AVIATAION INDUSTRY

PRESENTED BY :

AJAY PAL
KUNAL SINGH (MMS)
MANALI VENDE
SNEHAL KATVI
SUPRIYA SINGH
VIVEK SINGH
 Aviation sector…..

The sector deals with the transport of passenger and cargo from one place to
another, using the aerial route.

Size :
Approximately 75 million Passengers
$5.6billion

Growth
 Around 15% growth in last 10 years.
 Growth in 2009 : 0.7%
 Vision 2020 statement predicts handling
280 million customers by 2020
 From then to now……….
1953: NATIONALISATION OF AIRCRAFT INDUSTRY
Assets of 9 existing companies transferred to
two entities in the aviation sector controlled by
the Government in
 Indian Airlines, primarily serving domestic
sectors
 Air India, primarily serving the
international sectors
IMPLICATIONS
 Aviation became a preferred mode of
transport for elite class
 Restricted Growth of Aviation Industry
 High Cost structure
 Underdevelopment of infrastructure
1986: Private Sector Players permitted as
Air taxi operators. Jet, Air Sahara, etc started
service.
1994: Private Carriers permitted to operate
scheduled services. Six operators granted
license, however only Jet and Air Sahara able
to service.
2003: Entry of low cost carriers. Air Deccan, Spice
Jet, Go Air, Indigo.
IMPLICATIONS
 Aviation is now affordable with check fares
and discount schemes.
 Various Operators with different business
model.
 Huge growth foreseen in Aviation
 Players in Aviation Industry
The players in aviation industry can be
categorized in three groups:
 Public players : Indian Airlines, Air India

 Private players : Jet Airways, Kingfisher

Airlines, Spice Jet, Air Deccan, International
players

 Start up players : Omega Air, Premier Star Air.

 PEST ANALYSIS
POLITICAL FACTORS:

• “Open sky policy” has helped the private airlines to enter

into the aviation sector , as earlier only government
owned airlines were rendering service to the customers

• Deregulation as the market increases in size, therefore

economies of scale may arise.

• Liberalisation of skies
ECONOMIC FACTORS:

• Many airlines in serious financial trouble due to

increase in fuel prices

• Rising cost of fuel. .(Aviation Turbine Fuel)

• The growth of the middle class income group

family which affects the aviation sector.
SOCIAL FACTOR:
• Need to rebuild confidence in air travel.

• Development of cities leads to better services and

airports.

• Employment opportunities.

• Safety regulations.
TECHNOLOGICAL FACTORS:
• The growth of e-commerce and e-ticketing.

• Satellite based navigation system.

• Modernisation and privatisation of the airports.

• Developing green field airports with private sector for

example in Bangalore the airport corporation limited.
FIVE FORCES MODEL
 Internal Rivalry:

• Price competition especially from no frills carriers

• Competition for airport landing/departure slot.
Therefore barriers to entry at major hub airports
• Passenger demand declining/static in most places.
• Regulation barriers decreasing, therefore there is
increase in competition
 Entrants

• The “open skies” agreements are brought in; therefore

potential future threat is maintaining the cost and
equally maintaining the brand image of the airline
company.

• To strike a balance with rise in fuel prices and rising cost.

• Tough competition from giants like Sahara, Jet group.

Substitutes:
• Travel by sea or road ,rail is always convenient

• Spend leisure money on alternatives or domestic holidays.

Customer Power:
• Loyalty from Frequent Flyer Program.

Supplier Power:
• Fuel prices are a major cost with no substitute, therefore
powerful hold on airlines.
Major Players (Market Share)
Top 3 Players
 Flight services in India
Airlines Aircrafts Destinations Daily flights

Air India 157 106 400

Jet airways 85 63 380

Kingfisher 73 69 400
airlines
KINGFISHER

• Dr. Vijay Malaya is the Chairman and CEO of

Kingfisher Airlines.
• Kingfisher launched its airline services in May
2005.
• 5 star rating from “Skytrax”
Kingfisher Then and Now
STRENGHTS:
• Strong Brand value & Reputation in the minds
of customers.
• Quality of the service.
• First airline to have new fleet of airbuses.
(pioneers in India)

WEAKNESSESS:
• High Ticket prices.
OPPORTUNITIES:
• The expanding tourism Industry.
• Untapped Air cargo market
• Under penetrated Domestic Market

THREATS:
• Competitors.
• Fuel Price Hike.
• Economic Slowdown/Recession.
 MARKETING STRATEGIES
• Kingfisher Airlines is the first carrier in the country to
offer live in-flight entertainment.

• Kingfisher Airlines Ltd & Dish TV have joined hands to

provide live in-flight entertainment on Kingfisher
aircraft .

• The service would enable airline’s customers to have

“fun liners” experience , sophisticated communication
navigation security systems for “guests”
On the promotional front,
Kingfisher has signed up
the latest diva of
Bollywood Ms.Deepika
Padukone as the Brand
Ambassador
 STP Analysis for Kingfisher airlines
Segmentation:
Geographic Region
Density
Social Classes
Income Level

Targeting
Kingfisher First - Premium Business class of service
Kingfisher Class - Premium Economy class of service
Kingfisher Red - Low fare class of service comparable to the Economy
class of service in other full fare airlines
Positioning
Lifestyle
Benefits
Quality
Differentiation:
Fun liners experience
Guests
Sophisticated communication and navigation security system,
 7 P’S ANALYSIS
• Product:
Domestic & International Air Transport
Service.74 domestic destinations & 3 international
destinations in 3 countries across Asia & Europe.

• Services:
Domestic & International:
Kingfisher First
Kingfisher Red
Kingfisher Class
Place:
Services range from Ahmadabad to Agartala &
to the major cities such as Delhi, Bangalore, &
Chennai etc.

The main strategy that kingfisher follows is to

target the metro cities and the tier 2 cities in
India.
• Promotion:
• Events & advertisements
• Multiple touch points & finer promotional
services working for the promotional
activities.
• Loyalty & frequent flyer programs are also
carried out.
Price:

Higher income group as well as the upper middle class

background.

The youth & the high lifestyle segments.

Sec A, sec B+ socio economic class mainly in the age group of 25-
45 years: a specific prices offered by kingfisher.

Services offered by kingfisher do emphasis on their policy to target

those segments which are willing to pay for luxury
People:
Hospitality industry, Interpersonal skills,
aptitude, & service knowledge people.

Physical evidence:
Exclusive lounge space, Gourmet
cuisine, world class cabin crew, trendy
video- Fun TV, 10 music stations -Kingfisher
Radio .
Process:
Booking the ticket-online booking
Tele - booking
Kingfisher outlet
BCG MATRIX
GE MATRIX
MCKINSEY FRAMEWORK
Balance score card of Kingfisher Airlines
Balance scorecard
• Vision:
• The Kingfisher Airlines family will consistently deliver a safe,
value-based and enjoyable travel experience to all our guests.”
• Mission:
• Dedication to the highest quality of Customer Service delivered
with a sense of warmth, friendliness, individual pride, and
Company Spirit.
• Values:
Safety , service ,happiness, accountability and team work

Continued on the word doc…..

 Jet Airways

• Naresh Goyal is the founder & chairman

• Started Indian commercial airline operations in
May 1993.
• In April 2007, they acquired Air Sahara.
• Jet Airways is an airline based in Mumbai. It is India's third largest
airline after Air India and Kingfisher Airlines . It operates over 400
daily flights to 64 destinations worldwide. Jet Airways is widely
regarded as India's biggest and best airline. It's a privately owned,
full service airline that commenced operating in mid 1993. It's now
captured almost 23% of the market, and has bases in Delhi,
Mumbai, Pune, Kolkata, Hyderabad, Chennai, and Bangalore.

• Jet Airways has won many awards for quality service. In

particular, the airline is known for its outstanding in-flight service,
food, punctuality, and baggage handling. Staff are extremely
efficient and courteous, and will go out of their way to ensure that
you're comfortable and well looked after.

• Jet Airways operates on a code share basis with Kingfisher Airlines.

 Jet Airways SWOT Analysis
 

Strengths
• Jet is the strong brand among the Indian people.

• Jet has been efficiently utilizing the resources which result in

low operating cost.

• Efficient and talented employee help Jet to perform

operation in a better way to facilitate its customers.

• Customers are satisfied from the services offered by Jet

airways.

• Better use of technology, reservation are handled online with

the unique reservation system.
 WEAKNESS
Struggling with the carcass of Air Sahara.
* Poor people management skills of chairman.
(recession hit issue of removal of 1800
employees in 2008 )
* Inability to raise money for the last two year
A perceived drop in service standards when
pitted against Kingfisher
 OPPORTUNITIES
• Jet airways financial position is strong, so it
can think for further expansion nationally and
internationally.
• Add up more services for the passengers.
• Increase in number of flights.
• Joint ventures with other Airlines for new
market development.
 THREATS
• Terrorism is the major concern after 9/11
Incident.
• Raise in fuel prices
• Strong competition from Kingfisher , and low
cost airlines in Domestic & in international
airlines Cathay pacific, Qatar, British airlines
etc.
• Employee Unions
ANSOFF MATRIX
 ANSOFF MATRIX
MARKET PENETRATION:
{ existing product , existing market}
 Jet airways JP miles for frequent players
 Jet cargo services
 Advertisement
 Jet life service

DIVERSIFICATION
{new product, new market}
 Jet mall for lifestyle products
PRODUCT DEVELOPMENT
{Existing market, new product}

 JET KONNECT – 15% cheaper than jet airways

 Jet escapes travel package

MARKET DEVELOPMENT
{Existing Product, new market}
 International star – alliance membership
 Targeting potential customers traveling by rail
Kingfisher vs. Jet Airways
 Kingfisher Jet Airways

• Kingfisher is the latest • Jet airways is a

Airline in India from experienced Airline
2005 in India from 1993
• Overall loss in June • Jet airways had a
2009 of $500 ml. slight profit in the
• Kingfisher acquired 1st quarter of 2009.
46% in Air Deccan • Jet acquired Air
Sahara
Kingfisher Vs Jet Airways
• Well capitalized airline, • Ability to survive downturns
prepared to take losses. earlier

• Excellent lobbying skills and

• Better handling of ability to leverage connections
employees and staff within government
• A massive pool of loyal
customers
• The Deccan deal - which
gives it market share, a • Financing raised on strength
new market segment of own balance sheet.
and was cheap
 New government initiatives to develop India’s
potential as the world’s fastest growing aviation
market……

Changing regulation policies

Increased privatization of airports

Growing Infrastructure developments

 OUTLOOK INDIA 2020……

 The growth of India’s aviation sector has the potential to absorb up to US$120
billion of investment by 2020.

 However, we must close the gap between the demand for aviation
services and the ability of our aviation system to meet that demand.

 India must prepare a blueprint for the expansion of system capacity whilst
maintaining safety, security and the environment.

 India must develop a roadmap for infrastructure development beyond 2010.

 Jobs in Aviation

The boom in the aviation sector is likely to generate nearly

2.5 lakh jobs by the year 2014.

The study says that the civil aviation sector is also set to
become a Rs 55,000-crore industry by the same time.

The industry is expected to add 130 airliners to its current fleet of

270 airliners, which would, in turn, increase manpower demand
Thank you