MARKETING AN AIRLINE

PRESENTED BY:
Roll No. 141116-20
Durga Prasad Mishra
Gayatri Gupta
Guru Prasad Chowdhary
Jayant Kushwaha
Jigna Jani
History
Dec. 1912 First flight between Karachi & Delhi
1932 - TATA AIRLINES
1948 - Air India International Ltd. (Joint sector company by Govt. of India &
Air India (earlier Tata Airlines))
1990 - Open sky policy
1993 - Emergence of private players : Sahara India Airlines, Jet Air, Archana
Airways
12 June 2014 - Maiden flight of AirAsia's India venture on Bangalore-Goa
route
Present Scenario
125 Domestic Airports
11 International Airports
Passenger Output: More than 159 million
Growth recorded: 25.6% for the year 2013 in
domestic sector
10 domestic airlines company
Private Airlines account for 80.1% share of
domestic aviation market
Source: DGCA
Market Share
Source: Economic Times
Lets start an airlines business
Understanding the Marketing Mix
of
Passenger Seat
Sales (66%)
Aircraft Operating
Lease(16%)
Ancilliary
Income(11%)
Fees and
Surcharge(7%)
Revenue
Breakdow
n
Source: Macquarie Research
Product/Services
Low Cost Carriers
Cargo Facilities
Cabin Services
Car Rental
Other Services
Place
Hub: Bangalore
Planned Hub: Chennai & Kochi
Flying Destination (within India): Goa, Chennai,
Kochi, Jaipur, Chandigarh, Trichy
Target: Tier II & Tier III Cities : To avoid higher costs in
aircraft parking, navigation and landing charges, Air Asia will
bypass Delhi and Mumbai airports. The airlines adopted a
new strategy by tapping the traffic from smaller cities where
the reach of others is poor.
Destinations: 8 (Domestic), 120 (International)
Price
The key to Air Asia's success is low fares.
The airline is benchmarking its base fares in India
against first-class rail tickets.
It priced its base tariff about Rs1,000 more than rail
fares. Thus by offering competitive prices to smaller
cities it attracts the bigger customer segments.
Lowest Base Fare: Bangalore to Goa/Kochi/Chennai:
Rs.600, Bangalore to Jaipur/Chandigarh: Rs.1900.
Ancillary costs kept high.
Promotion
Guerrilla Marketing: Putting up hoardings and
posters.
Selling of tickets exclusively on Expedia.com
Free seats to holiday destinations
Discount offers
Holiday Packages
References
Macquarie Research
DGCA market report 2013
Pan-India spread a test for AirAsia's strategy; http://www.business-
standard.com/article/companies/pan-india-spread-a-test-for-airasia-s-strategy-
114080701563_1.html
An airline for the people; http://businesstoday.intoday.in/story/air-asia-to-enter-
india-aviation-sector/1/197970.html
http://www.moneylife.in/article/air-asias-strategy-for-india-no-free-lunch-but-fly-
free-initially/33492.html
Why India needs a Pure LCC like AirAsia; Cuckoo Paul;
http://forbesindia.com/blog/business-strategy
Why AirAsia's Entry Is Good For India's Aviation Sector; Saritha Rai;
forbes.com/blogs
Economics Times; http://m.economictimes.com/industry/transportation/airlines-
/-aviation/airasias-india-entry-to-mark-arrival-of-truly-low-cost-airline-may-face-
delay-in-clearances/articleshow/msid-18884761,curpg-2.cms
A British Airways plane flies over The Mall with a Thank You message during the London Olympics 2012.