Case Study on Jet Airways

--Case Study on Jet Airways
Jet Airways:
Jet Airways (India) Ltd was an Indian international airline
based in MumbaiIndia which, on 17 April 2019, ceased all flight operations with its last revenue flight operated by a Jet Konnect Boeing 737 arriving into Mumbai on 17 April 2019. From the third quarter of 2010 onward, Jet Airways was the largest commercial passenger airline in India with a passenger market share of 22.6%. With its competitors, mainly SpiceJet and IndiGo, lowering ticket fares in the following years, it was forced to follow suit, hurting overall performance resulting in steep financial losses. It dropped to second place behind IndiGo in October 2017, with a passenger market share of 17.8%. The downward slide continued and resulted in bankruptcy. The airline was granted a scheduled airline status on 14 January 1995. In January 2006, Jet Airways announced its intention to acquire Air Sahara for US$500 million in an all-cash deal; however, the deal fell through in June 2006. On 12 April 2007, the deal was back on track with Jet Airways agreeing to 
pay US$200 million. In October 2008, Jet Airways entered into an alliance with rival Kingfisher Airlines for code-sharing on domestic and international flights, collaboration on frequent-flyer program and sharing crew and ground handling equipment. On 8 May 2009, Jet Airways launched another low-cost brand, Jet Konnect. In the third quarter of 2010, Jet Airways became the largest airline in India with a passenger market share of 22.6%. In 2013, the airline lowered prices and entered into a fare war with low-cost carriers IndiGo and SpiceJet due to falling passenger demand. In February 2013, the airline's market value dropped by US$68 million due to falling share prices. In December 2015, Jet Airways announced the closure of its scissor hub at Brussels Airport by March 2016 and the opening of new hub at Amsterdam Schiphol Airport effective 27 March 2016. As of February 2016, it is the second-largest airline in India after IndiGo, with a 21.2% passenger-market share. As of November 2018, Jet Airways has been reported to have a negative financial outlook due to increasing losses. In March 2019 it was reported that nearly a fourth of Jet Airways' aircraft were grounded due to unpaid lease rates. On 25 March 2019, Mr. Naresh Goyal and his wife Anitha Goyal stepped down from the board of directors. On 5 April, Indian Oil Corporation stopped supplying fuel to the airline, citing non-payment of dues as the emergency funds have still not been credited. On April 17, the airline suspended all flight operations, due to lenders rejecting Rs 4 billion of emergency funding and its membership in the International Air Transport Association (IATA) was suspended. On 17 June, after getting no acceptable offers from Etihad Airways and Hinduja Group, lenders to Jet Airways decided to refer the company to National Company Law Tribunal (NCLT) for bankruptcy proceedings with debt of $1.2 billion.     
Jet Airways served 57 destinations including 37 domestic and 20 international destinations in 15 countries across Asia, Europe, North America and Middle East.  The airline has its primary hub at Mumbai and secondary bases at Delhi and Bangalore. In March 2004, the airline introduced its first international destination, Colombo, with flights connecting to ChennaiLondon was the airline's first long-haul destination and was launched in 2005. Since 2007, Jet Airways has had a scissors hub at Brussels Airport for onward transatlantic connections to North America, which was replaced by Amsterdam Schiphol Airport from 27 March 2016. In 2008, the airline was forced to discontinue international routes because these attracted losses due to global economic downturn; it terminated services to San Francisco and Shanghai.

There are many reasons for the failure of Jet Airways, and mentioned below are some of them: 1. Merger: The merger between Sahara Airlines and Jet Airways was a mistake on Jet Airways's part. Sahara was acquired by Jet Airways for $500 million which was way above what the airline was actually worth. 2. Rebranding Sahara Airlines: Jet Airways renamed Sahara Airways as JetLite. Sahara at the time was a powerhouse with its name on every Indian's tongue. The rebranding cost Jet Airways a major chunk of its customers; flyers who were attracted towards the Sahara brand image couldn't resonate with JetLite. 3. Mismanagement: Every company and organization rests on the abilities of its management board; there are no second opinions to this school of thought. Naresh Goyal, the founder of Jet Airways, decided to become a one-man army for Jet Airways and did not hire a sound management committee to assist him in running the airline. Insiders often talk about his poor financial acumen. He relied on a single management team for handling all the operations related to Jet. Understanding that specialized teams are needed to run different departments is no rocket science. And when you acquire one more airline, you can't rely on your existing management board that's already burdened to take up additional responsibilities! 4. Full-service airline: Full service airlines offer passengers the choice of economy or business class travel and premium economy and first class on some flights. The company was operating as a full-service airline. Operating as a full-service airline in India is not an easy task. One needs formidable financial support and customer relationships. Catering to the wealthy, the middle class, and the lower sections of the Indian society requires strategy and operational excellence beyond imagination. That is why most of the company’s focus on the middle-class segment and keep the prices as low as possible. Jet Airways was biting off more than it could chew. 5. Drowning in Debts: Jet Airways was never good with money. It kept on incurring debts and spending more than its revenue. The employees were paid lavishly when compared to the industry standards. For the sake of providing comfort and luxury, the Naresh Goyal backed airline compromised with finances.

Conclusion: Jet Airways is on the verge of bankruptcy. Many entrepreneurs have come forward to employ people who lost their jobs due to the Jet Airways crisis. Many have been absorbed by competitors such as SpiceJet. If someone ultimately buys Jet Airways, there's hope for the ex-employees of the bankrupt airline to get their dues. As of now, the hope of revival of Jet Airways is getting thinner and thinner. As reported in March of 2020, the bidders who issued Express of Interest( EoI) to buy Jet Airways have not submitted any resolution plan as per the requirements, yet. As confirmed, the grounded airline did not find any buyer till March 9, 2020. Again, till March 2020, around 20,000 claims were made on Jet Airways which amounted to around Rs. 37,000 crore. Of this, while workmen and employees have claimed over Rs. 14000 crore, creditors are claiming over Rs 11,000 crore from Jet Airways. Looking at the current scenario, it seems that the Jet Airways' saga has almost come to an end. However, the Indian Government's role is pivotal in deciding the course this crisis ultimately takes. 


Harshada Shinde[MBA FA]

New USA based B-School Game

International B-School Business Plan 
Roger Boniface named as one of the most promising Entrepreneurs in Africa in Forbes Africa's 30 under 30 in 2018. He came up with a concept of providing training that uses simulation to bring real-world learning experiences to the classroom. 
The Game
You are a Co-Founder of a New USA based B-School, Along with your core team build a Business Plan to run your B- School in such a way that Business simulations transform the way students learn by giving them the opportunity to run a real-world business without any of the real-world risks.  This will give students the opportunity get hands on experience in a competitive, engaging and realistic environment. 
Managing committee:
President
Secretary 
Placement Head
Academic Advisory Board members
Core Faculty:
Head of the Departments:
Marketing
Human Resources
Finance

Skills:
• Learning attitude
• People Management
Location:
Work from home 
Gender/Age:
Female/20-35 years

Task the members will do:
• Board meeting 
• Meeting Agenda
• Name of the B-School
• Address
• URL
• Email ids
• Logo
• Tag line
• Rules and Regulations
• Infrastructure plan
• Intake of Students
• Eligibility for Admission
• Courses Available
• Syllabus
•  B-School Budget
• Extracurricular activities
• Business simulation Ideas
• CSR 
• Budget
• Extracurricular activities
• Business simulation Ideas





America’s Largest Airline LatAm Files for Bankruptcy

America’s Largest Airline Files for Bankruptcy
The fate of another major airline ends up for filing bankruptcy. LATAM(Latin America) files for chapter 11 bankruptcy due to the travel bans and the passengers that are reluctant to fly due to the fear of the pandemic. 
LATAM  is viewed as the biggest aircraft in Latin America with subsidiaries in Argentina, Brazil, Colombia, Ecuador, Paraguay and Peru, with its derivatives working a consolidated fleet of 315 airplane giving traveler transport services to 137 goals in 24 nations; and 18 airplane giving cargo services to 144 destinations in 29 nations.
The Chapter 11 petition permits LATAM to continue working while the Chilean bearer works out an arrangement to pay creditors and turn around the business. LATAM, whose investors incorporate Chile's Cueto family and Delta Air Lines Inc., keeps on working on a diminished timetable, and it has duties for an insolvency credit of up to $900 million. 
LATAM has already slashed the salaries of 43000 employees, eliminated more than 1,850 jobs in Chile, Colombia, Ecuador and Peru from its worldwide workforce of around 40,000 individuals, in the wake of cutting 95% of its traveler tasks. In some chapter 11 situations, a carrier can dismiss airplane leases, and LATAM has in excess of 20 jetliners on request from Airbus SE and about six from Boeing Co.
In the bankruptcy petition LATAM declared assets of more than $21 billion and total liabilities of almost $18 billion.
Till date LATAM has no access to the relief funds by the government. The airline quoted that talks are underway with governments in Chile, Brazil, Colombia and Peru about additional financing and assistance.


--
Khushi Mehra
Asst Manager content Developer
AirCrews Aviation Pvt Ltd
khushi.mehra@aircrewsaviation.com
www.AirCrewsAviation.com
V card: 







Learning through Management / Corporate Aviation Game

Aircrew Aviation Pvt. Ltd. in collaboration with 
Indore Management Association
Brings in
Learning through Management/Corporate Aviation Game
                    [Best suited for Engineering, B.tech, BBA, B Com, BCA, MBA, MCA Students]

ü Abstract:  

You are a Founder / Director of a 
New
Dream Airlines of USA

ü Make an Airlines Business Plan with a Team
Think Big
Think Out Of The Box
Open Your  Dreams,

AND

ü Choose to be part of Board Of Directors [ Co-Founders]
(Any one)   
Owner
CEO
President
MD
Director Operations
Director  HR
Director  Marketing
Director  Training
Director  FinTech
Chief Pilot
 

ü Skills Required
·        Learning attitude
·        Proactively stay out ahead of technology and trends
·        People management

ü Location
·        Work From Home 
ü Gender/ Age
·        Male/Female: 20-35 years
ü No of Team Members in one Group
·        Min 4 -  Max 20  
ü What Teams will Learn

1.     The Structural Plan
The Airline Planning Roadmap offers a conceptual sense of the necessary steps in launching an Airline from an Idea through launch.

2.     Business Plan Questions 
Provides a list of important questions to consider when writing the business plan.

3.     Framework /Outline of Business Plan

The Airline Business Plan Outline is a tool for capturing many of the important elements for successfully starting and operating an Airline. While it is not a comprehensive structure for all Airline concepts, it can serve as a starting framework for a business plan.

4.     Brand Positioning :  
Provides a list of steps to take to position your emerging brand based on your market analysis and a need to differentiate from existing competitors in whole United State of America and Canada

Note for the Dream Team:
Ø The game is about establishing a virtual Dream Company, it will go on for about 2-3 weeks.

Ø Each Dream team shall be provided 2-3 Invisible Mentors from Aviation Industry.

Ø Team members will not be given worksheets during the project

Ø There will be a separate WhatsApp group for one Dream Team members and frequent WhatsApp Chat/Meet will be held to discuss the above proposition.

Ø It is a part of internship but not mandatory.

Ø Charges per Group = Rs.10000/-shall be paid to Indore Management Association link.

Ø Last but not the least; it’s going to be a unique, creative, practical and mindful learning experience for every team member with lot of fun. It will enhance your learning ability, change perception, induce team work, reinforce corporate culture and motivate you to become an entrepreneur.

We are starting this game from 1st June 2020. All the team members shall provided E-certificates and IMA membership for the year 2020-21.

If interested, Kindly fill the following details :-
Group Lead Name and contact number:                                                    
No. of student in group:
Date and time of first meeting:

Name of student
Course
Course Year
Mobile no.
WhatsApp no.
Email id
Institute name
Remarks

Contact: 
Mr. Rahabar Raza – 8889996135 
Ms.Kratika Jain:      8889996138







Management Corporate Aviation Game


AirCrews Aviation Pvt. Ltd. in collaboration with Indore Management Association
Brings in
Learning through 
Management / Corporate Aviation Game
[Best suited for Pilots, AME, Engineering, B.tech, BBA, B Com, BCA, MBA, MCA Students]


What Teams will Learn
This detailed Airlines Business Planning document typically includes:
Analysis of the Airlines Market and Competition
Airlines Brand positioning
Description of the Airlines Business and opportunity
Details about the Airlines Operation
Management team biographies
Discussion of Airlines Risks and Obstacles
Pro forma Financial Statements/Projections
Airlines Capitalization plan
Brand Development
Airlines Implementation Strategy.

Task Your Dream Team will do:
ü Make an Airlines Business Plan with Team 
ü Board meeting
ü Meeting Agenda
ü Name of Dream Airline
ü Address
ü URL
ü Email Ids
ü Logo
ü Tag Line
ü Order Plan
ü Training Plan
ü Documents
ü OPM
ü SOP
ü Air Charter Business Plan
ü Airline Marketing plan Sample
ü Airline Business models
ü Market analysis for Airlines
ü Marketing Strategy for Airlines
ü How to start a small Airline company in USA and Canada
ü Cargo Airline Business plan in the USA  
ü Corporate Aviation Proposal
ü Aircraft maintenance Business plan
ü Aviation Business plan examples
ü Air cargo Business plan
ü Airplane rental company
ü FBO Business plan
ü Airline start-up costs
ü Business plan sample
ü How to start an Airline docs
ü Starting an Airline charter Business
ü How much does it cost to start an Airline
ü Starting an Airline Business

Game Protocols
General Protocol to be followed by the board members during the entire period of the Management/Corporate Aviation Game:

1. The CEO of the company has the rights to allocate work to all the board members according to her choice. ( She is responsible for getting the work done as well)
2. One meeting should not exceed more than 20 minutes.
3. It is good to have some review meetings in between to keep a track on the flow of the work.
4. Every board member needs to send minutes of the meeting noted on their notes pads to the mentors on everyday basis. (Only the final report will be sent in word/ppt format)
5. Please make sure to use Corporate Language during the meeting, this will help us all to build a stronger image for future job roles.
6. Make sure to ask about your job to the person concerned a day before and not at the last moment.
7. Meetings can be Postponed if needed but when the meetings take place all your work should be ready before you.
8. You may create an unofficial WhatsApp group only of the board members if needed for reducing communication gaps.
9. Kindly note that everything that is discussed in the official group will be recorded so be precise.
10. Make sure to get your speeches or certain work reviewed via your mentors before submitting it. 
11. You have all the freedom to make mistakes as no one is a trained personnel but that very mistake can be made only once and hence learn from it to avoid it in future.
12. All Mentors are Invisible Authority to Create Problems and Also for Solutions as well.  Feel Free to Call / Ping Your Mentors on PM only.
13. WhatsApp Group is Only for Meeting Info and Board of Director's Meet.
Rest of the time It will Activate "Admin Only" Mode.
14. Kindly maintain the Dignity of the Post and Organisation.
15. No Word File / PDF / Excell etc are allowed to share directly in the group.
16. Only Approved Links can be share in group.
17. All Work must be done on NOTEPAD only and share thru CEO only.
18. CEO will Submit Only Final Report in Word / PPT as per guidelines. 
We are going to start this game soon.

“BEST OF LUCK”




Contact us 





Rahaber Raza - 8889996135   

Kratika Jain -    8889996138



Sample Airlines Team 





Disclaimer  :

Note : This is just an Aviation  Fictional Corporate Game not a Real One . As an MBA students Interns are playing different Roles Play. 

See this Video for more Info






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