Jet Airways Company Analysis2

8/6/2019 Jet Airways Company Analysis2

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CHAPTER I

Introduction

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1.0 Introduction

Jet Airways (India) Private Limited is India's leading private airline. It boasts a market share of about 45percent. Jet operates a relatively young fleet of Boeing 737 jets and ATR72 turboprops. It carries about seven

million passengers a year. Its reputation for punctuality and outstanding service attracts a large proportion ofbusiness travelers. Jet's founder and chairman is Naresh Goyal, an Indian expatriate living in London.

Jet Airways and rival private airlines in India were freed to begin flying outside the country on March 22, 2004.Colombo, Sri Lanka, was the first such international destination. Flights to Bangladesh and Nepal followedsoon after.

Jet was poised to profit from an expected extension of flying rights throughout Asia. An initial public offeringof 25 percent of shares, discussed since 1995, was also in the works. Jet had borrowed about $800 million tofinance new aircraft.

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CHAPTER II

Company Profile

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2.0 Company Profile

2.1 Company History:

Jet Airways (India) Private Limited is India's leading private airline. It boasts a market share of about 45percent. Jet operates a relatively young fleet of Boeing 737 jets and ATR72 turboprops. It carries about seven

million passengers a year. Its reputation for punctuality and outstanding service attracts a large proportion ofbusiness travelers. Jet's founder and chairman is Naresh Goyal, an Indian expatriate living in London.

Origins

Company founder Naresh Goyal began his travel career in 1967 at the age of 18 as a general sales agent (GSA)for Lebanese International Airlines. In May 1974, he formed his own company, Jet air (Private) Limited, tomarket other foreign airlines in India. Jet air eventually grew to a network of 60 branch offices.

After three and a half decades of monopoly by Air India and Indian Airlines, the Indian government reopenedthe domestic aviation market to private carriers in April 1989. Goyal set up Jet Airways (India) Private Limited

in 1991.

Initial investment was $20 million. Through an Isle of Man holding company, Tail Winds, company founderNaresh Goyal (then based in London) owned 60 percent of Jet Airways, with Gulf Air and Kuwait Airwaysdividing the remaining 40 percent.

Jet Airways began domestic flight operations with four new-generations Boeing 737s on May 5, 1993. The firstflights were from Mumbai (Bombay) to Delhi and Madras and ten other destinations. (Jet was not the firstprivate airline in the skies; that distinction went to East West Airlines, which launched in February 1992.) JetAirways aimed to carry seven million passengers by the end of 1993, and to take in first year revenue in excessof $75 million (INR 2.4 billion).

The schedule was coordinated with that of Gulf Air to provide convenient connections. Gulf Air assisted thenew airline with technical and marketing assistance. The Australian airline Ansett Worldwide also providedengineering expertise, and was the lessor for Jet's first four aircraft.

Malaysia Airlines System (MAS) provided technical and flight training and performed maintenance serviceswhile a unit of British Airways educated cabin staff in customer service. Three of Jet's Boeing 737s was leasedfrom MAS. Jet entered a comprehensive marketing agreement with KLM in 1995.

Surviving and Thriving in the Mid-1990s

Eight private airlines plied the skies over India in the mid-1990s. Jet Airways was the second largest. Revenuesfor the 1994-95 fiscal year were estimated at INR 360 crore ($120 million), with profits of more than INR 18crore ($6 million), crore being a traditional term meaning 10 million.

Jet Airways claimed to be the only profitable privately owned airline in India. Indeed, by 1997, five of the seventhat had been launched since 1992 were grounded. By another count, more than 20 start-up airlines had beenlaunched in India since deregulation, reported Airline Business. Jet Airways was one of the very few survivors.

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Jet's revenues rose 32 percent to $300 million in 1997, with profits of $11 million. During the year, Jet boughtout the shareholdings of Kuwait Airways and Gulf Air after the Indian government banned foreign ownership inIndia's airlines. This also scuttled MAS's proposal to acquire a 9 percent stake in Jet Airways.

In 1997, Jet Airways was operating a fleet of one dozen Boeing 737s and was ordering ten more for $486million. By this time, Jet was India's largest private carrier, and was flying to 20 destinations. Its market sharewas about 15 percent. Jet Airways Executive Director Saroj Datta (formerly of Air-India and Kuwait Airways)told Britain's Financial Times that the

Airlines choice of newer aircraft was a significant factor in its success. While they cost more to lease, theysaved fuel and helped endear business travelers with their reliability. Datta added that Jet benefited fromGoyal's background as a general sales agent; it had established interline agreements with 90 foreign carriersflying into India, accounting for 25 percent of revenues.

Late 1990s Price Wars

While the Tat industrial group was unable to secure government approval to create a proposed carrier withSingapore Airlines, the domestic aviation market remained competitive. As demand contracted, rivals engagedin a spirited price war, particularly on the Mumbai (Bombay) to Delhi route.

Nikos Kardassis, Jet's chief executive officer for five years, resigned in the summer of 1999. He was replacedby Executive Director Saroj Dutta, who had been with the airline since 1992.

In 1999, Jet Airways was flying 155 flights a day to 30 destinations. The fleet was up to 25 aircraft, and theairline employed 4,300 people. Jet estimated that it had a 32 percent market share and that 80 percent of itspassengers were business travelers. In October 1999, the airline launched a regional feeder network using leased64-seat ATR 72 turboprop aircraft. Jet Airways unveiled new uniforms for its 270 cockpit crew members and660 cabin staff about the same time as the ATR rollout. Designed by Ravi Bajaj, the new uniforms were a yearin the making.

Changes in the Early 21st Century

Jet Airways got a new CEO in 2000, Steve Forte, formerly vice-president of marketing at the U.S. carrier TWAForte, a native of Italy also had worked for Meridiana, a small Italian domestic airline, when its aviation marketwas undergoing liberalization. Forte left the airline in December 2002 to return to the United States. He wasreplaced by Wolfgang Prock- Schauer, a former Star Alliance board member. In May 2003, Jet hired its firschief operating officer, Peter Luethi.

The air travel market in India was making up for lost time after being flat for a couple of years. Jet and otherairlines were appealing to the government to reduce the tariffs on India's relatively expensive aviation fuel, asdomestic carriers paid a $2 per gallon premium compared with foreign ones. Chairman Naresh Goyal told the

Hindu the airline planned to connect to all of India's tourist destinations. Jet also was increasing frequencies onkey routes.

According to India Business Insight, Jet Airways' share of domestic passenger traffic rose to 48.7 percent, ormore than six million passengers, in 2002. Although the company had reportedly been profitable from itsinception, it was now posting significant losses despite total revenue in 2003 of INR 2,876.41 crore ($550million).

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Business Today observed that interest costs had risen 50 percent during the year; fuel costs were also upsharply. The effects of the September 11, 2001 terrorist attacks on the United States, and, later, the SARS healthcrisis, took their toll on traffic for not just Jet Airways, but most airlines.

Controlling costs was CEO Wolfgang Prock-Schauer's primary agenda. The airline leased two of its Boeing737s to a Japanese company, and implemented a number of workforce productivity measures. Prock-Schaueraimed for Jet to be posting a profit of $60 million by 2005.

The airline was introducing ultra-low "Super Apex" (advanced purchase excursion fares) tickets to lurepassengers away from trains. Passenger demand fell slightly, however, and Jet reduced capacity on some routesand began assigning employees multiple roles and cutting capacity on various routes. A charge card for frequentflyers had been launched with Citibank in August 2000.

International in 2004

Jet Airways and rival private airlines in India were freed to begin flying outside the country on March 22, 2004.Colombo, Sri Lanka, was the first such international destination. Flights to Bangladesh and Nepal followedsoon after.

Jet was poised to profit from an expected extension of flying rights throughout Asia. An initial public offeringof 25 percent of shares, discussed since 1995, was also in the works. Jet had borrowed about $800 million tofinance new aircraft.

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2.2 Founder of Jet Airways

Naresh Goyal The founder Chairman of Jet Airways

Naresh Goyal (59), the founder Chairman of Jet Airways, Indias premier airlinehas over 38 years of experience in the Civil Aviation industry. He is the recipient of several national andinternational awards.

After graduating in Commerce in 1967, Mr. Naresh Goyal joined the travel business with the GSA for LebaneseInternational Airlines. From 1967 to 1974 he underwent extensive training in all facets of the travel businessthrough his association with several foreign airlines. He also extensively travelled overseas on business during

this period.

With the experience, expertise and technical know-how thereby acquired, in May 1974, Mr. Naresh Goyalfounded Jetair (Private) Limited with the objective of providing Sales and Marketing representation to foreignairlines in India. He was involved in developing studies of traffic patterns, route structures, operationaeconomics and flight scheduling, all of which has made him an authority in the world of aviation and travel.

In 1991, as part of the ongoing diversification programme of his business activities, Mr. Naresh Goyal tookadvantage of the opening of the Indian economy and the enunciation of the Open Skies Policy by theGovernment of India to set up Jet Airways for the operation of scheduled air services on domestic sectors inIndia. Jet Airways commenced commercial operations on May 05, 1993.

Mr. Goyal has been re-elected to IATA Board of Governors for the year 2008-09. He has earlier served on theBoard of Governors of the International Air Transport Association (IATA), from 2004-2006.

Jet Airways with the acquisition of JetLite, today has a combined fleet strength of 111 aircraft and offerscustomers a schedule of over 480 flights daily.

Chairman, Naresh Goyal received the first BML Munjal Award for Excellence in Learning & Development inthe Private Sector category from the Honourable Minister for Civil Aviation, Shri Praful Patel along with acitation at a special function at Hotel Maurya Sheraton, New Delhi on January 6, 2006.

The Prime Minister, Dr Manmohan Singh presented the first NDTV Profit Business Award 2006 to JetAirways, which was received by the Chairman, Naresh Goyal at a glittering function at Taj Palace Hotel on July28, 2006. The award, in the aviation category, is to salute the men and women who fuel Indias journey to thefore front of the World Economy.

Chairman, Naresh Goyal was accorded the prestigious TATA AIG Lifetime Achievement Award at theAbacus-TAFI Awards ceremony organized during the TAFI (Travel Agents Federation of India) InternationalTravel Convention 2007, on Saturday 8th September, 2007 at the Sutera Harbour Resort in Kota Kinabalu,Malaysia.

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Chairman, Naresh Goyal was awarded the prestigious Man of the Year Award by the Aviation Press Club(APC) at its 30th Anniversary on Wednesday, April 09, 2008, in Belgium. The Aviation Press Club is aninfluential club of Belgian Aviation Journalists.

Mr and Mrs. Goyal have also received the International Entrepreneurs of the Year award at the house ofcommons, UK . The award was presented by Rt Hon Geoff Hoon MP, UK Secretary of State for Transportbefore an august gathering of British parliamentarians and other distinguished guests at the House of Commons

as part of the Asian Voice Political and Public Life Awards 2008.

2.3 Milestones

1993: Jet Airways begins domestic operations flying Boeing 737 jets.

1997: Kuwait Airways and Gulf Air sell their stakes in Jet Airways.

1999: A regional network is launched with turboprop aircraft.

2004: The first international services are started.

2.4 MISSION STATMENT

Jet Airways will be the most preferred domestic airline in India. It will be the automatic first choice carrier forthe travelling public and set standards, which other competing airlines will seek to match.

Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliablecomfortable and efficient operations.

Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel - be a world classdomestic airline.

Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achievinghealthy, long-term returns for the investors and providing its employees with an environment for excellence andgrowth.

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2.5 Entry barriers:

Jet Airways and Air Sahara want the Government to impose entry barrier of Rs 250 crore as minimum paid upcapital for new airlines but Air Deccan, the only other scheduled airline in the private sector, has stronglyopposed this suggestion.

Jet and Sahara made this proposal to the Government during a closed-door meeting of their CEOs WolfgangProck-Schauer and UK Bose with Civil Aviation minister Praful Patel. Air Deccan managing director GRGopinath, who was also invited for the meeting, however, told reporters: The two private airlines (Jet andSahara) suggested entry level barriers to Mr Patel. We are opposed to any such move which would harm thegrowing aviation industry in the country.

Mr.Gopinath confirmed that Jet and Sahara suggested Rs 250 crore entry barrier for a new entrant besidesallowing only experienced private airlines to fly to foreign destinations. The meeting with private airlines wascalled by Mr Patel to invite suggestions about the framing of new aviation policy.

In its position paper submitted to the Civil Aviation Ministry, Jet has also stated that the induction of aircraft byIndian Airlines (IA), Sahara and Air Deccan in 2004-05 would lead to a capacity increase in the domesticaviation sector by 20 per cent whereas market growth is expected at around 8-10 per cent. Jet is in favour ofsound capacity-demand equation but will be forced to also add capacity in order not to lose market sharesubstantially, the airline stated in the paper.

Jet in its position paper has suggested that new applications should fulfill minimum capital base norm laid downby European Union (EU), minimum fleet size, and operational soundness to fulfill Directorate General of CivilAviation (DGCA) requirements.

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2.6 BOARD OF DIRECTORS

Mr. Naresh Goyal, a non-resident Indian national, is the chairman of the Company. He is also the chairman ofthe Board of Directors. Mr. Goyal holds a Bachelors of Commerce degree and after completing his education in1967, Mr. Goyal joined the travel business and underwent extensive practical training with several foreignairlines.

Mr. Ali Ghandour, a Jordanian national, has been a Director of the Company since February 1998. Mr

Ghandour is a qualified aeronautical engineer from New York University, U.S.A. Mr. Ghandour has over 50years of experience in the civil aviation industry.

Mr. Victoriano P. Dungca, an American national, has been a Director of the Company since January 1999Mr. Dungca holds an MBA from Cornell University, U.S.A. and is a Certified Public Accountant from theU.S.A.

Mr. Javed Akhtar, an Indian national has been a Director of the Company since March 1993. Mr. Akhtar holdsa Bachelor of Arts degree. Mr. Akhtar is a well-known poet, lyricist, screenplay and scriptwriter and is a famousmedia personality.

Mr. Iftikar M. Kadri, an Indian national, has been a Director of the Company since February 2000. Mr. Kadriholds a Bachelors degree in Engineering from Pune University. He is a member of the Council of Architecture,New Delhi and a Fellow of the Indian Institute of Architects and a fellow of the Indian Institute of InteriorDesign.

Mr. Charles Arthur Adams, an American national, has been a Director of the Company since September2003. Mr. Adams hold a Bachelors of Science degree in Marketing from the University of Hartford, U.S.A. andhas 40 years of experience in the aviation industry.

Mr. Aman Mehta, an Indian national, has been a Director of the Company since September 2004. Mr. Mehtaholds a Bachelors degree in Economics from Delhi University. Mr. Mehta is a member of the governing board

of the Indian School of Business, Hyderabad, and of the Indian Council for Research and InternationalEconomic Relations, New Delhi. Mr. Mehta serves as an independent director on the boards of severalcompanies in India as well as in the UK, Hong Kong and Singapore.

Mr. Yash Chopra, an Indian national, has been appointed a Director of the Company since April 2006. In2005, Mr. Chopra was conferred the Padma Bhushan, one of the Countrys highest civilian honours.

Mr. ShahRukh Khan, an Indian national, has been appointed a Director of the Company since August 2006Mr. ShahRukh Khan is a well-known Actor from the Indian Film Industry. He is the recipient of thirteen Filmfare Awards, three National Honours including Best Indian Citizen Award in 1997, Rajiv Gandhi Award forExcellence in 2002. In 2005, Mr. Khan was conferred the Padma Shri, one of the prestigious civilian honours

conferred annually by the Government of India. He is also recognized as a cultural ambassador of India to therest of the world.

Dr. Pierre J. Jeanniot, a Canadian national, has been appointed a Director of the Company since August 2006Dr. Pierre J. Jeanniot is a prominent, distinguished and widely acknowledged contemporary leader of theaviation industry. Dr. Jeanniot was Director General and CEO of the International Air Transport Association(IATA) from 1993 to 2002.

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Mr. Saroj K. Datta Executive Director, Jet Airways (India) Ltd., completed his education at St. StephensCollege, Delhi, with a post-graduate degree in Economics. After a two-year stint at the National Council ofApplied Economic Research (NCAER) in New Delhi, Mr. Datta joined Air-India in November 1962.

2.7 Management

Mr. Wolfgang Prock-Schauer

Mr. Saroj K. Datta

Mr. Carl Saldanha

Ms. Anita Goyal

Mr. Garry Kingshott

Mr. Zainul Aljunied

Mr. Peter Luethi

Capt. Ritzerwan Bin Rashid

Capt. K. Mohan

Mr. P. K. SinhaMr. Sitham Nadarajah

Dato K. Jeyakanthan

Mr. Mike Johnson

Mr. Poh Leong Choo

Mr. Prasun Sengupta

Mr. N. Hariharan

Mr. Rajesh Sharma

Mr. Ashok Barimar

Ms. Ragini Chopra

Mr. Gaurang Shetty

Mr. Jay Shelat

Chief Executive Officer

Executive Director

Chief Financial Officer

Executive Vice President - Marketing & Sales

Chief Commercial Officer

RegionalVice President - USA & Canada

Vice President - Eastern & Midwest America &

Canada

Vice President - Flight Operations

Vice President - Flight Operations

(Administration)Vice President - Industry Affairs

Vice President - Technical (Projects)

Vice President - Engineering Services

Vice President - Engineering & Maintenance

Regional Vice President - Sales (India & SAARC)

Vice President - Corporate Administration

Vice President - Offi ce of Chairman

Vice President - Technical Purchase & Service

General Counsel & Vice President - Legal

Vice President - Corporate Communication &Public Relations

Vice President - Marketing

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2.8 Company Perspectives:

Jet Airways will be the most preferred domestic airline in India. It will be the automatic first choice carrier forthe travelling public and set standards, which other competing airlines will seek to match.

Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliablecomfortable and efficient operations.

Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel--be a world classdomestic airline.

Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achievinghealthy, long-term returns for the investors and providing its employees with an environment for excellence andgrowth.

2.9 Takeover of Air Sahara

Successful buyoutOn January 2006 Jet Airways announced that it was to buy Air Sahara for $500 million in an all-cash dealEverything, including Sahara's assets and infrastructure, would belong to Jet Airways. This deal would havebeen the biggest in India's aviation history and the resulting airline the country's largest Market reaction to thedeal was mixed, with analysts suggesting that Jet Airways was paying too much for Sahara.

On April 12, 2007 Jet Airways agreed to buy out Sahara for 14.5 billion Rupees ($340 million). Sahara will be

renamed Jet Lite, and will be marketed between low-cost carriers and full service airlines. With the acquisitionof Sahara, Jet Airways is set to refurbish the fleet and crew withNew livery and uniform. The deal will give the airline a combined domestic market share close on 50% IndianAirlines, which is its closest competitor at around 25% market share. Both Jet Airways and Air Sahara haveextensive domestic networks and limited international operations, and they were the only survivors from theIndian governments first attempt at liberalization in the early 1990s, when more than a dozen new carrierslaunched services.

Air Sahara will continue to operate separately in the near term, but eventually Jet Airways will absorb thesmaller airlines aircraft, airport facilities and technical operations, after which the Air Sahara name willdisappear. A joint integration team has already been established that is headed by senior executives from both

airlines, and there are indications the merger could be completed in a matter of months.

Delhi-based Air Sahara had been on the market for some time as it needs cash to expand and its parent was notwilling to make the necessary investments, while Jet Airways is financially comfortable following a successfulpublic offering last year. Recently launched Kingfisher was considered a front-runner in the bidding for AirSahara, but its flamboyant chairman, Vijay Mallya, said in withdrawing his offer shortly before the Jet Airwaysdeal was confirmed that the asking price was far too high.


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The fleets of Air Sahara and Jet Airways are not radically different, as both operate Classic and NexGeneration Boeing 737 narrow bodies on the majority of their routes. Jet Airways has more than 50 aircraft,some 40 of which are 737s, which it acquired through a mix of lease and purchase. It also has eight ATR 72sand three Airbus A340-300s, in addition to firm orders with Airbus and Boeing for 10 A330-200s, 10 777-

300ERs and 10 more 737-800s. Whereas, Air Sahara operates nearly 30 leased aircraft, around 20 of which are737s. It also has seven Bombardier CRJ200 regional jets and one recently added 767-300ER that it leased fornew London Heathrow services.

Jet Airways India Ltd acquired Jet Lite in April 2007. Positioned as a Value based Airline, Jet Lite promises tooffer value for money, economical fares, 'Buy on board' in-flight meals, in-flight shopping and much more.

2.10 Airline agreements

Jet Airways has commercial agreements with the following airlines:

Air Canada Air France American Airlines Austrian Airlines Brussels Airlines Gulf Air Jet Lite KLM Lufthansa Northwest Airlines

Qantas South African Airways Swiss International Airlines Thai Airways International Virgin Atlantic Airways British Airways
http://www.flightglobal.com/landingpage/boeing%20737.htmlhttp://www.flightglobal.com/landingpage/airbus%20a340.htmlhttp://www.flightglobal.com/landingpage/airbus%20a330.htmlhttp://www.flightglobal.com/landingpage/boeing%20737.htmlhttp://www.flightglobal.com/landingpage/airbus%20a340.htmlhttp://www.flightglobal.com/landingpage/airbus%20a330.html


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2.11 Awards

Jet Airways wins the BEST CARGO AIRLINE OF CENTRAL ASIA award May 2008 :

Jet Airways, Indias premier international airline, has won the Best Cargo Airline of Central Asia at the prestigious Cargo Airline of the Year Awards, held at the Royal Lancaster Hotel, London.

This Award is widely acknowledged in the air cargo industry. The winner is determined on the basis of votescast by the readers of Air Cargo News, the worlds best-read air cargo newspaper. These votes are then checked by a neutral body, BIFA (British International Freight Association) and winners in various categoriedetermined.

Mr. Duncan Gambrill, General Manager UK & Ireland, Jet Airways and Mr. Steve Stewart, RegionalManager Cargo - UK & Ireland, Jet Airways received the award on behalf of the company in the presence of animpressive industry gathering of six hundred distinguished guests who flew in from different corners of theglobe to support and acknowledge the achievements of their peers.

Commenting on the honor, Mr. Jay Shelat, Vice President-Cargo, Jet Airways, said, We are delighted toreceive this honor, which is a reflection of the high standards of Jet Airways cargo services. Accolades such asthese spur us on to greater heights as we further expand our services around the world, including the launch ofour maiden flight on the Mumbai-Shanghai-San Francisco sector on June 14, 2008. We would like to take thisopportunity to thank our customers, front line staff and airport services who helped us achieve this award.

The Cargo Airline of the Year Awards celebrated its Silver Jubilee this year, having recognized for 25 years thevery best achievements and highest standards of quality and service provided by airlines around the world.

Jet Airways wins Customer & Brand Loyalty in the Commercial Airlines Sector (Domestic)" Jan 2008:

Jet Airways has won the Award for Customer & Brand Loyalty in the Commercial Airlines Sector(Domestic), at the IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Awards ceremony ,held at the Taj Lands End Mumbai, on 22nd January 2008.

The 1st ever Loyalty Awards 08,are a part of the Loyalty Summit 08 that was scheduled on 22nd & 23rdJanuary 2008 at the same Venue.

Jet Airways wins customer and brand loyalty award for the second consecutive time Jan 2009 Mumbai

January 30, 2009:

Jet Airways, Indias premier international airline, has won the coveted Customer and Brand Loyalty award inthe Commercial Airlines Sector (Domestic), at the second Loyalty Awards.

The award was received by Mr. Rahul Kucheria, General Manager Relationship Marketing, Jet Airways in thepresence of industry stalwarts from the telecom, banking, insurance and IT sectors, among others, at the TajLands End, Mumbai on January 29, 2009.

This was the airlines second consecutive victory at the Loyalty awards, having previously won the award in thesame category in 2008.


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The Loyalty Awards are the outcome of a combination of Consumer Research undertaken in six Indian cities, aswell as nominations received from organisations. These Awards are governed by a carefully selected jury whoon the basis of the above two findings, decide the final Award Winners in each award category.

Commenting on the honour, Mr. Wolfgang Prock-Schauer, CEO, Jet Airways said, At Jet Airways, we havealways strived to build long-term relationships with our customers, beyond mere commercial transactions. Thisrelentless focus on the customer has helped generate tremendous goodwill and loyalty for the Jet Airwaysbrand, in both Indian and foreign skies.


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(2.12) S.W.O.T. Analysis

Strengths

Market driver Experience exceeding 14 year Only private airline with international

Operation Market leader

Largest fleet size

- Opportunities

Untapped air cargo market Scope in international service

and tourism

- Weakness

Loosing domestic market share Old fleet with average age around

4.79 years Scope for improvement in in-flightservice

Weak brand promotion

- Threats

Strong competitors

Fuel price hike Overseas market competition

(2.13) Key Developments:

Jet Airways to launch low-fare Jet Konnect:

Jet Airways Konnect is a new economy class service designed to meet the needs of the low fare segment. Itwill complement Jet Airways full service product, by providing a service that is better suited to cater to amarket that desires an economically priced low fare product.

Jet Airways Konnect offers a no-frills, economy class service where guests will be offered attractive andcompetitive low fares on specific routes.

The on ground and in flight service will be delivered by Jet Airways staff, the only difference will be thattravelers will have to buy their meals on board.

Jet Airways Konnect will have dedicated aircraft for this service, the flight number range for this service willbe unique and will help both guests and travel agents identify the class of service.

Guests can book flights either on the airlines website www.jetairways.com or through the call centers or JetAirways city and ticketing offices. Travel Agents can book the service using the global distribution systems(GDS). All guests using Jet Airways Konnect will enjoy the accrual and redemption of Jet Privileges mileagepoints.

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Jet Airways Konnect service will give us the flexibility and speed to deploy capacity to meet these changingtrends.

The Jet Airways Konnect Service will initially operate with two 737 and six ATR aircraft on sectors such asChennai-Coimbatore, Chennai-Madurai, Chennai-Kochi, Mumbai-Ahmedabad, Mumbai-Bhopal, Mumbai-Udaipur, Bangalore-Pune, and Bangalore -Mangalore.

Jet Airways (India) Limited Lays Off 110 Employees

-Business StandardBusiness Standard reported that Jet Airways (India) Limited has laid off 110 employees. Of these employees,50 are contract employees who have 'superannuated,' and another 60 are probationary cabin-crew.

Sahara Commercial Corporation Takes Jet Airways (India) Limited To Court, Seeks INR2,000 Crore-

- -Business StandardBusiness Standard reported that Sahara Commercial Corporation filed an application in the Bombay HighCourt alleging that Jet Airways (India) Limited had committed breach of contract in the takeover deal andwas liable to pay it (Sahara) INR2,000 crore instead of the renegotiated INR1,450 crore agreed on by them.

Jet Airways (India) Limited May Further Reduce Capacity

-Business StandardBusiness Standard reported that Jet Airways (India) Limited is likely to cut capacity by 8%-10% this year tocope with the falling passenger traffic due to recession. The Company would not reduce the number ofaircraft as they were on lease.

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(2.14) JET AIRWAYS NETWORK

Figure-I

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Product

&

Services

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(2.15) Products

At Jet Airways we always endeavor to make your travel comfortable, convenient and seamless. From our onground to in-flight services we constantly strive to innovate and upgrade our services. As India's bestairline, we have always come up with many firsts by offering new services and have set standards in IndianAviation. Find out all you would want to know about our Product and Services.

1. On Ground Services:-

At Jet Airways, service on the ground is as important as service in the air. Whether it is the process ofbooking your ticket or checking in for your flight, Jet Airways ensures that your every need on the ground ismet.

(a). Check- in Options: multiple check-in options. Visit this section for detailed information.

(b). Airport Lounges: If you are a Jet Privilege Silver, Gold or Platinum card member or a Club Premirepassenger, you can relax and enjoy complimentary snacks and beverages in our plush airport lounges.

(c). Coach Services: Airport Authority of India (A.A.I.) operates shuttle coaches for transit passengers fromdomestic to international airport and vice-versa at Mumbai and Delhi airports.

2. In-flight Services:-

Jet Airways continually endeavors to better our services, both on the ground and in the air. From our crew,whose priority is your comfort to the safety standards enforced to ensure that you are free of worry are justthe basic things that we pay close attention to.

Our in-flight meals are designed keeping in mind the varied customers we cater to. Jet Kids is one moreinstance of how important we think it is to put a smile on the faces of our younger passengers. It is becauseof this kind of excellence of service that we are today, one of the few airlines in the world to receive an ISO:9001 certification. Our aim is your complete flying comfort.

(a). Class of Service: Jet Airways operates three classes of service - First Class, Premire andEconomy. Read more on the facilities that we have to offer for each class.

(b).Convenience & Safety: Jet Airways provides you with service that caters to a more convenient and safer

journey.

(c). Cuisines: Your meal selection is just as important as the other details you give us when booking yourflight.

(d). Entertainment: We know how your favorite movies, music and sports can make time fly. And drivestress away. Introducing Jet Screen for non-stop entertainment on board.

(e). Magazine: Now read your favorite magazine at a click of a button.

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3. Special Services:

Jet Airways understands that some of our passengers have special needs. It is our constant effort to meetthese needs to the best of our ability. This section will give you a glimpse into some of the specialrequirements that we cater to so that all of our passengers can travel in comfort.

(a). Infant and Child Care: Special attention is always given to our younger patrons of Jet Airways.

(b).Wheel Chair Assistance: Handicapped and infirm passengers can also look forward for a comfortable,safe and hastle free journey.

(c). Expectant Mothers: Expectant Mothers till 36 weeks of pregnancy can be permitted to fly on JetAirways flights.

(d).Unaccompanied Minors: Parents / guardians can be rest assured regarding our ability to look afteryour children whilst traveling with us.

(e). Medical Emergencies: Visit this section for detailed information on medical care and emergencies.

(f).Traveling with Animals: Carriage of animals are permitted only on our Boeing 737 aircraft.

(g).Carriage of Stretcher: We now accept stretchers on all domestic flights operated by our Boeingaircrafts.

4.Jet Mobile:

Get flight information at your fingertips. With Jet Mobile, get information on flight schedules, automaticflight status alert or simply request for a flight alert.

Flight Delays/Cancellations due to Fog/Weather:

Jet Airways realize that disruptions / delays and cancellations of flights can cause inconvenience to ourpassengers. Therefore equipped to resolve these issues via a dual approach of systemized tracking of flightupdates and a formal hotel accommodation policy for our passengers.

To combat weather related delays and the consequent inconvenience caused to passengers, Jet Airways has

systemized tracking of flight delays via the following tools.

Make sure to give your mobile numbers while making bookings for instant SMS alerts in case of flightdelays.

Fog / Weather Related delays:

SMSJet Flight Number e.g. Jet 301 to 6388for instant flight status.

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This will give you the flight status for flight 9W 301 (BOM-DEL)

Helpline numbers for real-time flight status:

For real time flight status - now you can dial our multi-purpose call centre number - 3989 3333 - across sixmetros.

The six cities are Mumbai, Delhi, Chennai, Hyderabad, Bangalore and Kolkata. Callers from satellite townswho can access the main cities through a local call can also use this number.For example: Pune callers can use 9520 3989 3333 to call Jet Airways.

customers using mobile phones will have to prefix the STD code of the local city, as they currently do forany landline number.

Toll-free number for international queries is 1800 22 55 22 and will be reachable from BSNL and MTNLlines.

Flight status:To check Flight Status for same day of travel:

SMS: JET Flight No (e.g. JET 301) to 6388.

Reply: Jet Mobile: 9W 301 BOM 0700AM DEL 0855AM On Time.

In the event of a delayed flight:

Reply: Jet Mobile: 9W 301 BOM 0700AM DEL 0855AM Delayed.

To check Flight Status for a particular date of travel:

SMS: JET Flight No mm/dd (e.g. JET 301 08/30) to 6388Reply: Jet Mobile: 9W 301 BOM 0700AM DEL 0855AM On Time.

Flight Schedules:

SMS: JETSCH mum del to 6388(Please enter the first 3 letters of the city pair i.e. for Bangalore you willneed to key BAN)Reply:JetMobile:9W301 1 2 3 4 5 6 7 07:00am 08:55am Mumbai Delhi.JetMobile:9W331 1 2 3 4 5 6 709:25am 11:20am Mumbai Delhi.JetMobile:9W361 1 2 3 4 5 6 7 20:00pm 21:55pm Mumbai Delhi.

Flight Alert:

Set Flight Alert for the same day of travel:

SMS: JETALERT Flight No (e.g. JETALERT 301) to 6388Reply: Your alert has been registered for flight no 9W301. Date 11/18/2005.

Set Flight Alert for a particular date of travel:

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SMS: JETALERT Flight No mm/dd (e.g. JETALERT 301 08/30) to 6388Reply: Your alert has been registered for flight no 9W301. Date 08/30/2005

Unsubscribe the Alert service for the same day

SMS:JETCAN Flight Number ( JETCAN 301) to 6388.Reply: Your alert has been cancelled for flight no 9W301

Unsubscribe the Alert service for a particular date

SMS:JETCAN Flight Number mm/dd ( JETCAN 301 08/30) to 6388.Reply: Your alert has been cancelled for flight no 9W301

5. Jet Kids:

When you fly Jet Airways with your family, we promise that your kids will have a great time. There isassistance if and when you need it.

6. JetMail - Newsletter:

Get Updates on the latest offerings from Jet Airways and its partners. Be the first to know about Jet Airways'latest flight and fare news update. Get the best offers from Jet Airways and its partners. Jet Mail is ourperiodic newsletter which keeps you updated with all the latest at Jet Airways and its partner promotion.Subscribing to newsletter will automatically enroll you to Jet Privilege, our frequent flyer program.

7. Cargo:

Jet Airways cargo with its huge network and infrastructure is equipped to handle just about all your cargorequirements.

Jet Airways has been on the forefront in the transportation and handling of general and special cargo.

You can now send your cargo to New York and India daily. Enjoy the reliability of world class professionalismand service with the convenience of a daily flight. Make a change for the better with Jet Airways Cargo.

Call 3065 8282 or contact your cargo agent, or email [email protected] for detail

Our cargo product ranges from carriage of fresh flowers, household pets, life saving drugs, valuables and alother general goods.

A special care service for human remains is specially designed for support at times of need.

Jet Airways ensures the delivery of services with the most amount of care to reach the customers delight.

And now, you can enjoy the convenience of tracking your cargo online! Pleaseclick here to check thstatus of your cargo.

For any information regarding rates and services contact our nearest office or e-mail your query t

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[email protected]. To download the 'Instruction For Dispatch Of Goods' (IDG) form, pleaseclick here.

Table no- 1.1 List of Jet Airways Cargo officesCargo Station Phone number(s) Fax number(s)

Chennai

+91 44 2256 0197 / 0198/ 0206 +91 44 2256 0191

Delhi +91 11 2567 3055 / 256 73056 +91 11 2567 5208

Hyderabad +91 9247069186 / 9247069187 +91 40 2790 0605

Kochi +91 484 2610 082 +91 484 2610 038

Kolkota +91 33 2511 7639 / 2511 7637 / 2511 6624 +91 33 2511 6623

Table no- 1.2 The international contact numbers are:

International Cargo Station Phone number(s) Fax number(s)

London +44 20 8745 8555 +44 20 8745 8550

Singapore +65 6542 8041 +65 6542 8043

Hong Kong +852 3966 5083 +852 3966 5028

Kuwait +965 2437 2294 / 229 / 338 +965 2437 2337

Dubai +971 46064 146 / 47

Abu Dhabi +971 2631 5547 +971 6312 292

New York +1 717 632 7177 +1 717 632 7149

8.Downloads: You can download concession forms, safety cards and also our corporate video.

9.Your Safety and Comfort: Your safety is of vital importance to us and your comfort comes right up withsafety. Find out how Jet Airways innovatively meets these challenges

Your safety

Your safety is of vital importance to us. Hence, we lay great emphasis on the maintenance of our aircraft.Our staff of 560 engineers and technicians, with 5 to 20 years of aviation experience, ensures that weconform to international safety standards so that your favorite airline is also your safe airline.p

We have developed in-house engineering and maintenance capability to carry out annual C checks of ouraircraft. We are currently seeking clearance for 6C checks on Classic and up to Phase 80 checks on NextGeneration aircraft.

We have installed the Aircraft Maintenance and Engineering System (AMOS) for better inventory control.Since our inception, we have had a tie up with Airlines Rotablesa Limited for supply and overhaul of sparesand maintaining a consignment stock.

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To further strengthen our engineering infrastructure, we have recently been allotted our own hangar in Delhi,which will be operational soon. We are also in the process of acquiring land to build our own hangar inMumbai.

Safety inside the aircraft

Cabin Baggage

Using your Mobile Phone

Smoking

Safety in case of Hazardous Situations

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2.16 SERVICES:

1. Cabin classesWith the arrival of its new Boeing 777-300ERand Airbus A330-200 aircraft, Jet Airways has introduced anew cabin with upgraded seats in all classes. The Boeing 777-300ER aircraft has three classes of service:

First, Premire (Business), and Economy. The Airbus A330-200 aircraft have two classes: Premire andEconomy. All Airbus A330-200 and Boeing 777-300ER aircraft have this feature. Boeing 737 aircraft areconfigured differently. Jet Airways has a three-star rated Business and First Class, and is in the top twenty-five business classes reviewed by Skytrax. Economy class has been reviewed as a three-star product bySkytrax.

2. First Class

First class is available on all Boeing 777-300ER aircraft. All seats convert to a fully-flat bed, similar toSingapore Airlines first class seat but smaller. It was the second airline in the world to have private suites

(Emirates being the first with its introduction in 2003 on theirAirbus A340-500s). All seats in First have a29-inch widescreen LCD monitor with audio-video on-demand systems (AVOD), in seat power supply, andUSB ports etc. Jet Airways is the first Indian airline to offer fully-enclosed suites on its aircraft; each suitehas a closable door, making for a private compartment. Skytrax consumer airline reviewers recently rated JetAirways First Class as being 44th best in the world.

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3. Premiere

Premiere

Premire (Business Class) on the Airbus A330-200 and Boeing 777-300ER international fleet has a fully-flatbed with AVOD entertainment. Seats are configured in a herringbone pattern (1-2-1 on the Boeing 777-300ER, and 1-1-1 on the Airbus A330-200), with each seat offering direct access to the aisle. Premire seatson the A330-200s leased from ILFC are configured differently in a 2-2-2 non-herringbone pattern. EachPremire Seat has a 15.4-inch flat screen LCD TV with AVOD. USB ports and in-seat laptop power areprovided.On the short-haul/domestic Boeing 737-700/800, all new aircraft are equipped with AVOD. All seats are

standard recliner business-class seats with a few newer aircraft with electronic recline and massager.

4.Economy Class

Economy Class

Economy class on Jet's Airbus A330-200, Boeing737-700/800 and Boeing 777-300ER aircraft has32-inch seat pitch. Seats on the Boeing 777-

300ER/Airbus A330-200 have a "hammock-style"net footrest. The cabin is configured in 3-3-3abreast on the Boeing 777-300ER, 2-4-2 on theAirbus A330-200, and 3-3 in the Boeing 737.Each Economy seat on the 777-300ER/A330-200has a 10.6-inch touch screen LCD TV withAVOD.Some recently acquired Boeing 737-700/800 aircraft also feature Personal LCDscreens with AVOD.

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All three classes feature Mood lighting on theAirbus A330-200 and Boeing 777-300ER, with

light schemes corresponding to the time of dayand flight position.

5. In-Flight Entertainment

Jet Airways'Panasonic EFXIFE system on-board the Boeing 737-700/800 andPanasonic eX2 IFE systemon-board the Airbus A330-200/Boeing 777-300ER, called "Jet Screen", offers audio video on-demandprogramming (passengers can start, stop, rewind, and fast-forward as desired). It has over 100 movies, 80 TVprogrammes, 11 audio channels and a CD library of 130 titles. The system operates via individual touchscreen monitors at each seat, and is available in all classes.

6.Airport Lounges

Jet Airways Lounges are offered to First and Premire Class passengers, along with JetPrivilege Platinum,Gold or Silver card members. The international lounge at Brussels has showers, business centre,entertainment facilities and children's play areas.

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(2.17) Brand ownership

Jet Airways does not own its brand. The brand is owned by Jet air Enterprises Ltd., a separate company

substantially owned by Naresh Goyal, which licenses the brand to the airline in return for an annual payment.This arrangement is very similar to the terms governing the use of the "easy" brand by the easy Jet AirlineCompany Limited (the name under which easy Jet has been incorporated). Under the aforesaid arrangement,Sir Stelios Haji-Ioannou, the founder and largest individual shareholder of easy Jet Airline Co. Ltd. has soleownership of the "easy" brand and licenses it to that airline for a specified payment. This kind ofarrangement is of vitalimportance should the concerned airlines become the subject of a hostile takeover bid because the bidderswill not automatically acquire ownership of their takeover target's brand and without access to the brand thetakeover target will be less valuable.

(2.18) Jet Airways Top Competitors

Company Location

Air India Mumbai, IndiaKingfisher Airlines Mumbai, IndiaMalaysian Airlines Kuala Lumpur, Malaysia

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( 2.19) Fleet Information

1. Airbus 330-200 12 aircrafts

Engine Type RollsRoyce Trent-772B /CF6- 80E1A4/B

Cruise Speed 870 kmphAircraft Length 57.512 mWing Span 60.304 m

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First Class Premiere Economy

- 30 Seats 196 Seats


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2. ATR 72-500 14 aircrafts

Engine Type PW127FCruise Speed 511 kmphAircraft Length 27.17 mWing Span 27.00 m

Boeing 737-400 1 aircraft

Engine Type CFM56 3C1Cruise Speed 815 kmphAircraft Length 36.40 mWing Span 28.90 m

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- - 62 Seats


- - 62 Seats
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3. Boeing 737-700 13 aircraft

Engine Type CFM56 7B22Cruise Speed 835 kmph

Aircraft Length 33.60 mWing Span 35.80 m

4. Boeing 737-800 34 aircraft

Engine Type CFM56 7B24Cruise Speed 835 kmphAircraft Length 39.50 mWing Span 35.7 m

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- 16 seats 19 Seats




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5. Boeing737-900 2 aircraft

Engine Type CMF56 7B24Cruise Speed 835 kmphAircraft Length 41.90 mWing Span 34.30 m

6. Boeing 777-300ER 10 aircraft

Engine Type GE90-115BCruise Speed 905 kmphAircraft Length 73.86 mWing Span 64.80 m

Total No. of aircraft are 86

3.0 Aviation Industry in India33


- 28 seats 132 Seats


8 seats 30 seats 274 Seats
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Aviation Industry in India is one of the fastest growing aviation industries in the world. With theliberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation.From being primarily a government-owned industry, the Indian aviation industry is now dominated byprivately owned full service airlines and low cost carriers. Private airlines account for around 75% share ofthe domestic aviation market. Earlier air travel was a privilege only a few could afford, but today air travelhas become much cheaper and can be afforded by a large number of people.

The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight betweenKarachi and Delhi was started by the Indian State Air Services in collaboration with the UK based ImperialAirways. It was an extension of London-Karachi flight of the Imperial Airways. In 1932, JRD Tata foundedTata Airline, the first Indian airline. At the time of independence, nine air transport companies were carryingboth air cargo and passengers. These were Tata Airlines, Indian National Airways, and Air service of India,Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways. After partitionOrient Airways shifted to Pakistan.

In early 1948, Government of India established a joint sector company, Air India International Ltd incollaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three Lockheed

constellation aircraft. The inaugural flight of Air India International Ltd took off on June 8, 1948 on theMumbai-London air route. The Government nationalized nine airline companies vide the Air CorporationsAct, 1953. Accordingly it established the Indian Airlines Corporation (IAC) to cater to domestic air travelpassengers and Air India International (AI) for international air travel passengers. The assets of the existingairline companies were transferred to these two corporations. This Act ensured that IAC and AI had amonopoly over the Indian skies. A third government-owned airline, Vayudoot, which provided feederservices between smaller cities, was merged with IAC in 1994. These government-owned airlines dominatedIndian aviation industry till the mid-1990s.

In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to operate flightsfrom any airport, both on a charter and a non charter basis and to decide their own flight schedules, cargo and

passenger fares. In 1994, the Indian Government, as part of its open sky policy, ended the monopoly of IAand AI in the air transport services by repealing the Air Corporations Act of 1953 and replacing it with theAir Corporations (Transfer of Undertaking and Repeal) Act, 1994. Private operators were allowed to provideair transport services. Foreign direct investment (FDI) of up to 49 percent equity stake and NRI (NonResident Indian) investment of up to 100 percent equity stake were permitted through theautomatic FDI route in the domestic air transport services sector. However, no foreign airline could directlyor indirectly hold equity in a domestic airline company.By 1995, several private airlines had ventured into the aviation business and accounted for more than 10percent of the domestic air traffic. These included Jet Airways Sahara, NEPC Airlines, East West Airlines,ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and Damania Airways. But only Jet Airways andSahara managed to survive the competition. Meanwhile, Indian Airlines, which had dominated the Indian air

travel industry, began to lose market share to Jet Airways and Sahara. Today, Indian aviation industry isdominated by private airlines and these include low cost carriers such as Deccan Airlines, Go Air, Spice Jetetc, who have made air travel affordable.

Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF)prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competitionamong the players. But one of the major challenges facing Indian aviation industry is infrastructureconstraint. Airport infrastructure needs to be upgraded rapidly if Indian aviation industry has to continue itssuccess story. Some steps have been taken in this direction. Two of India's largest airports-Mumbai and New

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Delhi-were privatized recently. Two greenfield airports are coming up at Bangalore and Hyderabad insouthern India. Investments are pouring into almost all aspects of the industry, including aircraftmaintenance, pilot training and air cargo services. The future prospects of Indian aviation sector look bright.

(3.1) Market share of Jet airways

Jet Airways gaining the Market share in May. Aggressive marketing seems to have helped these start-upcarriers eat into the market share of full-service carriers.

While Jet Airways market share in the domestic market came down to 20.5% (from 21.6% in April 2008),Jets low fare airline, JetLite, has also gained market share at 8.6% as against 8% in April.

Jet Airways top-end business has been hit hard by Kingfisher. Simultaneously, budget carriers havesnatched its the bottom-end customers, Amadeus India managing director Ankur Bhatia said. He said the

airline has also lost market share by going slow on its route expansion plans.

3.2 Accidents and Incidents

Jet Airways is accredited by International Air Transport Association with IOSA (IATA Operational

Safety Audit) for its operational safety practices.

On 1 June 2007 Jet Airways Flight 3307 an ATR 72-212A (registered VT-JCE) was flying on the routeBhopal-Indore was involved in an accident which was caused by a storm. Whilst there was no fatalityamongst the 45 passengers and 4 crew onboard, the aircraft suffered damages beyond repair. One pair Pugdogs were killed during flight 9W370 Mumbai to New Delhi, matter was taken up before the International

Organization for Animal Protection - OIPA in India Representative Naresh Kadyan, Chairman of the Peoplefor Animals (PFA) Haryana for legal help against Jet Airways, complaint # 12377 dated May 12th, 2009 hasbeen lodged with the Mumbai Police

(3.3)CareersCurrently not recruiting for any new positions.

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(3.4) Contact Us(Jet Airways)

Jet Airways Reservation & Ticketing Office in Hyderabad.

Dial our multi-purpose call centre number - 3989 3333 - across Mumbai, Delhi, Chennai, Hyderabad,

Bangalore & Kolkata, and access all the information under one roof. For other cities within India, pleaseprefix the city code of the nearest metro city and dial 3989 3333.

For any queries related to international flights, please call 1800 22 55 22. This number can be dialed onlywithin India and can be reachable from BSNL and MTNL lines.To receive instant flight information, SMS Jet "Flight Number" to 56388.

Table no 1.3

36

Airport Address Contact

Rajiv Gandhi International Airport Reliance Krishna

5-10-197 ABC, Hill Fort Road,

Hyderabad

Hyderabad 500004

Reservations:

+91 40 3989 3333

Tele-Check-In:

+91 40 3989 3333

24 HourFlight Information:+91 40 3989 3333


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(3.5) News: as on June 2009

1. June 17, Indias private air carrier, Jet Airways, Wednesday increased its fuel surcharge by Rs.400 on

all domestic sectors, and attributed it to an increase in aviation fuel prices.

2. Jet Airways had said after state-run oil firm, hiked fuel prices by 12 percent, the sixth increase since

March 16.

3. Jet Airways Group Remains India's Largest Airline

4. Air India Considering 10-12 Percent Fare Cut

5. Jet Airways' Top Executives To Take 25 Percent Pay Cut

6. Jet Airways Begins Bangalore-Brussels Flight

7. MRTPC Orders Investigation Into Jet-Kingfisher Code-Sharing Alliance

8. Jet Airways Decides To Reinstates Sacked Employees

9. Air Fares In India Hiked Again

10.Jet Airways Muscat-Thiruvananthapuram Daily Flights

11.Jet Airways Plans 2nd Hub In Central Europe

12.JetLite May Merge With Jet Airways In 2008- 09 Fiscal Year.

13.Jet Launches Service To China.

14.

Jet, Etihad Sign Codeshare Agreement.

15.Jet In Tie Up With Global Hotel Alliance.

16.Jet Airways Cuts Salaries Of Its Senior Staff.

3.6 Historical Earnings & Dividends Pershare37
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(Figure-II)

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Chapter IV

DATA ANALYSIS

AND

INTERPRETATION

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(4.0)Balance sheet (Rs crores)

Particulars Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 0

Sources of funds

Owner's fund

Equity share capital 86.33 86.33 86.33 86.33 72.0

Share application money - - - -

Preference share capital - - - - 69.8

Reserves & surplus 1,765.42 2,018.48 2,057.53 1,664.56 -112.0

Loan funds

Secured loans 1,612.75 742.46 206.02 60.00 60.3

Unsecured loans 10,402.29 5,313.84 4,689.58 2,904.84 3,149.6

Total 13,866.79 8,161.11 7,039.46 4,715.73 3,239.8

Uses of fundsFixed assets

Gross block 16,591.09 5,713.83 4,312.07 5,162.79 5,130.8

Less : revaluation reserve 2,699.90 132.44 162.02 259.27 387.5

Less : accumulated depreciation 2,506.92 2,416.34 2,249.58 2,593.46 2,050.2

Net block 11,384.27 3,165.05 1,900.47

Capital work-in-progress 1,223.28 3,994.52 2,725.66 71.32 46.

Investments 1,475.35 68.93 187.23 1,595.73 233.4

Net current assets

Current assets, loans & advances 4,145.67 3,402.32 4,091.31 2,156.27 1,398.7

Less : current liabilities & provisions 4,361.78 2,469.71 1,865.21 1,417.65 1,131.5

Total net current assets -216.11 932.61 2,226.10 738.62 267.

Miscellaneous expenses not written - - - -

Total 13,866.79 8,161.11 7,039.46 4,715.73 3,239.8

Notes:

Book value of unquoted investments 1,465.00 - - - 233.4Market value of quoted investments 10.35 69.01 190.06 1,603.68

Contingent liabilities 14,247.89 6,624.43 9,736.40 3,097.06 121.

Number of equity shares outstanding(Lacs)

893.34 893.34 863.34 863.34 720.8

Table 1.4

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(4.1)Profit and loss account (Rs

crores)

Particulars Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 0

Income:

Operating income 8,811.10 7,057.78 5,693.73 4,338.01 3,447.4

ExpensesMaterial consumed - - 63.12 71.96 50.0

Manufacturing expenses 5,129.92 3,667.20 2,456.60 1,622.30 1,295.

Personnel expenses 1,205.18 938.55 567.81 374.74 282.2

Selling expenses 982.86 800.85 774.02 559.06 426.4

Adminstrative expenses 739.24 616.12 420.02 269.89 270.0

Expenses capitalized - - - -

Cost of sales 8,057.20 6,022.72 4,281.57 2,897.95 2,323.9

Operating profit 753.90 1,035.06 1,412.16 1,440.06 1,123.4

Other recurring income 115.23 90.36 77.36 51.57 38.2

Adjusted PBDIT 869.13 1,125.42 1,489.52 1,491.63 1,161.7

Financial expenses 1,056.03 909.70 691.24 461.31 525.4

Depreciation 777.80 414.10 406.41 457.00 515.

Other write offs - - - -

Adjusted PBT -964.70 -198.38 391.87 573.32 121.0

Tax charges -160.73 23.42 270.22 190.14 15.0

Adjusted PAT -803.97 -221.80 121.65 383.18 106.0

Non recurring items 522.01 225.25 289.38 -10.01 56.5

Other non cash adjustments 28.90 24.49 41.01 18.82 0.5

Reported net profit -253.06 27.94 452.04 391.99 163.

Earnigs before appropriation 208.91 525.37 601.71 273.98 -118.0

Equity dividend - 51.80 51.80 25.90

Preference dividend - - - -

Dividend tax - 8.80 7.27 3.63

Retained earnings 208.91 464.77 542.64 244.45 -118.0

Table 1.5

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(4.2)Ratios Table 1.6Particulars Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Per share ratios

Adjusted EPS (Rs) -90.00 -24.83 14.09 44.38 14.71

Adjusted cash EPS (Rs) -2.93 21.53 61.16 97.32 86.17

Reported EPS (Rs) -28.33 3.13 52.36 45.40 22.63

Reported cash EPS (Rs) 58.74 49.48 99.43 98.34 94.09

Dividend per share - 6.00 6.00 3.00 -

Operating profit per share (Rs) 84.39 115.86 163.57 166.80 155.85

Book value (excl rev res) per share (Rs) 207.28 235.61 248.32 202.80 -5.55

Book value (incl rev res) per share (Rs.) 509.51 250.44 267.09 232.84 48.22

Net operating income per share (Rs) 986.31 790.04 659.50 502.47 478.22

Free reserves per share (Rs) 191.40 219.73 231.88 186.37 -16.37

Profitability ratios

Operating margin (%) 8.55 14.66 24.80 33.19 32.58

Gross profit margin (%) -0.27 8.79 17.66 22.66 17.64

Net profit margin (%) -2.83 0.39 7.83 8.93 4.67

Adjusted cash margin (%) -0.29 2.69 9.15 19.14 17.82

Adjusted return on net worth (%) -43.41 -10.53 5.67 21.88 111.25

Reported return on net worth (%) -13.66 1.32 21.08 22.38 111.25

Return on long term funds (%) 0.69 9.53 16.80 21.93 19.97

Leverage ratios

Long term debt / Equity 6.11 2.75 2.21 1.69 22.37

Total debt/equity 6.49 2.88 2.28 1.69 22.37

Owners fund as % of total source 13.35 25.79 30.45 37.12 -1.23

Fixed assets turnover ratio 0.53 1.28 1.38 0.84 0.67

Liquidity ratios

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Current ratio 0.95 1.38 2.19 1.52 1.24

Current ratio (inc. st loans) 0.81 1.07 1.66 1.52 1.23

Quick ratio 0.77 1.18 1.97 1.21 0.69

Inventory turnover ratio 2,143.82 5,601.41 4,951.07 7,111.49 7,660.93

Payout ratios

Dividend payout ratio (net profit) - 216.89 13.06 7.53 -

Dividend payout ratio (cash profit) - 13.70 6.88 3.47 -

Earning retention ratio - 127.32 51.45 92.30 100.00

Cash earnings retention ratio - 68.49 88.82 96.49 100.00

Coverage ratios

Adjusted cash flow time total debt - 31.49 9.27 3.53 5.17Financial charges coverage ratio 0.82 1.24 2.15 3.23 2.21

Fin. charges cov.ratio (post tax) 1.50 1.49 2.24 2.84 2.29

Component ratios

Material cost component (% earnings) - - 1.10 1.65 1.45

Selling cost Component 11.15 11.34 13.59 12.88 12.36

Exports as percent of total sales 29.47 26.39 24.10 13.96 14.91

Import comp. in raw mat. consumed - - - - -

Long term assets / total Assets 0.76 0.67 0.53 0.64 0.67

Bonus component in equity capital (%) 10.89 10.89 10.89 10.89 13.04

Interpretation

(4.3) Cash Eps( Earning per share) :

Year 2004-2005 2005-2006 2006-2007 2007-2008

Rs(in crores) 98.34 99.43 49.48 58.74

% 100(base) 101.108 50.31 59.73

Table 1.7

EPSMeans?

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The portion of a company's profit allocated to each outstanding share of common stock. Earnings pershare serve as an indicator of a company's profitability.

Calculated as:

OR

EPS = Net Earnings / Outstanding Shares

When calculating, it is more accurate to use a weighted average number of shares outstanding over thereporting term, because the number of shares outstanding can change over time. However, datasources sometimes simplify the calculation by using the number of shares outstanding at the end of theperiod.

Diluted EPS expands on basic EPS by including the shares of convertibles or warrants outstanding in theoutstanding shares number.EPS serves as a clear indicator for investors. The cash EPS is perhaps the best computation for determining acompanys investment potential, since it is calculated by dividing the company's operating cash flow withdiluted shares, which include assets such as inventories in addition to the stocks that are available on themarket. If the cash EPS is higher that the reported EPS, the company is a good investment due to its ability toearn real cash.

Companies choose to be cautious,, if the reported EPS is higher than expectations, the stocks of the companyincrease in value.

Graphical Representation

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Earnings Per Share(Cash)

2008

59.73%

2005

100%

200750.31%

2006

101.76%

2005

2006

2007

2008

Interpretation:

In the above table, Amount in Rupees (Crores) is the EPS (Earnings per Share) of the companyduring the four years. The first year is taken as the base & accordingly calculated the percentages forthe other three years.

EPS is calculated by dividing the Earnings after Income Tax (EAIT), which is available to EquityShare Holders, with the Number of Equity Shares. EPS is used to measure the Profit to Equity ShareHolders on Per Share Basis.

The year 04-05 has the least amount of EPS 8.55(23.10%) & 06-07 has the highest amount of EPS70.09(189.38%).

(4.4) Dividend Per share (DPS)

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Year 2004-2005 2005-2006 2006-2007 2007-2008

Rs(in crores) 3.00 6.00 6.00 -

% 100(Base) 200 200 -

Table 1.8

DividendMeans?

1. A distribution of a portion of a company's earnings, decided by the board of directors, to a class of itsshareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividendsper share). It can also be quoted in terms of a percent of the current market price, referred to as dividendyield.

Also referred to as "Dividend Per Share (DPS)."

2. Mandatory distributions of income and realized capital gains made to mutual fund investors

1. Dividends may be in the form of cash, stock or property. Most secure and stable companies offerdividends to their stockholders. Their share prices might not move much, but the dividend attempts to makeup for this.

High-growth companies rarely offer dividends because all of their profits are reinvested to help sustainhigher-than-average growth.

2. Mutual funds pay out interest and dividend income received from their portfolio holdings as dividends tofund shareholders. In addition, realized capital gains from the portfolio's trading activities are generally paidout (capital gains distribution) as a year-end dividend.

DPSMeans?

The the sum of declared dividends for every ordinary share issued. Dividend per share (DPS) is the totaldividends paid out over an entire year (including interim dividends but not including special dividends)divided by the number of outstanding ordinary shares issued.

DPS can be calculated by using the following formula:

D - Sum of dividends over a period (usually 1 year)SD - Special, one time dividendsS - Shares outstanding for the period

The directors may pay an interim dividend during the accounting period and then recommend a final rate ofdividend per share for approval by shareholders at the Annual General Meeting (AGM). Dividends can bedivided into the following types: Interim, Final, Quarterly, Provisional, Special, Monthly and Maiden.Dividend amounts are displayed if they are known and the total dividend amounts are displayed only for the

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Final dividends i.e. the total dividend amount per share for the whole financial period. If the Final totaldividend amount is zero, it means that the company have not paid any dividends for that period.


Dividend Per Share(DPS)

2006

115.31%

2007

7.129%

2005

100%

2008

-64.55%

20

20

20

20

Interpretation:

In the above table, Amount in Rupees (Crores) is the DPS (Dividend per Share) of the companyduring the four years. The first year is taken as the base & accordingly calculated the percentages forthe other three years.

DPS is calculated on the Earnings after Income Tax (EAIT), Dividend is paid to Share Holders,.

In The year 07-08 company did not declared any Dividend Due to losses

(4.5) Long Term Debt

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Year 2004-2005 2005-2006 2006-2007 2007-2008

Rs(in crores) 1.69 2.21 2.75 6.11

% 100(Base) 130.76 162.72 631.53

Table 1.9

Long-Term DebtMean?

Loans and financial obligations lasting over one year. Debts obligations such as bonds and notes, which havematurities greater than one year, would be considered long-term debt. Other securities such as T-bills andcommercial papers would not be long-term debt because their maturities are typically shorter than one year.

Companys long-term debt to see how much leverage a company has and how solvent the company is. Ingeneral, long-term debt can help a company magnify its financial success, but the burden of principal and

interest payments may become too heavy for companies that borrow excessively.

Interest rate changes can motivate companies to repay debt before it is due. If a company notices that interestrates have fallen below the rate the company is currently paying on some or all of its debt, the company maychoose to pay off the high-rate debt with new, lower-rate debt. The early extinguishing of debt and debtrestructurings for struggling companies could even require recording extraordinary gains or losses on theincome statement.


Long Term Debt

2006

130.76%

2007

162.72%

2005

100%

2008

631.53%

2005

2006

2007

2008

Interpretation:

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In the above table, Amount in Rupees (Crores) is the EPS (Earnings per Share) of the companyduring the four years. The first year is taken as the base & accordingly calculated the percentages forthe other three years.

EPS is calculated by dividing the Earnings after Income Tax (EAIT), which is available to EquityShare Holders, with the Number of Equity Shares. EPS is used to measure the Profit to Equity ShareHolders on Per Share Basis.

The year 04-05 has the least amount of EPS 8.55(23.10%) & 06-07 has the highest amount of EPS70.09(189.38%).

(4.6) Liquidity Ratio

(4.6.1) Current Ratio

Year 2004-2005 2005-2006 2006-2007 2007-2008

Rs(in crores) 1.52 2.19 1.38 0.95

% 100(Base) 144.07 90.78 62.5

Table 2.0

Current Ratio Mean?

A liquidity ratio that measures a company's ability to pay short-term obligations.

The Current Ratio formula is:

Also known as "liquidity ratio", "cash asset ratio" and "cash ratio".The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities(debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, themore capable the company is of paying its obligations. The current ratio can give a sense of the efficiency ofa company's operating cycle or its ability to turn its product into cash.

A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at thatpoint. While this shows the company is not in good financial health, it does not necessarily mean that it willgo bankrupt - as there are many ways to access financing - but it is definitely not a good sign.


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Current Ratio

2006

144.07%

200790.78%

2005

100%

2008

62.5%

2005

2006

20072008

Interpretation:

In the above table, Current Ratio of the company for four ye

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