Management Information System and Business
Collaboration at JET Airways
Team – V
Jet Airways is the second largest Indian airline based in Mumbai, Maharashtra, both, in terms of market share and passengers carried. It is owned by Naresh Goyal. It operates over 400 flights daily to 67 destinations worldwide. Its main hub is Mumbai, with secondary hubs at Delhi, Kolkata, Chennai, Bengaluru and Pune.
Jet Airways emerged with its first flight in 1993. It is one of the fastest expanding airlines in the world, and in future will become the most preferred airline making your journey enjoyable. Jet Airways offers flights to 24 international destinations and 43 destinations in India.
Jet Airways was incorporated as an air service operator on 1 April 1992. It commenced Indian commercial airline operations on 5 May 1993. On 4th January 1995, Jet Airways was granted a scheduled airline status. The company is registered on the Bombay Stock Exchange. Although, a major portion (80% of its stock) is controlled by Naresh Goyal. It has over 10,017 employees (March 2007).Jet Airways currently operates a fleet of 90 aircraft. With an average fleet age of 4.99 years, the airline has one of the youngest aircraft fleets in the world.
Jet Airways will become the most preferred domestic airline in India. Jet Airways will achieve this outstanding position by offering a high quality of service and reliable, comfortable and efficient operations. Jet Airways will uplift the concept of domestic airline travel –to be a world class airline. It will achieve this objective even while ensuring consistent profitability, achieving long-term returns for its investors and providing its employees with an environment for excellence and growth.
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Jet Airways –Strategy and Operations
Jet Airways' strategy in the 1990s was to position itself differently from Indian Airlines, which was then the dominant player in Indian aviation. Indian Airlines had a wide network of destinations across India, along with a large and varied fleet of aircraft, the pick of flying slots at airports, and the valuable backing of the national government. Despite these advantages, the airline's performance was far from satisfactory. The airports and planes were badly maintained, the staff was indifferent (and sometimes rude) to passengers, and operations were ridden with inordinate delays and cancellations. Despite this, the airline was profitable, as passengers wishing to fly had no other choice until the early 1990s
Jet Airways Vs Competition
The early 2000s saw a tremendous increase in competition in the Indian airline industry. By the end of the 1990s, the less efficient private airlines had exited the industry and only Jet Airways and Air Sahara were left to compete with Indian Airlines. Considering that the aviation market in India was very small with an extremely low penetration rate (as of 2004, the average air travel in India was 0.014 trips per person every year; in the US it was 2.02 trips per person per year), the competition for a share in the small market became stiff.
Management Information system in Jet Airways
Jet Airways, one of India's premier international airlines and IBM announced that the companies have signed a strategic business transformation for ten years and information technology (IT) services agreement. Valued at 62 million US dollars, the agreement was a major step towards Jet Airways' journey of technology led business transformation, which will help the airline to achieve significant growth by implementing the company's IT with business strategies. Jet Airways aims to use IBM's domain knowledge of the global airline industry and its leadership in technology to meet the group's business transformation objectives. As part of the deal, IBM will provide with the latest technological solutions to transform the airline's...
...ENVIRONMENT ANALYSIS – JETAIRWAYS
Background of the Company
JetAirways 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,
with 24 daily flights serving 12 destinations.
In 1991, the late P.V. Narasimha Rao, Prime Minister of India at the time, introduced an
"open skies" policy as part of India's economic liberalisation. This opened doors for
privately owned "air taxi" operators to start scheduled services. Naresh Goyal, who
already owned JetAir (Private) Limited (which provided sales and marketing for foreign
airlines in India) took advantage of this opportunity by setting up JetAirways as a fullservice
scheduled airline that would give competition to state-owned Indian Airlines.
Indian Airlines had enjoyed a monopoly in the domestic market between 1953, when all
major Indian air transport providers were nationalised under the Air Corporations Act
(1953), and January 1994, when the Air Corporations Act was repealed, following which
JetAirways received scheduled airline status.
JetAirways’ 45 destinations include most of the big cities in India. International
destinations include Kathmandu, Colombo, Singapore, Kuala Lumpur, London's
Heathrow Airport, Bangkok, Brussels and Newark. Jet...
...ase Study: HR Problems at JetAirways: Coping with Turbulent Times in the Indian Avi
Case Study: HR Problems at JetAirways: Coping with Turbulent Times in the Indian Aviation Industry
The case is about the retrenchment drama that unfolded in one of India’s leading aviation companies, JetAirways (India) Limited (Jet), in late 2008. After showing the door to more than 1000 employees in a bid to streamline its operations, Jet was faced with immense criticism and opposition by various organizations and political parties.
Jet’s chairman Naresh Goyal (Goyal) reinstated the employees a day later saying that he was not aware of these sackings. The Indian aviation industry was going through a tough phase and experts felt that it was in the interest of the company to retrench employees to remain competitive.
Experts largely felt that Goyal had capitulated under pressure from external parties while others felt that all may not be well with the organizational communication mechanisms at Jet.
We have created high morale for our people. Our employees believe in the company. They believe it’s their company. There’s a feeling among employees that if the company makes money, it’s their money and if the company loses money, that’s their loss."
Naresh Goyal, Chairman, JetAirways (India) Limited, in July 2007....
...JetAirways (India) Ltd. is an airline based inMumbai,India,
operating domestic and international services. It operates over 355 daily
flights to 43 destinations across the country and 15 overseas. Its main base is
Chhatrapati Shivaji International Airportin Mumbai. JetAirways other
major hubs are located at Indira Gandhi International Airport,Delhi,Anna
InternationalAirport, Chennai, NetajiSubhashChandraBose InternationalAirport, Kolkata, BangaloreInternationalAirport, Bangalore, and BrusselsAirport, Brussels.
According to March 2007 available figures, its share of India's domestic
aviation market increased to over 43% (up from less than 27% a few months
prior to March 2007), and, as of 2007, is greater than any other Indian
domestic operator's market share. JetAirways was voted as the best airline
in South Asia and Central Asia region bySkytrax in 2007.
HISTORYJet 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 JetAirways to apply for scheduled airline status, which was granted on4
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...
...WORKING CAPITAL OF JETAIRWAYS
UNDER THE GUIDANCE OF FACULTY DEEPIKA SINGH
* JetAirways is the second largest Indian airline in terms of market share and passengers carried. It is based in Mumbai, Maharashtra.
* The founder and the chairman of the company is Naresh Goyal. Mr. Nikos Kardassis is the CEO of the company.
* The company operates over 400 flights on an everyday basis to 70+ destinations around the world. JetAirways has its main hub in Mumbai.
* The company’s subsidiaries are Jet Lite, JetAirways LLc, Jet Enterprises, Trans Continental e Services, India Jetairways Pty and Trans Continental e Services
* Indian hospitality sector contributes 8-9 percent of the country’s GDP. This sector includes accommodation, catering and transportation.
* Indian aviation sector has been observed a phenomenal growth in the last decade.
* India is the 9th largest civil aviation market in the world and stands 4th in domestic passenger volumes with a market worth of US $12 bn.
* According to AAI, passenger handling capacity has risen from 72 million to 143 million and the freight traffic has risen from 1.5 million to 2.3 million.
SHAREHOLDING PATTERN OF JETAIRWAYS
Share holding pattern as on :...
...Industrial dispute in a company
Title of the Assignment: A report on JetAirways strike.
Signature: (Of the student)
Marks out of 15
Name (Of the faculty) :
Date of Evaluation:
Remarks (By Faculty): _________________________________________
ASSIGNMENT – 1
A Report on
JETAIRWAYS Pilots strike
* JetAirways is (India) Private Limited is India’s leading private airline.
* It has a market share of about 29 percent.
* Jet operates a relatively young fleet of Boeing 737 jets and ATR 72 turboprops.
* Its reputation for punctuality and outstanding service attracts at large.
Important years for JetAirways:
* 1993: JetAirways begins domestic operations flying Boeing 737 jets.
* 1997: Kuwait Airways and gulf Air sell their stakes in JetAirways.
* 1999: A regional network is launched with turboprop aircraft.
* 2004: The first international services are started.
* 2007: Acquired Air Sahara and re-launched it as...
...JetAirways IntroductionJet Airways is one of India�s premier private airlines. It was incorporated as an �air taxi� operator on April 1, 1992. JetAirways started its commercial airline operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircrafts and 24 daily flights serving 12 destinations. In January 1994 a change in the law enabled JetAirways to apply for scheduled airline status, which was granted on 4 January 1995. It began international operations to Sri Lanka in March 2004 with inaugural flight from Chennai to Colombo.
JetAirways was set up by Naresh Goyal, who owned Jetair Private Limited which provided sales and marketing for foreign airlines in India. JetAirways was started as a full-service scheduled airline that would give competition to state-owned Indian Airlines, who had enjoyed monopoly in the domestic market since 1953. JetAirways acquired its scheduled airline status in January 1994, when the Air Corporations Act (1953) was repealed.
In January 2006, JetAirways announced its decision to buy Air Sahara, the only other major private airline, making it the biggest takeover in Indian aviation history. The resulting airline would have been the country's largest, but the deal fell through in June 2006. However, a modified...
Etihad Airways of the United Arab Emirates and JetAirways of India yesterday announced that the UAE national carrier has agreed to subscribe for 27,263,372 new shares in JetAirways at a price of INR754.74 per share. The value of this equity investment is $379 million and will result in Etihad Airways holding 24 per cent of the enlarged share capital ofJetAirways.
Etihad Airways' wider overall commitment to JetAirways includes the injection of $220m to create and strengthen a wide-ranging partnership between the two carriers.
As part of this Etihad Airways paid $70 million to purchase JetAirways' three pairs of Heathrow slots through the sale and lease back agreement announced on 27 February 2013. JetAirways continues to operate flights to London utilising these slots.
An amount of $150 million will be invested by Etihad Airways by way of a majority equity investment in JetAirways' frequent flyer program "Jet Privilege", subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months.
Under the strategic partnership, which will be subject to...
...JET-ETIHAD DEAL-IMPACT ON INDIAN AVIATION
JET-ETIHAD DEAL - The first deal after FDI norms have been changed in the aviation sector of India. On 24th Apr, Jet and Etihad announced the acquisition of 24 percent stake in Jet by Etihad for $379 million (around Rs.2,060 crore) . Two airlines entered on a range of terms and conditions . Along with 24% stake, Etihad said it would pay $150 million for a majority stake in Jet’s loyalty programme.
Deal in Detail:
The deal between two airlines has several angles benefitting both of them .In particular, the bilateral entitling 40,000 seats per weak between both the countries. Basically the deal covers only First and Third freedom rights.But, the deal between Jet and Etihad is based more on the Fifth and Sixth Freedom Rights and the bilateral appears to facilitate this. Lets look into what these freedoms are.
Freedoms are the privileges which one has to negotiate. The First Freedom is the right to fly over a foreign country without landing. The Second Freedom allows technical stops without the embarking or disembarking of passengers or cargo. The Third and Fourth Freedoms allow basic international service between two countries.
The Fifth Freedom allows an airline to carry revenue traffic between foreign countries as a part of services connecting the airline's own country. The Sixth Freedom combines the Third...