AGAM CHUGH ALOK MISHRA CHARMI VORA MANISH VERMA MANISH BARUI ROSHNI CHANDIRAMANI
Basic Introduction
Transport relates to the physical movement of raw material goods and men from one place to another. The social, economic and commercial progress of a nation largely depends on the transportation system. Transportation can be classified as under :
What is an Airline
That mode of transportation provides air transport services for passengers or freight, generally with a recognized operating certificate or license. Vary from those with a single airplane carrying mail or cargo, through full-service international airlines operating hundreds
of airplanes.
Airlines can be classified as : + Domestic + International + Inter-Continental + Intra-Continental
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Apart from the above, there are many sub-sectors in Airline industry which can be categorized with the help of the following groups :
Public Sector : These are those aircrafts that are owned by the Government. Examples: Air India, Indian airlines.
Private Sector: These are those aircrafts that are privately owned by entrepreneurs. Examples: Jet airways, Air Sahara, Kingfisher airlines, Spice Jet, Air Deccan and many more.
SWOT Analysis
Strengths:1.Growing tourism: Growth in tourism, has lead to an increase in number of the international and domestic passengers.
2.Rising income levels: Due to the rise in the income levels, the disposable income is also higher which are expected to enhance the number of flyers.
Weakness:1.Under penetrated market: The total passenger traffic was only 50 million as on 31st Dec 2005 amounting to only 0.05 trips per annum as compared to developed nations like United States have 2.02 trips per annum. 2.Infrastructural constraints: The infrastructure development has not kept pace with the growth in aviation services sector leading to a bottleneck. Huge investment are required for physical infrastructure for airports.
Oppurtunities:1.Expected investments: Investment of about US $ 30 billion will be made. 2.Expected market size: Average growth of Airline sector is about 25% to 30% and the expected market size is projected to grow upto 100 million by 2010.
Threats:1.Shortage of trained pilots: There is a shortage of trained pilots, co-pilots and ground staff which is severely limiting growth prospects. 2.Shortage of airports: There is a shortage of airport facilities, parking bays, air traffic control facilities, takeoff and landing slots.
3.High prices: Though enough number of low cost carriers already exists in the industry, majority of the population is still not able to fly to other destinations.
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Introduction in brief
Founded Founder 1993 Naresh Goyal
Hubs:
Chhatrapati Shivaji International Airport (Primary Hub) Indira Gandhi International Airport (Secondary Hub) Chennai International Airport (Secondary Hub) Brussels Airport (International Hub)
Focus Cities:
Ahmedabad Bangalore Hyderabad Kolkata Pune
Jet Airways consists of flights that are manufactured by Boeing as well as Airbus. Some of them are as follows :
PRODUCT:
Airlines consists of both Tangible as well as Intangible products. Transportation that is From the point of Departure to the Point of Arrival is the main product of an Airline Industry. The airline product is quite a complex one since it comprises of a service of certain tangible products also. It includes two types of services: + On ground services + In-flight services.
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Coach Services
Special Services ( Infant and child care, wheel chair assistance, unaccompanied minors, medical emergencies etc. )
In-flight Services : The in-flight services vary according to the different levels of classes in the aircraft.
All seats can be converted to fully flat bed similar to Singapore Airlines suites. All seats have a 15 inch widescreen LCD monitor with Audio-Video On Demand (AVOD), in seat power supply, USB ports etc.
Premire Class (Business Class) in Jet Airways has a fully flat bed with AVOD entertainment. Seats are configured in 1-2-1 pattern on Boeing 777 and 1-1-1 pattern on Airbus A330 with each seat offering direct access to the aisle. USB ports and in-seat laptop power are provided. Mood Lighting is installed on the Airbus A330 and Boeing 777 with light schemes corresponding to the time of day. All seats are standard recliner business class seats.
The Economy Class in Jet Airways has a 32 inch seat pitch. All Boeing 777, Airbus A330 and Boeing 737 aircrafts have a touch screen AVOD system. The cabin is configured in 3-3-3 pattern on Boeing 777, 2-4-2 pattern on Airbus A330 and 3-3 on Boeing 737.
Going to the tangible products, they can be as follows :The varieties of food available in Jet Airways:
Price:
In managing the business of air transport pricing decisions play a decisive role. The concept of fair price is very important. Pricing can be classified in three ways:
1. Cheap Value Pricingu: This method of pricing is used to undercut the competition and trigger immediate purchases. Though the unit of profits are low, the overall profits are achieved 2. Value for Money Pricing : In this method, the average price is charged for the product and is emphasized that it represents excellent value for money at this prize. This enables the airlines to achieve a good level of profit. 3. Premium Pricing : In this method, the prices are set above the market price either to reflect the image of quality or the unique status of the product.
First Class Bombay > London London > Bombay Rs. 3,21,628 (2,64,670 + 56,958 taxes) Business Class Bombay > London London > Bombay Rs. 1,13,184 (80,000 + 33,184 taxes) Economy Class Bombay > London London > Bombay
Rs. 48,582 (28,900 + 19,682 taxes)
Other than the above 3 classes another factor that influences the prices is the season in which one buys a ticket. For instance, if you book a ticket from London during Christmas season, the price of the ticket will be high as compared to the other seasons.
Promotion :
In airlines service, there is intense price competition and the solution to this is to develop a differentiated offer, delivery and image. A company that innovates regularly may help to retain its customers. Services are intangible product and to be successfully promoted, they have to be personalized. Travel agencies play a key role in promoting airline services. Word-of-mouth is the best form of publicity and it has a significant role to play in promoting airline services. There are many other different ways to promote airlines. For instance, media is the best example that is through mainly the television and other modes.
Jet Airways in collaboration with Citibank offers a Visa Card also known as Platinum and Business Card for its Jet Privilege members who are the regular flyers with Jet.
Shah Rukh Khan is a member of Jet Airways and therefore he has appeared in their TV Commercials.
PLACE :
The air transport organization has to make sure that the prospects dont face any difficulty while buying tickets and make necessary arrangements for the confirmation of the bookings. Another dimension of the place is related to the location and management of the offices of airways, travel agents, tour operators, transport operators etc. Easy accessibility should be the main criteria in selecting the place.
Conclusion
Airline Industry can have a tremendous growth in the market provided it mainly uses its Marketing Mix in an effective way.
Jet Airways has also upgraded the concept of domestic airline travel to be a world class domestic airline. Jet Airways has been achieving its objectives simultaneously