Aviation history and futre

8/14/2019 Aviation history and futre

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AVIATION INDUSTRYFrom the bigning To the Future


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IntroductionGlobal overviewCurrent/future statusIndia aviation industryCompany descriptionStrategy, Target, PositioningProductSWOTMarket analysis

CompetitorsEnvironment analysisConsumer behaviourorganization

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The aviation industry can bebroadly classified into military aviation and civil aviation .

The term 'civil aviation ' covers allaviation related activities exceptfor those undertaken by the

military and the government. The airlines segment can bebroadly classified into internationalairlines and domestic airlines.

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An airline with one or both terminals inthe territory of a country, other than thecountry in which it is registered, isclassified as an International airline .Domestic airlines refers to those airlineswhose flights fly only within the domesticboundaries of a particular country.



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ASIA AND CENTRAL EUROPE ~ GREATESTREVENUE POTENTIAL

International scheduled passenger trafficin 2005 increased 15.3% over 2004levels, and cargo traffic rose 13.4%

Traffic growth in 2004 was exceptional fortwo reasons: one-off rebound from the adverseaffects in 2003 of the SARS epidemic

and the war in Iraq on air trafficlevels.



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2004 ~ strongest world economicgrowth in 3 decades.Economic environment less favorable in next2 years.Strongest potential lies where liberalization istaking place Economic liberalization continue to boost

growth in China Increasing trade integration of central

European countries within the EU willlead to expansion in central Europe.



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Prior to 1991, aviation, much like other major sectors of the

Indian economy, was nationalized and heavily regulated

In 1953, the Air Corporation Act, 1953Air Corporation Act, 1953 , changed the landscape of

the airline industry in India.

It was in 1994 that the Air Corporation Act was repealed

and thus this allowed private

operators to operate in the

domestic airline and aviation industry



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Ease of maintenance, the airplane sits low to theEase of maintenance, the airplane sits low to theground, allowing maintenance crews to easilyground, allowing maintenance crews to easily

perform routine maintenance on the engines. perform routine maintenance on the engines.


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Good reliabilityGood reliability , because the airplane can be turned around atthe gate so quickly, airline can get back on schedule if it fallsbehind for any myriad of reasons. This allows our airline todeliver passenger satisfaction as defined by thepassenger satisfaction as defined by thecustomers themselves: getting them where they want tocustomers themselves: getting them where they want togo, when they want to go, at a good value.go, when they want to go, at a good value. Givingpassengers more departure time choices and airline theopportunities for more revenue.

Good flexibilityGood flexibility , the 737 comes in four different sizes in the100- to 200-seat market. The interiors are flexible, too. Optionalflex seating, capability of changing a row of seats from five-abreast business-class seating to six-abreast tourist-class seatingin less than one minute. A moveable cabin divider also allowsconfiguration changes between flights.

On a typical route, 737 cash operating costs are nearly 4percent less than its closest competitor, the A320 series ,in part due to its superior structural efficiency.



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Employees working in multiple roles, for instance flightattendants also cleaning the aircraft or working as gate agents(limiting personnel costs)

Removing seat-back pockets to reduce weight and cleaningexpenseCharging passengers for practically every amenity they mightconsume. There are no free peanuts or beverages

Using that traffic as a marketing tool for related services;each time a passenger books a rental car or a hotel room, our airline will earn a percentage of the sale.



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Promotion StrategyPromotion will be through outdoor advertising, radio

and print media.Employing public relation firm for both consumer and financial purposes.Combined amount budgeted for advertising and

public relations will be held under 15% of sales.Tie up with Creamoza Coffee.



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Distribution Strategy

Developing our own website containing the information about the

company along with facilities of online reservation and payment.Hotels and Restaurants.Agencies giving cars on rent.Travel insurance agencies.

Tie up with Creamoza Coffee.



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0 5 10 15 20 25

Other operating costs

Flight crew

Cabin crew

Aircraft fuel and oil

Airport and ANS charges

Sales and reservations costs

Advertising and promotions costs

Station costs

Commission

Aircraft related costsPassenger services costs

Cost (Rs)

Full cost shorthaul airline

Low cost airline

Turning our planes into media and entertainmentTurning our planes into media and entertainment

plays, offering advertisers the opportunity to repaint the exteriors plays, offering advertisers the opportunity to repaint the exteriors

of our planes, effectively turning them into giant billboards.of our planes, effectively turning them into giant billboards.


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FactorsFactors StrenghtsStrenghts WeaknessWeaknessManagementManagement ExperienceExperience Small sizeSmall size

MarketingMarketing Operating in MetroOperating in Metro No national distribution No national distribution

OfferingOffering Unique, high quality, low priceUnique, high quality, low price Cost coveringCost covering

HR HR Small, good workforceSmall, good workforce AttritionAttrition

R&DR&D Continuing effort to ensure qualityContinuing effort to ensure quality Fund scarcityFund scarcity

EconomicEconomic Consumer income is growingConsumer income is growing Brand imageBrand image

CompetitvenessCompetitveness Distinctive service and featuresDistinctive service and features New to the industry New to the industry

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Opportunities

Huge potential to capture market

Growth rate of the industry is the highestFDI which will in turn can help us in growingrapidlyChanging Consumer PreferencesMergers and acquisitions



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Threats

Existing competitorsUnstable Government PoliciesChanging dynamics of the industryUpcoming new airlinesFurther rise in oil prices in the international marketInternational terrorist



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Market share of passenger traffic in majorcities

1. Mumbai 26%2. Delhi 17%3. Chennai 7.5%4. Kolkata 8%5. Bangalore 8%

.66.5%



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Air DeccanGo air Spice jetAlliance air

(add some more name)



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RailwaysRoad transportShip transport



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Government policiesTechnological Environment

Economic factorsCompetitive EnvironmentSocial cultural



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Reaction- Will need sometime forwinning the trust of the potentialcostumers

Expectations- Deliver what we havepromised for



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As deregulation and privatization of the Indian Civil

Aviation and Airline Industry occurs, Air One is

prepared to meet the demands of the consumer and

deliver their expectations

while sustaining growth ?


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THANK YOU

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Aviation history and futre