7/27/2019 Turnaround Strategy for Jet Airways

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Presented by:Ritika ShettyRuchi ChatwaniAnup JadhavRoshan D’souza Chetan ShettyUrvashi Surati

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How much is Decline?

Loss After Tax of INR 9,985 Million for Q2 FY14 Highlights for quarter ended

September 30, 2013 vs. September 30, 2012 (Jet Group)

Causes of Decline? Rupee depreciation

Economic slowdown

Intense Price War in Airline industry.

Fuel cost rose to 33.71% of the total income in 2011 as compared to 29.67% in

2010

Short haul airlines: Lower fuel efficiency

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Operational

12% growth in number of passengers

3% growth in Available Seat Kilometers

6% growth in number of departures

Financial

1% increase in operating revenue, Q2 FY13 operating

revenues are INR 46,079 Mio vs. Q2 FY12 was INR 45,630

Mio

11% decrease in passenger yields to Rs. 7,376 from Rs.

8,335

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Marketing Strategies:

Product/Service Modification

▪ They should come up with innovative services that creates a unique value

 proposition

▪

Termination of non-profitable routes▪ Presence in 75 countries therefore route sharing is also an option

Can focus on International segment: Proven profitable in 2009

Improving domestic business

▪ Strong brand image

▪ Increase its domestic capacity and capture a greater share of the demand

supply

They should come up with their own booking websites and lower down on

travel agents

Frequent flyer schemes can be introduced so as to create customer loyalty

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HR Policy Modifications Change in the Top Management

Right Sizing

Performance based incentives for employees

Strict code of conduct

Staff empowerment

Performance review

Operational Strategies

Divert part of its fleet based on the demand supply scenario

Leasing out owned fleet to capitalize on the demand-supply mismatch.

 Network expansion

Cost cutting

Join global airlines alliance

Focus on air-cargo market

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• Financial strategies:

Debt Restructuring

Revised fare

Liquidation of current assets