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jet airways

Published on January 2017 | Categories: Documents | Downloads: 18 | Comments: 0



Finacials of jet airways
Stock price of jet airways. BSE
Open Price High Price Low Price Last Price 95.27 NSE

348.00 350.85 342.70 345.85

364.90 374.90 362.30 370.85 7.23

Open Price 347.95 High Price Low Price Last Price Volume 350.65 343.05 346.50 982,803

365.35 374.50 362.70 370.25 2,174,432 6.85 121.25

History of jet airways
Jet Airways was incorporated as an air taxioperator on 1 April 1992. It started commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. Naresh Goyal – who already owned Jetair (Private) Limited, which provided sales and marketing for foreign airlines in India – set up Jet Airways as a full-service scheduled airline to compete against stateowned Indian Airlines. Indian Airlines had enjoyed a monopoly in the domestic market between 1953, when all major Indian air transport providers were nationalised under the Air Corporations Act (1953), and January 1994, when the Air Corporations Act was repealed, following which Jet Airways received scheduled airline status. Jet began international operations from Chennai to Colombo in March 2004. The company is listed on the Bombay Stock Exchange, but 80% of its stock is controlled by Naresh Goyal (through his ownership [10] of Jet’s parent company, Tailwinds). It has 13,177 employees (as at 31 March 2011). In January 2006 Jet Airways announced that it would buy Air Sahara for US$500 million in an all-cash deal, making it the

biggest takeover in Indian aviation history. It would have resulted in the country's largest airline but the deal fell through in June 2006. On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion (US$340 million). Air Sahara was renamed JetLite, and was marketed between a low-cost carrier and a full service airline. In August 2008 Jet Airways announced its plans to completely integrate JetLite ] into Jet Airways. In October 2008, Jet Airways laid off 1,900 of its employees, resulting in the largest layoff in the history of Indian aviation. However the employees were later asked to return to work; Civil Aviation Minister Praful Patel said that the management reviewed its decision after he analysed the decision with them. Jet Airways and their rival Kingfisher Airlines announced an alliance which primarily includes an agreement on code-sharing on both domestic and international flights, joint fuel management to reduce expenses, common ground handling, joint utilisation of crew and sharing of similar frequent flier programmes On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The decision to launch a new brand instead of expanding the JetLite network was taken after considering the regulatory delays involved in transferring aircraft from Jet Airways to JetLite, as the two have different operator codes. The brand was launched on sectors that had 50% or less load factor with the aim of increasing it to 70% and above. Jet officials said that the brand would cease to exist once the demand for the regular Jet Airways increases. According to a PTI report, for the third quarter of 2010, Jet Airways (Jet+JetLite) had a market share of ] 22.6% in terms of passengers carried, thus making it a market leader in India, followed by Kingfisher Airlines with 19.9%. In July 2012, Jet Airways officially sought government approval to join Star Alliance. n June 2011, Jet Airways banned carrying fish, crab, meat, poultry products and liquid items as check-in baggage. Jet is the first domestic airline to impose such a ban. Jet claimed that passengers complained of their baggage getting soiled by seepage from bags containing meat products. Early in 2013,Etihad Airways, on of the flag carriers of the United Arab Emirates based out of Abu Dhabiplanned to buy a stake in Jet Airways. On 24 April 2013, Jet announced that they were ready to sell a 24% stake to Etihad at US$379 million. Earlier, in September 2012, the government of India announced that foreign airlines can take up a stake of up to 49% in Indian airlines, thereby making this deal possible. Etihad, which had already purchased stakes in 4 other loss making airlines, said, they were "concentrating on future potential rather than past performance", and were ready to take up the stake in Jet. Initially, Jet announced that they were likely to sign the stake sale deal with Etihad between 22 January and 3 [22] February, which they later confirmed to as 25 January. However, the date passed by and the deal was further postponed. Meanwhile, Jet Airways concentrated well on revenues, costs and network side, which resulted in the airline making profits for the first time since the rupee depreciation. Nikos Kardassis, the Chief Executive Officer of Jet Airways said "The combined impact of higher yields and lower costs (exfuel) have resulted in significantly lowering the breakeven seat factor levels in the business." The airline announced a sale on its website, which offered 2 million seats for travel within India, till 31 December 2013. This sale was announced a little over one month after rival low-cost carrier SpiceJet announced a [25] sale, which was expected to have triggered a fare-war. High airfares throughout 2012 due to grounding of Kingfisher Airlines caused passengers to opt out of air travel, leading to negative growth in traffic for the first time since 2009. Jet Airways planned to attract more passengers by subsequently lowering the fares, which was followed by SpiceJet again. With two airlines offering cheaper travel, India's flag carrier started losing passengers and it too offered cheaper tickets. This was followed by IndiGo and GoAir, resulting in a full-fledged fare war. Jet had introduced four different slabs of discounts depending upon the distance to destination. Under the offer, the fare up to 750 kilometres was priced at 2250 (US$34), while for 750-1000 kilometres it was 2850 (US$44). For air travel over a distance ranging from 1000 to 1400

kilometres, tickets were sold for 3300 (US$50) and for travel beyond 1400 kilometres, tickets were sold for a maximum of 3800 (US$58). Based on a calculation by The Economic Times, on average, Jet Airways was selling 6400 tickets per day, or 14 tickets per flight at these discounted rates. According to the news agency, several Indian travel sites started experiencing sever issues following a sudden increase in bookings. MakeMyTrip chief operating officer Keyur Joshi said that this move would help [28] airlines increase aircraft occupancy from 75% to 85%. However, soon after the sale, the airline's market value started going down. This drop in market value was considered to have happened because of the indefinitely postponed Etihad deal. The stock had fallen by 18% in a period of one week. Economic Times reported that "The froth that developed around Jet stock was largely deal driven and has now fizzled away."

CSR activities
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.

Blood donation camp
Jet Airways, India's premier international airline will organize a blood donation camp on Friday, May 09, 2008 from 1230 hours to 1700 hours at the Jet Airways Ahmedabad City Office in association with Prathama Blood Centre. The Staff and Management of Jet Airways will participate in this noble cause. Prathama Blood Centre, India's largest & most modern blood centre is a non-profit organization recognized by the Indian Central and Gujarat State Government, who will arrange for a mobile van to be parked at the Jet Airways' Ahmedabad City Office for the blood donation camp. Jet Airways, has received strong support from the Travel Trade community. Mr. Kalpesh Shah (Chairman of TAAI Gujarat Chapter) has consented to be present at the blood donation camp. Blood donors will receive a tote bag, snacks and beverages, courtesy Prathama Blood Centre. Radio City, Times of India and Ahmedabad Times are taking the initiative to impart awareness of this blood donation camp. Commenting on this initiative, Mr. Wolfgang Prock-Schauer, CEO, Jet Airways, said, "Jet Airways is delighted in associating with this worthy cause. The airline always endeavours to be a socially responsible corporate body, and this initiative is a step in that direction."

Relife efforts in jammu and kashmir
jet Airways launched its inflight collection programme the 'Magic Box' in association with the NGO Save the Children India (STCI) on January 7, 1997 for relief efforts in the aftermath of the earthquake in Jammu & Kashmir. This unique inflight charity collection has contributed over Rs.42.8 million till end April 2004. This fund has been utilised in development activities in remote Kargil, improvement of education and health care facilities in quake affected Osmanabad district in Maharashtra and in the fight against trafficking of women and child prostitution in the Indian Subcontinent. Among the notable achievements of the Magic Box of Jet Airways is SPARSH (Sastur Project of Action Research Services through Hospital), which came into being at Sastur Village in Osmanabad district in Maharashtra after the terrible earthquake there. This is being run by the funds generated through Magic Box and extends advanced medical care to the inhabitants of almost 257 villages. Jet Airways' inflight collection has contributed significantly in running of the SPARSH, which makes available integrated, preventive, curative and rehabilitative health services to the earthquake victims of Latur and Sastur villages in Osmanabad District. Jet Airways, carried more than 2,000 kilograms of relief material including blankets, milk powder and clothes

for the use of affected people of Kaksar village in Ladakh, one of the worst affected regions on the border of the State of Jammu and Kashmir during the Kargil conflict. Kaksar along with the villages of Latur and Hunderma have been adopted by Save the Children programme under the activity titled K3 (Kaksar-KargilKashmir) programme to rehabilitate the affected populace. Other significant projects run by Save the Children, include pre-schools for the urban slum children in Mumbai and a special care centre for the mentally retarded and hearing impaired. Another unique project of Save the Children is to respond and build confidence among pregnant women who are HIV positive with a view to decreasing the infant mortality rate. As a continuing effort through February and March 2001 all contributions by passengers to Jet Airways' unique inflight Magic Box collection were directed through Save the Children organisation to the benefit of children rendered homeless and orphaned by the Gujarat quake.

Relief efforts in aftermaths of 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 everyday, 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. Jet Airways waived cancellation charges for tickets issued for travel on Chennai-Port Blair-Chennai and Chennai-Colombo-Chennai sectors. Tickets issued separately on domestic sectors in conjunction with onward journey on these routes were also entitled to this benefit. Jet Airways has contributed Rs.50 lakhs to the Prime Minister's Relief Fund for rehabilitation of the Tsunami victims of India. The Airline has also made a contribution of USD 55,000 for similar efforts in the Island Nation of Sri Lanka to the President's Relief Fund.Additionally, approximately 7,000 employees of Jet Airways have contributed one day's salary for relief efforts of the Tsunami victims of the coastal areas of India.

Gujrath earthquake
he 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 Rapar Taluka of Kutch district in the quake-devastated Gujarat as part of a massive rehabilitation programme. This ambitious relief and rehabilitation effort was undertaken with active support from the French aircraft manufacturer Avions de Transport Regionale (ATR) and the NGO Nivara Hakk Suraksha Samiti (NHSS), which has vast experience in social organisation and housing. 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. Subsequently, a detailed social survey was organised to establish a close relationship with the quakeaffected populace as well as to involve its participation in the project. Nearly 50 volunteers from Mumbai worked together with the villagers for ten weeks to set up temporary, quake-resistant accommodation for Ramvav and tented hostels for staff and students of three schools in the nearby Nilpar, also in Kutch district. Ramvav was a part of Jet Airways' commitment to enhance relief efforts in beleaguered Gujarat since January 27, 2001 when it became the first private airline to land in ravaged Bhuj the very next day after the devastating earthquake with doctors, paramedics, and medical and relief supplies. A Crisis Coordination Committee headed by Jet Airways Vice President, Support Services was constituted in the wake of one of post-independent India's unprecedented calamities to monitor operation of special flights. The 15-ft X 10-ft tents set up to provide accommodation to the quake affected people, comprised of a prefabricated steel structure that could be assembled in a matter of an hour and a half. The roofing was double layered with the inner layer made of bamboo mats and the top covered with mud-coated tarpaulin. This combination provided insulation against the extreme temperatures of the Kutch region. A door was provided in the front part with provision for ventilation in the rear. Well-known Indian architect P.K. Das designed the tents, with active involvement of Mumbai based Council of Architecture. The cost of each tent, including transportation and installation, was Rs.6,500. Fabricated in Mumbai and Ahmedabad, the tents were designed so that they did not require a change of canvas for two years. Designed to provide shelter till the villagers were able to reconstruct their homes, these tents will also serve as emergency shelters during any future calamity. In brief, this also constituted building up of a bank of emergency shelters in a region prone to cyclones and earthquakes. Jet Airways, therefore, considered this as an investment for the future too. Alternatively the tents can also be used as storage or cattle sheds once the villagers have moved to their reconstructed homes. Between January 27 and February 4, 2001 the airline, apart from the daily Mumbai-Bhuj-Mumbai flights, operated seven additional flights to facilitate transportation of relatives of victims and representatives from relief organisations to reach Bhuj, and also carried over 60 tonnes of relief cargo including foodstuffs, blankets, medicines and rescue equipment. All flights operated with a full complement of passengers and cargo. Jet Airways cargo offices through its route network were instructed to accept all relief material from recognised governmental and non-governmental agencies for urgent despatch to Gujarat. The relatives of the victims carried relief material and no excess baggage was charged towards the same. Also, the over 4,000 employees of Jet Airways voluntarily contributed a days' salary for the month of February 2001 for rehabilitation of Gujarat victims.

Eco friendly napkin
Jet Airways has engaged the services of Shraddha Charitable Trust - a registered NGO who train and provide post school vocation to their mentally challenged and autistic young wards. The airline has chosen and placed bulk orders for one of the Trust's in-house products - a napkin cords made of jute, exclusively for their Première Class service on their long-haul international flights to London on board the Airbus 340-300 E aircraft. While being eco-friendly, the fabrication of this Napkin Cord entails100% involvement of both high and low performing students. Jet Airways is proud to be associated with Shraddha, and to be able to showcase and support the skills of these special children.

Proceeds from sales of these products form a stipend for their special employees. This helps to generate a sense of fulfillment and self reliance for these children. Special employees are taught to master simple skills like pasting, folding, assembling, e.t.c. These skills are then applied by these special employees to create eco-friendly innovative products made from jute, bamboo, dried leaves e.t.c. and are sold through NGO fairs and exhibitions. Since inception, Jet Airways has been participating in community building and lending support to various NGOs, as part of an on-going programme of Corporate Social Responsibility.

Other activites

Mar '13 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio 10.00 -104.59 1,952.02 -10.89 5.35 -0.13 -0.14 1.92 1.92 -2.78 -2.78 6.21 141.73 --39.67 -39.67 8.07 0.45 0.54 --0.47 -1.30 1.39 21.42 13.75 21.42

Mar '12

Mar '11

Mar '10

Mar '0

10.00 -214.50 1,763.46 -79.02 10.89 12.16 5.85 5.99 -1.53 -1.53 -7.93 -7.93 12.28 229.14 -93.98 -62.48 136.78 15.41 0.39 0.50 --1.31 8.22 1.10 0.85 3,051.04 13.64 3,051.04

10.00 -289.91 1,480.59 80.48 10.89 19.58 12.29 12.45 4.42 4.42 0.07 0.07 12.33 1.15 -40.33 96.91 301.66 14.31 0.64 0.77 16.11 14.22 1.72 16.11 1.43 1.49 2,778.81 14.39 2,778.81

10.00 -244.11 1,209.09 79.35 10.89 20.18 10.81 10.97 3.35 3.35 -4.41 -4.41 8.81 -56.54 -73.29 95.79 306.02 12.08 0.34 0.86 16.80 11.98 1.31 16.80 1.24 1.27 4,349.40 13.53 4,349.40


69.3 1,340.2 133.5 10.8

5.1 -2.5 -2.6 -6.5 -6.5 -3.4 -3.4 -1.0 -31.0 -128.3 149.9 365.6 -1.4

0.3 1.0 12.6 9.3

-0.2 12.6 0.4 1.3

7,370.1 11.3 7,370.1

Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times

1.05 2.00 1.64 ---84.26 ---45.65 ---100.00 26.37 Mar '13

0.81 1.50 1.08 ---85.64 --8.94 44.35 -----Mar '12 -143.18 -62.48

0.72 0.91 0.78 --11.12 --9.87 44.56 --100.00 100.00 23.52 Mar '11 1.12 96.91

0.59 0.72 0.58 --2.22 --9.43 39.11 ---100.00 39.06 Mar '10 -54.17 95.79

0.6 0.6 0.6


9.4 42.2

Mar '0

Earnings Per Share Book Value
Source : Dion Global Solutions Limited

-56.24 -39.67

-46.6 149.9

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