Group 15 Oscm Semester End Presentation

8/8/2019 Group 15 Oscm Semester End Presentation

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OSCM SEMESTER END PRESENTATION

Industry AVIATION

Indian Company SpiceJet

Glibal Company Cathay Pacific

GROUP 15 (SECTION D)

Aditya Tripathi (A1802009139)

Ravit Singh (A1802009052)

Anurag Sharma (A1802009083)

Kushagra Rajvanshi (A182009190)

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TOP 10 AIRLINES IN THE WORLD

Singapore Airlines (US$m9436.23)

Cathay Pacific (US$8621.31million)

Qantas Airways Ltd. ($m14552)

Thai Airways (US$ 5259.55 million) Asiana (US$3400 million)

Malaysia Airlines (US$ 4087.39 million)

Qatar Airways (US$ 75 million)

Air New Zealand (US$ 103.71 million) Emirates (US$ 11829.15 million)

Etihad Airways (US$3000 million)

Source: Airlines.net ; Skytrax2


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WORLDWIDE MARKET

SHARE


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Airline Industry in

India454 airports and airstrips

(includes Operational, Non Operational, Abandoned and

Disused Airports)

127 are owned & operated by AAI

16 - international, 7 custom airports, 28 civilenclaves

Scheduled domestic air services - available from 82

airports

May 2008- May 2009

25.5 million domestic & 22.4 million internationalpassengers

20% growth highest in the world

Growth Rate Projections (for next 5 yrs)

15% p.a (Passenger Traffic)

11.4% p.a (Cargo Traffic)

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MAJOR PLAYERS (MARKET SHARE)


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TOP 10 AIRLINES IN INDIA

Kingfisher (5300 crores)

Jet Airways (8000 crores)

IndiGo

Spice Jet Indian Airlines ( 4000 crores)

GoAir

Paramount Airways Private Limited

JetLite Kingfisher Red

Lufthansa India Airlines

Source: Airlines.net ; Skytrax6


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MARKET SHARE & COMPETITORS

1%

29%

22%

29%

9% 6%

4%

Paramount Airways

Jet Airway

Indian Airlines

Kingfisher

Spice Jet

IndigoGoAir


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GLOBALPLAYERS

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SINGAPOREAIRLINES

Singapores flag carrier.

World's Most Admired Airline.

27th on Fortune Worlds Most Admired

Companies rankings in 2010.

Strong presence in Southeast Asia, East

Asia, South Asia, and "Kangaroo Route" markets.

Operates trans-Pacific flights, including the

world's two longest non-stop commercial flights.

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SINGAPOREAIRLINES

Singapore Airlines Suites, exclusively

available onboard the A380, provide a privileged

few with their very own haven of tranquility.

First Class on Boeing 747-400, home away fromhome that evokes the golden age of travel.

Business Class, the most spacious the world has

ever seen, with the largest seat and fully-flat bed

in its class.

Economy Class with more space and intelligent

features, offers more comfort than ever.

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QATARAIRWAYS

Flag carrier of Qatar.

One of only six airlines awarded 5-star rating

by Skytrax.

Operates across the Africa, CentralAsia, Europe, Far East, Indian

subcontinent, Middle East, North America, South

America and Oceania.

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QATARAIRWAYS

Corporate Travel, extension of 5-star service.

First Class, from chauffeured BMW to a

personal air-space.

Business Class, a liberating sense of comfortand space.

Economy Class, awarded Worlds Best at the

Skytrax World Airline Awards 2009.

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LUFTHANSA

The flag carrier of Germany.

Largest airline in Europe in terms of overall

passengers carried.

Founding member of Star Alliance, the world'slargest airline alliance.

Third-largest passenger airline fleet in the world

when combined with its subsidiaries.

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LUFTHANSA

Check-in through

- machine

- online

- SMS

Book Hotel

Book Rental Cars

Miles & More

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INDIANPLAYERS

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JETAIRWAYS

India's second largest airline after Air India and

the market leader in the domestic sector.

Main domestic hubs: Mumbai & Delhi

International hub at Brussels.

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Jet Airways

On Ground Services

- Check in options

- Airport Lounges

- Coach Services

In-flight Services

- Classes of Service

- Convenience & Safety- First Aid, Smoke detectors, Bassinets, Child

Care, etc.

- Cuisines

- Entertainment

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AIR INDIA

State-owned flag carrier of India.

India's oldest and largest airline.

16th largest airline in Asia.

Two major domestic hubs at Delhi & Mumbaiand one international hub at Frankfurt.

Set to become a full Star Alliance member by

March 2011

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AIR INDIA

Flying Returns, Indias first frequent flyer

programme.

Maharaja Lounge

Air India Holidays

Corporate House Benefits

Companion Free Scheme20


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KINGFISHERAIRLINES

Established in 2003, owned by

Bangalore based United Breweries Group.

One of six airlines in the world to have a 5-starrating from Skytrax.

Member elect of the Oneworld airline alliance.

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KINGFISHERAIRLINES

Cabin Classes

- Kingfisher First

- Kingisher Class

- Kingfisher Red

King Mobile

Little Wings

Business Travel

Kingfisher Holidays

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SPICEJET

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INTRODUCTION

Began service in May 2005.

By 2008, India's second largest low-cost airline in

terms of market share.

21 Boeing 737-800/900ER aircraft across 20destinations, with hub at IGI, Delhi.

Going international in 2010 (Colombo).

Voted as the best low-cost airline in South

Asia and Central Asia region (Skytrax, 2007).

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DESTINATIONS

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MAJOR PRODUCTS & SERVICES

Passenger Services

- single class configuration

- low on price, not quality

- tapping railway passengers

- focus on profitable routes

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ANCILLARYSERVICES

Ancillary Services

Ancillary

ServicesProviding

Hotels

In flight

Catering

Couriers &

Cargo

Selling

Insurance

Promotional

offers

Excess

Baggage

Car Rentals

Selling

space for

advertise


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RESOURCES

Transformed

- Passengers

- Cargo

Transforming

- Aircrafts

- Human Resource (crew & operational staff)

- Airports (facilitators)

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CATHAY

PACIFIC

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INTRODUCTION

Flag carrier of Hong Kong.

Headquarters and main hub at Hong Kong

International Airport.

Passenger and cargo services in 36 countries.

Founding member of the Oneworld alliance.

Awarded with a Five Star Airline ranking and

2009 Airline of the Year by Skytrax.30


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Passenger Services

- Operates 100 passenger planes

- 40 with three classes of service

- 60 with two classes of service

Cargo Services

- 24 freighters to 38 global destinations

- Cathay Pacific Wholesale Courier (OBC), RetailParcel Express (RPX), and CX/DHL Overnight

Express Network(OEO).31


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The Marco Polo Club

- divided into four tiers, Green, Silver, Gold

and Diamond.

- members provided with increased travelbenefits

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SPICEJETSECURING COMPETITIVEADVANTAGETHROUGH

CRITICAL BUSINESS SUCCESS FACTORS

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COST

Pure LCC model has helped achieve the lowest

cost in the industry, its per unit cost is 20% lower

than its LCC peers & 40% lower than the full-

service carrier (FSC) players.

Cost efficient techniques like single passenger

class, standardised fleet and direct ticketing.

Embedding a 15% discount in the fuel contracts

it negotiated by paying its bills on time.

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COST

Fewer "hard landings" lower the need for aircraft

repair.

Saved about Rs 1 crore by relocating its trainingsimulators from Hong Kong.

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OPERATIONAL EFFICIENCY

Partnerships with global leaders in their

respective fields to enhance safety and reliability.

Supported in the maintenance department byKLM and state-of-the-art technology from world

leaders like the Star Navigation, Russell Adams

and Tech Log.

Partnership with Navitaire, the worlds

renowned low-cost support system for

reservations and revenue management.36


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OPERATIONAL EFFICIENCY

Results:

- lowest cost (Rs. 2.65/Available Seat Kilometre(ASKM) in 2008)in the industry.

- flight dispatch reliability exceeding 99.5%.

Raising aircraft utilisation to 12.5 hours a dayfrom 10.5 hours in 2008-09, higher thanKingfisher's 9.5 hours, Jet's 10.5 hours and AirIndia's 8.5 hours.

Efficiency comparable to that of the legendarylow-cost South-West airlines.

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VALUEADDITION TO CUSTOMERS

Low cost does not mean low quality.

Online travel insurance in partnership with

TATA AIG, consistent 28% sales.

Efficient information flow to clients

A portal for the crew.

Cabin crew feedback leading to increase in on-

flight food sales.38


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INNOVATION

Curved winglet design to reduce noise & improve

fuel economy by 2-3%.

Flight at a height of 38000 feet, increasing fuelefficiency by 10%.

Launching its own Cadet Pilot Program to save

itself from the shortage of pilots.

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CATHAYPACIFICSECURING COMPETITIVEADVANTAGE THROUGH

CRITICAL BUSINESS SUCCESS FACTORS

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CATHAYS EMPLOYEES

Cathays business- selling experience.

Emotional bonding leads to loyalty & results in

repurchasing.

Recruiting the right people and offering propertraining.

Employees are the ones who bridge the gap

between product development and customer

expectation, hence, Service Straight from the

Heart.

Climate for positive behaviour.

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SERVICE

Target market positiong strategy-

Differentiation.

Downloadable trip planner for PDA owners.

Online Check-in NotiFly

Airport Lounges

In-flight E-mail System

High in-flight service and catering standards Interior layout and configuration of the aircraft is

one of the considerations of Cathay Pacifics

passengers. 42


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INNOVATION

First to announce plans to install in-flight e-mail.

First to link Airbus aircraft to its maintenance

centers electronically.

First in the world to auction air tickets online.

Investing to become Asias leading e-businessairline.

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PROCESS


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OUTCOME

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SUCCESSES & FAILURES (SPICEJET)

Successes

- Trusted low cost carrier

- Transforming industry dynamics

- Rationalized operations

Failures

- Untapped cargo market

- Limited focus

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SUCCESSES & FAILURES (CATHAY)

Successes

- Industry leader in innovation

- Diversified approach

- Customers trust & faith

Failures

- Overdependence on technology

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OPERATIONAL WEAKNESS

SpiceJet

- LCC image- Double edged sword

- Negligible cargo strategy

Cathay Pacific

- High third party reliance

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RECOMMENDATIONS

SpiceJet

- Diversify the focus

- Codeshares- Adapt to the international market

- Branding

- LCC leader tag is good, but for how long ???

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RECOMMENDATIONS

Cathay Pacific

- Reduce dependency on third party logistics.

- Reduce dependency on airports & otherfacilities.

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THANKYOU !!!

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Group 15 Oscm Semester End Presentation

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