This project report describes the study about the premium economy class that has recently been introduced in the airlines as a brand extension to leverage the brand potential and reach closer to brand actualization. This project report considers certain variables which are assumed to effect the price of premium economy class seats with respective to economy class seats, these variables are listed in the report. This report portrays the regression analysis done on R, to find out the factors affecting the price of premium economy class seats in airlines. This regression analysis uses the data collected for different airlines for various factors, which are mentioned in the report. This project is done to understand the price setting of the premium economy class seats in airlines. This reports also shows calculation done for jet airways in particular to compare it with rest of airlines put together in the study.

1. Presented By: Krishna Bhawsar (007)
Mayur Verma (008)
Piyush Kapoor (011)
Roziwala Suraj (016)

2. Agenda
• Insights
• Model
• Jet airways
• Brand Management concepts
• Analysis

3. Insights
• Domestic Flights
• 1 unit pitch economy gives PPe = 2971.33
• International flights PPe falls by 24.89%
• Flight duration PPe increase by 1.65%
• International flights PPe = 2381.7
• Duration increase of PPe by 2.06%
• Jet Airways
• 1 unit of pitch economy give Ppe = -84.4
• Considering flight duration, Ppe increase by 17.9%

4. Jet Airways
• 1992, international flights in 2004
• Mumbai based, second largest airline
• 21.2% market share.
• 300 flights daily
• 68 destinations
• Jet privilege
• Fleet size, 117

5. Jet Airways – Value Proposition
• High level of experience to customers
• Positive experience creates word of mouth
• Quality, Comfort along with pleasant atmosphere
• Special seating arrangements for disabled
• Jet Privilege

6. Ads and Extensions

7. Differentiation
https://www.youtube.com/watch?v=jL_I6jhDkcQ

10. Model 1
PPe = -11.75 + 10.04 air$PRICE_ECONOMY + 1 *
air$PRICE_ECONOMY * air$PRICE_RELATIVE – 0.00013 *
air$SEATS_PREMIUM + 0.273 * air$SEAT_PREMIUM *
air$FLIGHT_DURATION – 0.1126 *
air$FLIGHT_DURATION * air$PITCH_ECONOMY + 0.2 *
air$FLIGHT_DURATION * air$WIDTH_PREMIUM – 0.0692
* air$WIDTH_PREMIUM * air$PITCH_PREMIUM

11. Model 2
PPe = 3113.24 + 1.26 air$PRICE_ECONOMY + 680.9
air$PRICE_RELATIVE -731.54 air$INTERNATIONAL +
15.94 air$SEATS_PREMIUM + 49.05
air$FLIGHT_DURATION -141.91 air$PITCH_ECNONOMY +
air$WIDTH_PREMIUM

12. Model 3 (jet airways)
PPe = -83.67 + 1.34 * jet$PRICE_ECONOMY + 164.66
jet$PRICE_RELATIVE -0.04212 jet$SEATS_PREMIUM +
15.12 jet$FLIGHT_DURATION -0.73
jet$PITCH_ECNONOMY

13. Analysis