Aviation industry strategy

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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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