A New Game to Reign the Skies

Transportation 

Transportation is the movement of people, animals and goods from one location to another.

India Transport Sector

India’s transport sector is large and diverse. It caters to the needs of 1.1 billion people. 2007-Contributed about 5.5% to the nation’s GDP.

Source - http://web.worldbank.org/

Transportation Mode

Indian Railway

One of the largest railways(115,000 km of track) under single management.

Carries 17 million passengers and 2 million tonnes of freight in a day.

2011–12 Indian Railways had revenues of Rs.1119848.9 million.

Source - http://web.worldbank.org/

Roads

Today’s dominant mode of transportation in India. Carries almost 90% of the country’s passenger traffic and

65% of its freight. Density - 0.66 km of highway per square kilometre of land.

Ports

India has 12 major and 187 minor and intermediate ports along its more than 7500 km long coastline.

Foreign trade in petroleum products, iron ore, and coal as well as the increasing movement of containers.

Aviation

India has 125 airports, including 11 international airports. Passenger traffic is projected to cross 100 million. Cargo to cross 3.3 million tonnes by year 2010. Currently there are 300 Aircrafts Operating in India and

480 air crafts are to be delivered till the end of 2012.

Need of better transportation service

There is monopoly in the form of Indian railway. Poor resource management. The main problem of the Indian Railways is that ,Trains

mostly never run on time. Platforms and Compartments are too dirty.

Indian Aviation industry

Indian Aviation sector growth is increased over past two decades.

It takes no. of passenger & cargo traffic to new destination.

Over the next decade, India is poised to become one of the most significant aviation markets with annual 450 million passenger.

Conti…

Indian hospitality sector contributes 8-9 percent of the country’s GDP.

The sector encompasses travel and tourism and major segments that fall under this category.

Today, India is the 9th largest civil aviation market in the world and ranks fourth in domestic passenger.

Domestic Airlines

Indian Airlines Jet Airways Air Sahara King Fisher Airlines Spice Jet Go Air Paramount Airways Indigo Airlines

Market Share

Scenario before Air Deccan

The fare price of air ticket was drastically high. To travel with airlines was not possible to every one. Flight are not possible in all areas.

Creator Of Air Deccan

Captain G R Gopinath. He was aware about Economics Liberalization. Referred as ‘Common man Air lines’. Tag Line ‘Simply fly’.

Revolution In Indian Transportation

Air Deccan took Birth in 2003. This was the first Low Cost Carrier of India. Cheaper than Railway’s 2-Tier AC. More facilities are provided than railway’s at the same

price.

LCC Concept

Low cost strategy rules the Indian Skies. Due to this , LCC grab the 70% of market share in 2010. Due to this , full service losing carriers 1.5% market.

share.

Business Model

Fare

Target Passenger Profit

Business Model

Future Prediction

Till 2012 LCC grabbed 37% over all profit. It is estimated that, international traffic will grow up to

15%,and Domestic traffic go up to 25-30% per annum.

S.W.O.T. Analysis

Strengths

Leader in LCA segment. First to target the middle class. First mover advantage. Highest load efficiency. Lean-and-Mean. Approach to staffing.

Weaknesses

Focuses mostly on South Indian market. Image plagued by frequent breakdowns and near misses. Very limited advertising. Reached at the threshold of cost efficiency.

Opportunities

Extensive network to capitalize air cargo business. Plenty of scope for expansion of operations. Strengthen its position in chartered flight segment. Could start, contractual employment.

Threats

High attrition rate. The threat of new entrants into Low Price Segment. Specially Indigo, Go Air and Spice Jet. High Risk Perception.

Fare Comparison

Load Factor

Performance

Cancellation Rate

Merging

Kingfisher airline International permit Competition with LCC Competition with

International Player

Air Deccan For Funding Competition with

International Player

Reference

http://en.wikipedia.org/wiki/Kingfisher_Red http://www.slideshare.net/guest4ec993/aviation http://en.wikipedia.org/wiki/Indian_(airline) http://pib.nic.in/newsite/erelease.aspx?relid=94309 http://www.slideshare.net/dspatra/analysis-of-airlines http://www.deccanairlines.in/ Managerial Economics by Christopher R Thomas Mr. Rohit Kumar www.maps of world .com