...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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... 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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...ETIHAD AIRWAYS Assignment I Contents INTRODUCTION 2 BACKGROUND 3 ETIHAD’S CORE VALUES 4 COMMITMENT 4 VISION AND MISSION 5 HISTORY 6 LOYALTY PROGRAM 6 FINANCIAL PERFORMANCE 9 FINANCIAL POSITION 9 FINANCING ACTIVITIES 11 EXTERNAL ENVIRONMENT 11 GENERAL ENVIRONMENT 12 EXTERNAL ENVIRONMENT ANALYSIS 41 INDUSTRY ENVIRONMENT ANALYSIS 44 1. Porter's 5 forces model 44 COMPETITOR ANALYSIS 65 INTERNAL ENVIRONMENT 68 COMPETITIVE ADVANTAGE 90 VALUE CHAIN ANALYSIS 92 IMPORTANT ENVIRONMENTS THAT ETIHAD NEEDS TO BE AWARE OF: 108 ARE THE VISIONS AND MISSIONS CLEAR AND MEASURABLE? 110 REFERENCES 111 INTRODUCTION Strategic management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change (Dess, Gregory G., G.T. Lumpkin and Marilyn L. Taylor, 2005). Our group decided to work upon Etihad Airways, the flag carrier airline for United Arab Emirates. The name ‘Etihad’ is derived from an Arabic word which means ‘union’. In addition to its main activity of passenger transportation, Etihad controls Etihad cargo and holidays. Aside from that, they have stakes in many other airlines...
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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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...carriers. As result, Emirates Airline was formed in 1985. The company is funding of Dubai’s royal family with start-up capital US $10 million as independent of government subsidies . Emirates Airline is the world largest international carrier but in term of income the company at the stage seven when it compare to others largest airline. For the category of international passengers carried, Emirates Airline is at number four. Emirates Airline also runs 4 of the world longest non- stop commercial flights from Dubai to Los Angeles, San Francisco, Dallas/Fort Worth, and Houston. Ahmed bin Saeed Al Maktoum is the Chief Exercutive Officer (CEO) of Emirates Airline. The main competitors of Emirates Airline are British Airways, Qatar Airways Group, Etihad Airways, Deutsche Lufthansa AG and Air France –KLM S.A. The company start its operation with the first flight EK600 departs from Dubai International Airport to Karachi. The first 3 destination of Emirates Airline were Karachi, New Delhi and Mumbai. Currently, Emirates Airlines flies to 128 destinations with a fleet size of 199 aircrafts. Emirates Airline cabin crew is training at the Pakistan International Airlines Academy. In October 2008, Emirates moved all operations at Dubai International Airport to Terminal 3. The aim of Emirates Airline is quality and not quantity. It tries to provide the highest level of service to its customers. Emirates follow and encourage the open-skies policy. This open policy, has brought more than 100 foreign...
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...carriers. As result, Emirates Airline was formed in 1985. The company is funding of Dubai’s royal family with start-up capital US $10 million as independent of government subsidies . Emirates Airline is the world largest international carrier but in term of income the company at the stage seven when it compare to others largest airline. For the category of international passengers carried, Emirates Airline is at number four. Emirates Airline also runs 4 of the world longest non- stop commercial flights from Dubai to Los Angeles, San Francisco, Dallas/Fort Worth, and Houston. Ahmed bin Saeed Al Maktoum is the Chief Exercutive Officer (CEO) of Emirates Airline. The main competitors of Emirates Airline are British Airways, Qatar Airways Group, Etihad Airways, Deutsche Lufthansa AG and Air France –KLM S.A. The company start its operation with the first flight EK600 departs from Dubai International Airport to Karachi. The first 3 destination of Emirates Airline were Karachi, New Delhi and Mumbai. Currently, Emirates Airlines flies to 128 destinations with a fleet size of 199 aircrafts. Emirates Airline cabin crew is training at the Pakistan International Airlines Academy. In October 2008, Emirates moved all operations at Dubai International Airport to Terminal 3. The aim of Emirates Airline is quality and not quantity. It tries to provide the highest level of service to its customers. Emirates follow and encourage the open-skies policy. This open policy, has brought more than 100 foreign...
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...GDP. Indian Aviation industry contributes to 0.5% of the India’s GDP and generates 1.7 million jobs. Technological Trends Major cost items for airlines are fuel, labour and maintenance. Airlines are able to reduce the cost/increase profit by adopting innovations such as more fuel efficient planes, reducing turnaround time, extra charges for less cramped seats, excess luggage etc. and providing ticketing facilities online. Analyst View The industry is facing major challenges in form of increasing fuel prices, depreciation in rupee value and high sales tax. But the passengers are going to increase in FY’14. However, the forecast for Indian aviation sector for FY 14 remains bleak. The Jet Etihad deal has reached next step. Foreign airlines entry will depend on the results of this deal. Government has planned to construct 50 low cost Airports. Delhi will be first among them. Mergers & Acquisitions Due to high competition and slim profits there has always been an urge in the Aviation industry for mergers and acquisitions. Since it helps the airline to...
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...Contents Letter from the Chairman Operating Highlights Financial Highlights Corporate Information Notice of the 22nd Annual General Meeting Directors’ Report Management Discussion and Analysis Corporate Governance Report Auditors’ Report Balance Sheet Statement of Profit and Loss Cash Flow Statement Notes to the Balance Sheet and Statement of Profit and Loss Statement relating to Subsidiary Company Consolidtated Statement of Accounts Attendance Slip and Proxy 02 04 05 06 07 16 24 29 47 52 53 54 56 93 94 135 Letter from the Chairman Dear Shareholders, Financial Year 2013-14 was an exceptionally challenging one for the Indian aviation sector. The Indian economy recorded a lower GDP growth rate of 4.7%. Currency volatility and devaluation of the Indian Rupee further exacerbated the situation, leading to a drop in discretionary travel. Consequently, passenger load factors across our industry were under pressure and domestic passenger growth slowed to 4.8%. In this challenging environment, your Company managed to maintain revenues, though costs were hit due to depreciation of the Indian Rupee (of over 11%), higher aviation turbine fuel (“ATF”) rates and increased airport levies. Your Company has been consolidating its domestic network with a focus on strengthening its presence in key markets. Your Company has also been regularly adding international routes, besides embarking upon systematic improvement of its products across all classes of travel. Further, your Company has been strongly...
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...Contents Letter from the Chairman 02 Operating Highlights 04 Financial Highlights 05 Corporate Information 06 Notice of the 22nd Annual General Meeting 07 Directors’ Report 16 Management Discussion and Analysis 24 Corporate Governance Report 29 Auditors’ Report 47 Balance Sheet 52 Statement of Profit and Loss 53 Cash Flow Statement 54 Notes to the Balance Sheet and Statement of Profit and Loss 56 Statement relating to Subsidiary Company 93 Consolidtated Statement of Accounts 94 Attendance Slip and Proxy 135 Letter from the Chairman Dear Shareholders, Financial Year 2013-14 was an exceptionally challenging one for the Indian aviation sector. The Indian economy recorded a lower GDP growth rate of 4.7%. Currency volatility and devaluation of the Indian Rupee further exacerbated the situation, leading to a drop in discretionary travel. Consequently, passenger load factors across our industry were under pressure and domestic passenger growth slowed to 4.8%. In this challenging environment, your Company managed to maintain revenues, though costs were hit due to depreciation of the Indian Rupee (of over 11%), higher aviation turbine fuel (“ATF”) rates and increased airport levies. Your Company has been consolidating its domestic network with a focus on strengthening its presence in key markets. Your Company has also been regularly adding international routes, besides embarking...
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...including Airline Segment and Refinery Segment. The Company's route network is cantered around a system of hub, international gateway and key airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Each of these operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub or gateway to domestic and international cities, and other hubs or gateways. The Company also offers cargo services, aircraft maintenance, repair and overhaul (MRO), staffing services for third parties, vacation wholesale operations and private jet operations. In addition to providing maintenance and engineering support for fleet of over 900 aircraft, its MRO operation, known as Delta TechOps, serves aviation and airline users around the world. Its Delta Global Services provides services to third parties, including staffing services, aviation solutions, professional security and training services. The Company's tickets are sold through various distribution channels including digital channels such as delta.com and mobile, telephone reservations and online travel agencies. The Company has operations in six continents. Delta Air Lines serves nearly 180 million customers each year. In 2016, Delta was named to Fortune’s top 50 Most Admired Companies in addition to being named the most...
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...Airline Studies Module Code – 5N4971 An Investigation into Aviation Organisation By: Milton Redmond Table of Contents Introduction: 3 Aims & Objectives: 3 Brief Description of Civil Aviation and Relationship with UNWTO: 4 Chicago Convention 4 United Nations World Tourism Organization 5 ICAO and UNWTO Affirm Cooperation on Joint Aviation and Tourism Goals 5 Description of Etihad Airways: 6 Partners and Alliances: 10 Chartered & Scheduled Flight Services: 20 Etihad Airport Services 23 EAS-Ground 23 EAS-Cargo 24 EAS-Catering 24 Aircraft Type & Passenger Capacity: 25 World's Top 3 Airlines 2013 Profiles and Etihads Direct Competitors: 28 Importance of Branding and General Airport Operations: 29 Movement of Passengers at Abu Dhabi Airport: 31 Communications Utilized by Etihad: 33 Conclusion: 35 Recommendations: 35 Bibliography: 35 Introduction: This assignment requires the author to type a written report on one organisation in the aviation industry which covers learning outcomes 4, 5, 8, 9, 11, 16 & 17 as per the module component. This report is to identify and research an airline related product or service that meets a particular consumer need. Finally the Author will evaluate the findings, draw conclusions and recommendations. Aims & Objectives: * Evidence of understanding and application of Airline Studies. * Detailed Exploration of the chosen topic. * Use / selection of relevant...
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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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...Competitive Dynamics in Emirates Airlines Quest for Global Expansion Paul Mugendi MBA 604 Embry Riddle Aeronautical University May 2014 Executive Summary In an industry beset by unpredictable geo-political factors and cyclical crises, only one international carrier has consistently managed to increase revenue and report a profit for the last 25 years. This carrier is Emirates airline (Riva, 2013). Emirates has managed to achieve in less than three decades what giant and well established global carriers like British and Lufthansa managed in about five decades, and that is to serve all five continents without any alliances or partnerships. The objective of this term paper is to analyze some of the competitive dynamics that Emirates, legacy airlines and regional rivals have had to contend with and how Emirates has managed to come out on top especially in some business-hostile territories like North America and Europe. The history and origins of the Emirates airlines are highlighted as this paper outlines the business strategy that has propelled the carrier to international stardom. Also articulated from the research is the ambitious expansion that has European rivals worried and in some cases like Canada, the government stepping in to protect local carriers. The paper concludes by examining the viability of the carrier maintaining the growth and profitability curve and the expected rebound from regional carriers who seem to be currently languishing in losses as Emirates...
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...Business Model and Strategic Framework – IndiGo Airlines Business Model and Strategic Framework – IndiGo Airlines 2013 7/24/2013 2013 7/24/2013 Introduction IndiGo began its operation in 2006 and after being into business for six years, it has become India’s largest airline services overtaking Jet Airways in November 2012. Through this project report, we aim to understand the business model that is used by IndiGo and their marketing strategic framework which would help us to understand the enormous growth shown by IndiGo. Porter’s 5-Force Analysis for Airline Industry and GoIndigo in particular 1. Threat of New Entrants New entrants in the aviation industry face intense competition from the existing players and these new entrants themselves act as a huge competition to the settled players in the market. Barriers for new entrants: 1. High initial setup cost- The initial setup costs for the entrants include the airbus costs, setup costs, licensing costs, costs to airports, inventory costs, and many other costs including taxes. This increases the entry barrier to the new entrants who are willing to enter the market. 2. Existing player’s defence of market share- The existing settled players have a loyal set of customers, an established brand name and an extensive value chain. With the entry of a new entrant, the existing companies can easily defend their market share from the former. Additionally, the existing companies have an advantage of the economies...
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...April-May 2013 AUTOMOBILES AND AUTO ANCILLIARIES TANMAY AGARWAL Special Focus India Car Lease business to pick up Societe Generale's ALD Automotive 26 May, Mumbai According to ALD Automotive, the car lease business is expected to register huge growth in the upcoming years. Besides decreasing fixed costs, car leasing is also expected to particularly useful be for SMEs. Demand is expected to pick up in the pharmaceutical sector where increasingly companies are giving cars to their medical representatives to increase sale conversions and increase employee retention. Also agricultural companies are expected to increase lease cars usage as they can no longer rely on public buses. India-EU FTA Agreement: Likely to cause more problems for the reeling sector The India EU FTA Agreement has run into major hurdles as far as the automobiles are concerned. It is understood that the EU has been pushing the Indian side for import duty cuts. This has resulted in Indian Automakers being up in arms as they feel that cheap imports may further impact their already lackluster sales. Leading players like Maruti have been actively lobbying the government to keep this sector out of the purview of the agreement as it believes that it will result in flooding of the market by European cars. Industry Talk Daimler to develop India ops as export hub 24 May, Chennai Daimler India Commercial Vehicles- will be exporting locally assembled trucks from the conglomerate's Mitsubishi Fuso range...
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