Aviation Sector Analysis

8/8/2019 Aviation Sector Analysis

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Aviation Sector An Analysis

A Presentation by

Divya (26012)

Jagadheswari (26014)

RB Pravin (26027)

Diwakar Elango (26075)

Nithila Damodaran (26095

Varun Deepak (26116)


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Sector Analysis


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About the Sector

The sector deals with the transport of passenger andcargo from oneplace to another, using the aerial route

SizeAbout 75 million passengers$5.6 Billion

GrowthAround 15% Growth in last 10 yearsGrowth in 2009: 0.7%Vision 2020 statement predicts handling 280 million

customers by 2020


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Then NOW


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Classification of the Indian Aviation Industry


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Strengths

Threats

Weakness

Opportunities

Growing tourism

Rising Income levels

Expecting Investments

Expected Market Share

Underpenetrated market

Untapped Air Cargo Market

Infrastructure constraints

Shortage of Trained Pilots

Shortage of Airports

High Prices


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Foreign Equity Allowed

Low Entry Barriers

Attraction of foreign shores

Rising income levels and demographic profile

Untapped potential of Indian tourism

Glamour of the Airlines

Rea

so

ns

Reasons for Boom in Aviation Sector


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Top Players


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Players of our sector


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Market Share of the industry


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TOP 3 PLAYERS


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PLAYER 1


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Marketing Strategies of Kingfisher


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Player 2


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Ambush Marketing


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Kingfisher Vs Jet


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Player 3


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Employee Shortage

Regional Connectivity

Rising fuel prices

Declining yields

Gaps in infrastructure

Trunk routes

High Input Costs

Challenges faced by the industry

Ch

all

en

ge

s


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CRM Process


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CRM Architecture

S CC SS C O S


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KEY SUCCESS FACTORS


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PEOPLE

High caliber staff

Effective training programmes Customer focused problem solving strategies

Continuous improvement objectives

SERVICE/PRODUCT PROMOTIONS

Aircraft type , seating space Class of service offerings

Booking ease

Effective programmes to create loyalty and

repeat business.

ROUTE SYSTEM

Efficient route system based on customerdemand

Maximizing aircraft utilization.


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REVENUE /COST CONTROL (yieldmanagement)

Competitive and innovative pricing schemes Fuel and other materials procurement

Maintenance costs

Price hedging during volatile periods.

Code sharing

FINANCIAL MANAGEMENT

Net unit revenue is the profitability

= total revenue - total cost

total seats flown

Managing foreign exchange and taxes.


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KEY PERFORMANCE

INDICATORS Financial KPIs:

Revenues Cash Inflows the airlines enjoys in aparticular year

Expenses Cash Outflows the organization has tobear for various direct and indirect spending

ROIC (Return on Invested Capital)

EBIT (Earnings Before Interests & Taxes)

Operating profit

Cash flow

Outstanding debt

Level of working capital

Market value against asset value

RASK (Revenue Per Available Seat-Kilometre)


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Customer KPIs:

Types of cuisine offered The no. of types of

meal offered to cater to a large and broadrange of passengers

Baggage rates - Charges customers wouldhave to pay for the standard quantity of

baggage allowed and the amount to be paid ifit surpasses the stated quantity

Response time for queries

Cancelled flights

Missed connections Yield

Load factor

Spill


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Flight Operation KPIs: Flights Number of flights in a particular year Passengers Number of passengers carried in all

the flights in a year Available Flying Time Aircraft utilization Percentage of Flights Departures Delayed > 15

minutes

Average Minutes Delay for Delayed Flights / AllFlights Percentage of Flights Delayed Due to Technical /

Commercial reasons Incidence of maintenance schedule changes

Crew productivity and cost Average turnaround time Average block hours per day Amount of lost baggage on connecting flights Crews per aircraft

Daily Pilot Utilization


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Service KPIs:

Passenger Seats Occupied Percentage of

seats occupied by passengers in a particularflight

Freight and Mail Indicates the commercialload of the Airlines

No. of partners in supply-chain No. of accidents

Number of PAX

Number of transfer PAX

Number of Frequent Flyers


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Discount Airlines Compete with Legacy Airlines -Dozens of new discount airlines have been launchedin emerging nations in the past few years, some of

them with great success.

Advanced new aircraft will bring significant changesin the global airline industry. E.g. Boeings 787

Private Jet Rentals Continue in the Form ofFractional Share Ownership

Emirates has carved out a place for itself as a majorlong-haul airline, with routes spanning the entireworld and a major hub in the Middle East

International Airlines Try to Lure Passengers with In-

flight Perks


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ThankYou

Documents

Aviation Sector Analysis