses and its
external opportunities and threats.
STRENGTHS: Jet grasps the nettle, restructuring finally paying off Financial
discipline (not before time): Jet Airways' management is finally executing an
effective restructuring plan after some haphazard attempts over the past 18
months to come to grips with a rapidly changing market.
Encouragingly, the airline generated a USD10.4 million net profit in the fourth
quarter to 31-Mar-2009, turning around a USD55.1 million net loss in the
previous corresponding period and a USD44 million loss in the third quarter.
This was to some extent driven by exceptional items such as income from sub-
leasing aircraft, changes to depreciation charges and tax credits. Full year
losses reached USD79.3 million in the 12 months ended 31-Mar-2009,
following an USD63.1 million loss in the previous corresponding period.The
improved fourth quarter operating result was achieved through an extensive
cost cutting programme that included network restructuring, the deferral of
aircraft deliveries for the next 1-2 years, rationalisation of personnel costs,
restructuring of aircraft leases, debt restructuring, cash conservation/cost
savings measures and a focus on alliances. Jet stated the full impact of this
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restructuring programme would be seen in the coming financial year.Revenue
fell 8.2% in the quarter to USD505.9 million, while EBITDAR margin in the
fourth quarter surged 13.1 ppts to 20.8% in the fourth quarter. Jet Airways
EBITDAR margin growth: 1Q08 to 1Q09
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fell 0.4 ppts year-on-year to 69.1%. The strategic mistake with JetLite was to
attempt to create a low cost unit out of an airline with significant legacy issues.
OPPORTUNITIES: Growth options limited to short-haul international
expansion: In terms of route development, Jet's long-haul ambitions have been
put on hold until market conditions improve. It is however planning to target
short-haul (B737) opportunities, with new services to Jeddah, Riyadh and
additional services to ASEAN & SAARC region destinations "in the near future".
The expansion of its presence in these Middle East markets, particularly Saudi
Arabia, is crucial in defending Jet's network against the growing Middle East
carriers, but also creates opportunities for increased hubbing
over Mumbai and Delhi to its strong domestic franchise and points in
Southeast Asia. Industry "consolidation": The return of the Singh
Government should see an easing of foreign ownership restrictions and could
prompt more moves to consolidate the Indian airline sector.
Jet is unlikely to be an active participant following its costly acquisition of
Sahara, its ineffective operational alliance with Kingfisher and strong
motivation within Jet's founders to maintain its independence. The potential
for easing of foreign investment rules should support the share prices of India's
leading aviation companies, which could improve conditions for further capital
raisings in the medium term. Jet Airways' shares have risen strong since the
election result.
Jet Airways share price growth: Jan-2009 to May-2009
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Jet's domestic market share has fallen to 17.8%, while JetLite's share remains
around 7.4% for a combined group share of 25.2%, 1.6 ppts below
Kingfisher/Kingfisher Red.
Indian carriers domestic market share (%): Mar-2009
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Leadership & styles
Founder of Jet Airways: With the experience, expertise and technical know-
how thus acquired, in May 1974, Mr. Naresh Goyal founded Jetair (Private)
Limited with the objective of providing Sales and Marketing representation to
foreign airlines in India. He was involved in developing studies of traffic
patterns, route structures, operational economics and flight scheduling, all of
which has made him an authority in world of aviation and travel. Shortly
thereafter in 1975, he was appointed Regional Manager of Philippine Airlines
in India.
In 1991, as part of the ongoing diversification programme of his business
activities, Mr. Naresh Goyal took advantage of the opening of the Indian
economy and the enunciation of the Open Skies Policy by the Government of
India to set up Jet Airways (India) Private Limited for the operation of
scheduled air services on domestic sectors in India. Mr. Goyal has been elected
to the Board of Governors of the International Air Transport Association (IATA),
at its 60th Annual General Meeting held in Singapore in early June 2004.
Mr. Naresh Goyal is listed as one of the World’s Richest People 2005 in Forbes
magazine. He has a fortune of $1.5 billion.
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Mr.saroj K. Datta Executive Director
Mr. Saroj K. Datta completed his education at St. Stephen’s College, Delhi, with
a post-graduate degree in Economics. After a two-year stint at the National
Council of Applied Economic Research (NCAER) in New Delhi, Mr. Datta joined
Air-India in November 1962. During his tenure with Air-India, Mr. Datta worked
in various sections of the Commercial and Planning Departments of the airline.
In 1980, he was appointed Deputy Director, Planning and International
Department with overall charge of the Department. Mr. Datta joined Kuwait
Airways in 1987 as the Planning and Economic Advisor. He returned back to
India in September 1990 following the Iraqi invasion of Kuwait. In early 1991
he joined the Jetair Group of Companies, India’s largest General Sales Agent, in
Mumbai as its Executive Director. Since early 1992, Saroj Datta has headed the
Jet Airways project to set-up a private domestic airline conceived by Mr.
Naresh Goyal, Chairman of the Jet Airways group following the liberalisation of
the Civil Aviation Policy by the Government of India. Mr. Datta has brought to
bear his many years of aviation experience into this project. Assisted by a
group of dedicated professionals, Mr. Datta has meticulously coordinated the
various activities leading to the setting-up of the airline culminating in the
launch of Jet Airways, a leading private domestic airline in India on May 5,
1993. Mr. Datta is a member of the Board of Jet Airways and is the Executive
Director of the airline.
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departments, which includes Brand Management, Brand Communications,
Interline Revenue and Distribution.
Mr.Mahalingam Shivkumar | Sr. Vice President, Finance
Mr. Mahalingam Shivkumar joined the Jet Family in February 2009. He is a
Commerce graduate from the Delhi University and a qualified Chartered
Accountant. He brings with him over 25 years of experience in various financial
disciplines and has held various positions in Industries encompassing an entire
spectrum from Engineering, Hospitality, and Aviation to Financial Services
Sector. He was associated with Corporates like Cummins India Limited,
Standard Batteries Limited (Williamson Magor Group), Fortis Financial Services
Ltd (Ranbaxy Group), Indian Hotels Company Limited (Taj Group). He held
various positions in the TAJ Group for over 9 years and was associated in the
Hotels, Air Catering, and Aviation and International divisions. He had a
successful stint as Vice President, Finance in London, looking after the
Company’s interest in U.K and Europe. He was actively involved in the Joint
formation with SATS (Singapore Airlines Group) in the Air catering field. Prior
to joining Jet, he was the Finance Director for “Mumbai International Airport
Limited” and is familiar with Airport operations. At Jet, he is entrusted with the
responsibility of Managing and controlling the overall financial operations
which inter alia include Treasury operations, Financial and Cost controls etc.
Mr. Rajesh Sharma | Vice President – Internal Audit
Mr. Rajesh Sharma, an Indian national, is a qualified Chartered Accountant and
joined the company in August 1995 as Head of Internal Audit. In May 2004, he
was designated as Vice President – Controller, directly responsible for
Commercial and Revenue Accounting, MIS and Budgeting and Financial Control
functions. In July 2007, he was given the responsibility of handling technical
purchases including outsource services for Engineering & Maintenance and
Ground Support. In November 2008, Mr. Sharma was again made in charge of
Financial Controls and in July 2010, he has moved back to Internal Audit. He
has a wide experience in various functional areas in Finance and is more
focused on cost controls and cost reduction measures in the Company. Prior to
joining the Company, he worked with M/s. Bayer (India) Ltd., a German
multinational company for a period of 8 years as head of its internal audit. He
has also been associated as a qualified examiner with the Indian Merchant of
Chambers for the Ramkrishna Bajaj National Quality Awards.
Mr. K. G. Vishwanath | Vice President – Commercial Strategy and Investor
Relations
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Mr. K. G. Vishwanath, an Indian national, is a qualified Chartered Accountant.
He joined the Company in November 1998 as a Management Trainee and has
grown to become a Vice President in 10 years. His current role includes
management accounting, budgeting, financial forecasting, developing and
monitoring strategies relating to the commercial aspects of the business.
Additionally, he is also responsible for the Investor Relations function in the
airline. He has been involved in many strategic projects at Jet Airways including
Fleet and route selection, Aircraft financing, Capital raising, International
operations rollout, in addition to his current role. He has been associated very
closely with the Chairman and the members of the Board during the Initial
Public Offering (IPO) exercise and has been handling the Investor Relations
portfolio since then. He was also involved in the core team, which worked on
the acquisition of Air Sahara in April 2007. Vishwanath is a very passionate
classical musician and a performing artist. Having trained for over 20 years and
having performed widely with many concerts to his credit, he also has a fusion
band of his own.
Dato K. Jeyakanthan | Sr. Vice President - Engineering Services
Dato K. Jeyakanthan, a Malaysian national, is an Honours graduate in
Aeronautical Engineering from Hatfield University, London. He joined
Malaysian Airline Systems in 1971 in the Technical Services department. In a
career spanning over 30 years, he has wide ranging experience in Quality
Assurance and Sales and Marketing with Malaysian Airlines. He is a Fellow of
the Royal Aeronautical Society of the U.K. and a Chartered Engineer of the U.K.
His last position with Malaysian Airlines System before joining Jet Airways in
March 1998 was Manager - Engineering Marketing and Sales. He was
bestowed the title of Dato by his Royal Highness Sultan of Pahang, Malaysia in
2001. At Jet Airways, Dato Jeyakanthan is over-all in charge of Engineering and
Maintenance functions.
Ms.Sonu Kripalani | Vice President - Sales (India)
Ms. Sonu Kripalani, an Indian national, joined the company in February 1993.
She is a graduate in Psychology from Elphinstone College, Mumbai and a
Diploma in Travel and Tourism Management from KC College of Management
Studies, Mumbai. She has over 23 years of experience in the travel field in
domestic and international sales, reservation and ticketing gained through
reputed travel agencies. She currently heads the Passenger Sales department
in the capacity of Vice President –Sales (India) and her position entails
monitoring and delivering passenger revenues, yield and revenue
performance, initiating pricing policies and setting up procedures for the sales
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department. Her role also involves close co-ordination with service delivery
departments like airport services, in-flight, catering in order to ensure
maintenance of standards of customer service. Ms. Kripalani is also actively
involved in the development of the strategic vision of the company, ensuring
growth and profitability of the organisation.
Mr.Jay Shelat | Vice President – Cargo
Mr. Jay Shelat, an American national with Indian origin, joined the company in
March 2007. He holds a degree in Aviation management from Embry Riddle
Aeronautical University, USA. He has over 23 years of experience with
companies like Federal Express, AMR – Corporation – American Airlines Cargo
Alliances and World Airways Inc in the USA. At Jet Airways, Mr. Shelat is in-
charge of the entire Cargo operations at Jet Airways, especially for the
company’s overseas wide-bodied operations.
Mr. Raj Sivakumar | Vice President – Network Planning, Revenue
Management & Distribution
Mr. Raj Sivakumar, an American national of Indian origin, joined the Company
in August 2007. He holds a Master of Management Studies degree from Birla
Institute of Technology and Science, India, followed by Master of Science and
Doctorate of Philosophy in Operations Research from State University of New
York at Buffalo, USA. Mr. Sivakumar has over 15 years of experience in United
Airlines with leadership roles in Revenue Optimization, Research and
Development, Information Technology and Strategic Sourcing. In his current
assignment, Mr. Sivakumar is responsible for Yield Management, Pricing,
Network Planning and related functions for the entire Jet Airways network.
Dr. Samar B. Srivastava | Vice President – Human Resources
Dr. Samar B. Srivastava, an Indian national, joined Jet Airways in October 2010
as Vice President - Human Resources. Dr. Srivastava is a PhD and MPhil in
Human Resources Management from the Tata Institute of Social Sciences,
Mumbai. He has held several positions of responsibility in the areas of Human
Resource Development, Industrial Relations, Management Development,
Business Process Improvement, Quality Management, Business Excellence and
Corporate Social Responsibility. He also holds the distinction of successfully
integrating and managing a multi-cultural global workforce. In a distinguished
career spanning over more than two decades, he has worked with corporate
institutions like Tata Steel and Tata Ryerson within the Tata Group, post which
he joined Crompton Greaves as General Manager – Human Resources.
Dr. Srivastava has been associated with the eminent B Schools as a visiting
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faculty and has associated actively with the Confederation of Indian Industry
(CII - Western Region).
Mr. Ashok Barimar | General Counsel & Vice President - Legal
Mr. Ashok Barimar, an Indian national, joined the Company in June 1999. He is
responsible for all legal matters and litigation cases involving the Company. He
holds an LLB Degree and also a Diploma in Business Management. He has been
a practicing advocate and has worked with several reputed business houses
such as the Birla’s and the Hindujas. His last assignment was with Satyam
Computers. At Jet Airways, Mr. Barimar is in-charge of the all the Legal matters
of the Company.
Ms. Ragini Chopra | Vice President – Corporate Communication and Public
Relations
Ms. Ragini Chopra, an Indian national, joined the company in June 2004. She is
a management graduate from the Oberoi School of Hotel Management. Ms.
Chopra has spent 28 years with the Oberoi Hotels and Resorts in various
functions ranging from Operations, Sales and Marketing, Business
Development and Corporate Communications. She has wide exposure in the
fields of travel hospitality and tourism. In her current role, she is responsible
for corporate communication and maintaining public relations.
Mr. A K Sivanandan | Vice President – Public Relations
Sivanandan’s career graph kept pace with the challenging growth of Indian
Aviation from the piston engine Dakota age to the modern era of Wide-body
jets. A post Graduate in Journalism, A.K Sivanandan began his career as a sub-
editor with Indian News Service in 1961. Later, joined “Indian Express”,
Madras. Besides, being credited with reporting top political leaders of
yesteryears, his several published articles, earned him rave reviews. A
journalist turned PR professional; he joined Indian Airlines in 1966 as the first
PRO of its Southern Region. He was later transferred to Indian Airlines
headquarters Delhi in 1970 where he rose to the position of Head of Public
Relations. Besides, executing various challenging assignments, he edited the
magazines “Image” and inflight journal “Swagat”. He participated in various
global PR Conferences, Congresses and Seminars. An active member of several
professional bodies and a Fellow of the Aeronautical Society of India, he was
honoured by the Press and Public Relations Association of India with the “Best
Public Relations Man” of the year award in 1991. Presently he is Vice President
(PR) in Jet Airways where he joined in 1993. With his rich and varied
experience in the aviation field and having been a hardcore PR professional for
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almost five decades, he has been consistently rendering yeomen services to Jet
Airways. A certificate was presented to him by Mr. Naresh Goyal, Chairman in
2009 “in recognition of 15 years of meritorious service”. He was inducted to
“PRCI Hall of Fame” the same year by the PRCI, for his outstanding
contributions to the Public Relations profession at a function in Bengaluru.
Ms. Monica Chopra | Company Secretary & Associate Legal Counsel
Ms. Monica Chopra, an Indian national, joined the Company in September
2008. She is a Fellow Member of the Institute of Company Secretaries of India,
New Delhi and holds a bachelor degree in Law. Ms. Chopra has a wide
experience of over 18 years encompassing secretarial & compliance, share
administration & investor relations, M&A activities and related legal matters.
Ms. Chopra is also the Compliance Officer under the SEBI Regulations. She is
responsible for all the secretarial functions of the Company and of the
subsidiary, JetLite (India) Limited. Additionally, Ms. Chopra looks after the legal
matters of the Engineering and Finance departments of the Company.
Confidential information
Employees and directors should maintain the confidentiality of confidential
information entrusted to them in carrying out their duties and responsibilities,
except where disclosure is approved by the Company or legally mandated or if
such information is already in the public domain. Confidential information
includes all non public information that might be of use to competitors, or
harmful to the Company or its customers, if disclosed. The Company's
confidential information shall not be inappropriately disclosed or used for the
personal gain or advantage of anyone other than the Company. These
obligations apply while employed or serving as a director of the Company even
after employment or the director's term with the Company ends
Fair Dealing
In carrying out their duties and responsibilities, employees and directors
should endeavour to deal fairly, and should promote fair dealing by the
Company, its employees and agents, with customers, suppliers and
competitors.
No employee or director should seek to take unfair advantage of anyone
(including the Company) through manipulation, concealment, abuse of
privileged information, misrepresentation of material facts or any other unfair
dealing practice.
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Record keeping and Reporting
The Company requires honest and accurate recording and reporting of
information in order to make responsible business decisions. All of the
Company's books, records, accounts and financial statements must be
maintained in reasonable detail, must appropriately reflect the Company's
transactions and must conform both to applicable legal requirements and to
the Company's system of internal controls. Records and documents should
always be retained or destroyed according to the Company's record retention
policies. The Company shall provide full, fair, accurate, timely, and
understandable disclosure in all reports and documents that it files with, or
submits to, any governmental agency or securities exchange, and in other
public communications made by the registrant.
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REFRENCES
http://www.theofficialboard.com/org-chart/jet-airways
http://www.jetairways.com/EN/ZZ/AboutUs/BoardofDirectors.aspx
http://www.jetairways.com/EN/ZZ/AboutUs/CodeOfConduct.aspx
www.wikipedia.org
www.jetairways.com
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