Indian Aviation

Sumeet P. 3, Parikshit 5, Onil 14,

Mahesh J. 16, Shripad 15, Akash 26,
Sumit S. 45, Radhika A. 46, Sonu 55,
Ankush 59

Time to Fasten Seat Belt………

 Introduction

• Domestic traffic 2009 - 43.8 Million

2010 - 50.2 Million
(Growth rate – 18.7%)

• Players : King fisher, Jet, Air India, indigo,

Spice, Jet Lite, Go air etc
 Market share
5.9
7.5 20.6
kingfisher
Jet
12.9 Air India
Indigo
Spice jet
18.6 Jetlite
go air
16.3

17.6
 Strengths
• Feasible air travel at low cost.

• Very high growth Rate 16% CAGR in 2011-13.

• Open Sky Policies.

• Largest fleet size.

 Weaknesses
• Under penetrated.
• Market Infrastructural constraints.
• Poor management.
• Lack of experience and proper planning.
• Shortage of Airports with advance facilities.
• Shortage of trained Pilots.
 Opportunities
• Untapped Air Cargo Market.

• Growing tourism.

• Rising income or per capita income.

• International market.
 Threats
• Price War.
• Fuel price hike.
• Unstable Government policies.
• Alternative to Travel like Voice conferencing
etc.
• Economic slow down and recession.
• International terrorism.
 Problems faced by industry
• Labour
• Fuel Prices
• Capital
• Operating Costs
• Airline Acquisition/Leasing Cost
• Ownership and control
 Strategies of Various Players
Jet Airways:
• Agreement with leading hotels, discounts on economy classes
• Providing a JET privilege
• Better services.

Indian Airways:
• Fares fell to 30% in metro routes (Mumbai-Bengaluru-Mumbai 10635-
9165)
• Schemes like Bharat Darshan and Wings of freedom

Sahara:
• Bid and Win – money generated given for social causes
• Steal a seat : online bid at the base price of Re. 1/-
• Crickcitement as a effective tool.
 Strategy to compete Price War
•Average out strategy(high frequency routes)

•Auto up gradation strategy

•Flexi time strategy

•Week day leisure traveler policy

 Solution
• All players in industry should agree to minimum
price so that it will not destroy entire sector.

• Nobody is benefiting from price war apart from

customer.

• Bottom line determines fate of company not

topline.
 References
• http://www.ibef.org/industry/aviation.aspx
• http://www.naukrihub.com/india/aviation
• Business outlook, Feb 2011.
• http://www.researchandmarkets.com/reports
/449298/the_indian_aviation_industry
• http://www.foolonahill.com/mbaaviation.html