AVIATION INDUSTRYAhsan Ahmad

Baba

EVOLUTION OF AVIATION

Source: Airports Authority of India, Planning Commission, Ministry of Statistics

and Programme Implementation, Ministry of Civil Aviation, Aranca Research

AIRPORTSINDIA HAS 449 AIRPORTS AND AIR STRIPS OF WHICH 125 ARE OWNED BY AAI

Airports Authority of India (AAI) was –

•Established in 1994 under the Airports

Authority Act

•Responsible for developing, financing,

operating, and maintaining all government

airports

•The Aircraft Act (1934) governs remaining

airports

AIRLINESSIX MAJOR AIRLINES OPERATE IN THE COUNTRY

All statistics are for the month of May 2013 as published by Directorate

General of Civil Aviation. www.ibef.org

MAJOR AIRPORTSSIX MAJOR AIRPORTS OF INDIA

GROWTH

Total passenger traffic stood at a

154.5 million in FY14*

Passenger traffic declined by 1.8

per cent in FY13

Domestic passenger traffic expanded at a CAGR of 12.5 per

cent over FY06–13; by FY17 domestic passenger traffic is

expected to touch 209 million

During April–February 2014, international passenger traffic

increased by 8.9 per cent compared to similar period in the

previous year

POTERS 5 FORCES ANALYSIS

Competitive

Rivalry

(High)

Threat of New

Entrants (Low)

Bargaining

Power of

Customers

(Low)

Bargaining

Power of

Suppliers

(High)

Substitute

Products

(Low)

Competition among major players is very high,

especially in LCC’s (Low cost carrier) section because the

airlines compete for the middle income group customers

and passengers of air-conditioning segment of railways.

This group has low brand loyalty and is highly price

sensitive

Competitive Rivalry

•Threat remains low in this

sector also as no other

means of transport is as

swift, and convenient as

airlines

•It saves time

Threat remains low

because of the nature

of the industry

(Regulatory hurdles,

Capital-intensive)

Threat of New Entrants

Substitute Products

Bargaining power of suppliers

remain high as there are only

few fuel and aircraft suppliers

•Talent pool of pilots, engineers

and other staff is also limited

Bargaining Power of Suppliers

Bargaining power of customers

remains low as the demand for

low cost air travel is quite high

•The costs of switching airplanes

and services offered hardly

differ with each other

Bargaining Power of Customers

INTRODUCTION

Low-cost airline.

Based in Mumbai.

It operates domestic passenger services to 11 cities with 385 weekly flights.

Its main base is Chhatrapati Shivaji International Airport.

HISTORY

Established in June 2004.

Low-cost budget airline, based in Mumbai.

Launch operations in October 2005 with a fleet of 20 leased Airbus A320 aircraft.

An order for 10 aircraft from the Airbus A320 family was announced in July 2006

Go Air airliners come in green, orange, blue, and pink.

SERVICES

Go does not offer a complimentary meal service to its passengers.

However, it does offer a buy-on-board food service where items such as sandwiches, parathas, cookies, nuts and soft drinks can be purchased.

Water is provided free of charge.

REACHES

AIRPORT

COMPUTER

LCD’s

SHOWING

FLIGHT

STATUS

EMPLOYEE

GREETS

PASSENGE

R

CUSTOMER

CARE

RECEIVES

BOARDIN

G PASS

PILOT

TAKES

CONTROL

GIVES

LUGGAGE

FOR

WEIGHIN

G &

CHECKING

WAITS

FOR

FLIGHT

AT

TERMINAL

BOARDS

FLIGHT

PHYSICAL

EVIDENCE

CUSTOMER

SUPPPORT

PROCESS

ON STAGE

BACK

STAGE

CO

NTA

CT

PER

SO

N

TAKES

HIS

SEAT

ASKED

FOR MEAL

GO AIR SERVICE BLUEPRINT

ARRIVES

DESTINATION

TAKES HIS

LUGGAGE

AIR

HOSTESS

ASKS FOR

FOOD

EMPLOYEE

WEIGHS

LUGGAGE

EMPLOYEE

ISSUES

BOARDING

PASS

PARKING

EMPLOYEE

DESK,

COMPUTER,

UNIFORM

WEIGHNING

MACHINE BOOK STORE ,

RESTAURANTS

AT TERMINALAIRBUS

IN FLIGHT

ENTERTAIN-

MENT

FOOD ,

DRINKS

SHUTTLE

BUS

CONVEYO

R BELT

GROUND

STAFF

CHECKS

PLANE

WEB

CHECK IN

AIR

HOSTESS

GUIDES

WAY