Strategic Analysis of Air India Express

INTRODUCTION
The difficulties, context issues, and issues that Air India Express faces in its procedures and
infrastructure projects are examined in this strategic analysis report. Air India is a budget
airline. The strategic analysis report is similar to a written conversation in which the firm's
position, achievement, and overall wellness are discussed. Porter's five forces theory and
SWOT analysis are among the concepts explored in this strategic analysis review. The
report is used in a strategic approach to determine the company's strengths and
weaknesses, as well as to improve overall and, sometimes in cases, change, in order to
achieve the company's goals and objectives (Alves 2017).

Strategic Position

Air India Express is an Indian limited carrier with command center in Kochi, Kerala. Air India
Express Restricted manages the company's operations, which are a division of Air India,
India's traditional airline but also flag carrier (AIEL). The airline transports approximately 4.3
million passengers annually and operates 649 flights each week to 33 destinations around
the globe. On April 29, 2005, the airline began operations with three significant airlines from
Kolkata, Madurai, and Kozhikode. The airline was established as a Low-Cost Carrier with the
primary goal of providing low-cost transport services, particularly to Southeastern Asia and
eastern Europe (LCC). Indigo Airlines, Fly Emirates, Singapore Airlines, and Jet Airways are
among the main Air India Express competing companies.

The company appeals to lower and middle Indian people since it provides low-cost services,
mainly to emigrants, primarily labourers. The company recently released audit report on
October 27, 2020, that also say that despite the Covid 19 pandemic, the corporation has
seen a 25% increase in operating total revenue, with the carrier's revenue bouncing from
US$580 million to US$730 million inside the 2018-19 financial year. The firm's operating
income was recorded for the third time in a row in the 2020 financial year report, marking the
company's 5th straight year of profitability. The airline's revenue sources have been steadily
increasing (Bowen, 2019).
In 2016-17, the airline made a net profit of $42 million, with revenue rising to $470 million, a
14 percent increase over the previous year. In the same year, the air carrier expanded its
fleet from 18 to 22 aircraft, a 32 percent increase uplift, due to an increase in daily utilisation
of Air India Express aeroplane from 10.3 to 13 hours, and a 22 percent increase in
passengers carried to 3.42 million, up from 2.8 million in 2015-17.

The carrier's principal hub is Cochin Airport Terminal in Kochi, Karnataka, and it primarily
flies from tier-II cities in India to Southern and central Asia and the Middle East. It also
operates four domestic routes from Mumbai, Telangana, Karnataka, Haryana, and Madurai
in India. The aviation industry has a fleet of 24 Boeing 737-800 aeroplane, each with a
maximum seating of 186 or 189 passengers, as of October 2020. The aviation has also been
involved in a number of incidents and mishaps. The most well-known and elevated accident
occurred on May 22, 2010. After crashing into the a canyon at the finish of runway 24, a
Boeing 737-800 enrolled to Air India Convey as VT-AXV overestimated Mangalore Airport

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 runway 24(Alves 2017).

The plane caught fire, killing all 152 commuters and 6 crew on board. Only eight people
have survived the aircraft's 166 passengers and crew. Another noteworthy incident occurred
when a Boeing 737-800 crashed into the a canyon after skidding on the Calicut International
Airport due to heavy rain. The occasion killed 20 passengers on board, which include two
pilots, and injured 112 others.

Porter's Five Forces

Porter's Five Forces theory can also be used by marketers to determine the most efficient
marketing techniques. Porter's five forces assist marketers working for a variety of
organisations in determining how to preserve profitability over long periods of time. The
theory was subdivided into five parts or forces by Potters. The five competitive forces are
used to identify threats that an organisation faces in a given situation and how to address
them. The theory can be used by marketers to monitor the market and identify potential
problems in the Indian air transportation market.

First and foremost, the marketing and sales officials must research and analyse competitive
market inside the Indian air industry. Recognizing their competitors as well as the degree of
performance they face is essential for them to be able to adequately prepare. In addition, the
corporation could perhaps conduct a thorough investigation into the number of common
products available in the new market. They will be able to develop a strategy for
consolidating market power as a result of the study. The appearance of several low-cost
airlines in India, such as Air India. The presence of airlines such as Go Air, Vistara, and Air
Asia, among others, raises the level of competitors in the market.

Competition's threats
Competitors pose a significant danger to Air India Express. Because most large airlines fly to
comparable locations across the world, there is fierce competition in the airline industry. Air
India Express is up against companies such as Emirates, Indigo, Etihad, Oman Air, and
Scoot in the industry. These main airline companies are caused tension with others by
offering loyal customers benefits, lowering rates, and delivering high-quality services in order
to attract more customers than their competitors (Gross and Lück, 2016).

It is necessary to conduct a systematic review of the network of vendors in the Indian air
sector, as well as their price increases and customer satisfaction. When the company begins
operations in the united states, the study will assist them in identifying the best providers.
The business will also set up shop in a zone with a number of suppliers capable of providing
alternatives. Because there are few distributors in the aviation sector, as well as the price
differences are due to the quality of the machinery and aircraft, it has no negative impact on
the sector's competitors in the market.

There should be a detailed investigation of the network of vendors in the Indian air sector, as
well as their prices and service quality. When the company begins operations in the united
states, the research will aid in identifying the best suppliers. The business will also set up
shop in a zone with a number of suppliers who can offer alternatives. Because there are few

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 providers in the air transportation industry, as well as the price differences are due to the
quality of the hardware and aircraft, it has no negative impact on the competitiveness.

Every sector, after a little while, sees new competitors. If newcomers are not cautious, those
who could indeed start taking over all the economy and even result to the insolvency of
existing businesses. Because once trying to formulate promotional objectives, the company
has to keep future world contenders in mind. Knowing that smaller entrants will enter the
market allows businesses to avoid defeatism and continue to produce high-quality products
that allure them to one‘s clients indefinitely. Trying to establish a product and a customer
base should be the company's top priorities (Bowen, 2019).

A well-known brand that is well-liked by customers makes it nearly impossible for smaller
entrants to succeed. As a result, it can operate for long periods of time. The appearance of a
number of airlines in India, such as Air India. New competitors will find it a bit easy to enter
the sector thanks to companies like Go Air, Vistara, and Air Asia, among many others.

The corporation really should research the country's air transportation products and services
purchasers and their importance. Consumers in different market place have different levels
of ability, depending on its size. This helps determine the consumption of goods and services
as well as the producers' power to influence market values. The Indian aviation sector
serves a diverse range of customers across the country. The large consumer population
allows commercial aviation companies to place prices that are advantageous to them just
because they ensure profits while also being reasonable to their clients.

Strategic Choices

The airline must address important concerns that really are negatively affecting it, including a
lack of competence among some of its employees and insufficient grooming, as well as
increase its competitiveness and secure its existing customers, and reduce government
meddling in its operations. Changing its marketing and advertising methods to make
company airliner better approachable and to guarantee that it reaches its target audience
more quickly and efficiently, among other things. The problem of government involvement
has recently had a detrimental impact on the airline. In certain cases, government meddling
has resulted in a negative consumer attitude and a reduction in consumers, as well as
discouragement.

The airline's promotion and marketing methods must also be upgraded to be more original,
customer-friendly, and distinctive. It must also use the appropriate advertising methods to
reach its clients after creating the commercial. The airlines can utilise other successful and
current techniques, including as social media, in addition to conventional media like
television. Enhancing their website to make it more user-friendly and appealing while also
listing all of their offerings. Investing in Search Engine Optimization (SEO) tools is indeed a
crucial marketing tactic since it helps the organisation more visible in online search
engines(Bowen, 2019).

Another major issue that the airline must solve is its employees' grooming, competence, and
politeness. By cultivating its employees, the airline ensures that its customers will receive
high-quality service and, as a result, will be able to sustain a loyal client base. It is critical to

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 train and hire polished and professional cabin staff that understand how to handle clients
effectively. Even if the items are low-cost and come with added bonuses, it is difficult to keep
clients if they are not handled with respect. Resolving these essential challenges allows the
aircraft to remain viable while also maintaining its consumer base.

Service business that is oriented on people – Employees of high grade should be employed
by the airline. To improve customer service, Air India Express should start training
programmes focusing on front-line communication skills.
It is suggested that the carrier run the carrier as a base or hub in an airport to take
advantage of economies of size and scope. New competitors and other airline companies in
the industry will face a structural entry barrier as a result of this. Due to the obvious
increased base size, it will also lower marketing and sales costs, flight cancellation charges,
and customer service utilities.

It is also suggested that the corporation include flexibility in switching slots, allowing crew
members to switch from one path to the other. Furthermore, flexibility is required to adjust
connection in response to variations in demand, such as in the case of the Covid-19
epidemic, when demand has decreased. This will give the airports more negotiating leverage
when it comes to time frames and other services. The airline must engage in techniques to
enable mitigate risks associated with increased capacity by establishing additional routes
before the end of the year, allowing it to reposition planes and guarantee ground people and
gates quickly in the event of a contest.Improved technology will allow the airline to respond
quickly to price wars, provide more user-friendly online booking sites, and maintain fleet
safety and dependability. Air India Express can diversify into the hospitality industry by
forming collaborative partnerships with airport stores, hotels, and restaurants to create new
routes that are less congested (Gross and Lück, 2016).

Ansoff Matrix recommends the following four generic growth strategies:

Market Penetration is a term used to describe how well a product or service penetrate

- Market Expansion

- Product Creation

- Diversification of Products

India's large population provides a wide range of opportunities for Air India Express to
benefit on the local market, which is very easy to establish. In the local market, the airline
has room for growth. Furthermore, the airline employs well-groomed cabin personnel,
allowing it to provide high-quality services at a lesser cost. The airline can also expand its
locations to take advantage of the rising demand for visitors throughout the world. As a result
of the sector's deregulation, Air India Express is now more open to international flights than it
was previously, providing opportunities for the airline to expand globally.

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 Competitors pose a significant danger to Air India Express. Because most large airlines fly to
comparable locations across the world, there is fierce competition in the airline industry. Air
India Express is up against companies such as Emirates, Indigo, Etihad, Oman Air, and
Scoot in the industry. These big airline companies are fiercely fighting for customers by
offering benefits to loyal customers, lowering rates, and delivering high-quality services to
attract more customers than their competitors (Gross and Lück, 2016).

CONCLUSION

The airline is the only one that follows the carrier concentration concept and offers its
passengers complimentary food and coffee/tea. In East Asia and the Gulf nations, the airline
offers simple connections to medium and short-haul transcontinental flights. Budget
passengers, holidaymakers, and Indian expats are the airline's primary target categories. It
provides its customers with no frills, round-the-clock service on all routes. With their tagline
"Simple priceless," Air India Express strives to make flying accessible to anyone and
everyone without sacrificing creativity, reliability, or comfort.To prevent being overtaken in the
industry, the firm must focus on its vulnerabilities and dangers while leveraging its strengths
to take advantage of the industry's immediate chances. Furthermore, the aircraft must
comprehend its surrounding world by taking into account political, economic, technical,
social, and legal aspects that may impact its operations both locally and worldwide in order
to build and grow its company in India and outside.

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