HISTORY
1946 Tata Air Lines converted into a public Company and renamed Air India
Limited
1990
1994
2003
2007
2008
Regulatory Authorities
Ministry of Civil Aviation
- Responsible for the formulation of policy, development and regulation of Civil Aviation.
Its functions also extend to overseeing airport facilities, air traffic services and carriage of
passengers and goods by air
Other Attached/Autonomous Organizations:
Policies
Open Sky Policy
1. FDI
-Airports
- 100% for green field operations
- 74% for existing airports - 100% with special permissions
-100% tax exemptions for 10 yrs.
2. Airlines
- 49% in domestic airlines - 100% for NRIs
- 74% in cargo & non-scheduled airlines
MARKET SHARE
Airlines Market Share
Indian Airlines
Air Deccan
Air Sahara
Kingfisher
Spice Jet
Others
PORTERS FIVE FORCE
MODLE
Company slogan
Your Palace in the Sky
Parent company
Air India Limited
Headquarters
Air India Building,
Nariman Point, Mumbai, Maharashtra, India (moving to Delhi in 2013)
Website : http://airindia.in
History
Tata Sons, a division of Tata Sons Ltd. (now Tata Group) was founded by J. R. D. Tata in
1932. On 15 October 1932, J.R.D. Tata flew a single-engined De Havilland Puss Moth
carrying air mail (postal mail of Imperial Airways) from Karachi's Drigh Road Aerodrome to
Bombay's Juhu Airstrip via Ahmedabad. In its very first year of operation, Tata Airlines flew
160,000 miles, carrying 155 passengers and 10.71 ton of mail. Tata Airlines launched its
longest domestic flight Bombay to Trivandrum with a six-seater Miles Merlin. In 1938 it
was re-christened as Tata Air Services and later same year was renamed as Tata Airlines.
By this time Delhi and Colombo were also serviced.
After World War II regular commercial service was restored in India and Tata Airlines
became a public limited company on 29 July 1946 under the name Air India.
In 1948, after the independence of India, 49% of the airline was acquired by the
Government of India, with an option to purchase an additional 2%.
In return the airline was granted status to operate international services from India as the
designated flag carrier under the name Air India International.
This was the airline's first long-haul international flight, soon followed by service in 1950
to Nairobi via Aden. On 25 August 1953 the Government of India exercised its option to
purchase a majority stake in the carrier and Air India International Limited was born as
one of the fruits of the Air Corporations Act that nationalised the air transportation
industry.
At the same time all domestic services were transferred to Indian Airlines (later renamed
as Indian).
Services of India and the Domestic wing of Air India, were merged to form the new
domestic national carrier Indian Airlines Corporation.
International operations of Air India Ltd. was taken over by the newly formed Air India
International. Indian Airlines Corporation inherited a fleet of 99 aircraft including 74
Douglas DC-3 Dakotas, 12 Vickers Vikings, 3 Douglas DC-4s and various smaller types
from the seven airlines that made it up.
Air India International entered the jet age in 1960 when its first Boeing 707420, named
Gauri Shankar (registered VT-DJJ), was delivered.
Jet services to New York City via London were inaugurated that same year on 14 May
1960.
On 8 June 1962, the airline's name was officially truncated to Air India. On 11 June 1962,
Air India became the world's first all-jet airline.
In 1971, the airline took delivery of its first Boeing 747-200B named Emperor Ashoka
(registered VT-EBD).
In 1993, Air India took delivery of the flagship of its fleet when the first Boeing 747-400
named Konark (registered VT-ESM) made history by operating the first non-stop flight
between New York City and Delhi.
In 2007, the Government of India announced that Air India would be merged with Indian
Airlines.
As part of the merger process, a new company called the National Aviation Company of
India Limited (NACIL) was established, into which both Air India (along with Air India
Express) and Indian Airlines (along with Alliance Air) will be merged.
On 27 February 2011, Air India and Indian Airlines merged along with their subsidiaries
to form Air India Limited.
HUBS
Hubs
Chhatrapati Shivaji International Airport (Mumbai)
Indira Gandhi International Airport (Delhi)
Secondary hubs
Chennai International Airport (Chennai
Netaji Subhash Chandra Bose International Airport (Kolkata)
Focus cities
Bengaluru International Airport (Bangalore )
INTERNATIONAL HUBS
Dubai International Airport
Hong Kong International Airport
SUBSIDIARIES
Around 20062007, the airlines began showing signs of financial distress. The
combined losses for Air India and Indian Airlines in 200607 were 770 crore
(US$140.14 million). After the merger of the airlines, this went up to 7,200 crore
(US$1.31 billion) by March 2009.
In July 2009, SBI Capital Markets was appointed to prepare a road map for the
recovery of the airline.
The carrier sold three Airbus A300 and one Boeing 747-300M in March 2009 for
$18.75 million to survive the financial crunch.
Destinations
Services
Flying Returns is Air India's frequent flyer programme. The programme is also shared
by all other Air India Limited carriers.
Premium lounges
Air India's security department became the first aviation security organisation in the
world to acquire ISO 9002 certification (31 January 2001).
Preferred International Airline award for travel and hospitality from Awaz
Consumer Awards 2006
JET AIRWAYS
Founded in 1993
HQ in Mumbai
- Countrys second largest international airline
- Largest domestic airline - 31%
Primary base - Mumbai's Chaatrapathi ShivajiAirport
Secondary hubs - Bangalore, Brussels, Chennai, Delhi, Hyderabad, Kolkata and Pune.
April,2007 - Acquired Air Sahara - JetLite
Now JetLite integrated into Jet Airways
Mission Statement:
Jet Airways will be the most preferred domestic airline in India. It will be the automatic first
choice carrier for the travelling public and set standards, which other competing airlines will
seek to match.
Jet Airways will achieve this pre-eminent position by offering a high quality of service and
reliable, comfortable and efficient operations.
Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel
- be a world class domestic airline.
Jet Airways will achieve these objectives whilst simultaneously ensuring consistent
profitability, achieving healthy, long-term returns for the investors and providing its
employees with an environment for excellence and growth
STP:
Primary Segments (Geographic) - Domestic & International
Customer Segments
- First class, Premiere(Business) class & Economy class
Target Segments
- Premiere(Business) class
Business travelers, contribute 48% of passengers & 66% of revenues, ready to pay higher
prices, last time booking, dont like transit
- Economy class
Leisure travelers, prefer low cost airlines, ready for transit if there is cost advantage, large %
of passengers
Seat Allocation Yield Management Technique
Positioning High value for High price
Unique Selling Price Customer relationship and Punctuality
PEST Analysis
Political Issue
-License issue for international operation
- Infrastructural constraint
- ATF price policy
Economic Effects
- Rising income level
- Reduced fare but yet not enough
Social Effects
- Sound Pollution
- Plane hijacking
- 9/11 Incident
Technology Effects
- Modernization of aircrafts
- Modern technology like CAT3 and ILS
Threats
- Strong competitors
- Fuel price hike
- Overseas market competition
7Ps
Price
Economy & Club Premiere Fare
Virtual Servicescape
CONCLUSION:
Jet Airways has its market share 31% including Air Sahara.
Jet Airways won Double Honour Travel Trade Gazette Travel award.