Analysis of Airline Industry In India

Analysis of diffuseline Industry In IndiaIn India 454 air travelports and airstrips which includes Ope symmetrynal, Non Operational, Abandoned and Disused Airports.from which 127 are owned operated by AAI. In India also have 16 worldwide, 7 custom airports and 28 civil enclaves.Scheduled domestic air services are purchasable only from 82 airports.In May 2007 to May 2008 at that place was remarkale growth of nearly 20% and the figure increased upto 25.5 million is domestic 22.4 million is international passengers.which was highest in the world.The Growth Rate Projections for next 5 yrs will 15% p.a of Passenger Traffic and 11.4% p.a of Cargo TrafficHistoryIn 1911 first commercialised flight was airmails from Allahabad to nani (10 km) and in 1932 the atmosphere department of Tata sons ltd was established.In 1938 Tata airlines was established and after 8 years in 1946 Tata Air Lines converted into a public keep company and renamed Air India LimitedIn 1948 Air India Internati onal was incorporated and in 1953 Nationalization of Aircraft Industry was established.At that time Air India was serving the international sectors and Indian Airlines was serving domestic sectorsOther domestic airlines are Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National.In 1986 Private Sector Players permitted as Air taxi operators.These players including kB, Air Sahara, NEPC, due east West,In1990 Open alternate policy was made came into existence.In 1995 Private Carriers permitted to operate scheduled services.2005 was the phase of competition and low-cost carriers was reposeed into the market.In 2007 Indian Airlines was merged into Air India.and grand Airways acquired Air sahara.In 2008 Kingfisher was acquired 49% stake in Deccan Aviation. Regulatory AuthoritiesMinistry of polite Aviation was responsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing ai rport facilities, air traffic services and carriage of passengers and goods by air.Directorate General of Civil Aviation (DGCA) was promote safe and cost-effective Air Transportation through regulation and proactive safety oversight system.Bureau of Civil Aviation Security (BCAS) was the regulatory authority for civil aviation security in IndiaAirport Authority of India (AAI) who accelerate the integrated development, expansion and modernization of the operational, terminal and loading facilities at the airports.PoliciesOpen Sky Policy mover to liberalize the rules for international aviation markets and minimizes government intervention.It is blow% for green field operations and 74% for existing airports and 100% with special permissions.In this policy 100% tax exemptions for 10 yrs.AirlinesIn domestic airlines was 49% and 100% for NRIs and 74% in cargo non-scheduled airlines.Kingfisher airlinesThe Chairman of Kingfisher airlines is Dr Vijay Mallya and also CEO of KingfisherAir lines.The Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005 with 4 daily flights between BOM BLR and one A-320 aircraft.In Kingfisher airlines in that respect are tools for mood lighting such as clear chat, inseatplugins for music, liveTV with 16 channels on each seatKingfisher airline provide 100 percent online ticket and many companies are following this.The Kingfisher Airlines family will consistently deliver a safe, value- ground and enjoyable travel experience to all passengers.SWOT AnalysisStrengthsIt is the first airline with full new fleet of aircraft.It provide flavour hospitality to customersIt have al fructify training academy.Kingfisher have UB group backing for raising financing.It is well capitalised airline, prepared to take losses.It have experience to better use of employees and staff less centralised style of functioning.WeaknessesChairmans people skills are better exclusively employees have to work very erratic hours.It provide s ervice obstetrical delivery only in metros and other big cities.It is yet not in profit position.Kingfishers ticket pricing is also very high.Kingfisher is yet to build itself into an governing structures yet to fall in place.OpportunitiesThe non penetrated domestic market.Kingfisher entre into the market at that time when the less competitors are taken place.International marketUntapped air cargo marketExpanding tourism industryIt is the expanding tourism industry close toely foreigners travel through aeroplanes this is the company opportunity which the company take profit as much as possible.ThreatsDue to increase in the number of Competitors the company threat increase day by day.Infrastructure issue.Fuel scathe are increasing incessantly this is the main threat for the company because the company cost increases and profitability decreases due to this.Economic slow downPromotion and sponsorship decliningPESTEL ANALYSISPOLITICAL FACTORS1) Open sky policy2) FDI limits 100% for Greenfield airports74% for the existing airports100% through special permission49% for airlines.ECONOMICAL FACTORS1) Contribution to the Indian economy-since the industry is operating in Indian economy,the revenue generated by the company adds to economy2) Rising cost of fuel-the fuel price is rising because the subsidies govt is providing are macrocosm taken off.3) Investment in the sector of aviation4) The growth of the middle income group family affects the aviationSector-in todays world with increasing income of middle class,people prefer to go by air because it saves time at is all new a different experience.SOCIAL FACTORS1) Development of cities leads to better services and airports-metro cities first had airports but with development of the country new airports are being built up.2) Employment opportunities-the aviation sector provided a lot of employement opportunities because the industry is so vast that a lot of people can be employ3) Safety regulations.4) The status sy mbol attached to a plane travelTECHNOLOGICAL FACTORS1) The growth of e-commerce and e-ticketing is now adopt the airline companies for the facilities and services to the customers.2) Satellite based navigation system is the most advanced technological factor.3) Modernisation and privatisation of the airports.4) Developing green field airports with private sector for example inBangalore the airport grass limited.ENVIRONMENTAL FACTORSThe increase in the global warming due to increase in the number of aeroplanes flying in the air.this makes bad effect on our atmosphere.2) The fulminant and unexpected behavior of the atmosphere and thedependency on whether.3) Shortage of the infrastructural capacity4) Tourism saturation.LEGAL FACTORS1) FDI limits2) Bilateral treaties3) Airlines acquisitions and the leasing cost.Jet AirwaysJet Airways founded in 1993 and the Chairman of kelvin airways is Mr.Naresh Goyal.The Headquarter of Jet Airways is situated in Mumbai.It is the Countrys second lar gest international airline and the largest domestic airline.Its Primary hub is Mumbais Chaatrapathi ShivajiAirport and Secondary hubs are Bangalore, Brussels, Chennai, Delhi,Hyderabad, Kolkata and Pune.In April,2007 Air Sahara acquired the JetLite.but now JetLite integrated into Jet Airways.Is primary Segments are municipal International and Customer Segments are First class, premiere(Business) class Economy class.Its Target Segments are Business class.The Business travelers contribute 48% of passengers 66% of revenues and they ready to pay higher prices, last time booking and dont like transit.The Economy class leisure travelers, prefer low cost airlines, ready for transit if there is cost advantage and have large % of passengers.The Yield Management Technique was adopted in which Positioning take place( heights value for High price)Unique Selling Price which make Customer relationship and Punctuality.SWOT AnalysisStrengthsMarket driver-jet airways is known as a renowned compan y in airline industry, including airline domestically and internationallyExperience exceeding 14 year-the company has now established its steps in the airline industry and has achieved a big experience.Only private airline with international operation-now adays new international entrants are first appearance into market,but jet airways were once upon a time to be the most reputed international airline industry.Market leader-leader of the airline industry,with kingfisher bieing the most big rivaler.Largest fleet size-at airport the largest fleet which we can observe is of jet airways.WeaknessesLoosing domestic market conductOld fleet with average age around 4.79 yearsScope for improvement in in-flight serviceWeak brand promotionOpportunitiesUntapped air cargo market-jet airways has now till not focused on cargo industry which is developing day by day as more nicotinamide adenine dinucleotide more exports and imports are increasing with every passing day.Scope in international servi ce and tourism-the jet airways focuses maximum on domestic market and there is large opportunity for the jet airways to step at a boost level in international market.ThreatsStrong competitors-now adays new entrants like kingfisher,Lufthansa airlines are expandind there fleet into the industry both domestically and internationally.Fuel price hike-day by day there is a price hike in fuel but the major effected are customers since with increase in price of fuel,the price of air fare automaticaaly grows up.the loss is also faced by the airline because the ratio at which the fuel price rises comparitevely the price of tickets do not riseOverseas market competition-at an international level more and more companies are entering the airline industry due to high margin profit.PEST AnalysisPolitical IssueLicense issue for internationaloperationInfrastructural constraintATF price policyEconomic EffectsRising income levelReduced fare but yet not enoughSocial EffectsSound befoulmentPlane hijack ing9/11 IncidentTechnology EffectsModernization of aircraftsModern technology like CAT3 and ILS4PsPriceEconomy Club Premiere FareDiscounted fare for senior citizens defense personnelAdvance Passenger Excursion/ APEX FaresOne FareNight Saver FaresCheck FaresUS Dollar Fares Visit India FaresPlacePlace of Service AircraftVarious DestinationsPromotionOffersCompanion Free Offer, One Fare, Concessional fares, JetPrivilegeOffers,Jet Airways Citibank Credit Cards, Corporate Deal Offers, InternationalSpecials, populate Rock contest, Festival specials, Student specials,Surprises etc.Advertising and BrandingHoardingsBrand AmbassadorsSponsorshipsEvent OrganizationProcessPeople ProcessingPeople physically enter the service system to receive the service.Aircraft is theservice factory where service is delivered.Possession ProcessingCargoLuggage CourierPhysical EvidenceServices nessServices cape usage InterpersonalComplexity of Services cape ElaborateFlightOffices Org. Ticket Booking Age ntsVirtual Services capeJet Airways PerformanceJet Airways annual Revenues is Rs.9481.5 crores in 2007 to 2008 and Rs.7401 crores in 2006 to 2007.Profit (Loss) After Tax Rs.253 crores loss in 2007 to 2008 and Rs.27 crores profit in 2006 to 2007.All Other Domestic Players showed loss in 2006-07.