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y Anupriya y Arvind Kumar Sharda y Deepak Rana
Indian Aviation Industry Over The Decades
The Tata's were the first to enter the aviation industry with Tata Airlines in 1930 s.
There was limited activity in the field over the next 2 decades despite 8 more companies entering the scene. In 1953, the Air corporations act came into force and assets of all 9 airline companies were transferred to 2 corporations Indian Airlines Corp. and Air India International. In 1986 private airlines were allowed to operate chartered and non scheduled services under an air taxi scheme.
Kingfisher Red. Beyond 2003. the Airport Authority of India (AAI) was formed which offered infrastructural facilities to all airlines. low cost carriers were introduced like Air-India Express. East west. Mumbai. In 1995. for scheduled international operations by Indian and foreign carriers. Jet Konnect. Kolkata. There were 5 international airports including Delhi. Modiluft and Damania) to start domestic operations. Sahara. Chennai and Thiruvanantapuram. IndiGo. Archana. Indian international. JetLite. NEPC. . Goair.In 1994 government approved 8 private carriers (like Jet airways. Spicejet.
The Air Corporations Act 1953 prohibited any person or company to operate any scheduled air transport services from. . to or across India. Lack of experience in the business. Poor promoter support. Under the Air Taxi scheme launched in 1986. the carriers were not allowed to publish time schedules or issue tickets to passengers.Failure of several companies in the initial phase of deregulation. Lack of proper planning.
of destinations covered by the aviation companies. No. Air fare being made cheaper to attract more and more customers. hoice of flight carriers for the customers.Some Factors That Have Contributed To The Industry Rivalry Large no. of competitors in the aviation industry. . Value added services offered by the aviation companies.
Customer Service Initiatives .
Refreshment on short flight and three course meals with cold drinks on longer flights."Businessman's Preferred Airline . Superior service to retain particularly business travelers.JET Airways Their Focus.It ensured its service surpassed customer expectation. .inform travelers in advance. Excellent service. If flight delayed.
Sahara Airlines An efficient and punctual with a high record of on-time-performance. Personalized reading kit. exclusive valet service. Smooth baggage handling. Modern fleet-Increased leg space to provided total seating comfort onboard. In-flight entertainment It won eight awards for its world class service and hospitality . Tele check-in facility to all their passengers.
Frequent flier discounts.electronic/kitchen appliances But there was no significant growth in volumes. Gifts.Innovative Promotional Schemes Festive season off. Free tickets on completing specific miles. .
Air Sahara's frequent flyer program called Cosmos. Wings 'n' Wheels coach service offered tremendous value adds to passengers. . Chance to win gifts.Air Sahara Discount in major routes in April 99 Steal-a-seat flexi fare options Sixer /Super Sixer and Square Drive/Super Four.
Discount in hotel room rates.frequent flier program. .Jet Airways Everyone can fly . Jet Privilege.
Indian Airlines u can fly . Bharat Darshan Increased commission of agents . Discount on major routes. Wings of Freedom. It could make profit inspite of huge cut in prices.
Viability of such Schemes Far s c ti sl t cli it i cr as i sal s. Ear l ss r r v B Oct b r t S b t b tt r t at mpt s ats. cannot b financiall viabl in long r n. Irrational to xp ct all trav l rs to plan almost 1 mont in advanc . rat s r br g tt rigi al l v l. rt t rm . .
with almost same roduct that is benefit for the money. infor ativ .Strategies Though all of these ow cost Airlines are targeting the same crowd. PICEJETrag atist. Following is the perception of individual brand FI H oric. O AI rag atist. s nti nta list KI J I /J KONNECTf nctionali st. INDI Oinfor ativ PA A OU NT AI AY Functionali st . but their associations and little alterations in roduct has led to different erceptions among the passengers.
Scheduling Scheduling flights in non peak hours. Switching is more frequent in case of low fare airlines whereas business segments are more brands loyal. it helps in maximum utilization of aircraft. better fuel efficiency and avoid taxes in the short routes.Leasing of aircraft. The industry is price sensitive. Pricing . Hedging of fuel Code Share AgreementEmploying Ejets- It helps in acquiring the aircrafts with the latest technologies for operation with the minimum cost It helps to reduce the fluctuations in the price of fuel.
-On board purchase of goods and food will help in increasing revenue and lowering cost.Using similar kind of aircrafts. and credit card issuers are beneficial to both the parties. A well managed sales team and relationship managers are to be employed to establish relationship with corporate who constitutes almost a third of the fliers. Co-Branding helps in increasing efficiency and reducing cost. Outsourcing the non core activities will help in better focus in core activities. . tour operators. Strategic partnerships with hotel chains.
Strategies To Improve Brand Image People. Awards: International recognitions and awards help in better recognition. Internet marketing is a cheap and better way of targeting customer. friendliness and Grooming are the desired qualities of them. and retirees.the recruited people are the face of the organization. . Attitude. Concession in fares for the defense people. Ordinary people as models will help the cause. If it is low cost airlines one need not promote through celebrities.
JET AIRWAYS ± MARKET LEADER (31% OF MARKET SHARE after acquisition of ´AIR SAHARAµ) .
It operates a scissors-hub at Brussels Airport. Its primary base is Mumbai's Chhatrapati Shivaji International Airport with secondary hubs at Brussels. Pune as focus cities. Delhi and Ahmedabad. (Sept 2007) . yderabad. Jet Airways in its typically 'trendsetter attitude' created India's first domestic full service and low cost model by announcing the launch of Jetlite. Bangalore.Jet Airways is an airline based in Mumbai. It operates over 400 daily flights to 65 destinations worldwide. Jet Airways wins Most innovative product launch award. Jet Airways serves 44 domestic destinations and 21 international destinations in 17 countries across Asia. which will be positioned between low cost and full-service. India. Kolkata. Chennai. It is India's third largest airline after Air India and Kingfisher Airlines. Europe and North America.
STRATEGIES Maintain market leadership in the domestic market Develop two equally strong pillars: domestic and international operations Consistently provide a superior product to our passengers Improving cargo revenue potential -domestic and international Reduce unit cost of operations Acquired Sahara airlines thus getting stronger hold in market.(12 Apr-2007) Alliance with Kingfisher .
This must be done by being clear as to what one s brand represents and stThe Airlines industry is cyclical in nature due to uncertainties which are beyond its control. Due to this the brands have to be built in such a manner that they survive the lean periods on their strength of being able to differentiate themselves with others. Due to this the brands have to be built in such a manner that they survive the lean periods on their strength of being able to differentiate themselves with others. This must be done by being clear as to what one s brand represents and sticking to its core values and not by raging a price war all the time.Conclusion The Airlines industry is cyclical in nature due to uncertainties which are beyond its control. Don t go beyond the limits Careful price discounts Advertising . .
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