AVIATION INDUSTRY

INTRODUCTION
Indias civil aviation industry is on a high-growth trajectory. India aims to become the thirdlargest aviation market by 2020 and the largest by 2030.
The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as lowcost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines,
advanced information technology (IT) interventions and growing emphasis on regional
connectivity. India is the ninth-largest civil aviation market in the world, with a market size of
around US$ 16 billion. India is expected to become the third largest aviation market by 2020.
Market Size

In May 2016, domestic air passenger traffic rose 21.63 per cent to 8.67 million from 7.13
million during the same month of last year. Passenger traffic during FY 2015-16
increased at a rate of 21.3 per cent to 85.57 million from 70.54 million in the FY 201415.
In March 2016, total aircraft movements at all Indian airports stood at 160,830, which
was 14.9 per cent higher than March 2015. International and domestic aircraft
movements increased 10.5 per cent and 16.0 per cent, respectively, in March 2016.
Indian domestic air traffic is expected to cross 100 million passengers by FY2017,
compared to 81 million passengers in 2015, as per Centre for Asia Pacific Aviation
(CAPA).
India is among the five fastest-growing aviation markets globally with 275 million new
passengers. The airlines operating in India are projected to record a collective operating
profit of Rs 8,100 crore (US$ 1.29 billion) in fiscal year 2016, according to Crisil Ltd.

CONTRIBUTION TO GDP
Aviation industry is contributing Rs 33,000 crore or 0.5 per cent of India's GDP and supporting
1.7 million jobs in the country.

JET AIRWAYS
Jet Airways is a major Indian airline based in Mumbai. It is the second largest airline in India,
both in terms of market share and passengers carried. It operates over 3,000 flights daily to 76
destinations worldwide. Its main hub is Mumbai, with secondary hubs at Delhi, Kolkata,
Chennai and Bangalore. It has an international hub at Brussels Airport, Belgium.

Jet Airways was incorporated as an air taxi operator on April 1, 1992. It started commercial
operations on May 5, 1993 with a fleet of four leased Boeing 737-300 aircraft from Malaysia
Airlines. In January 1994, a change in the law enabled Jet Airways to apply for scheduled airline
status, which was granted on January 4, 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 state-owned Indian Airlines.
Jet began international operations from Chennai to Colombo in March 2004. 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. 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.
COMPUNDED ANNUAL GROWTH RATE
During FY11-16, the international segment has outpaced the domestic segment with revenue
CAGR of 9.7% and domestic segment (Jet + JetLite) revenue CAGR of 5.4% in FY11-16.
SWOT ANALYSIS OF JET AIRWAYS
SWOT Analysis
1. Has created a good image among the Indian
fliers
2. Trusted Airline by the Corporates
3. One of the biggest Indian airline companies
with over 13,000 employees
4. Operations in over 75 Indian cities and over
400 daily flights
5. Top of the mind brand due to excellent
operations and marketing
Strengths
Weaknesses

6. It also has international destinations in nearly

20 countries
1. Competition from the LCCs and other
competitors means market share growth is tough
2. Presence of other airlines on international
routes making it difficult to have significant

market share
1. Strongly positioned in the International routes
2. Has presence in every segment
Opportunities

3. Increasing number of people opting to travel

by airlines
1. LCCs eating up the market
2. Rising Fuel Costs and Labor Costs

Threats

3. Unfavorable Government
aviation regulations

share

policies and

SALES TURNOVER
The sales turnover of Jet airways over the years is

Year

Sales turnover(in
cr)
2015
19,573.43
2014
17,301.89
2013
16,852.59
2012
14,815.91
The sales turnover were increasing drastically over years

SERVICES PROVIDED BY JET AIRWAYS

They provide both international and domestic flight services.

First class, premiere and economy class are provided.
Special assistance to guests with disabilities, medical case, extra seat for comfort and
travelling with pets is provided.

COMPETITORS
Jet airways occupies second place by taking a market share of 21.9% after indigo.
Major competitors of Jet Airways are

Indigo
Air India
Go Air
Spice Jet

MARKET SHARE
Jet Airways occupies a market share of 21.95 with Passenger load traffic of 77.7%.

ANALYSIS AND INFERENCE

CALCULATION OF BETA FOR JET
AIRWAYS

Date
8/3/2015
8/4/2015
8/5/2015
8/6/2015
8/7/2015
8/10/201
5
8/11/201
5
8/12/201
5
8/13/201
5
8/14/201
5
8/17/201
5
8/18/201
5
8/19/201
5

NIFTY
Adj
Close
8543.0
5
8516.9
8567.9
5
8588.6
5
8564.6

DAILY
RETUR
N%

Date

JET
AIRWAY
S
Adj DAILY
Close
RETUR
NSE
N%

-0.31

8/3/2015
8/4/2015

408.75
415.5

1.65

0.60

8/5/2015

410.35

-1.24

0.24
-0.28

412.4
402.3

0.50
-2.45

8525.6
8462.3
5
8349.4
5
8355.8
5
8518.5
5

-0.46

391.1

-2.78

374.1

-4.35

356.3

-4.76

371.2

4.18

400.65

7.93

8477.3
8466.5
5
8495.1
5

-0.48

8/6/2015
8/7/2015
8/10/201
5
8/11/201
5
8/12/201
5
8/13/201
5
8/14/201
5
8/17/201
5
8/18/201
5
8/19/201
5

379.75

-5.22

375.05

-1.24

379.8

1.27

-0.74
-1.33
0.08
1.95

-0.13
0.34

8/20/201
5
8/21/201
5
8/24/201
5
8/25/201
5
8/26/201
5
8/27/201
5
8/28/201
5
8/31/201
5
9/1/2015
9/2/2015
9/3/2015
9/4/2015
9/7/2015
9/8/2015
9/9/2015
9/10/201
5
9/11/201
5
9/14/201
5
9/15/201
5
9/16/201
5
9/18/201
5
9/21/201
5
9/22/201
5
9/23/201
5
9/24/201

8372.7
5
8299.9
5
7809

-5.92

7880.7
7791.8
5
7948.9
5
8001.9
5

0.92

7971.3
7785.8
5
7717
7823
7655.0
5
7558.8
7688.2
5
7818.6

-0.38

8/20/201
5
8/21/201
5
8/24/201
5
8/25/201
5
8/26/201
5
8/27/201
5
8/28/201
5
8/31/201
5

-2.33
-0.88
1.37

9/1/2015
9/2/2015
9/3/2015

324.7
317.4
325.85

-3.95
-2.25
2.66

-2.15
-1.26

9/4/2015
9/7/2015

312.2
301.35

-4.19
-3.48

1.71
1.70

312.75
316.5

3.78
1.20

7788.1

-0.39

311.45

-1.60

7789.3
7872.2
5

0.02

328.25

5.39

330.45

0.67

7829.1
7899.1
5

-0.55

335.5

1.53

331.4

-1.22

7981.9

1.05

337.4

1.81

7977.1

-0.06

341.1

1.10

7812
7845.9
5
7868.5

-2.07

9/8/2015
9/9/2015
9/10/201
5
9/11/201
5
9/14/201
5
9/15/201
5
9/16/201
5
9/18/201
5
9/21/201
5
9/22/201
5
9/23/201
5
9/24/201

326.7

-4.22

331.35
331.35

1.42
0.00

-1.44
-0.87

-1.13
2.02
0.67

1.06

0.89

0.43
0.29

389.55

2.57

373.1

-4.22

301.25

-19.26

324.25

7.63

325.15

0.28

339.35

4.37

337.6

-0.52

338.05

0.13

5
9/28/201
5
9/29/201
5
9/30/201
5
10/1/201
5
10/5/201
5
10/6/201
5
10/7/201
5
10/8/201
5
10/9/201
5
10/12/20
15
10/13/20
15
10/14/20
15
10/15/20
15
10/16/20
15
10/19/20
15
10/20/20
15
10/21/20
15
10/23/20
15
10/26/20
15
10/27/20
15
10/28/20
15
10/29/20
15

7795.7

-0.93

7843.3

0.61

7948.9

1.35

7950.9

0.03

8119.3

2.12

8152.9

0.41

8177.4
8129.3
5

0.30

8189.7

0.74

8143.6

-0.56

8131.7

-0.15

8107.9

-0.29

8179.5
8238.1
5
8275.0
5
8261.6
5

0.88

8251.7
8295.4
5
8260.5
5

-0.12

8232.9

-0.33

8171.2
8111.7
5

-0.75

-0.59

0.72
0.45
-0.16

0.53
-0.42

-0.73

5
9/28/201
5
9/29/201
5
9/30/201
5
10/1/201
5
10/5/201
5
10/6/201
5
10/7/201
5
10/8/201
5
10/9/201
5
10/12/20
15
10/13/20
15
10/14/20
15
10/15/20
15
10/16/20
15
10/19/20
15
10/20/20
15
10/21/20
15
10/23/20
15
10/26/20
15
10/27/20
15
10/28/20
15
10/29/20
15

320.05

-3.41

329.65

3.00

324.35

-1.61

321.35

-0.92

329.7

2.60

334.45

1.44

332.15

-0.69

329.15

-0.90

326.4

-0.84

329.3

0.89

369.75

12.28

367.05

-0.73

365.6

-0.40

387.7

6.04

417.8

7.76

395.95

-5.23

408.5

3.17

411.5

0.73

398.45

-3.17

403.8

1.34

408.15

1.08

400.25

-1.94

10/30/20
15
11/2/201
5
11/3/201
5
11/4/201
5
11/5/201
5
11/6/201
5
11/9/201
5
11/10/20
15
11/11/201
5
11/13/20
15
11/16/20
15
11/17/20
15
11/18/20
15
11/19/20
15
11/20/20
15
11/23/20
15
11/24/20
15
11/26/20
15
11/27/20
15
11/30/20
15
12/1/201
5
12/2/201
5
12/3/201
5

8065.8

-0.57

8050.8

-0.19

8060.7

0.12

8040.2
7955.4
5

-0.25

7954.3

-0.01

7915.2
7783.3
5

-0.49

7825
7762.2
5

0.54

7806.6
7837.5
5

0.57

7731.8
7842.7
5
7856.5
5
7849.2
5

-1.35

7831.6

-0.22

7883.8

0.67

7942.7
7935.2
5

0.75

7954.9
7931.3
5
7864.1
5

0.25

-1.05

-1.67

-0.80

0.40

1.43
0.18
-0.09

-0.09

-0.30
-0.85

10/30/20
15
11/2/201
5
11/3/201
5
11/4/201
5
11/5/201
5
11/6/201
5
11/9/201
5
11/10/20
15
11/11/201
5
11/13/20
15
11/16/20
15
11/17/20
15
11/18/20
15
11/19/20
15
11/20/20
15
11/23/20
15
11/24/20
15
11/26/20
15
11/27/20
15
11/30/20
15
12/1/201
5
12/2/201
5
12/3/201
5

437.45

9.29

450.75

3.04

453.15

0.53

460.3

1.58

441.15

-4.16

416.65

-5.55

440.65

5.76

421.8

-4.28

430.85

2.15

435.4

1.06

427.35

-1.85

428.75

0.33

415.2

-3.16

449.25

8.20

458.35

2.03

467.35

1.96

473.4

1.29

506.25

6.94

505.1

-0.23

512.9

1.54

512.45

-0.09

562.7

9.81

568.9

1.10

12/4/201
5
12/7/201
5
12/8/201
5
12/9/201
5
12/10/20
15
12/11/20
15
12/14/20
15
12/15/20
15
12/16/20
15
12/17/20
15
12/18/20
15
12/21/20
15
12/22/20
15
12/23/20
15
12/24/20
15
12/28/20
15
12/29/20
15
12/30/20
15
12/31/20
15
1/4/2016
1/5/2016
1/6/2016
1/7/2016
1/8/2016

0.63
-1.95

12/4/201
5
12/7/201
5
12/8/201
5
12/9/201
5
12/10/20
15
12/11/20
15
12/14/20
15
12/15/20
15
12/16/20
15
12/17/20
15
12/18/20
15
12/21/20
15
12/22/20
15
12/23/20
15
12/24/20
15
12/28/20
15
12/29/20
15
12/30/20
15
12/31/20
15
1/4/2016

-0.09
-0.56
-2.23

1/5/2016
1/6/2016
1/7/2016

738.8
744
742.6

0.80
0.70
-0.19

0.44

1/8/2016

746.6

0.54

7781.9

-1.05

7765.4

-0.21

7701.7

-0.82

7612.5

-1.16

7683.3
7610.4
5
7650.0
5

0.93

7700.9

0.66

7750.9
7844.3
5
7761.9
5
7834.4
5

0.65

7786.1
7865.9
5
7861.0
5
7925.1
5
7928.9
5
7896.2
5
7946.3
5
7791.3
7784.6
5
7741
7568.3
7601.3
5

-0.62

-0.95
0.52

1.21
-1.05
0.93

1.03
-0.06
0.82
0.05
-0.41

555.85

-2.29

558.15

0.41

573.05

2.67

560.4

-2.21

572.2

2.11

562.65

-1.67

570.2

1.34

598.5

4.96

598.95

0.08

614.35

2.57

619

0.76

622.7

0.60

630.5

1.25

624.8

-0.90

609.45

-2.46

638

4.68

647.6

1.50

658

1.61

702.85
732.95

6.82
4.28

1/11/201
6
1/12/201
6
1/13/201
6
1/14/201
6
1/15/201
6
1/18/201
6
1/19/201
6
1/20/201
6
1/21/201
6
1/22/201
6
1/25/201
6
1/27/201
6
1/28/201
6
1/29/201
6
2/1/2016
2/2/2016
2/3/2016
2/4/2016
2/5/2016
2/8/2016
2/9/2016
2/10/201
6
2/11/201
6
2/12/201
6
2/15/201

7563.8
5

1.87

1/11/201
6
1/12/201
6
1/13/201
6
1/14/201
6
1/15/201
6
1/18/201
6
1/19/201
6
1/20/201
6
1/21/201
6
1/22/201
6
1/25/201
6
1/27/201
6
1/28/201
6
1/29/201
6

-0.49

7510.3

-0.71

7562.4

0.69

7536.8

-0.34

7437.8

-1.31

7351

-1.17

7435.1

1.14

7309.3

-1.69

7276.8
7422.4
5
7436.1
5
7437.7
5
7424.6
5
7563.5
5
7555.9
5
7455.5
5
7361.8
7404
7489.1
7387.2
5
7298.2

-0.44

-0.10

2/1/2016

605.95

0.56

-1.33
-1.26
0.57
1.15

2/2/2016
2/3/2016
2/4/2016
2/5/2016

601.45
560.7
528.95
569.5

-0.74
-6.78
-5.66
7.67

-1.36
-1.21

2/8/2016
2/9/2016
2/10/201
6
2/11/201
6
2/12/201
6
2/15/201

594
576.9

4.30
-2.88

7215.7
6976.3
5
6980.9
5
7162.9

-1.13

586.95

1.74

524.45

-10.65

543.95
566.2

3.72
4.09

2.00
0.18
0.02
-0.18

-3.32
0.07
2.61

749.15

0.34

773.2

3.21

775.8

0.34

753.2

-2.91

707.9

-6.01

635.5

-10.23

671.1

5.60

650.85

-3.02

658.85

1.23

617.2

-6.32

625.25

1.30

645.5

3.24

625

-3.18

602.6

-3.58

6
2/16/201
6
2/17/201
6
2/18/201
6
2/19/201
6
2/22/201
6
2/23/201
6
2/24/201
6
2/25/201
6
2/26/201
6
2/29/201
6
3/1/2016
3/2/2016
3/3/2016
3/4/2016
3/8/2016
3/9/2016
3/10/201
6
3/11/201
6
3/14/201
6
3/15/201
6
3/16/201
6
3/17/201
6
3/18/201
6
3/21/201
6

5
7048.2
5
7108.4
5
7191.7
5
7210.7
5
7234.5
5
7109.5
5

-0.61
3.37

6
2/16/201
6
2/17/201
6
2/18/201
6
2/19/201
6
2/22/201
6
2/23/201
6
2/24/201
6
2/25/201
6
2/26/201
6
2/29/201
6
3/1/2016

2.03
1.45

3/2/2016
3/3/2016

513.85
517.25

0.74
0.66

0.13
0.00
0.62

3/4/2016
3/8/2016
3/9/2016
3/10/201
6
3/11/201
6
3/14/201
6
3/15/201
6
3/16/201
6
3/17/201
6
3/18/201
6
3/21/201
6

534.35
526.65
540.05

3.31
-1.44
2.54

536.2

-0.71

538.05

0.35

526.2

-2.20

530.8

0.87

528.55

-0.42

522.8

-1.09

522.6

-0.04

546.45

4.56

-1.60
0.85
1.17
0.26
0.33
-1.73

7018.7

-1.28

6970.6
7029.7
5
6987.0
5
7222.3
7368.8
5
7475.6
7485.3
5
7485.3
7531.8
7486.1
5

-0.69

7510.2
7538.7
5

0.32

7460.6
7498.7
5
7512.5
5
7604.3
5
7704.2
5

-1.04

0.85

-0.61

0.38

0.51
0.18
1.22
1.31

534.25

-5.64

549.35

2.83

542.9

-1.17

557.45

2.68

551.3

-1.10

549.65

-0.30

524.9

-4.50

504.7

-3.85

505.4

0.14

491.5
510.1

-2.75
3.78

3/22/201
6
3/23/201
6
3/28/201
6
3/29/201
6
3/30/201
6
3/31/201
6
4/1/2016
4/4/2016
4/5/2016
4/6/2016
4/7/2016
4/8/2016
4/11/201
6
4/12/201
6
4/13/201
6
4/18/201
6
4/20/201
6
4/21/201
6
4/22/201
6
4/25/201
6
4/26/201
6
4/27/201
6
4/28/201
6
4/29/201
6

7714.9

0.14

7716.5

0.02

7615.1

-1.31

7597

-0.24

7735.2

1.82

7738.4
7713.0
5
7758.8
7603.2
7614.3
5
7546.4
5
7555.2

0.04

3/22/201
6
3/23/201
6
3/28/201
6
3/29/201
6
3/30/201
6
3/31/201
6

-0.33
0.59
-2.01

7671.4
7708.9
5
7850.4
5

1.54

7914.7
7914.7
5
7912.0
5

0.82

7899.3
7855.0
5
7962.6
5

-0.16

7979.9
7847.2
5

0.22

7849.8

0.03

540.3

-1.13

554.15

2.56

543.95

-1.84

538.5

-1.00

542.9

0.82

547.3

0.81

4/1/2016
4/4/2016
4/5/2016

566.5
588.4
594.45

3.51
3.87
1.03

0.15

4/6/2016

628.95

5.80

-0.89
0.12

4/7/2016
4/8/2016
4/11/201
6
4/12/201
6
4/13/201
6
4/18/201
6
4/20/201
6
4/21/201
6
4/22/201
6
4/25/201
6
4/26/201
6
4/27/201
6
4/28/201
6
4/29/201
6

614.2
614.95

-2.35
0.12

626.55

1.89

630.95

0.70

626.2

-0.75

639.4

2.11

624.1

-2.39

617.65

-1.03

615.9

-0.28

626.05

1.65

636.15

1.61

637.45

0.20

628.15

-1.46

617.45

-1.70

0.49
1.84

0.00
-0.03

-0.56
1.37

-1.66

5/2/2016
5/3/2016
5/4/2016
5/5/2016
5/6/2016
5/9/2016
5/10/201
6
5/11/201
6
5/12/201
6
5/13/201
6
5/16/201
6
5/17/201
6
5/18/201
6
5/19/201
6
5/20/201
6
5/23/201
6
5/24/201
6
5/25/201
6
5/26/201
6
5/27/201
6
5/30/201
6
5/31/201
6
6/1/2016
6/2/2016

7805.9
7747
7706.5
5
7735.5
7733.4
5
7866.0
5

-0.56
-0.75

5/2/2016
5/3/2016

618.95
620.95

0.24
0.32

-0.52
0.38

5/4/2016
5/5/2016

623.8
623.05

0.46
-0.12

-0.03

5/6/2016

625.8

0.44

1.71

657.85

5.12

7887.8
7848.8
5

0.28

661.2

0.51

651.2

-1.51

7900.4

0.66

654.25

0.47

7814.9
7860.7
5
7890.7
5
7870.1
5

-1.08

651.85

-0.37

662.75

1.67

654.75

-1.21

648.55

-0.95

7783.4

-1.10

633.45

-2.33

7749.7
7731.0
5
7748.8
5

-0.43

603.85

-4.67

607.15

0.55

582

-4.14

7934.9
8069.6
5
8156.6
5

2.40

598.65

2.86

606.25

1.27

604.1

-0.35

8178.5

0.27

599.3

-0.79

8160.1
8179.9
5
8218.9
5

-0.22

5/9/2016
5/10/201
6
5/11/201
6
5/12/201
6
5/13/201
6
5/16/201
6
5/17/201
6
5/18/201
6
5/19/201
6
5/20/201
6
5/23/201
6
5/24/201
6
5/25/201
6
5/26/201
6
5/27/201
6
5/30/201
6
5/31/201
6

588

-1.89

0.24

6/1/2016

575.15

-2.19

0.48

6/2/2016

570.1

-0.88

-0.49

0.59
0.38
-0.26

-0.24
0.23

1.70
1.08

6/3/2016
6/6/2016
6/7/2016
6/8/2016
6/9/2016
6/10/201
6
6/13/201
6
6/14/201
6
6/15/201
6
6/16/201
6
6/17/201
6
6/20/201
6
6/21/201
6
6/22/201
6
6/23/201
6
6/24/201
6
6/27/201
6
6/28/201
6
6/29/201
6
6/30/201
6
7/1/2016
7/4/2016
7/5/2016
7/7/2016
7/8/2016

8220.8
8201.0
5
8266.4
5
8273.0
5
8203.6
8170.0
5

0.02

6/3/2016

557.5

-2.21

-0.24

6/6/2016

565.7

1.47

0.80

6/7/2016

552.25

-2.38

0.08
-0.84

551.15
568.75

-0.20
3.19

569.6

0.15

8110.6
8108.8
5

-0.73

550.2

-3.41

559.15

1.63

8206.6
8140.7
5

1.21

561.35

0.39

557.55

-0.68

8170.2

0.36

549.95

-1.36

8238.5

0.84

586

6.56

8219.9

-0.23

576.45

-1.63

8203.7
8270.4
5

-0.20

562.95

-2.34

556.65

-1.12

8088.6

-2.20

533.6

-4.14

8094.7
8127.8
5

0.08

541.6

1.50

551.15

1.76

8204
8287.7
5
8328.3
5
8370.7
8335.9
5
8337.9
8323.2

0.94

558.6

1.35

1.02

6/8/2016
6/9/2016
6/10/201
6
6/13/201
6
6/14/201
6
6/15/201
6
6/16/201
6
6/17/201
6
6/20/201
6
6/21/201
6
6/22/201
6
6/23/201
6
6/24/201
6
6/27/201
6
6/28/201
6
6/29/201
6
6/30/201
6

555.75

-0.51

0.49
0.51

7/1/2016
7/4/2016

546.35
570.1

-1.69
4.35

-0.42
0.02
-0.18

7/5/2016
7/7/2016
7/8/2016

570.8
569.9
570.5

0.12
-0.16
0.11

-0.41

-0.02

-0.80

0.81

0.41

7/11/201
6
7/12/201
6
7/13/201
6
7/14/201
6
7/15/201
6
7/18/201
6
7/19/201
6
7/20/201
6
7/21/201
6
7/22/201
6
7/25/201
6
7/26/201
6
7/27/201
6
7/28/201
6
7/29/201
6
8/1/2016
8/2/2016
8/3/2016
8/4/2016
8/5/2016
8/8/2016
8/9/2016
8/10/201
6
8/11/201

8467.9
8521.0
5

1.74

8519.5

-0.02

8565

0.53

8541.4

-0.28

8508.7
8528.5
5
8565.8
5

-0.38

8510.1

-0.65

8541.2
8635.6
5
8590.6
5

0.37

8615.8

0.29

8666.3

0.59

8638.5
8636.5
5
8622.9
8544.8
5
8551.1
8683.1
5
8711.3
5
8678.2
5

-0.32

7/11/201
6
7/12/201
6
7/13/201
6
7/14/201
6
7/15/201
6
7/18/201
6
7/19/201
6
7/20/201
6
7/21/201
6
7/22/201
6
7/25/201
6
7/26/201
6
7/27/201
6
7/28/201
6
7/29/201
6

-0.02
-0.16

8575.3
8592.1

-1.19
0.20

574

0.61

576.25

0.39

564.6

-2.02

570.7

1.08

560.95

-1.71

559.55

-0.25

553.7

-1.05

560.05

1.15

550.95

-1.62

567.45

2.99

574.1

1.17

566.65

-1.30

581.9

2.69

588.7

1.17

620.6

5.42

8/1/2016
8/2/2016

608.6
578.2

-1.93
-5.00

-0.91
0.07

8/3/2016
8/4/2016

593.8
588.6

2.70
-0.88

1.54

8/5/2016

599.65

1.88

0.32

8/8/2016

588.45

-1.87

-0.38

8/9/2016
8/10/201
6
8/11/201

554.55

-5.76

552
547.1

-0.46
-0.89

0.63

0.23
0.44

1.11
-0.52

6
8/16/201
6
8/17/201
6
8/18/201
6
8/19/201
6
8/22/201
6
8/23/201
6
8/24/201
6
8/25/201
6
8/26/201
6
8/29/201
6
8/30/201
6
8/31/201
6

5
8642.5
5
8624.0
5
8673.2
5

0.59
-0.21
0.57

8666.9
8629.1
5

-0.07

8632.6

0.04

8650.3

0.21

8592.2
8572.5
5
8607.4
5
8744.3
5

-0.67

8786.2

0.48

-0.44

-0.23
0.41
1.59

6
8/16/201
6
8/17/201
6
8/18/201
6
8/19/201
6
8/22/201
6
8/23/201
6
8/24/201
6
8/25/201
6
8/26/201
6
8/29/201
6
8/30/201
6
8/31/201
6

539.75

-1.34

542.85

0.57

540.15

-0.50

537.95

-0.41

543.55

1.04

549.9

1.17

543.25

-1.21

532.6

-1.96

529.5

-0.58

529.15

-0.07

534.6

1.03

539.05

0.83

MEAN
Nifty
Jet Airways

0.02%
0.16%

*The average daily return of nifty index between 1aug2015 to 31aug2016 is 0.12% and the
average daily return of Jet Airways is 0.16%
STANDARD DEVIATION
Nifty

1.017813

Jet Airways

3.34509

*Since the standard deviation is low for both the indices there dispersion is also low.

*There is no much deviation between the daily return of the both indices.
CORRELATION
*The correlation between the NIFTY and Jet Airways is 0.470981239
*They are moderately positively correlated
*This implies that the indices of NIFTY are affecting the Jet Airways moderately
BETA
The beta value is 1.55
*The beta value is greater than 1 which means that the Jet Airways is more volatile to the market
*The risk is high so as the return
GRAPH
15
10
5
0
-5

DAILY RETURN %NIFTY

DAILY RETURN % Jet Airways

-10
-15
-20
-25

Graph showing the daily return of NIFTY and Jet Airways

*Variations in NIFTY index have no much variations but Jet Airways has huge variations in their
daily return.

CONCLUSION
The beta value shows that risk is very high in investing in Jet Airways. I would like not to invest
in the company because the risk is very high in investing in such a company where the beta value

is very high. I am a risk averse person and would like to invest safely without any risk though the
return is low.

REFERENCE
Indian aviation industry. Retrieved from:
http://www.ibef.org/industry/indian-aviation.aspx
Contribution to GDP. Retrieved from:
http://articles.economictimes.indiatimes.com/2012-04-01/news/31270290_1_aviation-sectoroxford-economics-international-air-transport-association
Jet Airways. Retrieved from:
http://www.ibef.org/industry/indian-aviation/showcase/spiceJet

Sales turnover. Retrieved from:

http://www.moneycontrol.com/financials/jetairways/profit-loss/JA01
Market share. Retrieved from:
http://www.ibef.org/download/Airports-January-2016.pdf
CAGR Retrieved from:
http://content.icicidirect.com/mailimages/IDirect_JetAirways_Q4FY16.pdf