A PROJECT REPORT
On
COMPARATIVE STUDY OF AIRLINE INDUSTRY
By
K ADITYA SRIVATSAV (15)
ROHIT U JADHAV (31)
SUDARSHAN S KHARE (41)
SWANAND S PANDIT (44)
VINIT A SADANI (48)
Submitted to
UNIVERSITY OF PUNE
In partial fulfilment of the requirement for the Elective
Industry Analysis and Desk Research
IN
MASTER OF BUSINESS ADMINISTRATION (MBA)
THROUGH
DR.VIKHE PATIL FOUNDATION’S
PRAVARA CENTRE FOR MANAGEMENT AND RESEARCH
DEVELOPMENT PUNE- 411016
2013-15
1
DECLARATION
We hereby declare that the project titled “COMPARATIVE STUDY OF AIRLINE
INDUSTRY” is an original piece of research work carried out by us under the guidance of
Prof. Divya Lakhani, Prof. Minal Waghchoure & Dr. Puja Bhardwaj. The information
has been collected from genuine and authentic sources. The work has been submitted in
partial fulfilment of the requirement of the elective ‘Industry Analysis and Desk Research
‘of Master of Business Administration to University of Pune.
Sr. No
Name of Student
1
K Aditya Srivatsav
2
Rohit U Jadhav
3
Sudarshan S Khare
4
Swanand S Pandit
5
Vinit A Sadani
Signature
Date: 29 April 2014
Place: Pune
2
ACKNOWLEDGEMENTS
We would like to express our gratitude to the following academicians, who
provided individual feedback on this project during the development of our
report and encouraged us to do something very difficult which we never had
attempted before in our lives.
We would like to thank Prof. Divya Lakhani for helping us to know what
things are actually to be added to make the report more concise and
accurate.
We would like to give our warm regards to Prof. Minal Waghchoure for
giving us the base to start this project and helping us how to get the data
and material from various sources.
We would like to thank Dr. Manoj Narwade for helping us to do the project
in a different style and in a convincing manner to attain knowledge in the
area of our industry.
Our sincere thanks to Dr. Puja Bhardwaj who guided us to give a broader
picture to each chapter of this report.
We would like to thank Dinesh Medage Sir and Sreejith. A. R Sir as they
helped us in our college computer library for making this project.
We would like to thank Amol Pawar & Ashish Pandey for giving us kind
support by giving their laptops for preparing this project. We would like to
thank Neha Dashputre for helping us in finding information on the topic
and Ashish Gujrathi for helping us in numerical part of the project.
3
INDEX
Serial No.
CONTENTS
Page No.
Declaration
2
Acknowledgements
3
Index
4
List of Tables
7
List of Figures
8
Chapter 1 INTRODUCTION
1.1 Introduction
10
1.2 Players in the Industry
10
1.3 Market Share of the Industry 2013
12
1.4 Types of Business
13
1.5 Nature of Industry
14
1.6 Type of Market
14
1.7 Growth in International Scenario
16
1.8 Pricing Policies in Airline Industry
20
1.9 Branding of companies in a way to attract their customers
21
Chapter 2 PROMOTERS AND MANAGEMENT ETHOS
2.1 Spicejet Airlines
27
2.1.1 Promoter
27
2.1.2 Managing Director
27
2.1.3 Board of Directors
27
2.1.4 Corporate Governance
28
2.1.4.1 Committees formed under corporate governance for
29
4
smooth running
2.1.5 Corporate Social Responsibility
30
2.2 Jet Airways
31
2.2.1 Chairman (Promoter)
31
2.2.2 Management Team
32
2.2.3 Committees of Directors formed under corporate
33
governance.
2.2.4 Corporate Social Responsibility
34
2.3 Indigo Airlines
37
2.3.1 Setup
37
2.3.2 Promoter
37
2.3.3 Management Team
38
2.3.4 Corporate Social Responsibilities
38
Chapter 3 FINANCIALS
3.1 Financials of Jet Airways
42
3.2 Financials of SpiceJet Airways
50
3.3 Summary of Financials
58
Chapter 4 RECENT DEVELOPMENTS
4.1 Jet Airways Mergers with Etihad Airways
61
4.2 Jet Airways and Etihad Airways forge strategic alliance
62
under FDI policy of government of India
4.3 SpiceJet Expansion strategies globally
63
4.4 IndiGo Airlines expansion patterns
64
4.5 Jet Airways tying with Sabre Airline Solutions for
65
comprehensive integrated solutions.
4.6 Web CheckIN
67
5
Chapter 5
CONLCUSION
68
Appendix
Bibliography
69
6
LIST OF TABLES
Table No.
2.1
Description
Details
of
attendance,
other
directorships,
Page No.
committee
28
Committees formed in Spicejet with details of purpose and
29
memberships/chairmanships of Directors of Spicejet
2.2
Members
2.3
The management team - Jet Airways
32
2.4
Meetings attended by the Board of Directors - Jet Airways
32
2.5
Different committees for corporate governance - Jet Airways
33
3.1
Current Ratios of Jet Airways
42
3.2
Quick Ratios of Jet Airways
43
3.3
Stock Turnover Ratios of Jet Airways
44
3.4
Fixed Assets Ratios of Jet Airways
45
3.5
Debt Equity Ratios of Jet Airways
46
3.6
Gross Profit Ratios of Jet Airways
47
3.7
Net Profit Ratio of Jet Airways
48
3.8
Earnings Per Share - Jet Airways
49
3.9
Current Ratio of SpiceJet Airways
50
3.10
Quick Ratio - SpiceJet Airways
51
3.11
Stock Turnover Ratio - SpiceJet Airways
52
3.12
Fixed Assets Ratio - SpiceJet Airways
53
3.13
Debt Equity Ratio - SpiceJet Airways
54
3.14
Gross Profit Ratio - SpiceJet Airways
55
3.15
Net Profit Ratio - SpiceJet Airways
56
3.16
Earnings Per Share - SpiceJet Airways
57
3.17
Summary of ratios Of SpiceJet & Jet Airways
58
7
LIST OF FIGURES
Figure No.
DESCRIPTION
Page No.
1.1
Market share of the industry
12
1.2
Worldwide growth in air travel and business confidence
17
1.3
Revenue per departing passenger
18
1.4
Airline net post- tax profit margins
19
1.5
Jet screen facility in flights
22
1.6
A Gist of café jet offers during the transit
22
1.7
Different business packages prices
23
1.8
Display of particular vacation package by IndiGo airlines
23
1.9
Various dining facilities available by SpiceJet
24
1.10
Availability of discounts for students
25
1.11
Touring packaging trips with SpiceJet
25
3.1
Current Ratios of Jet Airways
42
3.2
Quick Ratios of Jet Airways
43
3.3
Stock Turnover Ratios of Jet Airways
44
3.4
Fixed Assets Ratios of Jet Airways
45
3.5
Debt Equity Ratios of Jet Airways
46
3.6
Gross Profit Ratios of Jet Airways
47
3.7
Net Profit Ratio of Jet Airways
48
3.8
Earnings Per Share - Jet Airways
49
3.9
Current Ratio of SpiceJet Airways
50
3.10
Quick Ratio - SpiceJet Airways
51
3.11
Stock Turnover Ratio - SpiceJet Airways
52
31.2
Fixed Assets Ratio - SpiceJet Airways
53
3.13
Debt Equity Ratio - SpiceJet Airways
54
3.14
Gross Profit Ratio - SpiceJet Airways
55
3.15
Net Profit Ratio - SpiceJet Airways
56
3.16
Earnings Per Share - SpiceJet Airways
57
8
Chapter 1
INTRODUCTION
9
1.1 Introduction
Indian, formerly Indian Airlines (Indian Airlines Limited from 1993 and Indian Airlines
Corporation from 1953 to 1993) was a major Indian airline based in Delhi and focused
primarily on domestic routes, along with several international services to neighbouring
countries in Asia. It was state-owned, and was administered by the Ministry of Civil
Aviation. It was one of the two flag carriers of India, the other being Air India. The airline
officially merged into Air India on 27 February 2011.
The airline was set up under the Air Corporations Act, 1953 with an initial capital of Rs.32
million and started operations on 1 August 1953. It was established after legislation came into
force to nationalise the entire airline industry in India. Two new national airlines were to be
formed along the same lines as happened in the United Kingdom with British Overseas
Airways Corporation (BOAC) and British European Airways (BEA). Air India took over
international routes and Indian Airlines Corporation (IAC) took over the domestic and
regional routes.
1.2 Players in the Industry
India is one of the fastest growing air market in the World. With new foreign policy of
investment in air market, lots of new airlines have been started their business in India. Lots of
private airlines increased their presence in India by ordering new fleets.
1. Jet Airways (Challenger)
It was established in 1st April, 1992 and started operations in 5th May, 1993. Its main hub is
Chhatrapati Shivaji International Airport, Mumbai in Maharashtra. Its revenue as per 2012
figure is US$2.6 Billion and profit was US$ -220 million. It is also one of the largest
employers in Airline sector with 13945 employees. It has total 100 fleet in current service and
ordered another 86 new fleet.
2. Kingfisher Airlines (No Longer in Business)
Kingfisher Airlines is second largest airline of India with fleet 64 and orders 77 fleets. It was
founded on 2003 by Vijay Mallya’s group company Kingfisher and they have ceased
operation on October, 2012 and licence revoked in February, 2013. Their parent company is
United Breweries Group and headquarters at “The Qube, Mumbai in Maharashtra”
10
3. The National Aviation Company of India (NACIL) (Follower)
NACIL is the aviation company of India which operates India’s oldest airlines i.e. Indian
Airlines, Air India and Air India Express. Due to recent financial crisis of the company and
they have got bail out from the Government of India to continue their operations. It operates
in key cities / metro cities of India such as Mumbai, Hyderabad, Pune, Kolkata, Chennai and
others.
4. Air India (Follower)
Air India is oldest airline company in India with presence in all major as well as small cities
of India. They cover major, short as well as medium level destination in India and around the
World.
5. Air India Express (Follower)
Air India Express is another Government of India enterprise under the subsidiary of Air India
which is based in Mumbai, Maharashtra. They have started their operations on 29th April,
2005 and total 1, 76,549 flew in the first six months.
6. IndiGo Airlines (Leader)
IndiGo is one of the fastest growing private airline companies in India. This new budget
airline is wholly owned by InterGlobe Enterprises and operates in major destinations of India
such as Kolkata, Chennai, Mumbai, Bangalore (Bengaluru) and New Delhi.
It has fleet size of more than 22 aircraft more than 5 million average passengers use this
budget airline.
7. SpiceJet (Challenger)
SpiceJet is another budget airline company in India with market share of less than 20 percent.
It operates in key cities of India like Pune, Chennai, Ahmedabad, and Goa and so on.
Previously, it was owned by NRI group and recently it was acquired by media king Kalanithi
Maran with Rs.750 Cr.
11
8. GoAir (Follower)
GoAir is the one of the most popular budget airline company in India with presence in most
of important destinations in India. It is owned by Bombay Dyeing and Britannia Industries.
GoAir started their operations in June, 2004 as low fare carrier.
9. Paramount Airways (Follower)
Paramount Airways another key player in domestic air market in India. They becomes first
key player in 2005 to use Brazilian Embraer aircraft. It was founded in October month of
2005 year. They have services in major cities of India such as Coimbatore, Chennai, Kochi,
Madurai, Bangalore and Thiruvananthapuram.
10. MDLR Airlines (Follower)
MDLR is unknown name at national level in India. They have very much less market share in
India but they are growing at good rate. They have three 70 seating capacity aircraft and
provide regular flights to Ranchi, Kolkata, Chandigarh, Dehradun, Delhi and Dharmsala.
1.3 Market Share of the Industry 2013
Figure: 1.1 Market Share of the Industry
Source:
httpcentreforaviation.comimagesstories2013may13Indian_Domestic_Market_Share_by_Airli
ne_Mar_13.png
Top 3 Players in this industry are:
1. IndiGo
2. Jet Airways
3. Spice Jet
12
1.4 Types of Business
Service Industry:
In economics, a service is an intangible commodity. That is, services are an example of
intangible economic goods.
Service provision is often an economic activity where the buyer does not generally, except by
exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a
service, if priced, are held to be self-evident in the buyer's willingness to pay for it.
Service in the airline industry has made headlines for years, but rarely due to its excellence.
Traveling by air has traditionally been one of the more stressful modes of transit, with long
periods spent waiting, little personal space, mandatory security checks, and the odd erratic
scheduling change with little to no advance warning.
A firm should be able to increase customer satisfaction by improving its customer service,
ultimately leading to better firm performance.
The relationship between service and satisfaction has received considerable interest among
the customers. In between airline service quality and customer satisfaction examined the link
between customer service and customer satisfaction using data from the airline industry.
They found that three measures of customer service – mishandled baggage, ticket over-sales,
and on-time performance, were all positively related to customer complaints, their measure
for customer satisfaction. In particular, reducing mishandled baggage and ticket over-sales
(leading to fewer bumped passengers) and increasing on-time flight performance, all
contributed to fewer customer
Hospitality:
Hospitality is the relationship between the guest and the host, or the act or practice of being
hospitable. This includes the reception and entertainment of guests, visitors, or strangers.
These sectors include event planning, food & beverage, lodging and recreational tourism. All
of these separate yet interconnected segments of the hospitality industry present opportunities
to be part of a profession that delivers quality service.
13
1.5 Nature of Industry
When it comes to flying, seat classes on a commercial airline can make a difference.
Generally three types of seat classes exist: first class, business class and economy class.
Business class is a step above economy class and a step below first class.
Features
Not all airlines offer business class. In fact, business class is mostly found on larger airplanes
or airbuses that take international flights. Features of business class include a few more
inches of space than economy seating as well as individual laptop power ports and personal
TV screens. On most airlines, business class seating offers the ability to recline seats or lie
seats flat into a bed. As a business class passenger, you are usually offered special amenities
such as higher class food and wine and sleep masks.
Luxury vs. Productivity
While first class and business class are very similar, the main difference is that first class
offers more luxury amenities whereas business class is catered more toward providing
business travellers with a comfortable area to be productive. Complimentary champagne and
glassware is just one example of extras that are sometimes offered in first class and not in
business class.
Considerations
While business class offers more benefits than economy seating, it is also more expensive. At
the same time, it is less expensive than first class. Another point to take into consideration is
that fewer business class and first class seats are available as compared to economy class.
Commercial and corporate aviation consultancy
Atlantic Bridge Aviation offers its expertise in a number of key segments of the aviation
sector including airline start-up, development and oversight, airport development and
management, aircraft sales, management and leasing. Specific individual skill sets and years
of specialised industry experience are used to bring our clients real-world solutions in an ever
challenging environment.
1.6 Type of Market
It is a Monopolistic competition where there is imperfect competition such that many
producers sell products that are differentiated from one another (e.g. by branding or quality)
and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices
14
charged by its rivals as given and ignores the impact of its own prices on the prices of other
firms. In the presence of coercive government, monopolistic competition will fall into
government-granted monopoly. Unlike perfect competition, the firm maintains spare
capacity. Models of monopolistic competition are often used to model industries. Here in this
study we have shown the competition between Jet Airways, SpiceJet & Indigo Airlines. Each
company here tries to serve the same service to their customers in a better manner by giving
customers some discounts, providing more hospitality services, speed transit, fast check in
(where customers used to suffer from 5/6 hours of waiting before the departure at the
airports), etc.
Airlines take passengers across the country and across the world. They service business
passengers, tourists and leisure travellers, as well as commercial enterprises. Airlines are
structured to service the types of passengers and products they transport. The structure of the
industry is based on the geography, the people, the types of products that the airline is in
business to transport and the revenue potential.
International
Airlines must have stringent licensing and approvals in place to travel across borders. In the
United States, an airline must obtain approval from the Department of Transportation (DOT)
and the Federal Aviation Authority (FAA) to cross U.S. borders. The airline must also
receive permissions, licenses and approvals to fly and conduct transportation business from
the governing agencies of the respective country where they plan to land. Obtaining
international licenses and permissions to market international air transportation services can
take years for a new or non-established carrier to achieve, if at all.
National
In the United States, an airline must receive approvals and pass testing to transport
passengers to and from states, coast to coast. Once approved, an airline has “national” status.
The FAA and DOT are the governing bodies to grant licensures and approvals. The airline
must meet a comprehensive base of requirements, including passenger seating and safety, to
become a national airline. In addition, the airline must obtain, license and purchase “gates”
from the airports that it plans to arrive and depart from. Typically, a national airline must
15
have airplanes that seat between 100 to 150 people and generate revenue of $100 million to
$1 billion annually to qualify as “national” airlines, and market themselves as such.
Regional
Airlines with revenues less than $100 million are categorized as regional airlines. Local
airlines are often developed to offset travel and provide alternatives to major carriers. Major
airlines will often acquire regional carriers or set up partnerships with other airlines to
complete routes, thus servicing cities and markets outside of their major hubs.
Commercial Cargo
Transporting cargo is a major revenue source for airlines. Companies, such as FedEx and
United Parcel Service, rely on air transportation to provide overnight delivery services to
businesses and consumers. In addition, cargo capabilities are important revenue sources for
airlines. Companies rely on airplanes to transport everything, from imported flowers, parts
and supplies, to animals. Companies develop and market their facilities for cold storage,
customs inspections, FDA and USDA certification to market these additional services to
commercial enterprises for importing and exporting products, perishables and even livestock.
1.7 Growth in International Scenario
The International Air Transport Association (IATA) has revised its industry financial outlook
for 2013, and predicted an even healthier 2014, as the global economy recovers.
For 2013 airlines are expected to return a global net profit of US$12.9 billion. This is
expected to improve to a net profit of US$19.7 billion in 2014. Both are improvements on the
September forecast which anticipated an industry net profit of US$11.7 billion in 2013
increasing to US$16.4 billion in 2014.
The upward revision reflects lower jet fuel prices over the forecast period as well as
improvements to the industry’s structure and efficiency already visible in quarterly results
this year. Passenger markets continue to outperform the cargo business which remains
stagnant both on volumes and revenues.
IATA expects 2014 to be a second consecutive year of strengthening profitability (beginning
from 2012 when airlines posted a net profit of US$7.4 billion). Industry net profit margins,
16
however, remain weak at 1.1% of revenues in 2012, 1.8% in 2013 and 2.6% in 2014. Within
this aggregate forecast for the entire industry, performance of individual airlines and regions
will vary considerably.
The anticipated US$19.7 billion profit in 2014 would come on projected revenues of US$743
billion. This would be the largest absolute profit for the airline industry in history,
outstripping the US$19.2 billion net profit that the industry returned in 2010 But IATA noted
that 2010 revenues were far lower at US$579 billion. The net profit margin in 2010 was
3.3%, some 0.7 percentage points higher than the 2.6% expected for 2014.
Figure: 1.2 worldwide growth in air travel and Business confidence
Source: http://www.moodiereport.com/document.php?doc_id=37741
“Overall, the industry’s fortunes are moving in the right direction,” said Tony Tyler, IATA’s
Director General and CEO. “Jet fuel prices remain high, but below their 2012 peak.
Passenger demand is expanding in the 5-6% range—in line with the historical trend.
Efficiencies gained through mergers and joint ventures are delivering value to both
passengers and shareholders. And product innovations are growing ancillary revenues.”
“We must temper our optimism with an appropriate dose of caution. It’s a tough environment
in which to run an airline. Competition is intense and yields are deteriorating. Cargo volumes
haven’t grown since 2010 and cargo revenues are back at 2007 levels. The passenger
17
business is expanding more robustly. Some airlines will out-perform our estimates and others
will under-perform. But, on average, airlines will only make a net profit of about US$5.94
per passenger in 2014,” said Tyler.
Figure: 1.3 Revenue per departing passenger
Source: http://www.moodiereport.com/document.php?doc_id=37741
Forecast drivers
Economic Cycle: Global GDP is expected to expand by +2.0% in 2013 and +2.7% in 2014.
This is unchanged from IATA’s September forecast. The general trend of improvement in
developed economies – particularly for the US – and relatively disappointing growth in the
BRICS countries is expected to continue into 2014.
Passenger Demand: Passenger demand is robust and passenger numbers are expected to
reach 3.1 billion in 2013 and rise by +6% to 3.3 billion in 2014. Nonetheless, competition
remains intense and industry-wide average yields are expected to fall by -0.2% in 2013 and
by -0.6% in 2014.
Ancillary Revenues: Ancillary revenues are a key driver of improved financial performance,
noted IATA. Worldwide ancillary revenues have risen to an estimated US$13 per passenger.
Airlines are underpinning their profitability with innovative products and services. On a per
18
passenger basis, ancillary revenues are greater than the US$5.94 per passenger profit that
airlines are expected to earn in 2014. Without ancillaries, the industry would be making a loss
from its core seat and cargo products, said IATA.
Improved Industry Structure: Improved industry structure and efficiency gains should
allow the industry to leverage the improving economic cycle to boost profitability
significantly in 2014, IATA noted. Airlines in North America, where consolidation has been
the furthest, are expected to generate the largest profits and best margins in both 2013 and
2014. European airlines, still suffering from the weak European economy, are expected to see
some improvements in profitability from successful joint ventures over the North Atlantic.
Fuel: A slight reduction in jet fuel prices is a major driver of the improved outlook.
Following easing of tensions in Iran, oil prices are expected to see a slight downward
movement from US$108.2/barrel (Brent) in 2013 to US$104.5/barrel in 2014. This is
US$0.80 and US$0.50 less per barrel than previously forecast in September for 2013 and
2014 respectively. This positive trend will be amplified by a reduction in the crack spread of
jet fuel resulting in savings of US$2 billion in 2013 (to US$211 billion) and US$5 billion in
2014 (to US$210 billion) for the overall industry fuel bill compared to the September
forecast.
Figure: 1.4 Airline Net post- Tax profit Margins
Source: http://www.moodiereport.com/document.php?doc_id=37741
19
1.8 Pricing Policies in Airline Industry
The modern airline industry has gone through numerous changes since the late '70s. These
changes have impacted the airlines' pricing strategies and the airlines' revenues.
Since the deregulation in 1978, U.S. airlines have been employing a model referred to as
yield management or dynamic pricing. This model allows airlines to manage the seat capacity
of each airplane while obtaining the highest price for each seat. Yield management is a
complex methodology based on availability, customer demand and competitor pricing. As a
result, pricing of individual seats is constantly in flux.
Although yield management is still the primary method for pricing individual seats, four
major outside forces have forced the airlines to find other ways to manage their pricing
strategies and increase their revenues.
Deregulation
The 1978 Airline Deregulation Act shifted control of the airlines from government control to
a more free-market based model. The modernization of the industry provided airlines with
more flexibility to run their businesses as they saw fit, and resulted in many operational
changes. Specific developments included airlines adding more routes to under-served areas,
the development of the hub-and-spoke system, the introduction of newer airlines and lower
pricing. With lower prices, more customers took to the skies, which further helped to grow
the industry.
Online Flight Aggregators
In the 1990s, the Internet became part of our daily lives. We also saw the rapid expanse of
online travel websites and flight aggregators. Sites like Priceline and Orbitz bought
discounted or unused seats from the airlines and then sold them to the public at cheaper
prices. Although the companies had different business models (Orbitz allows customers to
choose specific flights and Priceline.com patented the 'name your price' business model
where customers name the price they are willing to pay), they were all successful. Airlines
benefited because in addition to employing the traditional yield management pricing strategy,
airlines could guarantee revenue while purging their inventory of unused seats.
20
The Rise of Low-Cost/Short Haul and Regional Carriers
In the 1990s and early 2000s, low-cost regional carriers like Southwest Airlines came to
prominence. While some employed the traditional pricing strategy of dynamic pricing, others
changed their business model completely. Southwest provides shorter trips (point-to-pointmethod), offers one seating class, smaller planes and fixed pricing, which has resulted in
lower prices and more customers.
A La Carte Services
The gradual rise of oil and gas prices from 2002 until the present has dramatically cut into
airlines' revenues. In addition to ticket prices, airlines are imposing fees as part of the pricing
strategy to increase profits. What started as fees for upgrades has expanded into fees for
meals, baggage, seating assignments and more. And, these fees make a difference. Airlines
are expecting up to $400 million in revenues from a la carte pricing alone.
1.9 Branding of companies in a way to attract their customers
The American Marketing Association (AMA) defines a brand as a “name, term, sign,
symbol or design or a combination of them intended to identify the goods and services of one
seller or a group of sellers and to differentiate them from those of other sellers”
A brand is essentially a seller’s promise to consistency deliver a specific set of features,
benefits and service to the buyers. Best brands convey a warranty of quality.
Branding is not a new concept. It has been around for countries as a means to distinguish the
airline services from one service provider to another. Brands today play a number of vital
roles that improve the customer’s lives and help organizations fulfil their objectives.
There are various techniques, in which each and every airline tries to attract the customers
which are as follows,
Some try to attract with low prices and some try to pinch customers with values and beliefs
by giving them different variety of facilities such as different types of meals, movie screens,
extra luggage, and care systems for various passengers (infants, expectant mothers,
handicapped, etc.)
21
1. Jet Airways
It concentrates more on facilities provided by them rather than the price at which they offer.
They target the upper middle class people and above and have succeeded well in that since
many years. It has considered being in the luxurious category of the airline service offered in
the Indian Airline Industry.
Figure: 1. 5 Jet Screen facility in flights
Watching movies and videos is one of the key factors for keeping the passengers entertained
in a long journey, hence jet has concentrated nicely by adding this feature for personal
watching of movies or reading e-books as well.
Figure 1.6 A Gist of café jet offers during the transit
22
2. IndiGo Airlines
This airline comprises into everything and has emerged beautifully into the Indian Airline
Industry, they do price a bit cheaper than the luxurious airlines and do try to give the service
of those other competitors. They are trying to maintain a good balance between the service
quality and the price that they ask from their customers. So far, people have enjoyed the
various facilities offered by them which is trip packages, Sky mart for buying various
commodities at duty free prices and even more like movie screens behind ones seat and
healthy hygienic meals.
Figure: 1.7 Different business packages prices
Figure: 1.8 Display of particular vacation package by IndiGo airlines
23
3. SpiceJet Airlines
This airline also has concentrated more on their pricing strategies by offering the customers
less price fares and not concentrating much on the luxurious services provided by the other
flight services. Their main aim is to get customers who are not willing to pay more prices to
travel by air. They are direct in what they want is money and they ask for a limited money in
comparison to the other flight and also give limited and less service quality in comparison to
the other airlines. They have a segregated types of discounts to different customers travelling
for a specific reason. Ex. 10% discount to students.
This airline offers a feature of adding 500Rs extra on the fare and carrying more 10Kgs than
a normal passenger is allowed to carry. This type of offer always tempts the customers, hence
we can say that Spicejet is a bit of average with their services and serves well if you pay
more. So a customer has an option whether he wants those services or not and it may suit him
according to his needs or no.
Figure: 1.9 various dining facilities available
SpiceJet have added delicious changes to the way you fly. Now, custom choose your meal
from our extensive inflight menu and save up to 25% while pre-booking. Choose from 4
delicious vegetarian or 4 flavoursome non-vegetarian dishes. So be it a scrumptious
breakfast, a filling lunch, a light snack or a perfect dinner, simply pre-book your meal while
booking your flight.
You may also add-on your meal through the 'Manage My Booking' option on spicejet.com, if
you have already booked your ticket
24
Figure: 1.10 Availability of discounts for students
Their main aim is to get customers who are not willing to pay more prices to travel by air.
They are direct in what they want is money and they ask for a limited money in comparison
to the other flight and also give limited and less service quality in comparison to the other
airlines. They have a segregated types of discounts to different customers travelling for a
specific reason. Ex. 10% discount to students.
Figure: 1.11 touring packaging trips with SpiceJet
People now a days find a way to burst out their stress levels with a help of small trips with
their near ones which consists of their families, friends and colleagues. A good trip always
needs planning but people fail to plan because of their busy schedule, hence SpiceJet helps
groups to make and execute the plan in a systematic manner and giving them flexible
schedules. Hence, there is no much of thinking for the group to make a lovely trip.
25
Chapter 2
PROMOTERS AND
MANAGEMENT ETHOS
26
2.1 Spicejet Airlines
2.1.1 Promoter:
SpiceJet is an Indian low-cost airline owned by the Sun Group of India. It has its registered
office in Chennai, Tamil Nadu, and a corporate office in Gurgaon, Haryana. It began service
in May 2005, and by 2012, it was India's third largest airline in terms of market share, ahead
of Air India, Kingfisher Airlines, and GoAir.
2.1.2 Managing Director:
Mr S. Natrajhen of Spicejet Airlines has been the Managing Director of SpiceJet Limited
since September 2012. Mr Natrajhen served as the Chief Operating Officer of SpiceJet
Limited from November 2010 to November 2011. Mr Natrajhen served as the Chief Financial
Officer of Sun TV Network Ltd. until November 12, 2010. He was associated with Sun TV
Network Ltd. since 1993 and was responsible for the accounting and financial functions of
Sun TV Network Ltd. as well as execution of strategic initiatives. His functions also include
liaising with various governmental organizations and authorities. Prior to joining Sun TV
Network Ltd., Mr Natrajhen worked with Kungumam Publications Private Limited for 12
years in the finance department. Mr Natrajhen has been an Executive Director at SpiceJet
Limited since November 11, 2011. Mr Natrajhen holds a Bachelor’s Degree in Commerce
from the University of Madras with distinction.
2.1.3 Board of Directors:
Promoter Directors (Non- Executive)

Mr. KalanithiMaran, Chairman

Mrs.KaveryKalanithi
Managing Director

Mr. S. Natrajhen
Independent & Non-Executive Directors

Mr. J. Ravindran

Mr. M. K. Harinarayanan

Mr. Nicholas Martin Paul

Mr. R. Ravivenkatesh (appointed on April 19, 2012)
27
2.1.4 Corporate Governance:
Definition:
"Corporate governance is maximizing the shareholder value in a corporation while ensuring
fairness to all stakeholders, customers, employees, investors, vendors, the government and
the society-at-large. Corporate governance is about transparency and raising the trust and
confidence of stakeholders in the way the company is run. It is about owners and the
managers operating as the trustees on behalf of every shareholder - large or small." - Shri
N.R. Narayana Murthy, Chief Mentor, Infosys Limited.
Table: 2.1 Details of attendance, other directorships, committee
memberships/chairmanships of Directors of Spicejet
Source: Annual Report 2012-13 pg. 12
The four independent directors are regularly participating in the meetings for the decision
making process. Hence, we can say that all the decisions taken by the company are taken in
the best interest of all the stakeholders.
28
2.1.4.1 Committees formed under corporate governance for smooth running
Table: 2.2 Committees formed in Spicejet with details of purpose and Members
Name of the Committee
Purpose
Members
Audit Committee
The primary objective of the Mr. J. Ravindran
Committee is to monitor and Mr. Nicholas Martin Paul
provide
an
effective Mr. M. K. Harinarayanan
supervision of the financial
reporting process, to ensure
accurate
and
timely
disclosures, with the highest
levels
of
integrity
Transparency,
and
quality
of
financial reporting.
Compensation Committee
Compensation
Committee Mr. M. K. Harinarayanan
which
formulates,
administers and implements
Mr. J. Ravindran
Mr. Nicholas Martin Paul
the Employee Stock Option
Scheme
and
also
recommends to the Board in
the
matter
related
to
appointment/re-appointment
of managerial person
Investor Relations Committee
The Committee focuses on Mr. J. Ravindran
investors’ relation and the Mr. M. K. Harinarayanan
envisaged
role
include, Mr. Nicholas Martin Paul
inter-alia, transfer of shares,
redressal of complaints and
other
investors’
matters.
Source: Annual Report 2012-13
29
related
2.1.5 Corporate Social Responsibility:
Definition:
Corporate Social Responsibility (CSR) is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large.’
It basically says that the company should consider the impact of its action on society on
social, economic and environmental parameters.
Environmental Initiative by using less paper:
The company sends official documents to their shareholders electronically as part of its
Green Initiatives in corporate governance. The Company is also concerned about the
environment and utilizes natural resources in a sustainable way. To support the ‘Green
Initiative’ in the Corporate Governance taken by the MCA, to contribute towards greener
environment and to receive all documents, notices, including Annual Reports and other
communications of the Company, members should register their e-mail addresses with M/s.
Karvy Computershare Private Limited (Registrar and Share Transfer Agent), if shares are
held in physical mode or with their depository participants, if the holding is in electronic
mode.
30
2.2 Jet Airways
2.2.1 Chairman (Promoter)
Naresh Goyal, the founder Chairman of Jet Airways, India’s premier airline, has over 4
decades of experience in the Civil Aviation industry.
In addition to his responsibilities at Jet Airways, Mr. Goyal was also appointed Chairman of
JetLite (India) Limited in 2007, following the acquisition and subsequent re-branding of the
erstwhile Sahara Airlines Limited.
After graduating in Commerce in 1967, Mr. Goyal joined the travel business with the GSA
for Lebanese International Airlines. From 1967 to 1974, he underwent extensive training in
all facets of the travel business through his association with several foreign airlines. He also
travelled overseas extensively on business during this period.
With the experience, expertise and technical know-how thereby acquired, in May 1974, Mr.
Naresh Goyal founded JetAir (Private) Limited with the objective of providing Sales and
Marketing representation to foreign airlines in India. He was involved in the development of
traffic patterns, route structures, operational economics and flight scheduling, all of which
has made him an authority in the world of aviation and travel.
In 1991, as part of the ongoing diversification of his business activities, Mr. Goyal took
advantage of the opening of the Indian economy and the enunciation of the Open Skies
Policy by the Government of India to set up Jet Airways for the operation of scheduled air
services on domestic sectors in India. Jet Airways commenced commercial operations on
May 05, 1993.
31
2.2.2 Management Team
Table: 2.3 showing the management team
Source: Annual Report 2012-13
Table: 2.4 Meetings attended by the Board of Directors
Source: Annual Report 2012-13
The table shows that there is good involvement in the decision making process as the
attendance level of the Annual General Meetings is high, this boosts the organisation from
the top of the management to the flow downwards.
32
2.2.3 Committees of Directors formed under corporate governance.
Table: 2.5 showing different committees for corporate governance
Name of Committee
Purpose
Members
Audit Committee of the The Audit Committee oversees Mr. Aman Mehta
Board
the existence of an effective Mr. Victoriano P. Dungca
internal control systems so as to Mr. JavedAkhtar
act
as
a
link
between
the Mr. Ali Ghandour
Statutory, Internal Auditors and
Mr. Yash Raj Chopra
the Board.
Remuneration
Compensation
and The
Remuneration
Compensation
and Mr. Aman Mehta Chairman
Committee Mr. Victoriano P. Dungca
reviews and recommends the Mr. JavedAkhtar
remuneration packages of the
Mr. Ali Ghandour
Managerial Personnel including Mr. I. M. Kadri
that of the Senior Management
and
formulates
broad
policy
framework for
Managerial remuneration.
Investors Grievance and The Company has constituted an Mr. I. M. Kadri Chairman
Share Transfer
Investors Grievance and Share Mr. Javed Ahktar
Transfer
Committee
to Mr. Aman Mehta1
specifically
focus
the Mr. GaurangShetty
on
redressing of the Shareholders’ /
Investors’
complaints
and
grievances
and
the
to
transfers etc. of shares.
Source: Annual Report of 2012-13
33
note
2.2.4 Corporate Social Responsibility
Areas in which Jet airways has stressed on:
1. Children
2. Disaster Relief
3. Healthcare
4. Women
CSR activities in brief
Since the year 1997, the Company has been running its in-flight collection programme
‘Magic Box’ in association with Save the Children India (STCI). This fund-raising
programme for STCI is unique to the Company and is implemented on all its flights in the
domestic network, thereby allowing its passengers to participate in this noble cause. Since its
introduction in January 1997, the charity collection contributes close to Rupees 1cr each year.
As in previous years, the Company organized “Flights of Fantasy”, where underprivileged
children and children with special needs are taken on specially organized flights and
introduced to the world of aviation.
This year, as in past years, our employees participated in the Standard Chartered Mumbai
Marathon that raises funds for various causes. The number of employees participating has
been increasing each year.
Community Services
Jet Airways commenced its operations in May 1993. It is an airline that has pioneered
concepts like Through-Check-in, City Check-in, Web and Kiosk check-in, SMS check-in,
automated tickets at travel agency locations, e-ticketing, Jet Mobile and the unique five-tier
frequent flier programme Jet Privilege in India.
As an Indian Corporate Body, Jet Airways also recognises its responsibility to the Society
and Nation. Consequently, in 1998 Jet Airways launched its Yellow Rose campaign. People
are like roses, and like the flower they require friendship, warmth and caring. Jet Airways has
striven not only to extend these qualities to its passengers, but also to the country in times of
crises or calamities.
34
Blood Donation Camp in association with Prathama Blood Centre in Ahmedabad.
Relief efforts in the aftermath of the earthquake in Jammu & Kashmir.
Relief efforts in the aftermath of the Tsunami &Relief Efforts in the Aftermath of the Gujarat
Earthquake.
Magic Box and Contribution to Osmanabad and Kargil.
Eco-friendly Napkin Cords on our Premiere Class Long-haul service.
Magic Box -Jet Airways' In-flight Collection Programme.
Jet Airways, India’s premier international airline, in a warm gesture, ushered in the festive
season amongst 300 children of NGO ‘Save the Children India’. The airline celebrated
Christmas with a range of fun-filled activities for the students from marginalized sections and
those with special needs. The event kicked off with a cake cutting ceremony courtesy Sky
Gourmet, who sponsored a Christmas themed cake. The airline’s Cabin Crew participated in
the same along with the students, which made for an interesting photo opportunity. Organised
by Jet Airways, this event held every quarter, is part of the airline’s CSR initiative focusing
on causes relating to child development and education in the community, in association with
NGO ‘Save the Children India’.
Relief Efforts in the Aftermath of the Gujarat Earthquake
The January 2001 earthquake in Gujarat was a catastrophe of enormous proportions. The
devastation besides leaving thousands dead or injured also uprooted many. Jet Airways set up
750 temporary shelters for over 700 families of Ramvav village in RaparTaluka of Kutch
district in the quake-devastated Gujarat as part of a massive rehabilitation programme.
Jet Airways and ATR together committed nearly Rs.5 million for this project.
Ramvav, located 350 km north-west to the State capital Ahmedabad and a further 115 km
from Bhuj Airport, has a total population 5,000 consisting of Ahire, Jadeja, Rabari, Harijan,
Kholi, Pawa, Wagri and Darbari communities. The severely affected village reported over 50
calamities during the January 26 earthquake.
A joint team comprising of experts from Jet Airways and NHSS toured several villages in the
state in the immediate aftermath of the quake before finally deciding on Ramvav - a remote
village along the Rann of Kutch - for rehabilitation.
35
Relief efforts in the aftermath of the Tsunami
The trail of death and destruction that the Tsunami Disaster left across South and South East
Asia on December 26, 2004 is unparalleled in the annals of modern world history. In India,
Tamil Nadu, Pondicherry, Andhra Pradesh, Kerala and the Andaman & Nicobar Islands,
which bore the brunt of the killer waves, thousands have died and still many others have been
uprooted from homes and livelihood.
In the immediate aftermath of the tragedy Jet Airways has operated special relief flights to
Port Blair from Chennai and Kolkata to enable speedy evacuation of stranded residents and
tourists.
In addition to the ongoing relief efforts, to enable evacuation of the needy residents of the
Andaman & Nicobar Islands to the mainland, Jet Airways offered a 50 per cent rebate on 30
seats in the Economy Class of its daily flight from Port Blair to Chennai.
Over 1,600 stranded residents and tourists on the Islands were evacuated from Port Blair on
the 18 flights, which Jet Airways operated from Port Blair to Chennai and Kolkata from
December 26 until December 31, 2004.
Additionally, Jet Airways is uplifting 2,500 kilos of relief cargo every day, comprising of
packaged water, clothing material, foodstuffs and medical supplies for urgent despatch to
Port Blair and Colombo in Sri Lanka from Chennai. Over 140,000 kilos of relief cargo sent
by Governmental agencies and recognised voluntary agencies in different parts of India have
already been flown to the Tsunami-ravaged archipelago and the Island Nation of Sri Lanka.
36
2.3 Indigo Airlines
2.3.1 Setup
IndiGo was set up in early 2006 by Rahul Bhatia of InterGlobe Enterprises and Rakesh S
Gangwal, a United States-based NRI. InterGlobe holds 51.12% stake in IndiGo and 48% is
held by Gangwal's Virginia-based company Caelum Investments. IndiGo placed a firm order
for 100 Airbus A320-200 aircraft in June 2005 with plans to commence operations in mid2006. IndiGo took delivery of its first Airbus A320-200 aircraft on 28 July 2006, nearly one
year after placing the order, and commenced operations on 4 August 2006 with a service
from New Delhi to Imphal via Guwahati.Rahul Bhatia and his IndiGo Airlines like to keep a
low profile, yet other domestic airlines in India look at them with deep mistrust. Some of it
has to do with what happened in mid-August last year, when Bhatia broke ranks with the rest.
All the private airlines had decided to take on the government on high fuel taxes with a
decision to stop flying for a day, and a threat of an indefinite suspension if demands were not
met. Full service airline chiefs Naresh Goyal and Vijay Mallya led the move, saying that the
airline business was becoming unviable in India.
Less than 24 hours after the stormy meeting, IndiGo backed out and started accepting
bookings for the day of the strike. SpiceJet followed a day later, and the others were left with
little option. The strike fizzled out and taxes remain unchanged. A year later, it’s clear why
IndiGo was reluctant to ground its fleet.
2.3.2 Promoter
Mr Rakesh Gangwal was born in 1953. He received the Bachelor of Technology degree in
Mechanical Engineering from the Indian Institute of Technology Kanpur and Master of
Business Administration degree from the Wharton School of Business of the University of
Pennsylvania.
Prior to joining US Airways, he served as executive vice president for Air France, beginning
in the November, 1994. His Association with the airline industry began in September, 1980,
when as an associate of Booz Allen & Hamilton, Inc, he worked closely with United Airlines.
In 1984, he joined United as Manager-strategic-planning. He held a series of positions at
United. Previously, Mr Gangwal had been a financial analyst in the product development
group of Ford Motor Co. and a production and planning engineer with Philips India Ltd.
37
Mr Gangwal has served on the Board of Advisers of the University of Colorado (Denver), the
Board of Trustees of Providence-St. Mel School (Chicago), the Board of Directors of the
Airline Tariff Publishing Co. and Board of Trustees of the Alexian Brothers Medical Centre
(Elk Grove, III, USA).Mr Gangwal is conferred with the Distinguished Alumnus Award of
the Indian Institute of Technology Kanpur
Though smart, Mr. Gangwal is known by many for his stern and dictatorial management
style.
2.3.3 Management Team
Mr. Aditya Ghosh (President)
Mr. RiyazPeermohamed (Chief Financial Officer)
Mr. Sanjay Kumar (Chief Financial Officer)
Mr. SanjeevRamdas (Executive Vice President Customer Services & Operations Control)
Mr. S C Gupta (Vice President Engineering)
Captain SaleezZaheer (Vice President Special Projects)
Captain AshimMittra (Vice President Flight Operations)
Mr. DhruvRebbapragada (Chief of Flight Safety)
Ms.Suman Chopra (Vice President Inflight Service)
Mr. Ashish Agarwal (Vice President IT)
Ms.SunitaShrivastava (Vice President OCC & Dispatch)
Mr. VikramChona (Vice President Corporate Affairs)
Mr. Sukhjit S. Pasricha (Vice President Human Resource)
Mr. AlphonsoDass (Vice President Airport Operations & Customers Services)
Ms.Shalini Singh (Director Administration)
Ms.Summi Sharma (Vice President Corporate Learning & Development, ifly)
Mr. AnoopKhatry (Associate General Counsel)
2.3.4 Corporate Social Responsibilities
InterGlobe Foundation has been set up to support and promote environment friendly business
practices, greenbiz, reduction in carbon footprint and preservation of environment. The
Foundation will generate awareness amongst various stakeholders towards enhanced
conservation of nature and natural resources besides executing other significant community
impacting projects.
38
InterGlobe in partnership with Give India
This program empowers the employee to choose and support a cause in line with individual
values. The program is based on a philanthropic exchange concept that connects volunteer
donor employees with NGOs that have undergone due diligence for transparency and
accountability. Employees can choose from a range of causes such as Children, Education,
Employment, Disability, Human Rights and Women issues.
Blood Donation Camps
In an emphatic gesture to help medical causes, InterGlobe organizes regular blood donation
camps. These camps witness huge response from employees and have been quite successful
with contributions to organizations like \'The Rotary Blood Bank\'.
Disaster Relief
Time and again, our employees have reached out to the needy during natural calamities by
providing monetary and non-monetary support towards relief operations. About 1,100
employees contributed Rs.8 lakh towards the Prime Minister\'s Relief Fund to support relief
operations for people affected by the floods in Bihar. Employees donated other items as well
to \'Doctors For You\', a non-profit trust that has the patronage of Dr. A. P. J. Abdul Kalam
and Sri Sri Ravi Shankar.
Reduce, Reuse and Recycle
InterGlobe supports Goonj‚ an NGO, to help recycle waste paper as a resource for rural India.
Waste paper is collected on a weekly basis from all InterGlobe offices located in Gurgaon
and sent to Goonj for recycling. This initiative supports the environment by encouraging
recycling and generates employment for those involved in making products out of waste
paper. Goonj has been credited with recognitions such as Indian NGO of the Year 2008 and
Change Makers Innovation Award 2004.
Literacy through Computers
InterGlobe donates computers to identified NGOs with the intent of spreading computer
literacy to the lesser privileged in society. This initiative supports the overall community
program of these NGOs, whose volunteers intend to educate children on the basics of
computer science.
39
Awareness Campaigns
A conscious attempt is made to create awareness on various social issues and how employees
as individuals can make a difference. Regular awareness campaigns focus on concerns such
as thalassemia, global warming and conservation of paper.
Active Community Membership
InterGlobe encourages its young workforce to contribute to society by volunteering for a
variety of causes such as global warming and wildlife conservation. The company recognizes
good work of these employees through the Active Community Member award.
40
Chapter 3
FINANCIALS
41
3.1 Financials of Jet Airways
Short Term ratios
1. Current Ratio =
Current Assets
Current Liabilities
Table: 3.1 Current Ratios of Jet Airways
2012
2013
0.39
0.45
Figure: 3.1 Current Ratios of Jet Airways
Current Ratio - Jet Airways
0.46
0.45
0.44
0.43
0.42
0.41
0.4
0.39
0.38
0.37
0.36
2012
2013
Interpretation:
Current ratio indicates the coverage of current assets to the current liabilities. It indicates the
proportion of current assets available for meeting the current liabilities. In above Figure.3.1
current ratio is 0.39 in 2012. It indicates that the company has adequate current assets to meet
its current liabilities. In the year 2013, the same has been increased to 0.45. It means
company has excessive investment in current assets. This can be resulted in decrease in
profitability due to blocking of large funds in working capital.
42
2. Quick Ratio =
Liquid Assets
Current Liabilities
Table: 3.2 Liquid Ratio of Jet Airways
2012
2013
0.50
0.54
Figure: 3.2 Liquid Ratio of Jet Airways
Quick Ratio - Jet Airways
0.55
0.54
0.53
0.52
0.51
0.5
0.49
0.48
2012
2013
Interpretation:
Normally Liquid Ratio of 1:1 is considers to be a good. In aboveFigure.3.2, Liquid ratio in
the year 2012 is 0.50 that means company may keep too much cash on hand or have a
problem collecting its accounts receivable. In the year it is showing 0.54, i.e. Company has
invested in current assets.
43
3. Stock Turnover Ratio =
Cost of goods sold
Average Stock
Table: 3.3 Stock Turnover Ratios of Jet Airways
2012
2013
3051.04
21.42
Figure: 3.3 Stock Turnover Ratios of Jet Airways
Stock Turnover Ratio - Jet Airways
3500
3000
2500
2000
1500
1000
500
0
2012
2013
Interpretation:
The inventory turnover ratio is one of the most important financial ratios of all the asset
management ratios; it gives the business owner some of the most important financial
information.
Above the figure 3.3 the inventory turnover ratio measures the efficiency of the business in
managing and selling its inventory. This ratio gauges the liquidity of the firm's inventory. It
also helps the business owner determine how they can increase their sales through inventory
control.
44
Long term Ratio
4. Fixed Assets Ratio =
Net Sales
Fixed Assets
Table: 3.4 Fixed Assets Ratios of Jet Airways
2012
2013
1.02 times
0.75 times
Figure: 3.4 Fixed Assets Ratios of Jet Airways
Fixed Assets Ratio - Jet Airways
1.2
1
0.8
0.6
0.4
0.2
0
2012
2013
Interpretation:
If the fixed asset turnover ratio is low as compared to the industry or past years of data for the
firm, it means that sales are low or the investment in plant and equipment is too high. This
may not be a serious problem if the company has just made an investment in fixed asset to
modernize,
From the above figure, it can be observed that there is a decrease in the value of fixed asset
turnover ratio as compared to 2012. It means that the efficiency of the firm to generate
revenues from investment in fixed assets has gone down.
45
5. Debt Equity Ratio =
Long term Debt
Shareholder Fund
Table: 3.5 Debt Equity Ratios of Jet Airways
2012
2013
84.25
-4.70
Figure: 3.5 Debt Equity Ratios of Jet Airways
Debt Equity Ratio - Jet Airways
90
80
70
60
50
40
30
20
10
0
-10
2012
2013
Interpretation:
A high debt equity ratio generally means that a company has been aggressive in financing its
growth with debt. This can result in volatile earnings as a result of the additional interest
expense
A decline in DER indicates that the debt component has come down or owner’s contribution
has increased. However, in this case, the ratio is turning negative. This indicates that of the
shareholders’ funds, reserves have declined on account of losses made by the company.
Hence, it has resulted in ratio becoming negative. This will adversely affect the company as it
has insufficient funds to meet the debt obligations.
46
Profitability Ratios
6. Gross Profit Ratio =
Gross Profit
Net Sales
x 100
Table: 3.6 Gross Profit Ratios of Jet Airways
2012
2013
5.99
-0.14
Figure: 3.6 Gross Profit Ratios of Jet Airways
Gross Profit Ratio - Jet Airways
7
6
5
4
3
2
1
0
-1
2012
2013
Interpretation:
The above figure shows the value of Gross Profit is decrease down in the year 2013 as
compared to year 2012, indicating that the operating margin is squeezed down and the net
sales are increased because of the operating expenses rises due to increase in Aircraft Fuel
Expenses, Aircraft Lease Rentals and rise in employee benefit expenses. This is an indication
of a decrease in net loss and i.e. decrease in Gross profit Ratio.
47
7. Net Profit Ratio =
Net Profit
Sales
x 100
Table: 3.7 Net Profit Ratio of Jet Airways
2012
2013
-7.93
-2.78
Figure: 3.7 Net Profit Ratio of Jet Airways
Net Profit Ratio - Jet Airways
0
-1
2012
2013
-2
-3
-4
-5
-6
-7
-8
-9
Interpretation:
Above figure indicates the Net Profit ratio has been increased in 2013 as compared to year
2012; it indicated that the company has maintained its place in this year but the figure
numbers are in negative terms shows that the jet airways has the net loss and company is also
affected by significant depreciation of Rupee value and foreign exchange loss in which it has
to withstand to improve more in future.
48
8. Earnings per Share (EPS) =
NPAT−Preference Dividend
No.of Equity Shares
Table.3.8 Earnings per Share - Jet Airways
2012
2013
-143.18
-56.24
Figure: 3.8 Earnings per Share - Jet Airways
Earning Per Share - Jet Airways
0
-20
2012
2013
-40
-60
-80
-100
-120
-140
-160
Interpretation:
The ratio measures the profit available to the equity shareholder on a per share basis i.e. the
amount of profit they can get on every share held. Above figure.no.3.8 indicates the increase
in EPS value in the year 2013 over the previous year shows that jet airways growing focus on
international operations could be earnings-per- share accretive for investors in the long term
over the last two years, the contribution of Jet Airways India's international operations to its
overall revenues has increased from about 55% to 58% so that is the reason for increase in
EPS but it has to concentrate improve better.
49
3.2 Financials of Spice Jet
Short Term Ratio
1. Current Ratio =
CurrentAssets
CurrentLiabilities
Table: 3.9 Current Ratio of SpiceJet Airways
2012
2013
0.45
0.32
Figure: 3.9 Current Ratio of Spice Jet Airways
Current Ratio - SpiceJet Airways
0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2012
2013
Interpretation:
Current ratio indicates the coverage of current assets to the current liabilities. It indicates the
proportion of current assets available for meeting the current liabilities.
In above figure.3.9 current ratio is 0.45 in 2012. It indicates that the company has adequate
current assets to meet its current liabilities. In the year 2013, there is small decrease to 0.32
from 0.45 of 2012. It means company does not have excessive investment in current assets
and is maintaining the Current ratio.
50
2. Quick Ratio =
Liquid Assets
Current Liabilities
Table: 3.10 Quick Ratio - SpiceJet Airways
2012
2013
0.43
0.29
Figure: 3.10 Quick Ratio - SpiceJet Airways
Quick Ratio - SpiceJet Airways
0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2012
2013
Interpretation:
Normally Liquid Ratio of 1:1 is considers to be a good. In above figure.3.10 it shows that the
quick ratio of SpiceJet airways is 0.43 in the year 2012 and it decrease to 0.29 in the year
2013 this indicates that the financial position of the SpiceJet airways is not better as
considered to the previous year. As a result, the company will face difficulties in meeting its
short term obligations.
51
3. Stock Turnover Ratio =
Cost of goods sold
AverageStock
Table: 3.11 Stock Turnover Ratio - SpiceJet Airways
2012
2013
2.52
2.41
Figure: 3.11 Stock Turnover Ratio - SpiceJet Airways
Stock Turnover Ratio - SpiceJet Airways
2.54
2.52
2.5
2.48
2.46
2.44
2.42
2.4
2.38
2.36
2.34
2012
2013
Interpretation
The inventory turnover ratio is one of the most important financial ratios of all the asset
management ratios; it gives the business owner some of the most important financial
information.
Above the figure.3.11 current ratio is small decreases as compare to previous year that means
the company have maintain the inventory turnover ratio to measures the efficiency of the
business in managing and selling its inventory. This ratio gauges the liquidity of the firm's
inventory. It also helps the business owner determine how they can increase their sales
through inventory control.
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Long Term Ratio
4. Fixed Assets Ratio =
Net Sales
Fixed Assets
Table: 3.12 Fixed Assets Ratio - SpiceJet Airways
2012
2013
0.26
0.13
Figure: 3.12 Fixed Assets Ratio - SpiceJet Airways
Fixed Assets Ratio - SpiceJet Airways
0.3
0.25
0.2
0.15
0.1
0.05
0
2012
2013
Interpretation
Above the figure.3.12 if the fixed asset turnover ratio is to low it means that sales are low the
investment in plant and equipment is too high as compare to the previous year this is not be a
serious problem if the company has just made an investment in a fixed asset.
But too high fixed assets turnover ratio may be an indication of over-trading and hence not
good. This ratio is particularly important for companies when sales are produced largely by
fixed assets.
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5. Debt Equity Ratio =
Long term debt
Shareholder fund
Table: 3.1 Debt Equity Ratio - SpiceJet Airways
2012
2013
-7.45
-6.65
Figure: 3.13 Debt Equity Ratio - SpiceJet Airways
Debt Equity Ratio - SpiceJet Airways
-6.2
2012
2013
-6.4
-6.6
-6.8
-7
-7.2
-7.4
-7.6
Interpretation:
A high debt equity ratio generally means that a company has been aggressive in financing its
growth with debt. This can result in volatile earnings as a result of the additional interest
expense. The negative DER indicates that the company has negative shareholders’ funds (on
account of losses in earlier years), as a result of which it will face difficulties in meeting its
debt obligations.
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Profitability Ratio
6. Gross Profit Ratio =
Gross Profit
Net Sale
x 100
Table: 3.14 Gross Profit Ratio - SpiceJet Airways
2012
2013
-1.93
-14.58
Figure: 3.14 Gross Profit Ratio - SpiceJet Airways
Gross Profit Ratio - SpiceJet Airways
0
-2
2012
2013
-4
-6
-8
-10
-12
-14
-16
Interpretation:
It shows gross margin on sales which is the indicator of general profitability of the enterprise.
A high ratio implied better profitability of the products sold by the enterprise. A comparison
of GP ratio over a period will show the trend of trading results and thus, the efficiency of
management.
The value of Gross Profit is decreased in the year 2013 because of the money spent on the
operating expenses is more by the SpiceJet airways so that is the reason for the decrease in
the Gross profit of the SpiceJet in the year 2013.
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7. Net Profit Ratio =
Net Profit
Sales
x 100
Table: 3.15 Net Profit Ratio - SpiceJet Airways
2012
2013
-2.82
-20.87
Figure: 3.15 Net Profit Ratio - SpiceJet Airways
Net Profit Ratio - SpiceJet Airways
0
2012
2013
-5
-10
-15
-20
-25
Interpretation:
The final representation of how much money a company has earned from doing business over
the course of a year, shown on the company's income statement. It takes all the money a
company has received from operating and subtracts all expenses, including operating
expenses, financing costs, and taxes.
The Net Profit ratio has been decreased in 2013 as compared to year 2012. In fact in 2012 the
company had a loss of 2% that increased to 20% in 2013. This could be on account of high
expenses.
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8. Earnings per Share (EPS) =
NPAT−Preference Dividend
No.of Equity Shares
Table: 3.16 Earnings per Share - SpiceJet Airways
2012
2013
-3.95
-13.72
Figure: 3.16 Earnings per Share - SpiceJet Airways
Earning Per Share - SpiceJet Airways
0
-2
2012
2013
-4
-6
-8
-10
-12
-14
-16
Interpretation
A valuation ratio of a company's current share price compared to its per-share earnings. The
portion of a company's profit allocated to each outstanding share of common stock. Earnings
per share serves as an indicator of a company's profitability.
Above the Figure 3.16 shows the decrease in EPS value in the year 2013 over the previous
year 2012 indicates that the decrease in the EPS is due to the foreign exchange loss &
operational loss. Thus, the consolidated losses are much higher that is the reason of decline
EPS of jet airways.
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3.3 Summary of Financials
Table: 3.17
Summary of ratios Of SpiceJet & Jet Airways
S.NO.
RATIOS
SPICE JET
JET
AIRLINES
AIRLINES
SHORT TERM RATIOS
2012
2013
2012
2013
1
Current Ratio
0.45
0.32
0.39
0.45
2
Quick Ratio
0.43
0.29
0.50
0.54
3
Stock Turn Over Ratio
2.52
2.41
3051.04
21.42
LONG TERM RATIOS
4
Fixed Assets Ratio
0.26
0.13
1.02
0.75
5
Debt Equity Ratio
-7.45
-6.65
84.25
-4.70
PROFITABILTY RATIOS
6
Gross Profit Ratio
-1.93
-14.58
5.99
-0.14
7
Net Profit Ratio
-2.82
-20.87
-7.93
-2.78
8
Earnings Per Share
-3.95
-13.72
-143.18
-56.24
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Interpretation
As previously noted, growth in the robust domestic market has failed to translate into profits
for India's airline industry, where all the major carriers except IndiGo are loss-making, as a
result of the impact of high jet fuel costs (during the quarter crude oil price remained well
above the USD100 mark to constitute around 40-50% of airline operating costs),
compounded by heavy taxation, inefficient infrastructure and an inability to raise fares in a
highly competitive market in which Spicejet and jet Airways are also experiencing the effect
of the depreciation in the value of Rupee .And while coming to the above figure.3.17 the
Spicejet is having a better stock turnover than jet airways as the stock turned by SpiceJet is
4.97 and 4.76 times in a year and in jet airways stock take more than a year.
In 2011-12, Spice Jet and Jet both have incurred losses in their profitability terms but in
2012-13 Jet Airways has tried hard to turn them around and has done pretty well in that. If we
look at SpiceJet it has incurred losses 4 times more in 2012-13 than 2011-12. Jet Airways has
succeeded well in cutting down their heavy losses while SpiceJet did not do much in the
profitability part.
Low short term ratios are indicating that the liquidity managed by both of the companies is
spent on both i.e. the current liabilities. Hence, there is high amount of current liabilities
affecting both of the ratios.
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Chapter 4
RECENT
DEVELOPMENTS
60
4.1 Jet Airways Mergers with Etihad Airways
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 its 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 providing an ever wider choice to the travelling public. Guests from 55 cities in India
will benefit from connections to international destinations. New flights from our home hubs
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of Mumbai and Delhi and other metro airports will further strengthen our current operations
from these airports. Our vision continues to be to develop Delhi and Mumbai airports as our
primary home hubs and connecting them to Asia, Europe, Africa and other regions.
4.2 Jet Airways and Etihad Airways forge strategic alliance under FDI
policy of government of India
Etihad Airways to invest US$379 million for a 24 per cent stake in Jet Airways

Strategic investment under FDI policy of the Government of India will deliver wideranging revenue growth and cost synergy opportunities for both airlines

Alliance will bring significant passenger benefits with expanded code sharing,
creating a combined network of 140 destinations

Alliance will bring significant benefits to the Indian economy, both in terms of
growth, job creation, trade and tourism

Jet Airways passengers from 23 cities in India to gain direct access to an expanded
global network

Jet Airways to enhance its services from its primary hubs of Delhi and Mumbai, and
introduce new flights from Hyderabad and Bangalore

The strategic alliance between the two airlines will bring additional traffic,
frequencies and revenues to metro airports, as well as other airports of AAI

New India-Abu Dhabi routes and Jet Airways to establish a Gulf gateway for flights
to the US, Europe, Africa and the Middle East

The strategic investment enables Etihad Airways to tap into India’s fast-growing 42
million strong travel market

Both airlines' passengers will benefit from fully integrated frequent flyer programs
with reciprocal ‘earn-and-burn’

Alliance will result in both consumer benefits and/or all round efficiencies

This strategic investment with a US$600 million commitment from Etihad Airways
will help further strengthening of Jet Airways financial position.
Under the strategic partnership, which will be subject to full regulatory and shareholder
approval, the airlines will gradually expand existing operations and introduce new routes
between India and Abu Dhabi, providing an ever wider choice to the travelling public. They
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will combine their network of 140 destinations, with Jet Airways establishing a Gulf gateway
in Abu Dhabi and expanding its reach through Etihad Airways’ growing global network.
Passengers from 23 cities in India will benefit from direct connections to international
destinations. New flights from Jet Airways’ home hubs and metro airports will further
strengthen its current operations from these airports. Jet Airways’ vision continues to be to
develop Delhi and Mumbai airports as its primary home hubs and connecting them to Asian,
European and other regions.
4.3 SpiceJet Expansion strategies globally
“Our wish list is to another 10 new international destinations in our network in the next
couple of years. We want to add more Indian Tier-II cities into our international network. We
have written to the ministry of civil aviation for granting rights to new destinations like
Dubai, Bangkok, Damam, Myanmar and Ho Chi Minh cities among others,” said Kamal
Hingorani, Sr. Vice President & Head, Ground Services, SpiceJet.
Currently, the company derives 6-7% of its revenues from international routes and it plans to
increase it further during the current year. It is planning to connect secondary cities like
Coimbatore, Amritsar, Chandigarh and Lucknow with international destinations. On
November 22, the airline is starting flight between Madurai and Dubai.
Aiming to expand its international network gradually, no-frills carrier SpiceJet on Sunday
said it will add two more global destinations, Dammam and Kuala Lumpur, by March next
year along with increasing frequencies on certain foreign routes.
“We are going to start operations to Dammam (Saudi Arabia) and Kuala Lumpur (Malaysia)
within this financial year. We are currently working on the financial details and also trying to
increase frequencies to certain existing destinations,” SpiceJet’s senior vice president
(commercial) V. Raja said here on Sunday.
Asked whether SpiceJet was in talks with any foreign carrier for investment in its equity, he
said these were “only reports”, but added that “if there is a good proposal which is
economically and commercially good for us, it will be wrong not to look at it.”
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With this planned expansion, SpiceJet would raise its foreign flights per day from 28 to about
42 within this financial year, Raja and other senior airline officials said. Raja was talking to
reporters after the airline added the Thai capital, Bangkok, as its tenth foreign destination,
launching two flights simultaneously from Bangalore and Pune to the Suvarnabhumi
International Airport here.
Male is the new international destination that SpiceJet will connect whereas the airline
already operates daily flights to Dubai from Mumbai and Delhi. SpiceJet is now further
connecting Kochi and Ahmedabad with Dubai.
SpiceJet has been working on new destinations in domestic market as well as on international
routes as the carrier has set its sights on expanding its coverage in phases on a regular basis.
Male is the capital city of Maldives and is considered a preferred tourist destination.
SpiceJet will be offering direct flight from Kochi to Male and inaugural ticket fares are as
low as Rs.4999 (one way fare inclusive of all taxes). Flights on Kochi-Male route will
commence from November 29, 2012. Flights on Kochi – Dubai and Ahmedabad – Dubai
sector will commence from 10th Dec 2012 and 19th Dec 2012 respectively.
The airline would be deploying Bombardier Q400 aircraft on Kochi-Male route. The
Bombardier Q400 NextGen turboprop aircraft can accommodate 78 passengers and is widely
accepted as the best short-haul aircraft globally. On our Kochi – Dubai and Ahmedabad Dubai route we will deploy our Boeing 737 -800 aircraft which have a capacity of 189.
4.4 IndiGo Airlines expansion patterns
Independent Indian carrier IndiGo Airlines has outlined the first stage of its international
expansion confirming that new links to Bangkok, Dubai and Singapore will commence from
September 1. The New Delhi-based carrier has come a long way since it inaugurated flights
in August 2006 and has now overtaken its local rivals to become the largest domestic
operator by traffic (see table below). The carrier now has bold plans to become one of the
country’s top operators in the international market after placing a bumper order for up to 180
new aircraft at the start of this year, currently the largest ever commitment for new Airbus
equipment.
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Aditya Ghosh said;
“In line with our endeavour to meet the requirements of both business and leisure travellers,
we have introduced two new daily direct flights between Delhi and Mumbai. We are looking
at providing affordable fares on these new routes for 6E travellers. IndiGo will continue to
expand its network to meet the requirements of both business and leisure travellers wherever
they demand it. It is our constant endeavour to provide more flexibility of choice for our
customers as IndiGo continues to offer them on time, hassle free and always affordable flying
experience.”
Beyond these new rotations, IndiGo also took advantage of a recent slot auction at Pune
Airport in Western India near Mumbai to add a second daily Delhi-Pune rotation, as well as
add new daily Hyderabad Pune services.
4.5Jet Airways tying with Sabre Airline Solutions for comprehensive
integrated solutions.
They announced a five-year contract with Jet Airways -- the Indian domestic market leader -that will take Jet Airways to new heights in the competitive sub- continent. By implementing
the technology package from Sabre Airline Solutions, Jet Airways will have one of the most
comprehensive and integrated solutions in the industry. The airline will become the first
airline in India and one of the first in the industry to leverage the industry's first new
generation solution for reservations and passenger management, including the introduction of
both e-ticketing and internet booking services revolutionizing the Indian domestic and
international market.
The Indian marketplace is set for huge growth in 2004, with the recent approval of e-ticketing
and Internet booking by the Indian government and limited access to international flights for
the four domestic carriers only recently granted. With such growth opportunities among the
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world's second largest population (1 billion+), Jet Airways will need the competitive edge to
extend its lead over its competitors.
Jet Airways' portfolio of Sabre Airline Solutions products now includes:
SabreSonic passenger management solution suit -- offering advanced reservations
management capabilities for airlines of all sizes around the world. This capability provides
carriers the ability to grow revenue efficiently and manage every channel of distribution. The
offering includes the industry’s leading online booking engine, along with shopping, ticketing
and codeshare capabilities all managed from a single, easy- to-use graphical user interface
(GUI).
SabreSonic Check-In -- enabling both efficient passenger processing and a customer-centric
focus both on and off airport. This suite will help Jet Airways streamline operations and
enhance the customer travel experience.
Capabilities in this suite include check-in, re
accommodation and automated fee collection capabilities, all managed from a single, easy-touse GUI.
SabreSonic Web -- a complete, fully hosted online booking tool that will enable Jet Airways
to most efficiently display and sell at any time, from anywhere -. The carrier's products over
the Internet as
well as those of selected travel partners such as other airlines and car and
hotel providers.Travellers can see their flight options online and search for the schedule or
fare that best meets their needs. They can also make hotel and car rental reservations from
the home page. En route, travellers can view their itinerary, make changes to previous
bookings, and receive real-time arrival and departure information on their mobile phones.
SabreSonic Ticket -- will allow Jet Airways access to industry- leading, state-of-the-art eticketing functionality that eliminates the need to build costly systems for electronic ticket
distribution and database maintenance. It also offers the ability for the airline to establish a
link to SabreSonic's universal electronic ticket hub that provides cost-effective, efficient
connectivity between a carrier and its ticketing partner airlines.
Sabre AirMax Revenue Manager
Designed to enable airlines to optimize revenue by allocating the correct seat inventory, and
available as part of Sabre Airline Solutions' eMergo ASP service, the Revenue Management
system is a sophisticated and robust system that provides a flexible solution to utilize
66
historical and current data to forecast booking activity which helps to increase the
profitability of fares.
Qik-Access Developer Tool
The Qik-Access Developer Tool gives companies the flexibility to customize applications for
the constantly evolving aviation business.
It enables modification of the system and
integration of new technology and business procedures such as customer relationship
management tools and interfacing with other computing environments.
The developer
requires no traditional computer programming experience to perform system modification.
Process experts can rapidly create and modify applications to meet changing business needs.
Flight Operating System (FOS)
This helps airlines effectively manage flight operations. Its real-time environment provides
accurate, up-to-the-minute information on an airline's operational status and provides a costeffective approach for conducting airline operations in accordance with FAA/CAA/ICAO
regulations.
4.6 Web CheckIN
Web check in allows you to check in online at the comfort of your home or office. The time
range is provided at the website where you opt for web check in. Web check in can be done
within specified time frame just before the departure of your flight. With the advancement of
technology, Airlines are working harder to utilize this technology advancement to provide
better services to their customers and to make sure the customers are getting best of
everything. The web check in facility uses new technology to offer a facility called
interactive online facility that will enhance overall experience of air travel. To get shortest
distance to your destination try road route functionality online.
Guest convenience is the primary objective and airlines are taking every step to offer higher
level of convenience with completely comfortable check in facility. Different airlines possess
various rules and conditions to opt for web check in facility. It is always advisable to go
through these instructions carefully prior to opting for web check in facility.
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CONCLUSION
This project brings out the various comparisons between the companies which we have taken
under study, different marketing parameters through which the airline companies do
branding, pricing activities to attract the travellers. It also shows the financial prospects of
companies with the help of the annual reports published by them. This project reflects the
Management team and their work, the Corporate Social Responsibilities taken by them.
On the basis of the study it was found that IndiGo was best in its business packages and
vacation packages offered by them. SpiceJet and Jet Airways have competed excellently with
SpiceJet varying prices of their inflight services and cash discounts given to different
customers. Jet Airways always concentrated on giving best services to their customers in
comparison to the other two. Hence, IndiGo is good with low price and easy planning, then
SpiceJet mixes well with price and service if need and last but not the least Jet Airways
concentrates on luxurious services for the esteemed customers.
The study has helped us to attain knowledge in airline industry and to see any particular
industry or any company with a different perception, to make efficient use of MS Excel for
calculating formulas and MS Word for the project.
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BIBLIOGRAPHY
1. http://www.jetairways.com/
2. www.spicejet.com/
3. https://book.goindigo.in/
4. https://www.iata.org/
5. httpcentreforaviation.comimagesstories2013may13Indian_Domestic_Market_Share_
by_Airline_Mar_13.png
6. http://www.moodiereport.com/document.php?doc_id=37741
7. http://www.jetairways.com/EN/IN/ProductAndServices/Entertainment.aspx
8. http://www.jetairways.com/EN/IN/ProductAndServices/skycafe.aspx
9. http://getpacking.goindigo.in/Indigo.Client/Home1.aspx
10. http://www.spicejet.com/FlightMealLanding.aspx
11. http://www.spicejet.com/StudentDiscountLanding.aspx
12. http://www.myspicetrip.com/package/search?q=dubai+ipl+packages
13. http://www.jetairways.com/doc/InvestorRelations/AnnualReport2012-13.pdf
14. http://corporate.spicejet.com/Content/pdf/2012-13Annual%20Report.pdf
15. http://corporate.spicejet.com/Content/pdf/2011-12Annual%20Report.pdf
16. http://www.jetairways.com/doc/InvestorRelations/JetAR2011.pdf
69