AIR INDIA

Chirag Daultani (01)

Sakshi Jain (12)
Jitendra K. Yadav (21)
Anirudh Mukherjee (22)
Gaurav Gupta (27)
Roshni Bandyopadhyay(30)
 Indian Aviation Industry
One of fastest growing aviation market

Growth rate has been 18%

Currently – 75 million passengers

Vision 2020 – 280 million passengers

Reason for Higher Demand

Growing middle class & their purchasing power
Lower airfares by low cost airlines
Growth of tourism industry
 Air India
History
Founded by JRD Tata in 1932 as Tata airlines
In 1953, Govt. took full control under Air Corporations
Act
2007 – merged with Indian Airlines, created NACIL
Air India
16th largest airline in Asia
Fleet Size – 136 aircraft(both Boeing & Airbus)
2010 – Expected to join prestigious Star Alliance
Mascot - Maharaja
 Air India Crisis
Caused by interest burden, repayment & overhead expenses

Facts
Annual losses - $ 1b, accumulated losses - $3.2 b
Accounts for 10% of total global airline revenue losses
Owes close to $300 m to Airport operator/Aviation fuel
corporations
Causes
Bad management & faulty policies
Lack of ownership & responsibility
31500 employees -> $600 m wage bill
Highest employee/aircraft ratio 200:1, desirable 140:1
World Annual Traffic
Market Share
Capacity v/s Demand
Seat Load Factor
 PEST Analysis
●
Disinvestment friendly environment

Political Airlines friendly policies

●

●
Increasing infrastructure investments
●
Decreasing Regulation barriers

Economic
●
Corporate recovering from the recession syndrome
●
Increase in numbers of passengers.
●
Price competition especially from no frills carriers
●
Inefficient operations of other airlines

al ●
The benefit of the biggest infrastructure at all major
airports
 PEST Analysis
●
Flying - a “need” not “luxury”
●
Emergence of a new class of fliers from the tier-2

Social ●

●
cities
Skilled manpower
Other modes of travel not always convenient
●
Changing lifestyles of people

Technolog ●
Economy of scale due to the consolidation
in the Indian airlines sector.
●
Emergence of E-commerce
ical ●
Loyalty from Frequent Flyer Program
 Introduction to LCC

Introduced by Air Deccan in 2003

Reduction in fare by 30 %

Players – Spicejet, Go Air, Indigo, Jet Lite, Jet

Konnect, Kingfisher Red

Key ●

●
High Seating density
Uniform aircraft type
Characteristic ●

●
Direct booking – no sales commission
No Frills such as food/drinks
s ●
Higher turnaround time
Business Strategy
Concentrated on unconnected regional areas

Two pronged fleet strategy

Lease with AIRBUS

Quick turnaround

High Frequency

Lean Staffing

Reduced expenses on Cabin crew

Booking/customer touch points

Dynamic fare pricing

 CPI-Consumer Preferences
Price

Schedule

Punctuality

Seat comfort

Speed of luggage delivery

Food

Safety of luggage

Air hostess
SWOT
Strength

●
Low operating cost
●
Strong brand image
●
Government backup
●
Established infrastructure
●
It has prime parking space/lot.

Weakness

●
Maximum flying population are Business and Corporate
●
Established Competitors
●
Unavailability of Small Aircrafts
●
Inefficient usage of resources
●
Bad reputation, poor cabin services
●
Less advertising
Opportunity

●
Very little fare difference between upper class railway and low cost airline
●
Economic Growth
●
Brand image of Air India is stronger for foreigners
●
Expanding Tourism Industry
●
Tie-ups with large Corporate

Threat

●
Entry of more private operators
●
Deregulation and Liberalization of airline
●
Younger & more efficient crew compared to Aging one of Air India.
 Rebranding
Air India Express
 AirIndia
Air Pulse
IndiaPulse

Wings to every Indian

Values at Air India Pulse
 Our Values
Safety First: Partnering with the world’s most renowned maintenance
●

providers and complying with the with world airline operations.

High Aircraft Utilisation:

Implementing the regions fastest turnaround time.
●

Providing guests with the choice of customizing services without

●

Low Fare, No Frills: compromising on quality and services.

Streamline Operations: Making sure that processes are as simple as possible.

●

Lean Distribution Offering a wide and innovative range of distribution channels to

●

System: make booking and travelling easier.

Applying the point-to-point network keeps operations simple

●

Point to Point Network: and costs low.

Services Offered
Hassle-Free Boarding

Kiosk

Mobile

Internet
 In-Flight services
Companion scheme and connecting buses from airport to remote venues

Complimentary food for Frequent fliers

In-flight entertainment

Mini crèche on-board

Special offers for senior citizens, children and differentially-abled

One day one special offer

Special seats for pregnant women.

Social Media Marketing
 Marketing Strategy

Target Market

Passenger travelling from

Small & Medium
IInd & Ist tier AC of Indian People who make last
Businessmen from Tier-II
Railway. minute plans to travel
who travel to different
The average cost for travel which are mainly Business
cities for a one day
through train comes out to class people.
business visit.
be INR 3000-4000.
 Brand Airline can associate itself with IPL, can become the carrier of any
●

team.
●
It can tie up with companies like TATA, Reliance etc to fly there

Association ●
executives.
It can tie up with McD for providing on board snacks.

No Fuel ●

●
Customers wont be charged fuel surcharges.
Instead they will be charged on the amount of
luggage they are carrying.
Surcharge ●
First few Kgs would be free.

Promotion ●
Free Tickets during the festive seasons i.e only basic
fare & no taxes.
●
Frequent Flyer program for attracting people from
al offers Tier-II cities.
Operational Aspects
 Combating Competition
Reach

●
Sectors to targeted
●
Frequency depending on the popularity of the route.

Frequency

●
Luggage charge to replace fuel surcharge
●
Base Fare to be common irrespective of routes
●
Festive season discounts

Pricing

●
Reduced turnaround time from current 1 hr to 30 mins
●
Make operations more efficient

Turnaround Time
 Low Operating Cost

Aircraft Equipment Cost

Personnel Expenses

Customer Service Cost

Airport Access & Handling Cost

Our Reach

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THANK YOU