INTRODUCTION TO AVIATION INDUSTRY

One of the fastest growing sectors globally.It facilitates economic growth, world trade,
international investment and tourism and is therefore central to the globalization taking
place in many other industries.

Origin of Indian civil aviation industry-191
!he first Indian airline-19" #arket $ize.
India%s domestic aviation market has tripled in the past five years.
India is currently the ninth largest aviation market in the world.
&assengers carried by domestic airlines during 'anuary - #ay (11 were ).* million
as against 1 million.
+omestic traffic in a month has registered *.* million passengers carried with three
airlines viz. 'et ,irways, -ingfisher ,irlines and Indi.o carrying more than 1
million passengers each in #ay (11.
&rivate carriers are anticipated to post a combined profit of /$0 "*( 1)(( million
for the fiscal (11-1.
Passenger airline:
!oday, only two per cent of India has access to airline transport.
In India, the number of air tickets purchased annually is *( million.
2ompare this with other countries3
In ,merica, there are 4(( million tickets purchased every year.
In Ireland, the tickets sold are * million.
In #alaysia, the tickets sold are 15 million.
2argo logistics
2hina today has 1(( cargo aircrafts.
In the /$, 6ede7 and /&$ have 1, 4(( aircrafts but India has only 15.
8elicopters and personal 9ets
!here will be an e7plosion of growth.
!his is because the number of rich people in India is growing.
#any of India%s very rich personal own 9ets already .
.rowth :ate
.eneral aviation has e7perienced over 1( years of rapid growth in all kinds of
economies.
1(; annual growth in /$ for last "( years
<; annual growth in 2anada for last "( years=
5; annual growth in >razil for last "( years and rapid growth in ,ustralia for last )(
years
In the ne7t ten years, the compound growth rate of 2hina?s general aviation aircraft
demands will e7ceed (; .eneral aviation aircraft?s for aerial works, 1,)1*
aircrafts for training and private flying, a 1; compound growth rate
#arket &layers
-ingfisher ,irlines, <;
'et ,irways and 'et @ite , *;
,ir India , 15;
Indi.o, 1);
$pice'et, 1;
.o,ir, ";
&aramount ,irways, ;
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-6inancial &olicy - ,ccounting -:egulatory 2ompliance - @egal - 2ommunity ,ffairs
&ilot !raining
$afety !raining
,gent
!raining
In-flight
!raining
>aggage !racking
$ystem
E&romotion
E,dvertising
E,dvantage
&rogram
E!ravel ,gent
&rograms
E.roup $ales
E!icket 2ounter
Operations
E.ate Operations
E,ircraft
Operations
EOn-board $ervice
E>aggage 8andling
E!icket Offices
E:oute $election
E&assenger $ervice
$ystem
EDield #anagement
$ystem F&ricingG
E6uel
E6light $cheduling
E2rew $cheduling
E6acilities &lanning
E,ircraft ,cHuisition
Information
!echnology
2ommunications
&roduct
+evelopment
#arket :esearch
E@ost >aggage $ervice
E2omplaint 6ollow-up
E>aggage
$ystem
E6light
2onnections
E:ental 2ar
and
8otel
:eservation
$ystem
2omputer :eservation $ystem, In-flight $ystem
6light $cheduling $ystem, Dield #anagement $ystem
>aggage 8andling
!raining
6light, route and
yield analyst
training
2ompetitors ,nalysis
&roliferation of ,irlines and several other
low-fare carriers.
#a9or carriers compete for passengers over
their respective hub-and-spoke networks.
@ow fare carriers include $pice 9et, .o air,
.o indigo are giving stiff competition to
ma9or airlines like -ingfisher airline, 9et
airways, Indian airlines etc.
Cven corporate world in order to decrease
there e7penditure are now booking tickets in
these low cost carriers.
Indian railway
8igh net individuals clients also prefer
:a9dhani, +uronto.
2ustomers -ey buying factors
2ontdI..
!he whole value offering leading to customer retention.
>uying factors include 3
1. ,vailability of seats
. 2onvenient time schedule
". &unctuality of airplanes
). @evel of safety in airlines
*. Juality of food specially in long distance travel
Cntry barriers
E8igh startup costs or obstacles that prevent new entrants from
easily entering a particular industry .
EIn the airline industry, there are a number of barriers to entry
that affect new entrants3
:isk
E8igh costs that tend to be fi7ed in relation to revenues.
E@oad factors or fare increases may affect revenue.
$lots
E$ince 1959, the 6ederal ,viation ,dministration has limited the
daily number of takeoffs and landings at key airports such as the
2hicago O%8are, :onald :eagan Kashington Bational and Bew
Dork%s '6- and @a.uardia.
E,s a result of new airlines entering the market, the demand for
access at these airports increased.
E!his increase made it difficult for the takeoff and landing slots to
be eHually divided.
E!herefore, government intervention has been minimized to allow
airlines to buy and sell these slots to each other .
#arketing $trategies
>ooking incentives
6reHuent flier programs.
$upplier ,nalysis
,s the supplier industry is dominated by >oeing and ,irbus the concentration
undermines the ability of airlines such as -ingfisher to e7ercise control over
suppliers and earn higher profits.
$ince -ingfisher has a fleet of *" >oeing 4"4 aircraft its supplier has a high
bargaining power over -ingfisher . !he bargaining power of suppliers depends
on supplier concentration, substitute supplies, switching costs, threat of
forward integration and buyer information .
$uppliers who work with the airline such as the providers of on board snacks
do not have the same bargaining power as they are a larger industry which
allows for -ingfisher to have a choice over who they are purchasing from.
-ingfisher will purchase their on board snacks from the supplier which is the
most economic so -ingfisher can make a higher profit margin from the goods
when they are sold.
$uppliers also include petroleum industry which is the backbone of airline
industry . In India companies like >&2@, 8&2@ and many other companies
have specially designed plans for airlines as they form there large customer
base.
2O#&,BD &:O6I@IB.
,bout -ingfisher ,irlines
-ingfisher ,irlines is part of !he /> .roup which is one of IndiaLs largest
conglomerates with diverse interests and a global presence

-ingfisher ,irlines is IndiaLs favorite airline and the only one to offer
a premium first class service on domestic routes
in-flight entertainment on every seat in the domestic skies
@IAC !A with 15 channels of live M e7citing content.
-ingfisher ,irlines has received over two dozen awards for innovation, customer
responsiveness and was voted the N>est Bew ,irline of the DearO within months of
its launch.
-ingfisher ,irlines flies to " cities and offers over (( flights daily with a fleet of "1
brand new aircraft.
Kith its significant investment in ,ir +eccan, the -ingfisher-,ir +eccan .roup is
IndiaLs largest domestic airline connecting 59 cities and offering over **( flights
daily with a fleet of 4* aircraft.
2O:&O:,!C $!:/2!/:C
Ai9ay #allya
F2hairman M
#+
,.-. :avi
F+irectorG
Ai9ay
,mritra9
F+irectorG
,nil -umar
.anguly
F+irectorG
$ubhash .upte
FAice 2hairmanG
&iyush
#ankad
F+irectorG
.hyanendra
>a9Ppal
F+irectorG
#arketing ,spects
&roduct

+omestic M International ,ir !ransport $ervice.

4) domestic destinations M " international

destinations in " countries across ,sia M Curope.
&lace

!he metro cities or the tier 1 cities in India.

&eople

8ospitality industry, Interpersonal skills, ,ptitude

test.
2ontdI..
&romotion

Cvents M advertisements

@oyalty M freHuent flyer programs are also carried

out
&rice

8igher income group as well as the middle class

background

$ec ,, sec >Q socio economic class mainly in the age

group of *-)* years
2ontdI.
&hysical Cvidence

C7clusive lounge space, .ourmet cuisine, Korld

class cabin crew
&rocess

Online booking, !ele-booking , -ingfisher outlet

&roducts M >rands
-ingfisher airlines offers a range
of aircraft that includes the
Curo copter C21**,
>usiness 'ets and
,irbus 2orporate 'ets.
6or a group charter
,irbus "1,
,irbus "(, ,irbus "19,
,!: 4-*(( and ,
!: )-*(( aircraft
$KO! ,nalysis
$trengths3
-ingfisher ,irlines have targeted the
Indian domestic lu7ury segment,
therefore operating in a niche
market.
-ingfisher ,irlines has a strong
financial support from the parent
company /> .roup and
N-ingfisherO itself is a well
established brand.
!he customer service provided on
-ingfisher is e7tremely e7ceptional
for a domestic airline, hence
providing an ultimate flying
e7perience.
-ingfisher ,irlines is well known for
its highly trained and attractive
staff.
Keakness3
!he company is unable to generate
e7pected returns on the investments
done.
@oads are lesser than that of its
competitor 'et ,irways which is a
reflection of its marketing and sales
capabilities.
!he main weakness of the company
is the overspending of funds.
2ontdI.
Opportunities3
!he Indian aviation industry is a
growing industry with a growth
rate of nearly );.
!here are a large number of
domestic untapped routes.
!here has being a growth in the
disposable income of the people
especially in the middle class,
therefore more people can
afford to fly by a lu7ury airline.
!he air cargo market is still
untapped.
!hreats3
6ierce competition from other
airlines such as 'et ,irways
2ost cutting is become a prime need
in the aviation industry, hence
pressurising a lot of airline
companies .
Infrastructure constraints the ma9or
rises in fuel prices
$egmentation3
2lasses of status conscious air traveler,
$C2 , and >Q,
82I *-Q,
&rofessional.
!arget audience- $C2 ,, $C2 >Q Fsocio-economic classG in the age
group of *-)* years of age.
!argeting3
C7ecutives and their family.
Kho are not really economy conscious but seeking an airline
commensurate with their standingRstatus
&rice insensitive
, pleasurable in-flight ambience and e7perience.
&osition3
!he airline is deliberately positioned as N, never before e7perienceO
and N6unlinerO.
O&C:,!IOB$
2ompetitive ,nalysis
-ingfisher?s only strong obstacle proves to be 'et ,irways, since
'et has control on both ends of the market and secondly it has
penetrated into the international market as well.
>enchmarking against 'et ,irways, -ingfisher ,irlines has
acHuired ,ir +eccan - which was one of the most profitable low
cost airlines, hence kingfisher too has entered in the lower end
of the market but bearing in mind that they haven?t changed
the name N+eccanO to N-ingfisher ,irlinesO so that the brand
doesn?t lower.
-ingfisher is also going to start non-stop flights to /$ so as to
foray into the international market.
-ingfisher?s strategy to take on #a9or competitor, 'et ,irways3
-ingfisher ,irlines, positioning itself as a budget airline has
announced fares for the >angalore-#umbai sector, which are "*
per cent lower than those of Indian ,irlines and 'et ,irways but
lower than those offered by ,ir +eccan.
8owever, unlike ,ir +eccan, which is purely a low-frills airline,
-ingfisher promises frills like in-flight entertainment with
television sets for individual seats and professional models as
flight attendants.
-ingfisher%s lowest fare is :s",9(( for the >angalore-#umbai
sector, with the ne7t highest being :s),9(( and the highest at
:s*,9((.
!hird Huarter 6D(1(R11 financial results for India?s three large
airline groups 1
,ir India, 'et ,irways and -ingfisher ,irlines 1 and domestic @22,
$pice'et, show mi7ed results at the net profit level, as two of the four
carriers increased their revenues, while all four e7perienced traffic
growth.
!here are still challenging times ahead in (11 for all four carriers to
reach a stabilisation in yields and increase their revenues, as traffic
continues to recover.
>enchmarking 6inancial ,nalysis
www.moneycontrol.com
www.moneycontrol.com
$upply 2hain ,nalysis
-ingfisher 2argo offers a wide range of services to its customers by
way of .eneral 2argo and 2ourier as well as various other
customized air logistic products which are tailor made to benefit its
clients.
!he array of products and services offered by -ingfisher 2argo
includes .eneral 2argo $ervices that cater to all types of general
cargo like garments, te7tiles, spare parts, computer chips, electronic
items and foodstuff.
2ustomer-focused innovations and initiatives for this segment include
guaranteed capacity, Sflown-as-bookedL, personalized service, special
storage areas and security escorts for handling special types of cargo.
In addition to this, -ingfisher 2argo caters to the NOn->oard 2ourier
$egmentO with a phalan7 of special on- board services especially
customized for sending smaller consignments which are time-sensitive
in nature.
:ecommendations for -ingfisher ,irlines
Beeds to change brand perception
2urrently perceived as @ifestyle slogan
:ed color of crew 3:eflects :oyalty
Over dependence on brand image of #r. #allaya
,dvertisement reflecting Aalue for #oney
.ain operational efficiencies through alliances.
@everage /pon3
Bew fleet, /nmatched flight service
Innovative ideas-@IAC !A with 15 channels
,ir >outiHue, in -ingfisher ,irlines
6uture $cope
Indian ,viation - :oad ,head
!he Indian aviation sector is a ma9or economic driver for
prosperity, development and employment. #assive investments in
airport infrastructure have led to world class airports which have
become the symbol of India?s growth story.
India is poised to emerge as the third largest aviation market in
the world by the end of this decade, according to 2ivil ,viation
$ecretary +r Basim Taidi. Taidi said that the sector, with a
growth of 1< per cent in domestic market, is e7pected to generate
appro7imately .5 million 9obs in the ne7t one decade.
!he Aision (( announced by the 2ivil ,viation #inistry
conceives of building infrastructure to support <( million
customers
bibliography
www.wikipedia.org
www.flykingfisher.com
www.moneycontrol.com
www.asiapacificaviation.org
!hank DouI.