You are on page 1of 4

Aviation Industry : A Snapshot Aviation Industry in India is one of the fastest growing aviation industries in the world.

Due to liberalization of the Indian aviation sector aviation industry in India has undergone rapid transformation From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carrier. At present, private airlines account for around 75% portion of the domestic aviation market. The open sky policy of the government has helped a lot of overseas players entering the aviation market in India. Earlier air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people. The 9th largest aviation market in the world is India with a compound annual growth rate (CAGR) of 18 per cent. The airline Industry contributes about 0.5% to GDP and employs 1.7 million individuals

INDIGO AIRLINES : An Overview Indigo is a privately owned low cost airline based in Gurgaon with Indira Gandhi International airport as its main base. It is the fastest growing low cost carrier in the world. This airline is amongst the best, offering professional services, economical prices with great deals and discounted airfares. Indigo air tickets can be booked online and the services provided are user friendly while at the same time, extremely comprehensive. Indigos On Time Performance is one of the best in India. Indigos Technical Dispatch Reliability is 99.91% making it the airline with the least number of cancellations in India. With its fleet of 66 new Airbus A320 aircraft, the airline offers 422 daily flights connecting 33 destinations

Origin Indigo was started by Rakesh S Gangwal a USA based NRI and Rahul Bhatia of Interglobe enterprises. InterGlobe holds 51.12% stake in IndiGo and 48% is held by Rakesh Gangwal.. IndiGo took delivery of its first AIRBUS 320-200 aircraft on 28 July 2006, nearly one year after placing the order, and commenced operations on 4 August 2006 with a service from New Delhi to Imphal vs Guwahati .

Vision To become a diversified international corporation in the areas of Air Transport Management, Travel Related Services and Information Technology by delivering outstanding value to our Business Partners, Customers, Employees and Shareholders

Mission To be the best airline in India by providing the following values to customer Affordable fare On time performance Hassle free service

SWOT ANALYSIS Strengths Indigo has high brand awareness among the customers Successful implementation of cost leadership strategy Online ticketing system Weaknesses Product differentiation is less as they are more or less providing the same facilities as other low cost airlines Not present in domestic cargo market Customers have complained about seating facilities within the aircraft Opportunities Increasing domestic air routes Catering to international markets Can launch chartered flights Promotion of regional air connectivity

Threats Rising fuel prices Economic slowdown Increase in competition Go air, Spicejet,Jetlite Launch of another Low cost airline-Air Asia

PESTLE ANALYSIS POLITICAL Open sky policy and deregulation led to coming of many private airlines Privatization of airports of Delhi ,Mumbai, Bangalore and Chennai have led to improved facilities Airports Authority of India has planned an extensive investment which will lead to upgradation of aeronautical facilities of Airports in non metro cities

Economic In the current scenario because of economic slowdown airlines have enormously slashed their fares to increase demand Social Change in lifestyles and demographics, more no. of youth in job sector Rising incomes and aspirations have led to increase in demand Air travel is consider as status symbol Rise in no. of tourists Increase in travelling for business and leisure purposes

Technological Online booking has made ticketing system easier easy availability of information of flight schedule Implementation of CAT technology has enabled the pilots to travel in fog

Environmental Increase in global warming Unexpected behavior of atmosphere

PORTERS FIVE FORCES Threat of new entrants - LOW Costly to become a pilot Govt regulations High investment cost for buying fleet of aircraft Hike in fuel prices Bargaining power of supplier -HIGH Supplier are few and in better position to bargain Deficiency of trained pilots is low as training is very costly Bargaining Power of Buyer -LOW Large no. of air travelers lowers their bargaining power

Competitive rivalry HIGH Many other low cost airlines such as Goair, Spice jet ,Jetlite Launch of Air Asia can prove as detriment to Indigo Airlines

You might also like