A Indian Civil Aviation Industry Project Presentation

1. A
PRESENTATION
OF
COMPREHENSIVE PROJECT REPORT - I
ON
“A STUDY ON INDIAN CIVIL AVIATION INDUSTRY”
Presented To:-
Honourable Jury Member’s
Presented By:-
No Name Exam No
1. Bhavik Parmar 75
2. Devang Modh 69
3. Harish Parmar 76
4. Ghanshyam Sarasariya 94
5. Sujeet Thakur 106

2. FLOW OF PRESENTATION
• About Aviation
• History
• Types of Aviation
• Research Methodology
• Major Aircraft Manufacturer
• Product Profile
• Top 10 Companies
• Segmentation
• PESTEL
• Five Force Model
• BCG MATRIX
• Strategic Group Mapping
• Key Success Factors
• Financial Analysis
• OT Analysis
• Conclusion

3. WHAT IS AVIATION?
The dictionary defines aviation as having the capacity to fly, from one perspective,
such as a bird’s capability to fly. From the human angle, aviation is defined as the
operation of aircraft and it can also extend to design and development of aircrafts. In
the early days of flying the pilot was known as an aviator because he could fly in a
craft that was heavier than air. Today, one uses the term pilot to designate an aviator.

4. HISTORY OF CIVIL AVIATION IN INDIA
• Civil Aviation in India traces back to 18 February 1911
• when the first commercial civil aviation flight took off from Allahabad for Naini.
• India is the fourth largest civil aviation market in the world having a potential of
becoming third largest aviation market by 2020.

5. TYPES OF AVIATION
1. Civil Aviation
2. General Aviation
3. Military Aviation
1. Bombers
2. Fighters
3. Reconnaissance
4. Transport
5. Helicopters
6. Experimental

6. TYPES OF CIVIL AVIATION
1. Scheduled Flight
2. Non Scheduled
3. Cargo Aircraft

7. RESEARCH METHODOLOGY
PRIMARY OBJECTIVE:
• To study the macro environment factors affecting Aviation industry.
SECONDARY OBJECTIVE:
• To study political, economic, social and technological factors affecting Aviation industry
• To study opportunities and threats for the Aviation industry
• To find out the global trends in Aviation industry
• To identify the level of competition between different players in Aviation industry
• To find out the key success factor in Aviation industry
ANALYSIS PLAN:
• PEST Analysis
• Michel Porter’s Five Force Model
• BCG Matrix
• Strategic Group Mapping
• Driving Forces
• Key Success Factors

8. MAJOR AIRCRAFT MANUFACTURER
1. Boeing
2. Airbus
3. Lockheed Martin
4. United Technology
5. GE Aviation
IN INDIA
1. Hindustan Aeronautics Limited

9. PRODUCT PROFILE
1. In-flight services:
2. On ground services
CORE PRODUCT AND SUPPLEMENT SERVICES
• Core Product
• Supplementary Services
• Consultation
• Order taking
• Hospitality & Caretaking
• Billing & payment

10. TOP 10 COMPANIES IN CIVIL AVIATION
1. Indi Go
2. Spice Jet
3. Jet Airways
4. Air India
5. Air India Express
6. Go Air
7. Jet Konnect
8. Air Asia India
9. Air Costa
10. Vistara Express

11. SEGMENTATION
• By class of seating
Economy Class
Business Class
First Class.

12. PESTEL ANALYSIS
POLITICAL FACTORS
• Unstable Environment
• There is requirement of trade Relation between two nation
• Bribes have to be paid for every permit & license required
• Open sky policy
• FDI limits: 100% for Greenfield airports
74% for the existing airports
100% through special permission
49% for airlines

13. ECONOMIC FACTORS
• Contribution to the Indian economy
• Rising cost of fuel
• Investment in the sector of aviation
• The growth of the middle income group family affects the aviation
• World with increasing income of middle class, people prefer to go by air because it
saves time

14. SOCIAL FACTORS
• People from various religions and castes and every individual travelling by the
airline would expect customization to the greatest possible extent.
• Development of cities leads to better services
• Employment opportunities
• Safety regulations.
• The status symbol attached to a plane travel

15. TECHNOLOGICAL FACTORS
• The growth of e-commerce and e-ticketing is now adopting the airline companies for
the facilities and services to the customers.
• Satellite based navigation system is the most advanced technological factor.
• Modernisation and privatisation of the airports
• Developing green field airports with private sector

16. ENVIRONMENTAL FACTORS
• . Airline industry is responsible for 3.5% of weather change that may grow up to 15% in
future.
• Customers increasingly prefer eco-friendly airlines.
• The increase in the global warming due to increase in the number of aeroplanes flying in
the air. this makes bad effect on our atmosphere.
• The sudden and unexpected behaviour of the atmosphere and the dependency on
whether.
• Shortage of the infrastructural capacity
• Tourism saturation.

17. LEGAL FACTORS
• laws related to air traffic and passenger safety
• The airlines are held liable for air crashes or any other kind of disaster
• New laws have been enforced regarding how the airlines treat their passengers

18. PORTER’S FIVE FORCE MODEL
COMPETITOS
Factors Attractiveness Intensity
Very
High(1)
High(2) Medium(3) Low(4) Very
Low(
5)
Number of Players 
Switching Cost 
Market Growth Rate 
Service Differentiation 
Exit Barrier 
High Fixed Cost 
Sum of score 2 6 0 4 0
Total Score 12
Number of Factors 6

19. NEW ENTRANTS
Factors Attractiveness Intensity
Very
High(1)
High(2) Medium(3) Low(4) Very
Low(
5)
Capital Requirement 
Customer Loyalty 
Customer Switching Cost 
Government Policy 
Service Distribution Channel 
Sum of score 12 10
Total Score 22
Number of Factors 5
Average Score/Mean Score 4.4

20. SUPPLIERS
Factors Attractiveness Intensity
Very
High(1)
High(2) Medium(3) Low(4) Very
Low(
5)
Number of Suppliers 
Switching Cost 
Differentiation of Inputs of Suppliers 
Manufacturing Cost 
Sum of score 3 3
Total Score 6
Number of Factors 4
Average Score/Mean Score 1.5

21. SUBSTITUES
Factors Attractiveness Intensity
Very
High(
1)
High(2) Medium(
3)
Low(4
)
Very
Low(
5)
Available Substitute 
Switching Cost 
Price of Substitute Service 
Sum of score 4 3
Total Score 7
Number of Factors 3
Average Score/Mean Score 2.33

22. BUYERS
Factors Attractiveness Intensity
Very
High(1)
High(2) Medium(3) Low(4) Very
Low(
5)
Number of Buyers 
Buyers are not loyal 
Switching Cost 
Sum of score 3 8
Total Score 11
Number of Factors 3
Average Score/Mean Score 3.67

23. ATTRACTIVENESS OF INDUSTRY
Competitive Force Intensity Score
Rivalry Among the Competitors 2
Threat of New Entry 4.4
Bargaining Power of Suppliers 1.5
Threat from Substitute Product 2.33
Bargaining Power of Buyers 3.67
Total 13.9
No. Factors 5
Average Score 2.78

24. BCG MATRIX
Compan
y Name
Relative
Market
Share(%)
Market Growth Rate (%)
Air India 0.35 14.10
Jet
Airways
0.38 15.50
Spice Jet 0.32 12.80
Go air 0.20 8.20
IndiGo 1 39.80
Others 0.24 9.60

25. STRATEGIC GROUP MAPPING
SpiceJet, 94.5, 1
AirAsia, 85.8, 1 GoAir, 85.4, 1
IndiGo, 83.6, 1
80
82
84
86
88
90
92
94
96
98
0 1 2 3 4 5
Sales
Sales
We have made the group mapping of four
companies which are listed as below:
• IndiGo
• Spice Jet
• Air Asia
• Go Air
We have selected two variables – Sales Figure
of airline companies and Domestic airline
passenger booking

26. KEY SUCCESS FACTORS
• Strong Management
• Non-Stop Flying
• Service Promotion and In-flight Service
• Financial Management
• Route System
• Efficient Management of Cost
• Capable Workforce

27. FINANCIAL ANALYSIS
PAT
Year Company
IndiGo SpiceJet Jet Airways
2013 783.36 -191.08 -485.5
2014 474.44 -1003.24 -3667.85
2015 1295.59 -687.05 -1813.71
2016 1989.72 407.2 1173.56
2017 1659.19 430.73 390.43

28. CURRENT RATIO
Year Current Ratio
IndiGo SpiceJet Jet Airways Average
2013 0.75 0.68 0.45 1.58
2014 0.69 0.39 0.44 1.226667
2015 0.8 0.32 0.49 1.283333
2016 0.89 0.45 0.53 1.516667
2017 0.85 0.4 0.64 1.463333
Operating Profit Margin
Year Company
IndiGo SpiceJet Jet Airways
2013 9.71 -3.5 5.35
2014 4.55 -13.5 -8.58
2015 13.42 -12.65 -0.59
2016 18.62 -8.49 10.46
2017 11.53 -8.77 5.34
PROFIT MARGIN RATIO

29. Gross Profit Margin
Year
Company
IndiGo SpiceJet Jet Airways
2013 8.7 -4.99 -0.14
2014 2.52 -15.85 -13.64
2015 11.25 -15.08 -4.48
2016 15.5 6.18 5.75
2017 9.07 5.56 1.22
Cash Profit Margin
Year
Company
IndiGo SpiceJet Jet Airways
2013 9.2 -2.6 1.92
2014 6.12 -13.36 -11.68
2015 11.16 -11.55 -1.44
2016 15.01 8.83 9.53
2017 10.92 9.37 5.91

30. Return on Capital Employed
Year
Company
IndiGo SpiceJet Jet Airways
2013 50.05 -8.11 6.72
2014 17.02 -182.18 -32.25
2015 48.6 -392.72 -2.92
2016 61.95 111.61 33.25
2017 40.08 109.08 31
Net Profit Margin
Year Company
IndiGo SpiceJet Jet Airways
2013 8.51 -3.41 -2.88
2014 4.26 -15.67 -21.19
2015 9.3 -12.76 -9.26
2016 12.32 7.8 5.54
2017 8.92 6.83 1.81

31. OPPORTUNITIES
• Technological advancement and investment in information technology
• Development of new products and services can have a substantial blow on the
profits
• Expected investment is one of the opportunities
• Should evaluate end user response to its services to gain information on what areas
of its services to improve.
• The organization should also take the opportunity to expand and cover a larger
geographical area.
• Acquiring better supply deals, for example, a less expensive fuel supplier would
greatly minimize the operation cost
• less refunds and minimal compensation due to inconveniences made.

32. THREATS
• Travelling for leisure and business is greatly impacted by the global economy.
• Some government legislation can also be a major threat to investors in the aviation
industry.
• Air travel is very vulnerable to environmental changes.
• Air travel has a seasonal demand especially where the largest percentage of travellers
involves those travelling for leisure.
• In recent times, air travel has been a target to terrorists, and this has had a very
negative impact on the airlines themselves.
• Over the next few years, huge investments are expected to be made in the aviation
industry
• With the increasing number of airlines and aircrafts, there is likely to be a marked
shortage of airports and airport facilities.
• The organization also faces the threat of being vulnerable to attacks by its major
competitors.
• The greatest hurdle facing many airlines today is high fuel prices.

33. CONCLUSION
• The study concluded to look into some key aspects on global industry characteristics. And the initial finding of
this study global industry characteristics includes internationalization, technology adoption, attention to details
and working with people are main global characteristics right now happing in the world.
• Next we analysed growth of civil aviation industry in India and we found that India is one of the fastest growing
economic in the world with the GDP growth 8.9. and aviation is an important part of national infrastructure
sector and also improves transportation facility and also India is 9th largest aviation market in the world and size
of aviation market is 16 billion USD. Moreover, Indian aviation market grew by 27.4% in 2015-16.
• During PESTEL analysis we found that political and technological factors affects a lot to civil aviation industry.
• We did five force model analysis where we found attractiveness of industry by competitive environment and the
result is moderate or medium total industry attractiveness in our study.
• Lastly we did opportunities and threats analysis in our study and also we analysed future outlook of civil aviation
industry. Which shows how industry will grow in future and is it good or bad? And what benefits customer will
get in future from civil aviation industry.

34. THANK YOU