AVIATION INDUSTRY

Aviation Industry in India :

Characteristics
Huge Potential
Under penetrated market
o Total Passenger Traffic : 50 million
o Passenger trips per annum :
India : 0.05
United states : 2.02
Untapped air cargo market
Aviation Industry in India :
Characteristics
Constraints :
o Infrastructure constraints
o Shortage of airport facilities
o Air traffic control facilities
o Takeoff and landing slots.
o Less than 100 airports having more than
one daily service.
Macro Environment Analysis :
Political
Open Sky Policy
Deregulations in different spheres
Low entry barriers
FDI limits :
o 49 % for airlines
o 100% for airports
Macro Environment Analysis :
Economic
 Growing middle class income
 Consistent GDP growth of more than 8%
and projected rate in two digits
 Hike in average salary 14%(highest) in the
world
 Tourism industry is growing
Macro Environment Analysis :
Technological
Modernization & Privatization of Airports
Modern Technology for efficient handling of
aircraft, passenger and cargo.
Developing Greenfield Airports with Private
Sector
Example : Bangalore Airport Corporation Ltd.
Macro Environment Analysis :
Demographic and Natural
Changing pattern of consumers
Highest percentage people of age group 20-
25
Educational environment
Shift towards family concept
High energy cost
Low Cost Carriers in India
Air Deccan taken over by kingfisher
SpiceJet
IndiGo Airlines
Go Air
Jetlite (Formerly known as Air Sahara)
Business Model of Low Cost
Carriers
 A single Passenger class
 A single type of airplane reducing training
and service cost
 No frills such as free food/drinks, lounges etc.
 Emphasis on direct sale of ticket through Internet
avoiding fee and commission paid to travel agents.
 Employees working in multiple roles
Airline Industry in India :
Service Vs Price Graph
S
E
R
V
I
C
E

PRICE
 Market share
(%)
Jet + JetLite 29.4
Kingfisher + Deccan 28.9
Air India + Indian 19.8
Indigo 8.4
SpiceJet 8.3
Others 5.2
 
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Vision and Mission

Vision :
To ensure that flying is no longer only for CEOs and
business travelers, but for everyone
Mission :
To become India’s preferred low-cost airline, delivering the
lowest air fares with the highest consumer value, to price
sensitive consumers
Marketing Strategy
Entered with Rs. 99 fares for first 99 days
offering ‘low everyday spicey fares’
Aims to compete with Indian Railway’s AC
segment
Aims at future fleet expansion to increase
market share
Challenges
Small fleet structure
Small load efficiency compared to Air
Deccan
Competition with new entrants
Market share of East-central India
High attrition rate
 AWARDS
 SpiceJet  is the winner of
Best low-fare airline in a survey conducted
by MaRS on behalf of Hindustan Times
(December 2009).
Employer Branding Institutes' Best
Employer Brand Award for our employee
best practices(December 2009) Hyderabad
Air Deccan now taken over by
Kingfisher Airways
Come SIMPLIFLY With Us…
Vision and Mission
Vision :
Empower every Indian to fly

Mission :
To demystify air travel in India by providing reliable, low
cost and safe travel to the common man by constantly
driving down the air fares as an ongoing mission
Marketing Strategy
Common Man :
The Brand Ambassador for Air Deccan, the people’s airline
is Mr. R.K Laxman’s ‘Common Man’

Free Tickets :
Marketing Strategy
 Advertisement through print, radio and billboards
 In flight magazine for revenue generating
 In flight shopping scheme called “Brand for less” –
AVA Merchandising
 Tie-up with Café Coffee Day
 ICICI-Travel agent purchase card
 Tie-ups with HPCL and Reliance Web World
How Air Deccan cuts
cost?
 Quicker turnaround time
 Lower distributions costs
 All economy seating configuration
 No free catering on board
 Alternative revenue channels
 100% web enabled bookings – e ticketing
 Enhanced cash flow management
 KINGFISHER
 Their Vision
"The Kingfisher Airlines family will consistently
deliver a safe, value-based and enjoyable travel
experience to all our guests."
 Their Mission
"Kingfisher Airlines will have 'Fly the Good Times'
approach and this will reflect in the experience we
will offer to passengers."
Current Trends :
Consolidations All Around
 Kingfisher-Air Deccan Deal
o Kingfisher buys out 26 % stake for Rs.550 crore.
o They have combined Market share of 33%
o They are second biggest player after Jet Sahara deal

 Jet airways and Air Sahara merger

o Air Sahara name changed to JetLite
Future Trends
 The projection for Indian Aviation for 2020 is estimated
at:
o 400 million passengers
o Including 180 million domestic passengers
o 1,000 aircraft in the civil aviation sector
 Likely to follow the footholds of International Low Price
Carriers e.g. Air Arabia, Southwest Airlines etc.
Thank You