this ppt is gives details about indian airlines industry and the market structure

1. Indian Aviation Industry Framework Size: 75 million passengers 5.6 billion dollars Growth: Around 15 % in last 10 years Growth in current year ( 2009) O.7% Vision: 280 million customers by 2020

3. Air India International Company-Joint Sector-Govt. Of India- June 8, 1948 IN 1953

5. Non-Scheduled Operation

7. Economic

8. Technological

9. Demographic

12. Highest percentage people of group 20-25

13. Educational environment

15. Lease Rental Private operators except Air India have leased aircraft from USA and Europe. They pay on average $375000 to $500000 per month depending on the aircraft They contribute almost 33 % of operational cost. They generally have to pay their rents in dollar terms.

16. Airport Charges It is the basic fees that is charged by airports from airlines This include parking fees, landing fees , stop paging fees and aero bridge expenses New airport charges more than established one to cover up all the cost incurred.

17. Other factors Advertising and Promotional Expenses Technology employed by the airlines Current Financial position Prices set by other airlines competing in the present environment. Pilot fees Government regulation.

19. Till 1998

20. ONLY TWO AIRLINES (i. E jet airways and air Sahara) SURVIVED WHILE OTHERS SHUT BUSINESS

23. APEX pricing Scheme

24. Cash Back Offer

25. Jet Privilege Scheme : Extended its points partnerships to Accor Hotels and Langham Hotels International.

27. Minimum gap between departures range from one to six weeks.

28. Maximum gap between departures is 12 to 24 weeks.

30. Loss of airline companies minimized as with the increase of passengers the aircraft ran to their full capacity.

31. It brought a veritable boom in tourism sector.

33. Sixer and Super Sixer Schemes in 2002 – Six refers to the six zones for 25k.These schemes offered more to the customers than their competitors.

34. Square Drive Scheme – ( Family Pack) 4k-2.5k

36. Change in travel preferences will continue to drive growth…… CAPA Indian Domestic Market Forecast: Business vs Leisure/VFR

40. Fares down by 17%

41. Initially started with 20,000 seats per day

42. Planned to increase 800 seats per day every month

43. Fleet strength initially of 35

45. Key characteristics of low cost airlines High seating density and load factors Uniform aircraft types (usually the 737-300) Direct booking (internet/call centre - no sales commissions) No frills such as “free” food/drinks, lounges or ‘air miles’ Simple systems of yield management (pricing) Use of secondary airports to cut charges and turnaround times

47. Increase in passenger traffic

48. Phase 4: Merger & Acqusition On 20 th April , 2007 Jet acquired 100% stake in Air Sahara for INR 14.5 billion Re brand Sahara as “Jetlite” which would operate as a value carrier

49. KINGFISHER AIRLINES AND AIR DECCAN On 31st May 2007 Kingfisher Airlines bought a 26% stake for Rs.550 crores in Air Deccan Post merger Combined Market Share : 30%

50. AIR INDIA AND INDIAN AIRLINES The two state run carriers entered into a merger in April, 2007 in a bid to consolidate and optimize the use of the assets of the two public sector airlines. The will help the two airlines to synergize their operations.

51. Major Players (Market Share)

53. SWOT ANALYSIS Strengths Liberal environment Modern Fleet High Quality Signs of economic growth Political Stability

54. Weakness Airport infrastructure Airways Infrastructure High Cost Structure Skilled Resources

55. Opportunities Market Growth Geographic Location Lower costs, higher Quality

56. Threats Aggressive approach of Railways Slowdown in the economy affecting the tourism

57. CONCLUSION The price cutting schemes will be feasible as long as external factors for pricing are under control Government should encourage private participation