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Bargaining Power of Suppliers and Airline Industry

Bargaining Power of Suppliers and Airline Industry

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Published by Purnendu Singh
Bargaining Power of Suppliers and Airline Industry. Effects of Bargaining Power of Suppliers.
Bargaining Power of Suppliers and Airline Industry. Effects of Bargaining Power of Suppliers.

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Published by: Purnendu Singh on Jun 19, 2011
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07/26/2013

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Bargaining Power of Suppliers and AirlineIndustry
Effects of Bargaining Power of Suppliers
This document deals with an analysis of the Bargaining Power of Suppliers, one of the five forces of the Porters Five Forces Model, on the Airline Industry
GreatLakes
Prepared by - Priyank Sinha, Purnendu, Rachna Saini, Rahul Jain, Rahul Raj
 
H4G9
 Great Lakes Institute of Management
 
Bargaining Power of Suppliers and Airline Industry
 
Great Lakes Institute of Management Page 2
Contents
O
verview of Aviation Industry .................................................................................................................. 3Porters 5 forces ....................................................................................................................................... 4Bargaining power of Customers ........................................................................................................... 4Force of Substitutes ............................................................................................................................. 4Competition Rivalry ............................................................................................................................. 4Threat from New Entrants ................................................................................................................... 5Bargaining power of Suppliers.............................................................................................................. 5Porters Five forces working on Airline Industry ....................................................................................... 6Impact of Bargaining Power of Suppliers on Airline Industry .................................................................... 7High Aviation Turbine Fuel (ATF) Prices ................................................................................................ 7Monopoly of PSU
O
il companies .......................................................................................................... 8Power of Suppliers of Aircrafts and Spare parts .................................................................................... 8Factors causing Threat from Suppliers on Airline Industry ........................................................................ 9Airplane ........................................................................................................................................... 9Labour ........................................................................................................................................... 10Aviation fuel .................................................................................................................................. 13References............................................................................................................................................. 27
 
Bargaining Power of Suppliers and Airline Industry
 
Great Lakes Institute of Management Page 3
Overview of Aviation Industry
The aviation industry in India is one of those sectors that saw a constant pace of growth among theother industries in the world over the past many years. The open sky policy of the government hashelped a lot of overseas players entering the aviation market in India. From then, it has only beengrowing in terms of players and the number of aircrafts. At present, private airlines account for around75% portion of the domestic aviation market.The 9th largest aviation market in the world is India. Taking the help of the statistics from the Ministry of Civil Aviation, approximately 29.8 million passengers travelled to/from India in 2008, showing a surge of 30% from 2007. The prediction stated that international passengers will touch 50 million by 2015. Moreopportunities in the aviation industry in India are likely to make way for about 69 foreign airlines from49 countries.

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