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 THE INDIAN AVIATION INDUSTRY


 GROUP 6

 Deepali Lavangare 09020541031


 M.E. Kailash 09020541032
 Mamta Singh 09020541033
 Maruti Nandan Tripathi 09020541034
 Mithilesh Pamnani 09020541035
 Nagalakshmi.S 09020541036

THE INDIAN AVIATION SECTOR
Introduction
— CAGR of 18 per cent per annum, worth US$ 5.6 billion in
2008.

— The market growth rate is16% for international and 20%
for domestic (base year 2006) , which is one of the
highest in the world.
—

— Rapid transformation Post liberalization

— Private airlines account for 75% market share

— India has jumped to 9th position in world's aviation
market from 12th in 2006.

— The scheduled domestic air services are now available
from 82 airports as against 75 in 2006.
…contd
— The Airport Authority of India (AAI) manages a
total of 127 airports in the country
—
— which include 13 international airports, 7
custom airports, 80 domestic airports and 28
civil enclaves.

— Indiancarriers currently have a fleet size of 310


aircrafts, but have 480 aircrafts on order,
scheduled for delivery by 2012.
The Transformation

—1953- Air corporation Act-Air India and


Indian airlines monopolized the
market.

—1990- ‘open sky policy’ adopted by the


government
 Jet Airways, Air Sahara, NEPC sky liner,
East west Airlines started services

— 1994-Air corporation law was abolished to end


the monopoly of IA-AI and to allow private
players into the aviation sector under the new
Air corporation law

— 2003: Entry of Low Cost Carriers.


 - Air Deccan, Go Air, Spice Jet, Indigo, Paramount
Airways
— 2006-the private carriers accounted for around
75% share of the domestic aviation market
—

 The airlines in India are into three basic


SBU’s
—Passenger flights
—Cargo
—MRO

 The passenger flights are of three types


—Full cost carriers
—Low cost carriers (LCC)
—Other start-up airlines
—
Regulating bodies
 Regulating Bodies in the Aviation Sector in
India are :

—Directorate General of Civil Aviation


(DGCA)
—Airports authority of India (AAI)
—International Civil Aviation Organization
(ICAO)


Common terms used in aviation

—Load/Seat factor: Measures the


percentage of available seats that are
filled during a specific period
—
—ATF: Aviation Turbine Fuel
—
—CODE SHARING
Jet Airways
— Jet Airways is India’s premier private airline.
— second largest airline in India, next to
Kingfisher, with 84,000 passengers.
—
Fact file

— April 1, 1992,established as an air taxi operator.


— May 5, 1993- The commercial airline operations
started
— January 1995-received its scheduled airline
— March 2004, started international operations
with a flight to Srilanka
— April 2007, took over Air Sahara, which was later
on renamed as JetLite.
Domestic passenger traffic(for Jul
09)
—
—Jet Airways-JetLite combine - 26.3%*
—Kingfisher Airlines - 23 %
—NACIL - 16.2%

 Low-cost carriers
—Indigo - 14%
—Spicejet - 12.5%

 *SOURCE: CMIE
Marketing Segmentation-jet
 Demographic segmentation
— Jet has two economy class subsidiaries, namely Jet Lite
and Jet Airways Konnect

 Psychographic segmentation
— Golden Jet Escapes
— Jetkids which is a special program for children aged 2 to
12
— Jet mall in partnership with ELVY-premier and domestic

 Behavioral segmentation
— Jet Privilege- for frequent flyers
— Jet Mobile
—
Marketing Segmentation-Air India
—
—Demographic - Business and economy
class

—Psychographic -
 national carrier as a household name.

—Behavioural -
 still preferred airline for the govt staff and
old clientele.
—
—
—
Market Positioning-Jet
a. User postioning
Three-dimensional billboards in Mumbai to
hardsell the company’s message on more leg
room
b.Quality Positioning
c.Benefit postioning
Air India-
a. Attribute positioning
—The Maharaja mascot exists since 1948
-positioning using years of existence

b. User positioning
c. Benefit postioning
d. Price postioning
Strategies Adopted-Jet Airways
—
— Refilling
ATF in hubs in north east for its flights
where people switch connecting flights
 Reason- ATF prices low

— Code sharing and alliance


— Opened a new hub in Brussels, the first of its


kind

— Planning to build a five star hotel near Brussels


airport at a sprawling 15 acres
—
— Only airline which has exclusive fleets Amritsar-
London-Toronto

BCG Matrix for Jet Airways
SBU – Passenger Flights
BCG TABLE
S.B.U Market Market Share Relative Market Quadrant in
Share (Largest Market Growth Rate which the
(Jet Competitor) Share % SBU lies
Airways Kingfisher
Jet lite)%

Passenger 23 . 7 (as 25 . 3 (as on 0.936 -3.062 Question


Traffic on 30th 30th June (FY08-09) Mark
June 09) 09)

Overall Average Market Growth of passenger flights


= -6.8%
( Fiscal Yr . 08 - 09 )
Average Market Growth of passenger flights of JET
AIRWAYS = - 3 . 08 % ( Fiscal Yr . 08 - 09 )
Jet Airways (Combined)
0%

M
A
R
K
E
T
-6.5%

G
R
O
W
T
H
-13%
1 0
RELATIVE MARKET SHARE
GE MATRIX
JET AIRWAYS
OMBINED WITH JET LITE , JET KONN
MARKET
ATTRACTIVENESS
WEIGHTAGE GRADE TOTAL
FACTORS

MARKET GROWTH 0.25 3 0.75


RATE

MARKET SIZE 0.25 2 0.5

COMPETITIVE 0.20 3 0.6


ENVIRONMENT

PROFITABILITY 0.20 2 0.4

DEMAND PATERN 0.10 2 0.4

TOTAL 1.0 12/25 2.65


SBU ’ S STRENGTH
FACTORS WEIGHTAGE GRADE TOTAL

MARKET SHARE 0.25 4 1

BRAND SRENGTH 0.20 4 0.8

RELATIVE PRICE 0.20 3 0.6

QUALITY 0.15 3 0.45

MANAGEMENT 0.20 3 0.6


STRENGTH

TOTAL 1.0 14/25 3.45


GE MATRIX
SBU STRENGTH
5 STRONG 3.67 MEDIUM 2.33 WEAK 1
MARKET ATTRACTIVENESS

HIGH

3.67

PASSENGER FLIGHTS
JET AIRWAYS
MEDIUM

.7 ( Combined )
23
%
( 3 . 45 ,
2 . 65 )
2.33
LOW

1
Ansoff Matrix for Jet Airways
Je t A irw a ys
Product Present New

Market

Present Market Penetration Product Development

New Market Development Diversification


Market
Market Penetration
Penetration

§ Jet Airways JP Miles for frequent


flyers
§ Jet Cargo Services
§ Advertisements
§ Jet Lite Service
§


Market Development

§ International Star-Alliance
membership
§
§ Targeting potential
customers travelling in AC
by rail
Product Development

• Jet Konnect—a new service 15%
cheaper than Jet airways launched
in domestic and very soon in
international routes.

• Jet Escapes travel package
Diversification


• Jet Mall for lifestyle products

SWOT ANALYSIS
HELPFUL ( in achieving the HARMFUL ( in achieving the
INTERN objective ) objective )
AL STRENGTHS WEAKNESSES
ORIGIN Financial restructuring 3 billion $ debt due to expansion
 

(attri Access to financial resources


Massive fleet expansion

butes Product , Price, Place Acquisition of loss making Air

of the Sahara 1450 crores it became a big


organi liabilty.
Low capacity utilization.(low seat
sation
) factor)

EXTERN
AL OPPORTUNITIES THREATS
ORIGIN New expansion to middle east High and rising ATF prices.
 

( attr routes Economic recession


ibutes Increase FDI stake can raise


 Competition

of the foreign capital Advancement in telecom technology

enviro Untapped air cargo markets for example teleconferencing,


nment) telepresence
MARKET
SURVEY
ON

AVIATION INDUSTRY
OBJECTIVE
• TO UNDERSTAND THE CONSUMER
BEHAVIOR OF INDIANS
TRAVELLING BY AIR.
• TO DETERMINE THE CURRENT
SCENARIO IN AVIATION
INDUSTRY.


1. How do you choose an
airline to travel ?
2. Number of times u have
travelled by air in past three
months?
3. Reasons for last air travel?
4. In Which class do you
normally fly?
5. How do u rate services offered
by following airlines?
6. What do you think about no
frill/low cost airlines?
7. how do you perceive Jet as a
brand?
8. What factors do you
consider before buying a
airline ticket ?
9. What do you think about
the following economy classes
of Jet?
10. Which discount is
attractive?
CONCLUSION
• Thus we see in our survey that there
is a sustained demand for low-cost
carriers triggered by the economic
downturn. Jet’s low cost carriers Jet
Konnect & Jet Lite will enable Jet to
survive in this environment.



• Once the economy bounces back to
its bullish levels Jet can expect a
huge growth in revenues from its full
service carrier and until then low cost
Suggestions
§ People welcome economy class
flights.
§
§ Low cost airlines need to advertise
more to position themselves in the
minds of people
§
§ Jet is perceived as a comfort brand
§
§ People look for discounts more than
any other factor when choosing an
Questionnaire

Ø Who is the chairman of Jet?



Ø What is the code of Jet Airways?

Ø Name the recently introduced low cost
carrier of Jet?

Questionnaire

Ø Which airline was taken over by


Kingfisher?

Ø Name the brand ambassador, a famous


personality who had recently quit
from the Board of Directors of Jet
Airways ?

Ø Who is the owner of Go-Air?

Questionnaire
Ø Which is the biggest factor leading to
decline in aviation sector?
Ø
Ø Name the European hub of Jet Airways?
Ø
Ø What is A.T.F.?
Ø
Ø Name the two aircraft manufacturing
companies supplying to the Indian
airline industry?

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