Managerial Economics
Project Report: Jet Airways
PROJECT REPORT
Roll no.12: Mugdha Dhupkar
Roll no.23: Vrushali Keer
Roll no.26: Sana Khan
Roll no.27: Vipul Khatu
Roll no.30: Shaun Machado
Roll no.44: Mariza Pereira
Page 1 of 27
Managerial Economics
Project Report: Jet Airways
Sr. No.
Topic
Pg. No.
1
Acknowledgement
1
2
Introduction to Jet Airways
3
3
Corporate Objectives
11
4
Growing Market Potential
12
5
Survival Strategy
13
6
Analysis Of company Finances
15
7
Current Status of the airline
19
8
Bibliography
20
9
Annexure A
21
10
Annexure B
23
Page 2 of 27
Managerial Economics
Project Report: Jet Airways
Acknowledgement
We would like to sincerely thank Prof. Johnson, for his encouragement, guidance
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Jet Airways is the most preferred domestic airline in India. It is the automatic first choice carrier for the travelling public and sets 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 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.
Since the acquisition of Air Sahara (renamed as Jet Lite) in April 2007, Jet Lite is a wholly owned subsidiary of the company. Jet Lite currently operates a fleet size of 24 aircrafts flying to 31 destinations within India & operating around 127 flights daily. It also flies to Colombo & Kathmandu.
Naresh Goyal (60), the founder Chairman of Jet Airways, has over 38 years of experience in the Civil Aviation industry. He is the recipient of several national and international awards.
In 1991, as part of the ongoing diversification programme of his business activities, Mr.
Naresh Goyal took advantage of the opening of the Indian economy and the
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.
There are two global companies that manufacture light jets and have a global presence; they are Cessna (owned by Textron Aviation, USA) and Learjet (owned by Bombardier Industries, Canada).
JetBlue is an American airline company whose headquarter is located in the New York City. They are a low-cost airline who is rapidly growing in the Unites States. According to Wikipedia, “David Neeleman founded the company in February 1999, under the name "NewAir.” Many of their approach come from Southwest Airlines include low prices airfares. However, they differ in the amenities offered to the customers.
David Neeleman found JetBlue in 1999 with the mission “to bring humanity back to air travel". This goal is achieved by creating a company that offers comfortable, friendly travel at low fares and by this to differentiate themselves from the mass.
JetBlue has been one of the most successful airlines since it first entered the industry in December of 1999. Founder, David Neeleman, set out to succeed by offering low-cost air travel in hopes of perpetuating his services to as many people as he could across the US. He was very adamant about having a very customer oriented business that catered to the needs of all. In doing so he wanted to emphatically promote his obligation to safety, caring, integrity, passion, while allowing the customers to have fun while traveling. There motto helps portray Neeleman’s belief stating “You Above All”. His primary goals had been to follow Southwest’s objectives of offering low rates to customers, focusing on customer’s needs and comforts while distinguishing itself with their amenities. Neeleman’s other goal was to establish his low-cost leadership strategy by concentrating his airline in a large popular metropolitan area that already is already correlated with high airfare (Peterson, 2004). He then began operating based out of the New York metropolitan area at John F. Kennedy International airport with his secondary locations in Washington D.C., Boston and Los Angeles.
The dispute between BA management and Cabin Crew from 2009 to 2011 caused extensive impact throughout the global condition. BA totally lost £150 million and the brand reputation had been affected seriously. It meant that BA has some problems about its change management. This academic report contains
Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.
Jet-blue Airways is American low cost airline head quartered near New-York city. It’s foundedin August 1998 by David Neeleman with Joel Peterson as a chairman and David Barger as apresident and CEO. By late 2006,like some other airlines, JetBlue faced some softening demand and high cost due to the increase in fuel prices. Barger realizes that JetBlue needs to take further steps to slow its rate of growth. Barger was not sure about the reductions across E190 and A320. The E190 showedpromising growth opportunities and challenges for JetBlue. At the same time, the A320 wasconsidered as proven plane that had succeededover past 6 years. Most of the airline industries were using hub-and-spoke system and point-to-point services. Due to this service, South West Airlines showed consistent profits. After September 11th, the airline industry experienced trouble due to attack. Looking at the history of Jet-blue, it started with just 10airplanes in 2000 and by 2011 the company planned to have 290 planes in service. To support customers, Jet Blueprovided
Jet Blue is a shinning star in the gloomy airline industry. Jet Blue has been showing great earnings and growth since its incorporation in 2000. Jet Blue uses innovative strategies to further their success in a market, which has been showing nothing but losses across the board.
JetBlue is known as the airline that promises, and also delivers. JetBlue delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue’s Airways started in 2000 with the mission as stated by the founder Neeleman: “to bring humanity back to air travel by offering passengers low fares, friendly service, and high-quality product” (Ford, 2004, p.139). JetBlue has five core values that they operate by on a daily basis, which includes, safety, caring, integrity, passion and fun. JetBlue continues to adapt to the changing environment, and its community by evaluating the risks and
The second major strategic issue facing JetBlue is that it needs to attract customers. Initial customer response has been strong, a function of low fares, strong customer service and new airplanes. The company's first year growth objectives have it trying to go from none-existence to filling fifty-three flights per day. This will require an extensive marketing effort for each new market in which it operates, especially as the company is not affiliated with any airline groupings that might drive business from other carriers.
JetBlue is a low cost US airline. The firm was founded by former Southwest Airlines employee, David Neeleman, and incorporated in 1998 in Delaware. The firm was not originally known as JetBlue, the initial name was NewAir. The plans for the new airline were announced by Neeleman in February 1999, and in April an order worth $4 billion was given to Airbus for up to 75 new A320 aircraft, at the same time leases were arranged for 8 aircraft. The firm gained exemptions for 75 take off and landing slots at JFK Airport in September, takes delivery of the first aircraft in December, and officially starts flights on 11 February 2000 (JetBlue, 2012). The first was being between JFK
JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and
JetBlue is related to three types of the management concepts in my personal understand, they are: product and marketing. First of all, in product concepts the company focuses on offer the best to fulfill their customer’s expectation “holds that consumers will favor products that offer the most in quality,
Also it looks for another benefit with the consumers and is the voice to voice, which they need the customers be proud of JetBlue so they could speak well about them. All that was achieved by many investigation of markets and a transformation in the culture of the company being the most important thing inside her due to the fact that it is unique, all his other qualities will be able to be equalized by the rival companies, less this, the culture of his personal always trying to fulfill the desires of the clients.