IMPACT OF NEW ENTRANT

ON AVIATION INDUSTRY

Submitted To Prof. Reenu Kalani

GROUP 7
 GROUP 7
SARTHAK BIST - 22BSP1517

ANMOL GOEL - 22BSP0216

ASHUTOSH KUMAR PANDEY -
22BSP0318

MEHAK MUNJAL - 22BSP2164

SAHIBA - 22BSP1451

KRITI CHOURASIA - 22BSP0811

RITIK GARG - 22BSP1372
 AVIATION INDUSTRY
Others
• One of the fastest growing Vistara
6.3%
2.1%

AI, projected to become Air Asia

6.8%

3rd largest in terms of GoAir

passengers by 2024. 7.5%

Air India IndiGO

• India plans to have additional

9% 55%

100 airports by 2024.

Spicejet
13.3%
 WHAT'S BEHIND
AKASA?
• Boeing Effect

• Ultra Low Cost Carrier

 WHAT'S BEHIND
Airbus A320 Family

Boeing 737 Series

AKASA?
 GOVERNMENT POLICIES

• Foreign investment allowed up to

49%.

• Custom duty lowered from 2.5%

to 0%.

• Open sky policy

• Udan policy
Factors affecting demand:

• Accessibility and affordability

• Rising working group and widening

middle-class demography

• Passenger Growth
Price Elasticity of demand:

Price elasticity of demand is a measure of

the responsiveness of consumers to changes
in the price of a product. Akasa airline
although being a low-cost carrier is
relatively elastic.

Market Structure of Airline Industry:

The airline industry is an Oligopoly

market.
 Problems for new Entrant in Aviation

• Huge Capital Investment

• Limited government permission

• 3 C problems
 Challenges

• Challenges for Indigo after Akasa

launch and Air India Under Tata
Groups
• Increase in fuel prices
• Rupee depreciation affects the
airline industry badly
SUGGESTIONS
• Akasa should be priced at competitive fares to not
lose passengers who are cost sensitive
• Akasa should make sure that their flights will be
available with prime slots at metro airports.
• Akasa should make sure in delivering consistent
services.
• Airline companies in India should make Air Cargo
Infrastructure a national priority.
 CONCLUSION
Consequently, Akasa is flying into an intensely competitive
market with razor-thin margins. It is also a market where the top
two players, namely IndiGo and the Tata group airlines,
command more than 80 per cent market share Managing Partner
at aviation advisory AT-TV.
This will also help them leverage benefits of scale, amortise
costs and set up operations to fly internationally.
THANK YOU FOR
LISTENING!