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By:Sura Divakar
Srishti Kalwar
Nitesh AshokNihar
Aiswaria Chandran
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India has jumped to 9th position in world's aviation market from 12th in 2006.
The rapidly expanding aviation sector in India handles about 2.5 billion passengers
across the world in a year; moves 45 million tones' (MT) of cargo through 920
airlines, using 4,200 airports and deploying 27,000 aircraft.
The domestic airlines carried 39.82 million passengers during January-August
2012, as against 39.63 million passengers during the corresponding period ofprevious year
The revenue on the domestic network increased by 33 per cent during April-August
2012 period as compared to the same period last year, presenting an increase of Rs
531 crore (US$ 98.33 million).
Recording the strongest growth in the world, India's domestic aviation market has
tripled in the past five years, according to a latest report of the International Air
Transport Association (IATA). India posted a strong domestic growth at 25.6 per
cent in the aviation sector, and continuing its trend of high-speed growth for a robust
market.
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Leader : Indigo
Challenger : Jet airways
Follower : SpicejetNicher : Mantra
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Strengths:
Lower air fares
Tourism in India
Growing outbound travel in India
Modernization of non metro airports
Rising share of low cost carriers
Fleet expansion by state owned carriers
The opening up of new international routes by Indian governmentEstablishment of new airports and restructuring of old airports
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Weakness:
Poor infrastructure at airports.
Acute shortage of trained pilots and technicians.
Stiff rules and regulations for operation.
High operational cost for airlines.High security threats in the subcontinent.
Training infrastructure incompatible both in terms of quality and quantity.
Shortage of qualified instructors due migration to schedule operation.
Pressure on quality standard of inducted pilots.
Infrastructural constraints
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Opportunities:
The number of air travelers is about 0.8 per cent of the population
India's civil aviation passenger growth, at 20 per cent, is among the highest in the world.
India's civil aviation ministry expects 100 million passengers by 2020.
India anticipates doubling of passenger traffic over the next decade.
Economic Growth
Vibrant middle class: Increasing Consumerism and Affordability common man
Under-penetrated markets
Growth in Tourism
Currently domestic passenger market is growing at 50%
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Threats:
Government Regulations; Though the govt. is making changes in the regulations, it needs tomove at a much faster pace on this.
Aviation in India is over regulated and needs to free itself from govt. shackles.
Inadequate infrastructure.
Acute shortage of Pilots and maintenance engineers.
Security and safety.
Low profit margins and high operating costs.
Other faster means of transportation
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IndiGo
Mission:
To continue to deliver just three things-fly on time, keep planes neat and clean and deliver a
certain level of service that people have come to recognize us for.
Vision :
To open up a country full of opportunities by minimizing the cost/time/tension of airtravel.
Competitive Advantage:
Affordable fares, On-time service,
Hassle free service
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Indigos stuck to its low-cost, single class model unlike rivals Jet airways.
Selling and leasing back planes helps its balance sheet.
Quality and detail key to good service.
Its all about customer focus.
Using technology smartly.
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Mission:
To achieve the pre-eminent position by offering a high quality service and reliable ,comfortable and efficient operations. Upgrading the concept of domestic airline travel bybeing the world class domestic airline.
Vision:
To be the most preferred domestic airline in India and to be the automatic first choice carrierfor the travelling public and set standards which other competing airline will seek to match.
Competitive Advantage:
Total revenue
On time performance.
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Maintain market leadership in the domestic market
Develop two equally strong pillars: domestic and international operations
Consistently provide a superior product to our passengers
Seamless connectivity spanning domestic and international routes
Improving cargo revenue potential -domestic and international
Reduce unit cost of operations, Focus on reducing operating costs (specifically fuel),
Reduction in selling and distribution cost (on-line bookings), Re-negotiation of agreements
with various service providers
Best customer Service.
Serve both business and economic class.
Acquired Sahara airlines thus getting stronger hold in market.
Several Schemes to acquire and retain customers ;Regular customers enjoys discounted fare
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Mission:
To become Indias preferred low cost airline, delivering the lowest air fares with the highestconsumer value, to price sensitive consumers.
Vision:
To address and ensure that flying is for everyone.
Competitive Advantage:
Low cost,
Successful marketing campaigns.
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Entered with Rs. 99 fares for first 99 days offering low everyday spicey fares.
Aims to compete with Indian Railways AC segment.
Aims at future fleet expansion to increase market share.
Offering free tickets.
Corporate deal offers.
Concessional fares for students.
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Mission:
To endeavor to provide radical services to the passengers and to unite four states therebyincreasing the reach in proximity for both business and leisure travellers.
Vision:
To deliver best flight services by offering unique and custom made solutions to air
travellers.
Marketing Strategy
Focus only on four states- Punjab, Haryana, Himachal and Jammu & Kashmir.
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