Case-study on Aviation Industry

7/31/2019 Case-study on Aviation Industry

1/14

CASE-STUDY ON AVIATION

INDUSTRY

Presented by:

Tryambak(1930)

Surabhi parashar(1924)


2/14

INTRODUCTION

In the recent past, Indian civil aviation sector has grownmanifold. Several new players have entered the industry andmany more are about to enter the arena. Apart from the state-owned airline, a number of private companies have entered thearena, thereby providing more choices to the passenger. Today,air travel is no more the monopoly of the rich and the mighty.With the arrival of cheap airline carriers in India, air traveling

has become simpler and cheaper. Private players includingKingfisher Red, Spice Jet, Jetlite, Indigo etc. are coming upwith attractive rates for their passengers, thereby making civilaviation lucrative.

Now, airline has become a common mans vehicle andrevolutionized the way a common Indian traveler used to travel.

The airlines are adding more and more cities to their list ofdestinations covered throughout the country. Therefore, it canbe said that the domestic airlines of India have made travelingeasier for the masses. More and more people are opting fortraveling by air, because they save a lot of time in traveling, ascompared to other means of transportation.


3/14

INDIAS IMPROVING

ECONOMY

Improving economy has affected the aviation industryin the following ways: Consumers have capacity toafford air travel.Consumers have money to spend on tourism, religious

tourism and business trips etc.Competition amongst the Air lines has resulted insharp decline in air fares.The importance of time spent on traveling has beenunderstood by the consumers.There has been phenomenal growth in the Indianaviation sector in 2007-08.

India has jumped to 9th position in world's aviationmarket from 12th in 2006 As per the Ministry of CivilAviation, the airline business is growing at 27 per centper annum in India. During 2007, the domestic airlinepassenger traffic has shown a growth of 32.51 percent. Further, the scheduled domestic air services are

now available from 82 airports as against 75 in 2006


4/14

Sector structure/ marketstructure With the growth rate of 18% per

annum, the Indian aviation industry isone of the fastest growing aviation

industry in the world Today, private airlines account for

around 75% share of the domestic

aviation market


5/14

KEY PLAYERS

Air Deccan

Air-India Express

Air India

Air Sahara

Go Air Indian Airlines

IndiGo

Jet Airways

Jet Lite

SpiceJet Paramount Airways

Kingfisher

The Domestic Aviation Market Share

34%

20%21%

8%

8% 6%

2%

1%

Jet airways

Indian

Air Deccan

Air Sahara

Kingfisher

Spicejet

Goair

Others
http://www.zoomtra.com/airlines/air-deccan.htmlhttp://www.zoomtra.com/airlines/airindiaexpress.htmlhttp://www.zoomtra.com/airlines/air-india.htmlhttp://www.zoomtra.com/airlines/air-sahara.htmlhttp://www.zoomtra.com/airlines/go-air.htmlhttp://www.zoomtra.com/airlines/indian.htmlhttp://www.zoomtra.com/airlines/indigo.htmlhttp://www.zoomtra.com/airlines/jet-airways.htmlhttp://www.zoomtra.com/airlines/jet-lite.htmlhttp://www.zoomtra.com/airlines/spicejet.htmlhttp://www.zoomtra.com/airlines/paramount-airways.htmlhttp://www.zoomtra.com/airlines/jet-lite.htmlhttp://www.zoomtra.com/airlines/paramount-airways.htmlhttp://www.zoomtra.com/airlines/spicejet.htmlhttp://www.zoomtra.com/airlines/paramount-airways.htmlhttp://www.zoomtra.com/airlines/spicejet.htmlhttp://www.zoomtra.com/airlines/jet-lite.htmlhttp://www.zoomtra.com/airlines/jet-airways.htmlhttp://www.zoomtra.com/airlines/indigo.htmlhttp://www.zoomtra.com/airlines/indian.htmlhttp://www.zoomtra.com/airlines/go-air.htmlhttp://www.zoomtra.com/airlines/air-sahara.htmlhttp://www.zoomtra.com/airlines/air-india.htmlhttp://www.zoomtra.com/airlines/airindiaexpress.htmlhttp://www.zoomtra.com/airlines/airindiaexpress.htmlhttp://www.zoomtra.com/airlines/airindiaexpress.htmlhttp://www.zoomtra.com/airlines/air-deccan.html


6/14


7/14

The Porter Model: Five Forces

Introduction

Airline IndustryPorters Five ForcesStrategies


8/14

INDIAS IMPROVING

ECONOMY Improving economy has affected the aviation industry in thefollowing ways: Consumers have capacity to afford air travel.

Consumers have money to spend on tourism, religioustourism and business trips etc.

Competition amongst the Air lines has resulted in sharpdecline in air fares.

The importance of time spent on traveling has beenunderstood by the consumers.

There has been phenomenal growth in the Indian aviationsector in 2007-08.

India has jumped to 9th position in world's aviation marketfrom 12th in 2006 As per the Ministry of Civil Aviation, theairline business is growing at 27 per cent per annum in India.During 2007, the domestic airline passenger traffic has showna growth of 32.51 per cent. Further, the scheduled domesticair services are now available from 82 airports as against 75in 2006


9/14

Five Forces:

1.) Threat of new Entrants The capital requirement Expected retaliation

Inadequate airport infrastructure Shortage of pilots and high fuel

costs Exit barriers

Power of Buyers no differentiation among the

players


10/14

Five Forces:2.) Bargaining Power of

Suppliers Concentration ofsuppliers

Switching costs

Brand value

Forward integration

acute shortage ofpilots

High fuel costs Availability of

Substitute

Product for product

substitution


11/14

Five Forces:3.) Bargaining Power of

Customers Quite low minimal switching cost

alternatives available

no differentiation


12/14

Five Forces:4.) Threat of Substitutes

Time, Money, Personal Preference

Likelihood of taking

Train

Car


13/14

Five Forces:

5.) Competitive RivalryAirline Industry is fiercely competitive

Growth is moderate

low returns

buyers are receiving the benefits of lower prices

Low level of differentiation


14/14

Thank You

Case-study on Aviation Industry

Documents

Transcript of Case-study on Aviation Industry