4. Objectives of the Study
• To assess the contribution, which can be made through the individuals who can provide their services to fulfil the requirement through which we can be known as a successful destination as a whole.
• To acknowledge the issues and problems faced by the employees of tourism industry.
• To rectify the issues and plan according to the needs of the personnel to enhance the productivity.
5. A Case Study of Jet Airways (I) Ltd.
5.1 Financial Position of Jet Airways (I) Ltd.
The year 2012 has seen very difficult years in terms of operation and consequently has shown losses. The main reason for the same is the high costs of operations and a number of pliers in the industry. The two main reasons for this decline were: Price of ATF and high rate of exchange. Crude oil prices continued to be very high especially in the latter half of the year. In addition, the Rate of Exchange of the Indian Rupee to the US Dollar continued to be negative.
USA, Europe has put the airline in difficulty due to their financial instability. This has put significant pressure on the financials of airlines. The banks were adamant on giving any assistance. Airlines tried to hike fare towards the end of the year, because of some demand – supply imbalance being reduced. The total expenses amounting to `1,650,160 lakhs in Fiscal 2012 increased by 26% from `1,307,492 lakhs in Fiscal 2011. The Company has is able to improve its financial status at the need of the financial year of 2012. In the year 2013, the results can be seen (Annual Report, 2012).
The Company has introduced its low fare service products under the ‘JetKonnect’ brand to provide its services to the low-fare category also. The company believes that JetKonnect re-branding will help it to increase credibility and revenues. The reason behind the same is the improved perception of the consumers which in turn will help in improving the yields. Airport changes are also posing a threat for the company. The announcement of union budget on service tax will have an impact on the fares. All of these cost increases are being passed through to the customer and this will preclude airlines from taking further fare increases, lest the same becomes unaffordable in the hands of the customer.
As ATF cost represent 50% of the total cost, it has a major impact on the cost factor and the financial condition of the airline. The weak status of the Indian Rupee with the US Dollar is posing a cost challenge. The inflow of foreign currency is not higher than the outflow of foreign currency. A major step to recover from losses is marking the routes which are constantly making losses and removing operations from those routes.
The aviation industry all over the world is facing the financial crisis and so as Jet Airways. The Indian economy is growing at a good pace in comparison with other markets across the world. It is expected to post growth rates of 6 to 7% per annum for the upcoming decade. This may imply that the Indian aviation industry may see growth rates of over 12%. But, there are few challenges which can put strain on the profitability of the company like the increase in foreign exchange.
Jet Airways is having a moderate fleet which is operating in the difficult environment. The company is earmarking the loss making routes and discontinuing them and add new capacity in markets which can improve the network and increase the revenues. The company has re-branded JetLite into JetKonnect. This can help the company to attract the low fare category of consumers which can yield more returns to the company. This rebranding has seen improved customer satisfaction.
The present study is related to planning for human resource, training and development, recruitment and selection, counselling, performance appraisal, career development, reward system and organizational culture and effectiveness. Thereby to utilize their potentialities for enhancing productivity to help improve job conditions and quality of their work life.
4. Objectives of the Study
• To assess the contribution, which can be made through the individuals who can provide their services to fulfil the requirement through which we can be known as a successful destination as a whole.
• To acknowledge the issues and problems faced by the employees of tourism industry.
• To rectify the issues and plan according to the needs of the personnel to enhance the productivity.
5. A Case Study of Jet Airways (I) Ltd.
5.1 Financial Position of Jet Airways (I) Ltd.
The year 2012 has seen very difficult years in terms of operation and consequently has shown losses. The main reason for the same is the high costs of operations and a number of pliers in the industry. The two main reasons for this decline were: Price of ATF and high rate of exchange. Crude oil prices continued to be very high especially in the latter half of the year. In addition, the Rate of Exchange of the Indian Rupee to the US Dollar continued to be negative.
USA, Europe has put the airline in difficulty due to their financial instability. This has put significant pressure on the financials of airlines. The banks were adamant on giving any assistance. Airlines tried to hike fare towards the end of the year, because of some demand – supply imbalance being reduced. The total expenses amounting to `1,650,160 lakhs in Fiscal 2012 increased by 26% from `1,307,492 lakhs in Fiscal 2011. The Company has is able to improve its financial status at the need of the financial year of 2012. In the year 2013, the results can be seen (Annual Report, 2012).
The Company has introduced its low fare service products under the ‘JetKonnect’ brand to provide its services to the low-fare category also. The company believes that JetKonnect re-branding will help it to increase credibility and revenues. The reason behind the same is the improved perception of the consumers which in turn will help in improving the yields. Airport changes are also posing a threat for the company. The announcement of union budget on service tax will have an impact on the fares. All of these cost increases are being passed through to the customer and this will preclude airlines from taking further fare increases, lest the same becomes unaffordable in the hands of the customer.
As ATF cost represent 50% of the total cost, it has a major impact on the cost factor and the financial condition of the airline. The weak status of the Indian Rupee with the US Dollar is posing a cost challenge. The inflow of foreign currency is not higher than the outflow of foreign currency. A major step to recover from losses is marking the routes which are constantly making losses and removing operations from those routes.
The aviation industry all over the world is facing the financial crisis and so as Jet Airways. The Indian economy is growing at a good pace in comparison with other markets across the world. It is expected to post growth rates of 6 to 7% per annum for the upcoming decade. This may imply that the Indian aviation industry may see growth rates of over 12%. But, there are few challenges which can put strain on the profitability of the company like the increase in foreign exchange.
Jet Airways is having a moderate fleet which is operating in the difficult environment. The company is earmarking the loss making routes and discontinuing them and add new capacity in markets which can improve the network and increase the revenues. The company has re-branded JetLite into JetKonnect. This can help the company to attract the low fare category of consumers which can yield more returns to the company. This rebranding has seen improved customer satisfaction.
The present study is related to planning for human resource, training and development, recruitment and selection, counselling, performance appraisal, career development, reward system and organizational culture and effectiveness. Thereby to utilize their potentialities for enhancing productivity to help improve job conditions and quality of their work life.
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