AVIATION

INDUSTRY

Comparison Aspects
Ownership
Business Model
Customer Base
Marketing Strategy
Company Facts
Challenges & Major Competitors

Ownership

Private Ownership
Parent Company: Etihad Aviation Group
Key People:
Mohammed Mubarak Al Mazrouei (Chairman)
Peter Baumgartner (CEO)

Private Ownership
Parent Company: InterGlobe Aviation
Key people: Rahul Bhatia (CEO)

Public Sector Undertaking

Parent Company: Air India Limited (Owned by Govt. of India)
Key People: Ashwani Lohani (Chairman and MD)

Business Model

Global reach
Reflecting the best luxurious Arabian Hospitality
Equity alliances (Example Jet Airways (24%), Air Berlin (29.21%), Virgin
Australia (24.2%))
Hub-based operation

Low cost and High frequency

Providing standardized experience
Use of single aircraft type
High Operational reliability

Nation wide coverage

Flagship National Carrier
Provide global travelers Indian experience

Customer Base

Leisure travelers
White collars
In 2015, carried 17.4 million passengers
Combined market share with Jet Airways 21%

Cost conscious travelers

Working professionals
In 2015, carried 29.7 million domestic passengers
Domestic Market share 38.4%

Government Officials (Fixed base)

Indians travelling to foreign destination
Cargo Services
In 2015, carried 13.3 million domestic passengers
Domestic Market share 14.7%

Marketing Strategy

Global Sponsorships for major sporting events

Loyalty Programs
Emphasis on Luxury

Advertisement in print and electronic media

Innovative low cost marketing techniques
Emphasis on Operations reliability

Frequent flyer programs

Emphasis on connectivity and wholesome Indian experience

Company Facts

Fleet Size: 122

Destinations: 90
Revenue: $9.02 billion (2015)
Profit: $103 million (2015)
Employees: 19,691

Fleet size: 108

Destinations: 40
Revenue: $2.1 billion (2015)
Profit: $190 million (2015)
Employees: 8,000

Fleet size: 108

Destinations: 84
Revenue: $2.9 billion (2014)
Loss: $80 million (2014)
Employees: 28,085

Challenges & Major Competitors

Dependency on small target group

Global competition
Competitors: American Airlines, British Airways, Emirates, Singapore Airlines

Stiff cost margins

Maintain balance between quality and cost
Competitors: Jet Airways, Spicejet, GoAir

Operational inefficiency leading to low brand equity

Bureaucracy, slow decision making
More cost efficient private players
Labor union issues
Competitors: Lufthansa, Indigo, Malaysian Airlines

Thank You