Download - Research methodology aviation industry
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A STUDY ON AVIATIONINDUSTRY OF INDIA
Annapurna Juhi Gupta Lalit Kumar Anirudh T. Venkat Chinna Srinivas
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FLOW OF THE PRESENTATION
• Introduction• Market Share• SWOT analysis• PEST analysis• Porter’s five forces• Business Diversification• Consolidations – Mergers and Acquisitions• Technology Intensity• Marketing Initiatives• Future Outlooks• Comparison• Findings & Conclusion
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INTRODUCTION
• Indian Aviation Industry has been one of the fastest-growing aviation industries in the world.
• It showed an impressive growth of 19 percent while considering 2008 global financial slowdown
• Less than 2 percent of India’s 1.27 billion population travels by air, which shows massive potential for growth
• As India is becoming a major destination, international travel has been rising which effect on commercial aviation in India
• These problems include high rise in ATF prices, increase in inflation rate, shortage in skill labour, entry of low air fare carriers and intense competition among the players.
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MARKET SHARE
Airline Market share (%)
Jet Airways
(Jet Airways +Jet Lite)
26
(18.6+7.4)
Kingfisher Airlines
20.6
NACIL 17.6IndiGo 16.3Spice Jet 12.9Go Air 5.9Paramount 0.9
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SWOT ANALYSIS• Strength: India’s cultural and the scope of business in the country.
• Weakness: Development of Aviation is slow. Import of Airplanes with huge tax liabilities.
• Opportunities: It is expected that by 2012 investment in India would increase US$30 billion and also market share is expected to grow.
• Threats: 70% is still in rural areas. Shortage of well trained staff. Security concerns.
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PEST ANALYSIS• Political Disputes between countries Trading Business between countries Corruption Natural disasters
• Economic Monetary and Fiscal Policy Rise in airline turbine fuels (ATF) Recession
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• Social Diversity in population Crew members behaviour Increasing expectations of the customers
• Technological Internet (Online facilities) Modernization of airports Satellite based Navigation system
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Porter’s 5 forces of competition• Threat of new entrants :- High
entry and exist barriers.• Bargaining Power of buyers :-
Low in terms of switching cost.• Bargaining power of
suppliers:- The powers of suppliers are high.
• Threat of Substitutes:- Other means of transport poses little threat.
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BUSINESS DIVERSIFICATION
• Kingfisher
• Spice jet
• Air India
• Indigo
• Jet airways
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CONSOLIDATIONS – MERGERS AND ACQUISITIONS:
• Indian airlines and Air India – NACIL
• Jet Airways and Air Sahara – Jet Lite
• Kingfisher and Air Deccan
• NACIL, Jet Airways and Kingfisher controlling over 80% of the market currently.
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Technology Intensity• Remote controlled airliners• Bio monitors• Remote video monitoring• Light guns to dazzle attackers• Bar code technology• Whole body imaging• The touch screen
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Marketing Initiatives
• Less emphasis on television advertisements.
• More emphasis on magazines
which are available at airports.
• Heavy advertisement are done
by Kingfisher airlines domestically.
• Qatar airlines have spent the
highest advertisement budget this year.
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Future Outlooks
• Growth being 18% as on 2011, in
spite of having global economic slowdown.
• Low cost carriers haven't done well,
recent being Kingfisher.
• India needs 3 times the amount
of airports in future.
• Fuel accounts to 38% of total operating cost.
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Comparison
• Services - The services are almost
the same of our players with the
global players.
• Cost/pricing – Indian airlines are
relatively cheaper in terms of the
global personally.
• Quality – Indian airlines have in fact proven
superior in terms of quality.
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Findings and conclusion
• Though Indian aviation t is doing well. It has a lot more problems
to face.
• The constant increase in the fuel cost has led to heavy losses in
the sector.
• Low cost airlines are phasing out.
• Unpaid bills have led to fuel supply backlash.
• The shortage of trained pilots and other personnel are also the
shortcomings of Indian aviation sector.
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THANK YOU