AVIATION INDUSTRY

From the bigning To the Future

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 Introduction
 Global overview
 Current/future status
 India aviation industry
 Company description
 Strategy, Target, Positioning
 Product
 SWOT
 Market analysis
 Competitors
 Environment analysis
 Consumer behaviour
 organization

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 The aviation industry can be
broadly classified into military
aviation and civil aviation.
 The term 'civil aviation' covers all
aviation related activities except
for those undertaken by the
military and the government.
 The airlines segment can be
broadly classified into international
airlines and domestic airlines.
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 An airline with one or both terminals in
the territory of a country, other than the
country in which it is registered, is
classified as an International airline.
 Domestic airlines refers to those airlines
whose flights fly only within the domestic
boundaries of a particular country.

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 CURRENT STATE OF INDUSTRY

 In 2005, the air transport industry marked its fourth

consecutive year of financial aggregate loss, bringing

total post-9/11 industry losses to over US$36 billion since

2001.

 The principal cause of the loss in 2005 was the industry's

US$61 billion fuel bill, US$17 billion more than in 2004.

 And the situation is getting worse.

 This overwhelmed the success of considerable cost-

cutting initiatives in other areas.

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 ASIA AND CENTRAL EUROPE ~ GREATEST
REVENUE POTENTIAL

 International scheduled passenger traffic

in 2005 increased 15.3% over 2004
levels, and cargo traffic rose 13.4%

 Traffic growth in 2004 was exceptional for

two reasons:
› one-off rebound from the adverse
affects in 2003 of the SARS epidemic
and the war in Iraq on air traffic
levels.
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 2004 ~ strongest world economic
growth in 3 decades.
 Economic environment less favorable in next
2 years.
 Strongest potential lies where liberalization is
taking place
› Economic liberalization continue to boost
growth in China
› Increasing trade integration of central
European countries within the EU will
lead to expansion in central Europe.
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 Prior to 1991, aviation, much like other major sectors of the
Indian economy, was nationalized and heavily regulated
 In 1953, the Air Corporation Act, 1953,
1953 changed the landscape of
the airline industry in India.
 It was in 1994 that the Air Corporation Act was repealed

and thus this allowed private

operators to operate in the
domestic airline and aviation industry

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Ease of maintenance, the airplane sits low to the
ground, allowing maintenance crews to easily
perform routine maintenance on the engines.

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 Good reliability,
reliability because the airplane can be turned around at
the gate so quickly, airline can get back on schedule if it falls
behind for any myriad of reasons. This allows our airline to
deliver passenger satisfaction as defined by the
customers themselves: getting them where they want to
go, when they want to go, at a good value. Giving
passengers more departure time choices and airline the
opportunities for more revenue.

 Good flexibility,
flexibility the 737 comes in four different sizes in the
100- to 200-seat market. The interiors are flexible, too. Optional
flex seating, capability of changing a row of seats from five-
abreast business-class seating to six-abreast tourist-class seating
in less than one minute. A moveable cabin divider also allows
configuration changes between flights.

 On a typical route, 737 cash operating costs are nearly 4

percent less than its closest competitor, the A320 series,
in part due to its superior structural efficiency.

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 A single passenger class. Targeting business and
price-conscious passengers.

 Shorthaul and point-to-point approach

 No assigned seats, pay the crews best in industry,

and use of less congested airports

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 Employees working in multiple roles, for instance flight
attendants also cleaning the aircraft or working as gate agents
(limiting personnel costs)
 Removing seat-back pockets to reduce weight and cleaning
expense
 Charging passengers for practically every amenity they might
consume. There are no free peanuts or beverages
 Using that traffic as a marketing tool for related services;
each time a passenger books a rental car or a hotel room, our
airline will earn a percentage of the sale.

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 Promotion Strategy
 Promotion will be through outdoor advertising, radio
and print media.
 Employing public relation firm for both consumer
and financial purposes.
 Combined amount budgeted for advertising and
public relations will be held under 15% of sales.
 Tie up with Creamoza Coffee.

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 Distribution Strategy

 Developing our own website containing the information about the

company along with facilities of online reservation and payment.
 Hotels and Restaurants.
 Agencies giving cars on rent.
 Travel insurance agencies.
 Tie up with Creamoza Coffee.

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 Passenger services costs
Full cost short
Aircraft related costs haul airline
Commission
Low cost airline
Station costs
Advertising and promotions costs
Sales and reservations costs
Airport and ANS charges
Aircraft fuel and oil
Cabin crew
Flight crew
Other operating costs

0 5 10 15 20 25
Turning our planes into media and entertainment
Cost (Rs)

plays, offering advertisers the opportunity to repaint the exteriors

of our planes, effectively turning them29/08/2207
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Factors Strenghts Weakness
Management Experience Small size

Marketing Operating in Metro No national distribution

Offering Unique, high quality, low price Cost covering

HR Small, good workforce Attrition

R&D Continuing effort to ensure quality Fund scarcity

Economic Consumer income is growing Brand image

Competitveness Distinctive service and features New to the industry

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 Opportunities

 Huge potential to capture market

 Growth rate of the industry is the highest
 FDI which will in turn can help us in growing
rapidly
 Changing Consumer Preferences
 Mergers and acquisitions

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 Threats

 Existing competitors
 Unstable Government Policies
 Changing dynamics of the industry
 Upcoming new airlines
 Further rise in oil prices in the international market
 International terrorist

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Market share of passenger traffic in major
cities

1. Mumbai 26%
2. Delhi 17%
3. Chennai 7.5%
4. Kolkata 8%
5. Bangalore 8%
……………….
66.5%

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 Air Deccan
 Go air
 Spice jet
 Alliance air
 (add some more name)

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 Railways
 Road transport
 Ship transport

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 Government policies
 Technological Environment
 Economic factors
 Competitive Environment
 Social cultural

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 Reaction-Will need sometime for
winning the trust of the potential
costumers

 Expectations- Deliver what we have

promised for

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 Board of Directors
President and CEO
Dire. Operator, V.C (Marketing.),
Dire. Finance & admin.,
Director sale

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 Maintaining costumer data base.

 Tie up with Creamoza Coffee.

 Boeingspecialized engineers for

maintenance so that security is upgraded.

 Direct plight at Non-Metro airport.

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“ As deregulation and privatization of the Indian Civil

Aviation and Airline Industry occurs, Air One is

prepared to meet the demands of the consumer and

deliver their expectations

while sustaining growth? ”

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THANK YOU
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