...standards, which other competing airlines will seek to match. To achieve this pre-eminent position by offering a high quality of service and reliable, comfortable and efficient operations. Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achieving healthy, long-term returns for the investors and providing its employees with an environment for excellence and growth. Jet Airways, which commenced operations on May 5, 1993, has within a short span, established its position as a market leader. The airline has had the distinction of being repeatedly adjudged India‟s „Best Domestic Airline‟ and has won several national and international awards. Founded in April 1 , 1992 Destinations:- 76 (24 international destinations and 52 destinations within India) Jet Airways currently operates a fleet of 101 aircraft Naresh Goyal, the founder Chairman of Jet Airways, India‟s premier airline, has over 4 decades of experience in the Civil Aviation industry and also appointed Chairman of JetLite in 2007, following the acquisition and subsequent re-branding of the erstwhile Sahara Airlines Limited.(subsidiary ) Jet Lite is a subsidiary of Jet Airways India Ltd. and was acquired by Jet Airways in April 2007. Effective March 25, 2012, Jet Lite and Jet Airways Konnect services operate under the JetKonnect brand. Positioned as a Value based airline, JetKonnect operates a fleet of 17 Boeing 737 series aircraft. The airline flies to 56 domestic...
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... SECTION A INTRODUCTION Jet airways is one of the major Indian airlines based in Mumbai, Maharashtra. It was first founded on 1st April, 1992. It commenced all its operation since 5th May, 1993. Jet airways is the second largest airlines after IndiGo both in terms of market share as well as passengers carried. It operates around 300 Flights daily to 75 different destinations worldwide which include Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo, Dammam, Hong Kong, Dhaka, Doha, Dubai, Ho Chi Minh City, Jeddah, London, Muscat, New York, Kathmandu, Kuwait, Paris, Riyadh, Sharjah, Singapore and Toronto. Jet airways not only provide airline operations but also provides cargo services. Mr. Naresh Goyal London based billionaire first founded Jet airways. Boeing 777-300 ERs/Airbus A330-200/300 aircraft, Next Generation Boeing 737s and ATR 72-500/600, are few of the fleets that Jet Airways Company offers. Jet Airways have been repeatedly winning national as well as international awards. Jet airways took over Sahara in 2007 and renamed the company as Jet Lite. This deal was valued for around USD $500 million. In Indian aviation, this was the largest so far in history. Jet Lite is an airline which provides good quality services at low cost. In the world, Jet airways is one of the youngest and recent aircraft compared to other airlines. COMPETITORS Jet...
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...Jet Airways – Etihad Airways Strategic Alliance Jet Airways.com Jet Airways and Etihad Airways are proud to announce the conclusion of the transaction for the subscription of 24 per cent minority equity stake in Jet Airways. This follows all government and regulatory approvals received on the 12th of November 2013. The infusion of foreign direct investment in the Indian aviation sector will result in economies of scale, growth in traffic at Indian airports and will create job opportunities across the aviation and tourism sectors. It will greatly benefit all our stakeholders whilst significantly benefitting our guests who will now have access to a more expanded global network, enhanced connectivity for tourists, business travellers, and the wider travelling public. India is one of the largest and fastest-growing markets in the world. Through this association, Jet Airways and Etihad Airways will both be strengthened as will be the economies of India and the UAE. By linking our two networks and adding new flights, new routes and more code-share options, travel to, from and within India will become more accessible/ convenient. Etihad Airways and Jet Airways will combine their network of 130 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding it’s reach through Etihad Airways’ growing global network. Under the strategic partnership, both airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi thus...
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...Jet Airways Aviation sector: One of the growing sectors of the Indian economy is the aviation sector. It is the world's ninth largest civil aviation market and ranks fourth in domestic passenger volume. The civil aviation market in India is all set to become the world's third largest by 2020. In India's airports sector, total passenger traffic stood at a 169 million in FY14, registering an increase of 5.9 per cent. Domestic passenger traffic expanded at a compound annual growth rate (CAGR) of 11.6 per cent over FY06–14. It is expected to touch 209 million by FY17. International passenger traffic posted a CAGR of 9.6 per cent over FY06-14 and is set to touch 60 million by FY17. Total freight traffic registered a CAGR of 6.2 per cent over FY06-14. Domestic freight traffic increased at a CAGR of 7.1 per cent over FY06-14 while international freight traffic rose 5.8 per cent over the same period. The Government of India (GOI) envisions airport infrastructure investment of US$ 11.4 billion under the Twelfth Five Year Plan (2012-17). It has opened airport sector to private participation, six airports across major cities are being developed under the PPP model. It has also allowed 100 per cent foreign direct investment (FDI) under automatic route for Greenfield projects and 49 per cent FDI for foreign carriers. The Indian aviation sector is expected to see investments worth US$ 12.1 billion during the Twelfth Five Year Plan. Of the total investment, US$ 9.3 billion is expected...
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...Abstract India, home to one-sixth of the world’s population, is quickly becoming one of the world’s economic engines. Its bureaucratic and outdated regulatory policies have been reformed resulting in a three-fold increase in the number of scheduled airlines and a five-fold increase in the number of aircraft operated. The largest and most popular airline in Mumbai India is Jet Airways started in 1993. Naresh Goyal (both founder and owner) still owns eighty percent of the company, and oversees all aspects of the business. This paper reviews one of the airlines, jet airways, strategic evaluation process to select the next corrective action for the airlines and also the impact on overall aviation industry. How to do a strategic evaluation? Strategic Evaluation is the final phase of Strategic management. Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in today’s dynamic world with socio-economic, political and technological innovations. The process of Strategy Evaluation consists of following steps- 1. Fixing benchmark of performance - While fixing the benchmark, strategists encounter questions such as - what benchmarks to set, how to set them and how to express them. In order to determine the benchmark performance to be set, it is essential to discover the special requirements...
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...Jet Blue Airways JetBlue Airways took to the skies in 2000 under a novel concept: bringing humanity back to air travel. Based at New York's Kennedy International Airport, JetBlue, a non-union airline, distinguished itself from other low-fare carriers such as Southwest Airlines by offering seat-back entertainment systems with live television, comfortable seats and blue corn chips. During the last six years, when traditional airlines were piling up more than $40 billion in losses, JetBlue grew to $1.7 billion in annual revenue and became increasingly popular with travelers. But now that fuel prices have pushed up expenses for all airlines, and older carriers have sharply cut their own labor costs, the advantage JetBlue enjoyed as a start-up is greatly reduced. JetBlue — too new to have built up excessive costs that can now be trimmed, is trying mightily to raise fares in a bid to restore profits after surging fuel prices caused it to lose $42.4 million during the fourth quarter of 2009. The trends in the U.S. airline industry and how these trends might impact a company’s strategy The airline industry is susceptible to upturns and downturns with the trends in the economy. A growing economy and booming business mean greater demand for air travel, and a slow-down in the economy means reduced demand, consequent unutilized capacity and intensified competition. The availability of venture capital and other capital sources have an impact on the number of new entrants...
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...Running head: CRAFTING AND EXECUTING STRATEGY – Jet Blue Airways Jet Blue Airways LaKessica B. Carter Dr. Akpan BUS599 - Strategic Management April 17, 2011 With the constant changes with the airline industries and the chaotic state each have represented for a number of years constant strategic planning and trends are the focus today. A trend can shape a company or cause it to head back to the drawing board. An airline, such as Jet Blue Airways has to change strategically and adapt to the economic state and conditions. JetBlue Airways specializes in cheap point-to-point flights with high levels of customer service. Due to the dramatic changes in industry structure have occurred against the backdrop of strongly growing airline activity. This part of a trend involves veering into a new direction. Airline industries are no stranger to trends. The paper will focus will be on JetBlue Airlines and the trends and directions in which it is headed. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. In 2010, things were looking better for the airline industry but things changed severely with the recessions in 2008-2009. In order to cope with the downfall several airlines have been forced to respond by cutting back on flights, rescheduling existing routes and searching for new revenue streams such as charging for aisle seats and baggage. According to the text, JetBlue began several new strategies in order to...
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...Case # 3 Jet Blue Airways Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy Overall the US airline industry is a cut-throat business which is extremely competitive. The cliché ‘it’s a dog eat dog world’ applies perfectly here. Over the past few years the situation grew even worse due to the recession, increased unemployment, the weakened dollar exchange, and difficulty predicting how OPEC will behave month to month. The fluctuation in the oil market has a direct effect on ticket prices bought in bulk or reserved six to nine months in advance. Airline pay close attention to the oil Futures Market to make sure their purchases of fuel is hedged. Airline companies are divided into a few categories. Jet Blue is in the discount airline category, where lowering the fixed cost is an important factor. For a discount airline to offer cheaper price, services must be cut as well as the number of airports serviced. Only destinations with high volume are able to be serviced, thus a traveler may be forced to have multiple connections to reach their destination. Airplanes must be leased instead of bought to reduce the upfront cost. In-flight meals and unlimited beverages are curtailed or completely removed. The absence of complimentary cases of beer or soda cans adds to savings on gasoline as well as price per can which is factored into lowering the ticket price. Full service airlines such as Singapore and Lufthansa, cater to a...
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...CRAFTING AND EXECUTING STRATEGY Professor Charles Woods Bus599 May Digby October 15, 2011 Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The airline industry exists in an extremely competitive market; a market which has become even more competitive; given the current state of our economy. Airlines were faced with rising fuel costs; and decline in travel after the 9/11 attacks. This forced the airline industry to initiate cost cutting measures to be able to continue to operate. This was good news for discount airlines such as JetBlue Airways. JetBlue saw an increase in passengers; resulting in an increase in revenue. JetBlue’s strategy is to provide the passenger the ultimate air travel experience at an reasonable price. Jet Blue was able to become a leader in the airline industry by distinguishing itself from other low fare carriers by offering amenities such as; live television, leather seats and gourmet snacks. Passengers confidence in air travel was damaged greatly after the 9/11 terrorist attacks. JetBlue was one of the few airlines that made a profit following the 9/11 attacks. (Wikipedia) Airline industry has been deeply affected by the recession also. Airlines have been forced to cutback on flights and reschedule existing routes and have been forced to charge for extra baggage. Consumers are constantly searching for ways to save money and the airline industry had tried to adjust to the increasing...
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...Analysis of Jet Blue Airways BUS 599 October 19, 2010 Analysis of Jet Blue Airways JetBlue Airways Corporation is an American low cost airline. Since 2001, the U.S. airline industry has faced an unprecedented set of challenges. Following the terrorist attacks of September 11, 2001, the airline industry reported tremendous losses and several of the largest U.S. airlines filed for Chapter 13 bankruptcy protection (Flouris, Walker, 2005). As a result, the airline industry has been more creative in their strategic marketing plans to remain financially viable. Many airlines have led the way with innovative ideas to retain, gain, and build their customer base. JetBlue Airlines has followed the path of most airlines but as one of the leading low cost air carriers, Jet Blue’s business strategy differentiates from most airlines. Trends in the U.S. Airline Industry and Impact on Strategy Trends in today’s U.S. airlines industry continue to show a drastic departure from business practices of previous years. With the constant increases in the price of conducting business, airlines are searching for ways to make or increase profit. Passengers are often charged for many amenities once offered free of charge by the airlines. Due to one of the most severe economic recessions in recent years, passengers should expect these trends in the airline industry to continue. However, prospects for the airline industry look a lot brighter as the industry continues to persevere and move...
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...Strategic Planning: Jet Blue Airways Gregory James Professor John Mitchell BUS 599 Strategic Management April 24, 2011 Abstract This report has been produced to determine if the strategic planning in which new of Jet Blue Airways CEO David Barger has created, will help to ensure the company long term success. Addressed in this report will be the following topics: (1) What are the trends in the U.S. airline industry? How might these trends impact a company’s strategy? , (2) What is Jet Blue’s strategic intent? , (3) What are Jet Blue’s financial objectives? Has the company has been successful in achieving their objective? , (4) What are Jet Blue’s strategic elements of cost, organizational culture, and human resource practices? Does each of these elements provide the organization with a competitive advantage? , and (5) What are Jet Blue’s strategies for 2008 and beyond? Will Jet Blue be successful implementing these strategies or not? Strategic Planning: Jet Blue Airways What are the trends in the U.S. airline industry? How might these trends impact a company’s strategy? With the constant changes in the country’s economy, airlines are having more difficulties reaching a competitive advantage. The constant raise in fuel and oil cost to fuel airplanes has caused airlines to come up with a plan to maintain these cost. In addition, the airlines also focus on increasing profit return to shareholders and company executives. To achieve this goals airlines have started...
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...Equity Research June 16, 2016 BSE Sensex: 26726 INDIA Aviation Flying high amid good times Reason for Report: Sector thematic and initiating coverage InterGlobe Aviation (Rs1,011 – BUY) Target price Rs1,268 SpiceJet (Rs66 – HOLD) Target price Rs64 Jet Airways (Rs561 – ADD) Target price Rs621 Research Analysts: Ansuman Deb ansuman.deb@icicisecurities.com +91 22 6637 7312 India’s aviation sector is set to undergo a strong growth period, which should benefit all the incumbent players, particularly on a benign crude price outlook. Our supply-demand model for domestic air traffic implies 14% growth in passengers as evidenced from firm aircraft orders and latest delivery schedules. With yield management becoming the singular strategy lever for Indian Low-Cost Carriers (LCCs), cost structures assume high importance and structural asymmetries will decide the competitive edge for the airlines. However, much of these asymmetries in cost structure are inherited from the fleet strategy adopted by various airlines, hence normally have a long-lasting impact on their balance sheets. High operating leverage proves fatal in a cyclical downturn where balance sheet strength is vital. At the comfort of hindsight, bulk orders have benefitted IndiGo with valuable incentives, which have given it the structural advantage of lower rentals, while single fleet focus and strong balance sheet have lent IndiGo asymmetrical advantages on maintenance costs, redelivery expenses and supplementary rentals...
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...First Day on the Job Prepared by: Ana Milori Submitted to: Professor Catherine Klinger Strategic Human Resource Managament Strayer University February 26, 2012 Abstract Job satisfaction describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation or aptitude, although it is clearly linked. Job design aims to enhance job satisfaction and performance. Methods include job rotation, enlargement, enrichment and re-engineering. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous work position. Job satisfaction is a very important attribute which is frequently measured by organizations. The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Questions relate to rate of pay, work responsibilities, variety of tasks, promotional opportunities, the work itself and co-workers. Some questioners ask yes or no questions while others ask to rate satisfaction on 1-5 scale (where 1 represents "not at all satisfied" and 5 represents "extremely satisfied”). Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the foundation for job satisfaction theory. This theory explains that people seek to satisfy five specific needs in...
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...Jet airwaysMerger of Jet Airways & Air Sahara JET AIRWAYS INTRODUCTION Jet Airways (India) Ltd. is an airline based in Mumbai, India, operating domestic and international services. It operates over 330 daily flights to 50 destinations across the country and 6 overseas. Its main base is Chhatrapati Shivaji International Airport, Mumbai, with hubs at Indira Gandhi International Airport, Delhi, Anna International Airport, Chennai, Netaji Subhash Chandra Bose International Airport, Kolkata, Bangalore International Airport, Bangalore and Brussels Airport, Brussels According to the latest available figures, its share of India's domestic aviation market has increased to over 43% (up from less than 27% a few months ago), and this is still greater than any other Indian domestic operator's market share.[ HISTORY: Jet Airways was incorporated as an "air taxi" operator on 1 April 1992. It started commercial airline operations on 5 May 1993 with a fleet of 4 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. Plans to acquire rival Air Sahara, announced in January 2006, after some rough patches deal got through. The airline is owned by Tailwinds (owned by Naresh Goyal) (80%) and public shares (20%) and has 10,017 employees (at March 2007). Naresh Goyal, who already owned Jetair (Private) Limited (which provided...
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...POSITION PAPER ON THE AIRPORTS SECTOR IN INDIA May 2009 Department of Economic Affairs Ministry of Finance Government of India AIRPORTS SECTOR EXISTING SCENARIO 1. The civil aviation traffic has seen an unprecedented traffic in the past few years on account of booming Indian economy, growing tourism industry, entry of low cost carriers in the private sector, liberalization of international bi-lateral agreements and liberalization of civil aviation policy. In future also the civil aviation traffic is expected to grow at the same pace despite current slowdown due to global recession. But airport infrastructure has not kept pace with the growth of the civil aviation traffic. This has resulted in congestion and inefficient services in major airports, limited landing slots, inadequate parking bays and congestion during peak hours for airlines. Development of quality infrastructure will have an impact on international competitiveness and economic growth. This requires faster development of civil aviation infrastructure on public private partnership mode. In tune with the requirement many initiatives have already been started in the 10th five year plan and they are expected to continue in the 11th plan also. 2. Of a total number of 454 airports and airstrips in India, 16 are designated as international airports. The Airports Authority of India (AAI) owns and operates 97 airports. A recent report by Centre for Asia Pacific Aviation (CAPA) states that over the next 12 years...
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