Aviation Idustry
Aviation Idustry
Aviation
Roads
Transportation
Railways
Ports
HISTORY
1912 1932 First flight Karachi to Delhi Tata Airline
1946
1953 1991 1994 2003 2012
On 2011
ON 2013
SEGMENTATION
- HNI People .& others
TARGET
-VPs,CEOs -Bollywood Stars -Politicians -Foreign Tourists -industrialists -regular -Oil exploring companies
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PRICING STRATEGIES
1. 2. 3. 4. Demand based pricing. Season based pricing. Competition based pricing. Pricing strategy when customer means value is low price. 5. Pricing Strategies when the customer means Value is everything I want in a service.
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Physical evidence - Aircrafts, Helicopters. People - Pilots, Engineers & other supporting staff. - Giving convenience in travelling through air.
Productivity /process
Place
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Strengths
Open Economics Efficient Marketing Networking Modern Fleet
Weaknesses Threat of New Entrants Power of Suppliers Power of Buyers (The service providers) Availability of Substitutes Competitive Rivalry
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Opportunities
Emerging Technologies Government Initiatives Resourcing and Investments F.D.I in aviation
Threats
Poaching Inefficient Planning Government Interference
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Pest Analysis
Political Factors Trade relations, Licensing. Economic factors Recession, prosperity phase. Social Factors Income factor, Religions and castes. Technological Factors Usage of internet.
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The Reserve Bank of India (RBI) announced that foreign institutional investors might have shareholdings more than the limited 49% in the domestic sector. Airports Foreign equity up to 100% is allowed by the means of automatic approvals pertaining to establishment of Greenfield airports Foreign equity up to 74% is allowed by the means of automatic approvals pertaining to the existing airports Foreign equity up to 100% is allowed by the means of special permission from Foreign Investment Promotion Board, Ministry of Finance, pertaining to the existing airports 100 per cent tax exemption for airport projects for a period of 10 years. Air Transport Services Up to 49% of foreign equity is allowed by the means of automatic approvals pertaining to the domestic air transport services Up to 100% of NRI investment is allowed by the means of automatic approvals pertaining to the domestic air transport services 74 per cent FDI is permissible in cargo and non-scheduled airlines.
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RECENT INVESTMENT
Jet Airways has ventured with Centrum Direct , to offer Foreign Exchange Services to guests travelling abroad. Singapore's Changi Airport and Switzerland's Zurich International Airport have expressed interest to carry out the operations and maintenance of the modernized terminal of the Netaji Subhas Chandra Bose International Airport, Kolkata. The Rs 2,300-crore (US$ 423.37 million) new integrated terminal has an annual capacity to handle 20 million passengers. Hong Kong-based full service airline Cathay Pacific has unveiled its plan to add more direct flights from Mumbai to Hong Kong starting April 2013. The airline will also launch its new product line of the premium economy cabin on this route. Cathay that has India route among the top 10 revenue earners, along with its sister airline Dragonair, flies 46 weekly flights from six ports in India. It recently added Hyderabad in its network with four weekly flights.
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Gaps in Infrastructure
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Opportunities
A large & growing potential market Developing alternative revenue streams
Air cargo operations
Air Cargo
Freight carriage in India currently around 4200 tons per day CAGR of 15% over the past 2 years Fuelled by a fast growing economy, supported by a strong industrial base Forecast to grow at 11.4% p.a. till 2011-12
Ground Handling
Ground handling business in India estimated at Rs. 1074 crores Expected to grow at 15% CAGR till 2011-12
Training
Airlines in India will need training for pilots, engineers, cabin crew, load & trim, etc.
Projected requirement for 3600 additional pilots in the short to medium term Cabin crew, engineers, technicians will also be required to support aircraft being inducted
Comparatively, e-ticket sales from own website cost an airline only ~3% of
ticket price For every direct booking from their website, airlines save an estimated US$ 4 plus 5% agency commission
Airlines can also turn their websites into one stop shops for all travel related services, generating additional revenue
The opportunity for some will be a challenge for the existing international players The risk cycle of increased competition, low yields, and growth transferred to the international arena
a rapid transforamtion.priavate airline account for around 75% share of the domestic
aviation market Being primarily a govt-ownwed industry ,the Indian aviation industry is now dominanated by privately owned full service airlines and low cost carriers.
Domestic and international traffic is up 45% and 15.1 %,respectively. Over 135 aircraft have been added in the past two year alone. Center for Asia pacific aviation (CAPA) estimates domestic traffic to grow 25-30 % annually and international traffic 15%untill 2012.
Indian Aviation has seen high growth on account of sustained Indian socio economic growth and
development of airport infrastructure to implement infrastructure development plan Provides a huge opportunity for private players operating in Aerospace and allied industries Significant opportunity for foreign companies as Indian companies not technologically equipped to cater to requirements
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Reference
Airport Authority of India Limited www.aai.aero www.aircharterguide.com www.airindia.com www.aviindia.blogspot.com www.bbc.co.uk www.business.gov.in www.civilaviation.nic.in www.dgca.nic.in
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