my grand project updated 25th

8/9/2019 MY Grand Project Updated 25th

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A

Grand Project

Comparative Analyses of Low Cost Airlines

Submitted To: Prof. Praneti Shah

By: PriyankChaudhari(7010)

Marketing


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ACKNOWLEDGEMENT

In the pursuit of management excellence, every student owes a great deal to the insights

and suggestions of others and I am no exception. I believe learning is a process thatentails to give and take, exchange of ideas and value addition through discussion.

I begin by acknowledging our humble thanks to my Guide, Prof. Praneti Shah for giving

me enthusiastic support for preparing this Grand Project report in our M.B.A. programme

and for their constant guidance, constructive criticism and judicious supervision, which

brought this challenging task to success.

Last but not in the least I would like to thank all those people who have directly or

indirectly contributed in the successful completion of my Grand project.


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EXECUTIVE SUMMARY

The low cost airline industry has changed the definition of airlines that air travel is a

luxury and it is only for the upper segment of the population. The key objective of lowcost carriers is to increase their reach and provide the services to a large segment. In

India, low cost carriers came into existence in 2003 when Air Deccan launched its first

low cost airline and that was the first move to open the doors of the airlines industry for

middle class.

Rising GDP and increasing per capita income is positively impacting the airlines

industry. Another major driver is the booming tourism industry in India. However, the

low cost airline segment is facing challenges of increasing competition, rising fuel prices

and inadequate infrastructure.

Air Deccan is the market leader, holding the maximum share in LCC market, followed by

Jetlite, Air India Express, GoAir, and Indigo, who are making the competition stiffer. Air

Deccan enjoys the first mover advantage in terms of access to a large number of

overnight parking spaces and landing & take-off slots during the peak period.

This report analyzes the low cost airlines market in India. It discusses the market share of

leading carriers, growth drivers and challenges being faced by the industry. The report

also profiles the major low cost carriers, with a discussion of their key business strategies.

This report focuses on the comparison of three low cost airlines. It also includes the

consumer preference towards such LCC as well as their satisfaction level about their

overall services.


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RESEARCH METHODOLOGY

Objectives:

To study the competition between low cost Airlines and how they target their

segments.

To find out best consumer preference towards Low cost Airlines and level of

satisfaction in overall services.

Comparison of three different cheapest service providers in Airline Industry and their

market share.

To study the competition intensity between these three players.

Scope of the Research:

Research has been conducted in the Ahmedabad and Gandhinagar city.

Research scope of Grand Project is on Comparative analysis of Low cost

Air lines.

The samples are taken for the research from the Ahmedabad Airport and

Gandhinagar city.

Research Design:

Research design is the blueprint of the research project. It includes the different things

which are methods, sampling plan, data collection methods. It provides the guidance as

well as information for the study. Research design has been in Descriptive nature.

As per the nature of project and objectives of the study is concern data collection

consist of two ways:


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Data collection sources:

Secondary data:

Aviation Industrys website Magazines and Articles in News Paper

Primary data:

Questionnaire

Sampling Plan

Target Population:

For the research of particular project the target population is customers of low cost

airlines and people come out from airport.

Sample Units:

Sample units would be the customers of different low cost airlines like Go, Spicejet and

Air Deccan from the city of Ahmedabad and Gandhinagar.

Sampling Method:

.

Step out sampling

Convenience sampling


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Sample Size:

Sample size is 150.

Data Collection instrument

Structured questionnaire use to collect data from the targeted audience.

Contribution:

It may help Co. to know the effect of promotional scheme in Low Cost Airlines

Beneficiaries

Beneficiaries:

Those who planning to travel in any low cost airline will get proper idea about the

current scenario and have better option for selection.

It helps you make confident business decisions quickly.

Airline authority to provide better services and find out the problems.

Students or those who want to study about low cost airlines.

Limitation:

Lack of time and knowledge.

Study is restricted to Ahmedabad and Gandhinagar only.

Surveyed only 150 customers.


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LITRATURE REVIEW :

The Aviation industry in India began with the birth of Tata Airlines, through the business

relationship between Mr. Nevill Vintcent, a Royal Air Force pilot and Mr. JRD Tata, the

first Indian to get an A-license. Tata Airlines became Air India in August 1946. In 1953,

the Air Corporation Act nationalized all existing airline assets and established the Indian

Airline Corporation and Air India International for domestic and international air services

respectively.

These two companies enjoyed monopoly power in the industry until 1991, when private

airlines were given permission to operate charter and non scheduled services under theAir Taxi scheme to boost tourism. These carriers were not allowed at the time, to fly

scheduled flights or issue air tickets to passengers. As a result, a number of private

players including Jet Airways, Air Sahara, Modiluft, Damania Airways, NEPC airlines

and East West Airlines commenced domestic operations. In 1994, following the repeal of

the Air Corporation Act, private players were permitted to operate scheduled services.

Ultimately the carriers with more efficient operations and strategies survived and by

1997, only Jet Airways and Air Sahara made the cut from the original group.

The next big change in the industry came in late 2003 with the emergence of Indias first

no-frill airlines, Air Deccan. It revolutionized the industry, offering fares as low as INR

500 (USD 10 roughly), compared with Full Service fares offered by the incumbents,

averaging about INR 3000 or more. Since then, Spice Jet (restructured Royal Airways

and Modiluft), Go Airways and Kingfisher Air have also entered the industry. Paramount

Airways is another player, though it is positioned on the other end of the spectrum, as an

all business class airline. With the further advent of online ticket sales through

companies such as makemytrip.com, prices have crashed and tickets are available for as

little as INR 0.99. In fact, now many airline tickets can be bought for a price comparable

to an upper class railway ticket for the same route. A the a ......................................

In December 2004, Indian scheduled carriers with a minimum of 5 years of continuous


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operations and a minimum fleet size of 20 aircraft, were permitted to operate scheduled

services to internationals destinations. On January 11, 2005 the government designated

four scheduled Indian carriers (Air India, Indian Airlines, Jet Airways and Air Sahara) to

operate international services to and form Singapore, Malaysia, Thailand, Hong Kong,

the UK and the USA.


luxury and it is only for the upper segment of the population. The key objective of low

cost carriers is to increase their reach and provide the services to a large segment. In



middle class. ..........................................................................................................................




and inadequate infrastructure. .................. ............................................................................

.






leading carriers, growth drivers and challenges being faced by the industry.The report


INTRODUCTION


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India at present has twelve competing airlines in the domestic market as against a single

government owned airline in 1991. According to McKinsey Quarterly(2005) the Indian

aircraft market is the worlds second largest commercial aircraft market. On-time

performance and service levels have risen dramatically and fares have dropped. Passenger

traffic is expected to grow by 20 percent annually over the next five years. Only a small

percentage of Indias population travels by air partly due to the high costs of domestic

flying. According to the Center for Asia Pacific Aviation (CAPA) consultancy, new

players will help domestic passenger numbers. The players in the current airline market

include airlines like Air Deccan with low-cost, low-fare and no frills along with airlines

like Kingfisher, which offers some frills, and premium airline like Jet Airways.

Competition has brought in some price advantages to travelers and has converted many

railway passengers to airline travelers. This article examines customer satisfaction among

travelers of four major domestic airlines in India. Because of proliferated number of

players in the airline industry, airlines may enjoy new business opportunities along with

high competitive threats. The objective of this study is to understand the customer

satisfaction levels and the comparative analyses of three low cost airlines.

A comparison of customer satisfaction based on service quality was done among the two

major airlines based on responses from frequent fliers. A flying experience was divided

into three stages- namely, pre-flight, in-flight and post-flight experience. A questionnaire

was designed in such a way that the same sets of variables were measured among the

customers of the two airlines under study. Fliers who had flown any of the two airlines

could answer the questions pertaining to those airlines. The objective of this study was to

understand the satisfaction levels of the airline customers.

CH.1 INDUSTRY PROFILE


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INTRODUCTION

Aviation is defined as the design, manufacture, use or operation of aircraft in which the

term aircraft refers to any capable of flight. Aircraft can either be heavier-than-air or

lighter-than-air, lighter than aircraft including balloons and airships where heavier-than-

air including airplane, autogiro, gliders, helicopters and or night hopters.

For a centuries man has dreamed to soar with the birds. Famous inventors such as

Leonardo da Vinci, John String fellow etc. have conjured up ideas of hoe to get some of

the strongest machines to fly long before the Write brothers famous flight at Kitty Hawk.

EARLY AVIATION

The first form of an aircraft was the kite, designed in the 5 th century BC. Later on in the

13th century, Roger Bacon, an English monk, performed studies which later gave him the

idea that air supports a craft just like water support boat. In the 16 th century, Leonardo da

Vinci studied bird flight and later produced the airscrew and the parachute. The airscrew

leading to the propeller later on, and the parachute were tremendously important

contribution to aviation.

THE 19TH CENTURY

Some of the more credible developments in actual flight and stability occurred in the 19 th

century. British Sir George Cayley designed a combined helicopter and horizontally

propelled aircraft and British Francis Herbert Wenham used wind tunnels in his studies

and predict the application of multiple wings placed above each other. Another famous

inventor was John String fellow who design a steamed engine powered aircraft which

was launched from a wire. This model demonstrated lift but failed to actually climb.

Lawrence Hagrave, a British born Australian inventor created a rigid wing aircraft with

flapping blades operated by a compressed air motors; it flew 312 ft in 1891.


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CH.- 1.1 HISTORY ABOUT INDIAN

AVIATION INDUSTRY

The first commercial flight in India was made on February 18, 1911, when a French pilot

Monseigneur Piguet flew airmails from Allahabad to Naini, covering a distance of about

10 km in as many minutes.

Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India

International. The domestic aviation scene, however, was chaotic. When the American

Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines

sprang up, scrambling for traffic that could sustain only two or three. In 1953, thegovernment nationalized the airlines, merged them, and created Indian Airlines. For the

next 25 years JRD Tata remained the chairman of Air-India and a director on the board of

Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork

barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has

474 whereas other airlines have 350.

For many years in India air travel was perceived to be an elitist activity. This view arose

from the Maharajah syndrome where, due to the prohibitive cost of air travel, the only

people who could afford it were the rich and powerful.

The origin of Indian civil aviation industry can be traced back to 1912, when the first air

flight between Karachi and Delhi was started by the Indian State Air Services in

collaboration with the UK based Imperial Airways. It was an extension of London-

Karachi flight of the Imperial Airways. In 1932, JRD Tata founded Tata Airline, the first

Indian airline. At the time of independence, nine air transport companies were carrying

both air cargo and passengers. These were Tata Airlines, Indian National Airways, Air

service of India, Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and

Ministry Airways. After partition Orient Airways shifted to Pakistan.


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In recent years, however, this image of Civil Aviation has undergone a change and

aviation is now viewed in a different light - as an essential link not only for international

travel and trade but also for providing connectivity to different parts of the country.

Aviation is, by its very nature, a critical part of the infrastructure of the country and has

important ramifications for the development of tourism and trade, the opening up of

inaccessible areas of the country and for providing stimulus to business activity and

economic growth.

Until less than a decade ago, all aspects of aviation were firmly controlled by the

Government. In the early fifties, all airlines operating in the country were merged into

either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this

monopoly was perpetuated for the next forty years. The Directorate General of CivilAviation controlled every aspect of flying including granting flying licenses, pilots,

certifying aircrafts for flight and issuing all rules and procedures governing Indian

airports and airspace. Finally, the Airports Authority of India was entrusted with the

responsibility of managing all national and international air ports and administering every

aspect of air transport operation through the Air Traffic Control. With the opening up of

the Indian economy in the early Nineties, aviation saw some important changes. Most

importantly, the Air Corporation Act was repealed to end the monopoly of the public

sector and private airlines were reintroduced.

By 1995, several private airlines had ventured into the aviation business and accounted

for more than 10 percent of the domestic air traffic. These included Jet Airways Sahara,

NEPC Airlines, East West Airlines, ModiLuft Airlines, Jagsons Airlines, Continental

Aviation, and Damania Airways. But only Jet Airways and Sahara managed to survive

the competition. Meanwhile, Indian Airlines, which had dominated the Indian air travel

industry, began to lose market share to Jet Airways and Sahara. Today, Indian aviation

industry is dominated by private airlines and these include low cost carriers such as

Deccan Airlines, GoAir, SpiceJet etc, who have made air travel affordable.


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CH.-1.2 INTRODUCTION TO THE AVIATION

INDUSTRY:

Introduction:

The Indian Aviation industry can be broadly classified into two segments Civil

and Cargo. In fact the birth of civil aviation is attributed to air cargo and mail. In the

beginning mail and cargo were the only the elements of air carrier services. Passenger

came much later. The major players in the Indian context are air India in the international

segment and Indian, Jet airways and Sahara in the domestic segment.

Over the years the aviation sector in India has evolved and today it is on the

threshold of a major shake-out with the divestment of the Indian Governments stake in

air India and Indian cards. A number of domestic and foreign parties have evinced intrest

in the divestment process. Foreign airlines like virgin Atlantic of Britain and Singapore

airlines have also entered the Indian skies.

Aviation

Industry

Civil Cargo

DomesticDomesticInternational International


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Domestic and International passenger traffic in India is projected to grow annually at a

compound rate of 12.5% and 7% respectively over the next decade. At the same time

domestic and international cargo traffic is expected to grow at a compound rate of 5.6%

and 14% respectively.

The civil aviation activities can be broadly classified into three areas.

1. Operational

2. Infrastructural

3. Regulatory cum development

On the operational front, air India provides international air services while Indian

involved in the field of domestic air service. Pavan has supplies helicopter support

service, primarily to the petroleum sector. Air India, Indian and its subsidiary alliances

air and Pavanhans are Govt. owned. Other than them there are private domestic operators

too. Infrastructural facilities are supplied by Airport Authority of India (AAI), which was

formed in April 1995.

In terms of size the Indian aviation industrys turnover was approximately Rs. 60 billion

in the financial year 2007, with 16 million passengers using its services. The growth of

the industry is given below.


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Year

Aircraft

(million km

flown)

Passenger

flown

( 000 nos )

Passengers

( million km

flown)

1970-71 37.8 2,123 1,559.0

1980-81 41.2 4,850 3,917.2

1990-91 58.7 7,912 7,028.1

1995-2000 88.8 10,356 9,249.3

2001-2005 112.5 12,312 11,047.3

2005-2006 109.4 11,549 10,702.9

2006-2007 117.2 12,017 10,820.32007-2008 123.5 13,245 11,250.7

2008-2009 208.8 19,236 17,235.8

From the above table, it is clear that the aviation industry in the country has grown by

leaps and bounds in terms of kms flown and also number of passengers served.

In terms of characteristics, the aviation industry is seasonal in nature. In the period April

to May and again from November to December, demand is high.

Indias air traffic statistics


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Year Domesticpassenger (inmillions)

Increase(In %)

Internationalpassenger(in millions)

Increase(In %)

1996-97 12.00 10.5 10.8 7.0

1997-98 13.26 10.25 11.6 7.0

1998-99 14.65 10.5 12.4 7.0

1999-00 16.20 10.5 13.3 7.0

2000-01 17.57 10.5 14.1 7.0

2001-02 19.06 8.5 14.9 6.0

2002-03 20.68 8.5 15.8 6.0

2003-04 22.44 8.5 16.8 6.0

2004-05 24.35 8.5 17.8 6.0

2005-06 25.05 7.0 18.8 5.5

2006-07 27.87 7.0 19.8 5.5

2007-08 29.5 7.0 20.9 5.5

2008-09 31.91 7.0 22.1 5.5

2009-10 34.15 7.0 23.3 5.5

Forecast2010-11 36.54 7.0 24.6 5.5

2011-12 39.09 7.0 25.9 5.5

2012-13 41.44 6.0 27.2 4.9

2013-14 43.93 6.0 28.5 4.9

2014-15 46.56 6.0 29.9 4.9

2015-16 49.54 6.0 31.86 5.0

2016-17 53.45 6.0 33.52 5.0

CH. 2 ABOUT LOW COST AIRLINE


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Simple products

Paid meals, drinks and snacks

Narrow seating

No seat reservation (free seating)

No frequent flyer programs

Positioning

Non-business passengers, leisure traffic, price conscious business passengers

Short-haul point traffic with high frequencies

Aggressive marketing

Secondary airports

Competition with all transportation carriers

Low operating costs

Low wages and airport fees

Low cost for maintenance, cockpit training and standby crews due to homogeneous

flights

High resources productivity: short ground waits due to simple boarding process, no

air fright, no hub service, short cleaning times

Lean sales

Attribute of Low-cost Carriers

Narrow seating

Higher plane utilization due to shorter turnaround times

Lower staff cost due to grater productivity, generally lower wages and smaller staff

Lower airport fees at secondary airports and smaller cities

No sale commission due to web sales

Low station cost due to simpler handling and more efficient processes

Related information about low cost carriers


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Low-cost airlines offer air travel at normally very low rates by cutting down on expensive

customary in-flight passenger services. They are also referred to as no-frills airlines or

budget carriers.

Low-cost Carriers (LCCs) get this tag primarily due to their low operating cost structure.

However, irrespective of their cost structure, budget airlines are today recognised because

of their low ticket fares and limited services.

The idea of LCC originated in the US. Founded in Dallas Texas on June 18, 1971 by

Herb Kelleher, Southwest Airlines offered tickets that worked out to be cheaper than a

car or coach ride. It is the fourth largest US airline in terms of domestic customers carried

annually. It has been profitable every year since 1973.

Budget airlines have been enthusiastically accepted by the Indian passengers.

Generically, few things on their agenda are: fleet expansion, increased connectivity and

low fares.

The business model of an LCC broadly includes the following features:

a single passenger class

a single type of aircraft for lesser maintenance and servicing costs

flying to cheaper, less congested secondary airports

flying early in the morning or late in the evening to avoid air traffic delays and take

advantage of lower landing fees

short flights and fast turnaround times

emphasis on direct sales of tickets, especially over the Internet, hence avoiding agent

commissions

employees working in multiple roles

optional paid-for in-flight food and drink

aggressive fuel hedging programmes; and segregation of ancillary charges.


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luxury and it is only for the upper segment of the population. The key objective of low

cost carriers is to increase their reach and provide the services to a large segment. In



middleclass.




and inadequate infrastructure.






leading carriers, growth drivers and challenges being faced by the industry. The report



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CH. 3 CURRENT SCENARIO

With a growth rate of 18 per cent per annum, the Indian aviation industry is one of the

fastest growing aviation industries in the world. The government's open sky policy has

lead to many overseas players entering the market and the industry has been growing both

in terms of players and number of aircrafts.

With the liberalization of the Indian aviation sector, the aviation industry in India has

undergone a rapid transformation. From being primarily a government-owned industry,

the Indian aviation industry is now dominated by privately owned full-service airlines and

low-cost carriers. Private airlines account for around 75 per cent share of the domestic

aviation market.

Indian carriers currently have a fleet size of 310 aircrafts, but have 480 aircrafts on order,

scheduled for delivery by 2012.

Earlier, air travel was a privilege only a few could afford, but today air travel has become

much cheaper and can be afforded by a large number of people. Furthermore, the price of

aviation turbine fuel (ATF) crashed drastically in December 2008, hitting US$ 0.665-

US$ 0.789, which is its lowest level since the last four to five years. With this move,

airlines are likely to prune their airfares considerably. Jet Airways, the country's largest

private carrier, has slashed domestic fares by 40 per cent and national carrier Air India

has announced that it will cut basic fares anywhere between 45 per cent and 60 per cent

in February 2009 following a drop in ATF prices.

India has jumped to 9th position in world's aviation market from 12th in 2006. The

scheduled domestic air services are now available from 82 airports as against 75 in 2006.

Further, Kapil Kaul, CEO India & Middle East, Centre for Asia Pacific Aviation, has

said, "India's civil aviation passenger growth, at 20 per cent, is among the highest in the

world. The sector is slated to cruise far ahead of other Asian giants like China or even


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strong economies like France and Australia. The number of passengers who will be

airborne by 2020 is a whopping 400 million."

Potential for Growth

According to recent estimates by The International Air Transport Association (IATA),

India is likely to be a significant player in the global civil aviation business, which was

estimated at US$ 7.6 billion in 2011.

The Indian Civil Aviation market grew at a compound annual growth rate (CAGR) of 18

per cent, and was worth US$ 7.6 billion in 2011.

The government is planning to upgrade 45 big and small airports across India. Forgreenfield airports, foreign equity up to 100 per cent is allowed through automatic

approvals. For upgrading present airports, foreign equity up to 74 per cent is allowed

through automatic approvals and 100 per cent through special permission (from FIPB).

The Centre for Asia Pacific Aviation (CAPA) has forecast that domestic traffic will

increase by 25 per cent to 30 per cent till 2012 and international traffic growth by 15 per

cent, taking the total market to more than 100 million passengers by 2012. India's civil

aviation passenger growth, presently at 20 per cent, is one of the highest in the world, and

is expected to surpass countries like China, France and Australia. By 2020, 400 million

Indian passengers are likely to be airborne.

By 2020, Indian airports are expected to handle more than 100 million passengers

including 60 million domestic passengers and around 3.4 million tonnes of cargo per

annum.

Domestic air traffic is likely to more than double and touch 86.1 million passengers by

2012, up from 32.2 million passengers in 2010, states the market research firm PhoCus.

Moreover, significant measures to propel growth in the civil aviation sector are on the

anvil. The government plans to invest US$ 9 billion to modernise existing airports by

2010.


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The government is also planning to develop around 300 unused airstrips, and

subsequently, Boeing and Airbus, along with Embraer (Brazil), Bombardier (Canada),

Sukhoi (Russia), ATR (France) and BAE System (UK) are now looking at foraying into

the Indian jet market.

Airport Infrastructure

Of the 454 airports and airstrips in India, 16 are designated international airports.

Currently 97 airports are owned and operated by the Airports Authority of India

(AAI). India's Civil Aviation Ministry aims at 500 operational airports in the next

12 years, as per a report by Centre for Asia Pacific Aviation (CAPA). The

government aims to attract private investment in aviation infrastructure.

A projected investment of US$ 8.5 billion has been planned during the 11th plan

for the development of Indian airports.

Mumbai and Delhi airports have already been privatised and are being upgraded

at an estimated investment of US$ 4 billion over 2006-16.

A greenfield airport is already operational at Bangalore and the one at Hyderabad

will be operational soon. These are built by private consortia at a total investment

of over US$ 800 million.

A second greenfield airport being planned at Navi Mumbai is going to be

developed using public-private partnership (PPP) mode at an estimated cost of

US$ 2.5 billion.

35 other city airports are proposed to be upgraded. The city side development will

be undertaken through PPP mode where an investment of US$ 357 million is

being considered over the next three years.

Over the next five years, AAI has planned a massive investment of US$ 3.07

billion - 43 per cent of which will be for the three metro airports in Kolkata,

Chennai and Trivandrum, and the rest will go into upgrading other non-metro

airports and modernising the existing aeronautical facilities.

The demand for corporate jets in India has gone up considerably in the past few years and

is likely to grow two-fold by the end of 2011. To further fuel the rapidly growing private


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jet industry, the government has plans of developing over 300 redundant airstrips in the

country. The work will be carried out in a phased manner subsequent to the expansion

and development of 35 non-metro airports by 2010. The government plans to focus on

airstrips near major cities in order to relieve major airports of their burgeoning traffic.

Additionally, the government is also considering a new policy to permit private airstrips

in the country. The Indian civil aviation minister, Praful Patel has said that India will

require around 300 to 400 private jets in the next three to five years. The demand for

private jets can even see a growth rate of about 50 per cent on a year-to-year basis.

Vigorous future of Aviation Sector

As per the Investment Commission of India, the aviation sector is likely to boom furtherin the coming years, attracting huge investment.

Passenger traffic is projected to grow at a CAGR of over 15 per cent in the next 5

years.

The Vision 2020 statement announced by the Ministry of Civil Aviation,

envisages creating infrastructure to handle 280 million passengers by 2020.

Investment opportunities of US$ 110 billion envisaged up to 2020 with US$ 80

billion in new aircraft and US$ 30 billion in development of airport infrastructure.

Associated areas like maintenance, repair and overhaul (MRO) and training offer

high investment potential. A report by Ernst & Young says the MRO category in

the aviation sector can absorb up to US$ 120 billion worth of investments by

2020.

Air cargo traffic will grow at over 11.4 per cent p.a. over the next 5 years to

exceed 2.8 million tonnes by 2010.

Foreign air cargo players are betting big on India and many are planning to add

capacity. As part of its expansion, Emirates is increasing its flights to New Delhi,

Mumbai, Bangalore, Hyderabad, Chennai and Kochi over a period of time.

Eurocopter, a division of EADS, world leader in aerospace defence and related

services, is keen to enter the emergency medical services (EMS) business in India

and the company is in talks with leading hospital majors like the Manipal group


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and the Apollo group. The company has 480 helicopters operating in India in both

the civil and military sectors and the company also hopes to increase its business

through heli-tourism.

India has signed a new air service pact with the United Arab Emirates (UAE) for

the revision of the air services agreement between the two countries.

Clear Skies Ahead

The Indian aviation sector is likely to see clear skies ahead in the years to come.

Giovanni Bisignani, Director General and CEO of the International Air TransportAssociation (IATA), has called on India to give direction to the efforts in shaping future

aviation policies, including environment and commercial freedoms. "In a few years, Asia

Pacific will be the largest single aviation market. India is a key driver of that growth.

India's enormous size makes it an important market."

With a growth rate of 18 per cent per annum, the industry will see rapid expansion in

terms of players as well as the number of aircrafts. The strength of the Indian fleet is

projected to be 500-550 by 2010.

Cargo transportation is likely to touch 3.4 million tonnes in 2010.

480 aircrafts will be delivered by 2012.

The number of passengers to touch 400 million by 2020.

The government plans to invest US$ 9 billion by 2010 to develop airports.

CH. 4 CIVIL AVIATION POLICY IN INDIA

In the context of a multiplicity of airlines, airport operators (including private sector), and

the possibility of oligopolistic practices, there is a need for an autonomous regulatory

authority which could work as a watchdog, as well as a facilitator for the sector, prescribe


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and enforce minimum standards for all agencies, settle disputes with regard to abuse of

monopoly and ensure level playing field for all agencies. The CAA was commissioned to

maintain a competitive civil aviation environment which ensures safety and security in

accordance with international standards, promotes efficient, cost-effective and orderly

growth of air transport and contributes to social and economic development of the

country.

Objectives of Civil Aviation Ministry

a) To ensure aviation safety, security

b) Effective regulation of air transport in the country in the liberalized environment

c) Safe, efficient, reliable and widespread quality air transport services are

provided at reasonable prices

d) Flexibility to adapt to changing needs and circumstances

e) To provide all players a level-playing field

f) Encourage Private participation

g) Encourage Trade, tourism and overall economic activity and growth

h) Security of civil aviation operations is ensured through appropriate systems,

policies, and practices

Private Sector Participation and the Civil Aviation Policy

a. Private sector participation will be a major thrust area in the civil aviation

sector for promoting investment, improving quality and efficiency and

increasing competition.


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b. Competitive regulatory framework with minimal controls encourages

entry and operation of private airlines/ airports.

c. Encouragement of private sector investment in the construction, up

gradation and operation of new and existing airports including cargo

related infrastructure.

d. Rationalization of various charges and price of ATF/AV Gas will be

undertaken to render operation of smaller aircraft viable so as to encourage

major investment in feeder and regional air services by the private sector.

e. Training Institutes for pilots, flight engineers, maintenance personnel, air-

traffic controller, and security will be encouraged in private sector.

f. Private sector investment in non-aeronautical activities like shopping

complex, golf course, Entertainment Park, aero-sports etc. near airports

will be encouraged to increase revenue, improve viability of airports and

to promote tourism. CAA will ensure that this is not at the cost of primary

aeronautical functions, and is consistent with the security requirements.

g. Government will gradually reduce its equity in PSUs in the sector.

h. Government will encourage employee participation through issue of shares

and ESOP

CH. 4.1 OPEN SKIES POLICY

Meaning:

At the outset we must point out that the concept of 'Open Skies' is much misunderstood in

its meaning and implications. Open Skies means unrestricted access by any carrier into


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the sovereign territory of a country without any written agreement specifying capacity,

ports of call or schedule of services. In other words an Open Skies policy would allow

the foreign airline of any country or ownership to land at any port on any number of

occasions and with unlimited seat capacity. There would be no restriction on the type of

aircraft used, no demand for certification, no regularity of service and no need to specify

at which airports they would land. Defined in this manner, it is not surprising that Open

Skies policies are adopted only by a handful of countries, most commonly those that have

no national carriers of their own and that have only one or two airports. No sovereign

country of any eminence practices Open Skies least of all the European Union, UK, USA,

Japan, Australia or countries in South East Asia.

Need for Open Skies Policy

A recurring demand often voiced by interested parties is that, in order to promote Travel

& Tourism, India should adopt an Open Skies policy. It is argued that the current policy

restricts the access of foreign airlines. As a result potential tourists are not offered a

choice of airlines or seats when traveling to India. This problem is exacerbated during the

holiday season when it is difficult, if not impossible, to get a seat either into the country

or out of it. It is argued, therefore, that India should adopt an Open Skies approach to any

foreign carrier wanting to fly into India, which literally means allowing them unlimited

service, capacity and points of call.

Bilateral Treaties

However, almost 99 per cent of Members of the International Civil Aviation Organization

(ICAO) follow the system of negotiated bilateral treaties determining the aviation

relations between two sovereign Contracting parties. In fact, the bilateral aviation regime


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is considered the fundamental basis for a disciplined and regulated aviation system

between the nations of the world. It provides not only regularity

of operations through scheduled services but also stipulates the basis of ownership,

number of seats to be utilized, type and certification of aircraft and visiting ports of call.

The Bilateral Agreements also protect the different kinds of aviation Freedoms granted to

contracting parties by specifying the reciprocal rights to be enjoyed by each.

Indian Bilateral Treaties

India has signed over 180 Bilateral Agreements with different countries. In 2002 the total

number of seats available was 38.09 million. Of this, the capacity operated was

approximately 19.174 million seats. Since the average size of traffic to and from the

country is slightly in excess of approximately 14 million passengers, normally the

contracted rights should suffice the traffic demand.

CH. 5 PEST ANALYSIS: THE INDIAN

AIRLINE INDUSTRY


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A PEST analysis is an analysis of the external macro-environment that affects all firms.

P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of

the external macro-environment. Such external factors usually are beyond the firm's

control and sometimes present themselves as threats. For this reason, some say that "pest"

is an appropriate term for these factors. Let us look at the PEST analysis of the Indian

aviation sector:

Political Factors

In India, one can never over-look the political factors which influence each and every

industry existing in the country. Like it or not, the political interference has to be presenteverywhere. Given below are a few of the political factors with respect to the airline

industry:

o The airline industry is very susceptible to changes in the political environment as it has

a great bearing on the travel habits of its customers. An unstable political environment

causes uncertainty in the minds of the air travelers, regarding traveling to a particular

country.

o Overall Indias recent political environment has been largely unstable due to

international events & continued tension with Pakistan.

o The most significant political event however has been September 11. The events

occurring on September had special significance for the airline industry since airplanes

were involved. The immediate results were a huge drop in air traffic due to safety &

security concerns of the people.

o International airlines are greatly affected by trade relations that their country has with

others. Unless governments of the two countries trade with each other, there could be

restrictions of flying into particular area leading to a loss of potential air traffic (e.g.

Pakistan & India)


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o Another aspect is that in countries with high corruption levels like India, bribes have to

be paid for every permit & license required. Therefore constant liasoning with the

minister & other government official is necessary.

The state owned airlines suffer the maximum from this problem. These airlines have to

make several special considerations with respect to selection of routes, free seats to

ministers, etc which a privately owned airline need not do. The state owned airlines also

suffers from archaic laws applying only to them such as the retirement age of the pursers

& hostesses, the labour regulations which make the management less flexible in taking

decision due to the presence of a strong union, & the heavy control &interference of the

government. This affects the quality of the service delivery & therefore these airlines

shave to think of innovative service marketing ideas to circumvent their problems &

compete with the private operators.

Economic Factors

Business cycles have a wide reaching impact on the airline industry. During recession,

airline is considered a luxury & therefore spending on air travel is cut which leads to

reduce prices. During prosperity phase people indulge themselves in travel & prices

increase.

After the September 11 incidents, the world economy plunged into global recession due

to the depressed sentiment of consumers.The loss of income for airlines led to higher operational costs not only due to low demand

but also due to higher insurance costs, which increased after the WTC bombing. This

prompted the industry to lay off employees, which further fuelled the recession as

spending decreased due to the rise in unemployment.

Even the Indian carriers like Air India was deeply affected as many flights were

cancelled due to internal (employee relations) as well as external problems, which has

been discussed later.


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Social Factors

The changing travel habits of people have very wide implications for the airline industry.

In a country like India, there are people from varied income groups. The airlines have to

recognize these individuals and should serve them accordingly. Air India needs to focus

on their clientele which are mostly low income clients & their habits in order to keep

them satisfied. The destination, kind of food etc all has to be chosen carefully in

accordance with the tastes of their major clientele.

Especially, since India is a land of extremes there are people from various religions and

castes and every individual travelling by the airline would expect customization to the

greatest possible extent. For e.g. A Jain would be satisfied with the service only if he is

served jain food and it should be kept in mind that the customers next to him are also jain

or at least vegetarian.

.

Technological Factors

The increasing use of the Internet has provided many opportunities to airlines. For e.g.

Air Sahara has introduced a service through the internet, wherein the unoccupied seats are

auctioned one week prior to the departure.

Air India also provides many internet based services to its customer such as online ticket

booking, updated flight information & handling of customer complaints.

USTDA (US trade & development association) is funding a feasibility study and

workshops for the Airports Authority of India as part of a long-term effort to promote

Indian aviation infrastructure. The Authority is developing modern communication,

navigation, surveillance, and air traffic management systems for India's aviation sector


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that will help the country meet the expected growth and demand for air passenger and

cargo service over the next decade.

A proposal for restructuring the existing airports at Delhi, Mumbai, Chennai and Kolkata

through long-term lease to make them world class is under consideration. This will help

in attracting investments in improving the infrastructure and services at these airports.

Setting up of new international airports at Bangalore, Hyderabad and Goa with private

sector participation is also envisaged.

A good example of the impact of technology would be that of AAI, wherein with the help

of technology it has converted its obsolete and unused hangars into profit centers. AAI is

now leasing these hangars to international airlines and is earning huge profits out of it.

AAI has also tried to utilize space that was previously wasted installing a lamination

machine to laminate the luggage of travelers. This activity earns AAI a lot of revenue.

These technological changes in the environment have an impact on Air India as well.

Better airport infrastructure, means better handling of airplanes, which can help reduce

maintenance cost. It also facilitates more flights to such destinations.


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CH. 6 COST FACTORS:

Airfares in India are among the highest in the world..

Labor

If regulations or industry policy provide protection to an industry, the value of protection

may be dissipated in poor productivity and higher-than-normal returns to labour and

capital. Entry limitations and capacity constraints have the potential to allow airlines to

earn above normal returns, which may be appropriated by shareholders or paid out in

higher than normal costs (including wages, salaries and working conditions).

Given the valuable contribution that aviation and tourism make to national welfare, it is

essential that the aviation market is globally competitive and functions in the most


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efficient way. This means that the inputs that the industry depends on, such as labour and

capital, must also be available on an internationally competitive basis.

Fuel Price

ATF is the major cost for domestic carriers accounting for 30% of the total operating

costs in India, which is much higher than around 10-15% for airlines worldwide. The

exorbitant sales tax on the ATF, which increases the price of ATF, is the major reason for

this higher share in operating cost. The Jet fuel price has increased by 13.1 % to USD

424.64/ KL in New Delhi during the period May-Aug 04.

...................................................................................

Capital

The relatively capital-intensive nature of the airline industry, combined with the fact that

airlines are generally regarded as being inherently risky investments, means that access to

large, well-functioning capital markets is an important issue for all airlines. The effects of

these restrictions may vary from country to country, but are likely to be greater for

countries with small domestic capital markets.

Operating.Costs

The regulatory system affects where, how and when airlines can fly. Thus it affects

airlines ability to operate efficient networks and their revenue. To the extent that airlines

cannot use the least cost combinations of aircraft types to carry passengers and freight,

the costs of operating existing networks are higher than they otherwise might be

(technical inefficiency). Further, they may be prevented from flying the optimum sized

and configured network (allocative inefficiency). Thus, costs may be reduced as airlines

are able to operate the right aircraft at the right frequencies on an existing route.

Airlines, by changing the design of a network and increasing its size, may also be able to

decrease costs through economies of scale and scope.


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Ownership and control

As airlines strive for greater efficiencies, they consider the benefits of consolidation.

However, the normal commercial process of acquisition and/or merger is not available

due to restrictions contained in bilateral agreements that are designed to ensure thatownership and control of airlines remain with nationals of the countries where they are

based.

Growth through merger or acquisition enables airlines to achieve economies scale and

scope by consolidating airline functions. The merger of two airlines, for example, may

allow them to consolidate their ground handling, maintenance, information technology

and various managerial functions.

Airline Acquisition/Leasing Cost

Taking aircraft on lease is one of the preferred modes among the Indian carriers.

However, this has suddenly become costlier affair due to changes proposed in Union

Budget 2004-05. The budget proposes withdrawal of tax exemption granted to acquire

aircraft or an aircraft engine on lease prospectively from September 1, 2004. This has

resulted in imposition of withholding tax of 42% on leasing of aircraft. Impediment of

this kind at a juncture when almost all, Indian carriers are firming up their expansion

plans especially through leasing of aircraft is a setback. But after hard lobbying by the

industry the deadline was deferred until April 1, 2005, and would now be withdrawn for

lease agreements entered into after April 1, 2004.

All carriers barring Jet Airways will feel the heat of the sudden withdrawal of exemption

for taking aircraft for lease as they have significant plan to expand the fleet capacity by

leasing route. This includes both state carriers like Air India (AI), Indian Airlines (IA),

Alliance Air and private carriers like Air Sahara, Air Deccan. As Jet Airways that has

predominantly prefers owning aircraft rather than going for leasing.

As tax exemption will not be available for lease agreements entered on or after April 1,

2005 the Indian carriers who have plans to take aircraft on lease have to sign agreement


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either on or before the expiry date or they will have to bear additional cost burden.

Alternatively, taking aircraft on lease from a country with which India has double

taxation treaty or getting lease agreement signed in a third country could help avoid the

tax on lease rental. This may not be much helpful to state carriers and to some extent the

private players also due to auditing/ accounting procedures.

As leasing route is the most preferred one for a new entrant, the Budget initiatives will

prove be a heavy deterrent as they will escalate the effective lease rental cost by almost

42%.


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CH.7 MAJOR PLAYERS:

Indian Airlines

Air India

Indigo

Paramount Airways

Jagson Airline

Jet Airways

Air Sahara


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1. Indian Airlines:

Indian Airlines, Indias premier airline, has now been renamed as Indian. But Indian

Airlines (IA) had establish itself as such a strong brand name that majority of people are

still not aware that its name has been changed to Indian. Indian Airlines is fully owned by

the Government of India and came into came into being with the enactment of the Air

Corporations Act 1953.

Indian Airlines began its operation on 1st August 1953 and was entrusted with the

responsibility of providing air transportation within the country as well as to the

neighboring countries. Indian Airlines came into existence after nationalization of eight

private airlines. At the time of nationalization, Indian Airlines inherited a fleet of 99

aircraft consisting of various types of aircrafts. With nationalization Indian Airlines

started modernization in Indian civil aviation industry. Year 1964 heralded the beginning

of the jet era in Indian Airlines when the Caravelle aircraft was inducted into the fleet.

Continuous upgradation in its fleet has been going on ever since.

Presently, Indian Airlines, together with its fully owned subsidiary Alliance Air, has a

fleet of 70 aircraft (3 wide bodied airbus A300s, 47 fly-by-wire airbus A320s, 3 Airbus

A319s, 11 Boeing 737s, 2 Dornier Do-228 aircraft and 4 ATR-42). Another 43 new

aircrafts (i.e. 19 A319s, 4 A320s & 21 A321s ) are expected to be inducted in Indian

Airlines by November 2006.

Indian Airlines transport network spans from Kuwait in the west to Singapore in the east

and covers 76 destinations (58 within India and 18 abroad). The Indian Airlines

international network covers Kuwait, Oman, UAE, Qatar and Bahrain in West Asia;

Thailand, Singapore, Malaysia and Myanmar in South East Asia and Pakistan,

Afghanistan, Nepal, Bangladesh, Sri Lanka and Maldives in the South Asia

subcontinent.


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2. Air India

Air India is Indias national Airline. Air Indias history can be traced to October 15, 1932.

On this day J.R.D. Tata, the father of Civil Aviation in India and founder of Air India,

took off from Drigh Road Airport, Karachi, in a tiny, light single-engine de Havilland

Puss Moth on his flight to Mumbai via Ahmedabad.

Air India was earlier known as Tata Airlines. At the time of its commencement, Tata

Airlines consisted of one Puss Moth, one Leopard Moth, one palm-thatched shed, one

whole time pilot, one part-time engineer, and two apprentice-mechanics. Tata Airlines

was converted into a Public Company under the name of Air India in August 1946.

On March 8, 1948, Air India International Limited was formed to start Air Indias

international operations. On June 8, 1948, Air India started its international services with

a weekly flight from Mumbai to London via Cairo and Geneva with a Lockheed

Constellation aircraft.

In early 1950s due to deteriorating financial condition of various airlines, the Government

decided to nationalize air transport. On August 1, 1953 two autonomous corporations

were created. Indian Airlines was formed with the merger of eight domestic airlines to

operate domestic services, while Air India International was established to operate the

overseas services. The word 'International' was dropped in 1962. With effect from March

1, 1994, the airline has been functioning as Air India Limited.

Air India's worldwide network today covers 44 destinations by operating services with its

own aircraft and through code-shared flights. Important destinations covered by Air Indiaare Bangkok, Hongkong, Jakarta, Kuala Lumpur, Osaka, Singapore, Tokyo, Seoul, Dar-

es-Salam, Nairobi, Frankfurt, London, Paris, Birmingham, Abu Dhabi, Al Ain, Bahrain,

Dammam, Doha, Dubai, Jeddah, Muscat, Riyadh, Kuwait, Los Angeles, Chicago,

Newark, New York, and Toronto. Air Indias fleet consists of 38 aircrafts. These include


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12 Boeing 747-400, 1 Boeing 747-400 COMBI, 2 Boeing 747-300 COMBI, 19 Airbus

310-300, and 4 Boeing 777-200.

3. Indigo

IndiGo is the latest entrant to the domestic civil aviation space in India. The low cost

carrier took off its inaugural flight from Delhi to Imphal on August 4, 2006. IndiGo is

targeting those people who are cost conscious and are looking for affordability,

punctuality and hassle-free processing.

IndiGo presently has a fleet of four aircrafts and plans to expand its fleet and network in aphased manner. By the end of 2006, IndiGo is aiming at six aircrafts and 12 cities and has

plans to expand its fleet to 15 by the end of 2007. IndiGo proposes to serve around 30

Indian cities with a fleet of 40 Airbus A-320s by 2010. IndiGo would have fleet of only

one type of aircraft, the A-320 that has a capacity of 180 passengers.

Some of the sectors on which IndiGo is concentrating are Delhi - Imphal, Delhi - Pune -

Bangalore, Delhi - Kolkata - Guwahati, Delhi - Hyderabad, Delhi - Mumbai, and Delhi

Nagpur.

4. Paramount

Paramount Airways is a low-cost private airline operating in India. Paramount Airways

was launched on October 19, 2005 by the Paramount Group, a leading Indian textile

manufacturer based in Madurai. The headquarters of Paramount Airways is in

Coimbatore.


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Paramount Airways is unlike any other low-cost Indian airline. It provides exceptional

value for money, unparalleled comfort and convenience to the passengers. Paramount

Airways offers several value added facilities such as valets to assist in boarding the plane,

gourmet meals, and a range of in-flight services and entertainment.

Paramount Airways has number of firsts to its credit. It is the first airline in India to

launch the New Generation Embraer 170/190 Family Series Aircrafts. It is the first to

offer full business class services but at prices that are equivalent to the economy class

fares of other carriers. Paramount Airways is also the premium service schedule airline

offering first time direct services to a number of commercial Hubs in India, connecting

them to primary metros across the country.

Paramount Airways presently operates only in South India connecting Bangalore,

Chennai, Cochin, Coimbatore, Hyderabad and Madurai.

5. Jagson

Jagson Airline is a private low-cost budget airline based in Delhi, India. In 1991 when

the aviation sector was opened for the private sector, Jagson Airlines, was the first private

airline to avail of this opportunity. It commenced its operations in 1992.

Jagson Airline presently flies to select destinations in Himachal Pradesh, Uttaranchal and

Rajasthan. It also operates a helicopter service between Srinagar, Baltal and Amarnath.

Jagson Airlines has decided to expand its operations and would cover Delhi, Patna,

Bangalore, Mumbai, Kolkata, Guwahati, Jaipur, Dibrugarh and Goa in initial phase. In

the second phase, services would be expanded to Lucknow, Kochi and Hyderabad. For its

initial operations Jagson Airlines has taken six Airbus aircrafts on dry-lease.

The destinations currently covered by Jagson Airline are:

Delhi Jaipur


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Udaipur

Jaisalmer

Kullu

Shimla

6. Jet Airways

Jet Airways is Indias premier private airlines. Naresh Goyal

is currently the chairman of Jet Airways. Jet Airways

operates over 320 flights daily to 43 destinations in India and

currently controls about 40% of India's aviation market. JetAirways was the first private airline of India to fly to

international destinations. It operates daily international

flights to Colombo, Kathmandu, Singapore, Kuala Lumpur

and London (Heathrow). Jet Airways has won a number of

awards in recognition of standards of its service and has also

received the ISO 9001:2000 certification for its In-flight

Services.

Jet Airways was established on 3 May 1991 with a fleet of 4

Boeing 737-300 aircraft, with 24 daily flights serving 12

destinations. Jet Airways presently operates 55 aircrafts and

is now a public limited company. Its fleet of 55 aircrafts

include 3 Airbus 340-300E, 4 Boeing 737-800, 1 Airbus 330-

200, 1 Boeing 737-700, 18 Boeing 737-800, 8 ATR 72-500, 2

Boeing 737-900, 12 Boeing 737-700, and 6 Boeing 737-400.

Jet Airways was recently involved in a controversy. On

January 19, 2006 Jet Airways announced its decision to buy

fellow airlines Air Sahara for $500 million in an all-cash

deal. The deal was touted as the biggest in India's aviation


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history. But the deal fell midway and now the two parties are

involved in a fierce court battle.

7. Air Sahara

Air Sahara is one of Indias leading private airlines. It is part

of the multi-crore Sahara India Pariwar. Air Sahara was

established on September 20, 1991 and began operations on

December 3, 1993 with a fleet of two Boeing 737-200

aircrafts. It was then known as Sahara Airlines. Sahara

Airlines was rebranded as Air Sahara on October 2, 2000. On

March 22, 2004 Air Sahara became an international carrier

with the start of flights from Chennai to Colombo.

Presently, Air Sahara connects to 24 domestic and 4

international destinations with 134 daily direct flights and

offer 13900 seats per day. Domestic destinations include

important cities like Delhi, Bangalore, Mumbai, Kolkata,

Lucknow, Hyderabad, Pune, Chennai along with regional

destinations like Ahmedabad, Gorakhpur, Allahabad,

Bhubaneshwar and Ranchi. International destinations covered

by Air Sahara are Colombo, Kathmandu, Singapore, and

Chicago. Four more international destinations: KualaLumpur, Bangkok, Hongkong and London are proposed to be

covered soon.

Air Sahara currently has a fleet of 27 aircrafts. These include

1 Boeing 767, 5 Boeing 737-800, 8 Boeing 737-700, 4


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Boeing 737-400, 2 Boeing 737-300, and 7 CRJ -200. Air

Sahara also provides chartered helicopter services from Delhi

& Mumbai. Its fleet of helicopters include 3 ECUREUILS

AS-355-NM2, and 1 DAUPHIN AS-365-NM2.

CH. 9 COMPANY

INFORMATION

1 Air Deccan


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2 Go Air

3 Spice Jet

Air Deccan or Kingfisher Red

Kingfisher Red has been one of the most persistent low cost

Airlines in India . Kingfisher Red is the largest low cost

carrier in India and continues to grow along with the market.

From the very beginning, KingfisherRed has set very high


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standards for itself in bringing air travel within the reach of

the majority of Indians and to this end Kingfisher Red has

remained seriously committed.Flights

Kingfisher Red flights were started with an aim to make air

travel affordable to Indian travelers. Kingfisher Red flights

were primarily and most of them still are those flying in the

'no frills' low cost segment. Air Decan has a history which

started on a tragic note when the maiden flight of

KingfisherRed had a minor fire accident while it carried

many VIP passengers boarding it but the flight safely landed

and no one was hurt. Despite this symbolic downturnKingfisher Red established itself strongly throughout the

country and today there are around 337 KingfisherRed flights

everyday catering 64 destinations throughout India.

Kingfisher Red Achievements

Kingfisher Red is the first low cost carrier in India and a few

other airlines have come up since then which are competingin the same segment of the market. The list includes other

airliners like Spicejet and Indigo. KingfisherRed operates its

flights on a completely no frills policy and the passengers

have to pay for the food which they can order from the menu

provided to them by the Cabin crew. From time to time they

run shopping campaigns as well onboard Kingfisher Red

flights.

Air Deccan is India 's No.1 cheap air carrier working under

the aegis of Deccan Air Aviation Pvt. Ltd. which is the

largest heli-charter company in India . Air Deccan was found

in 1995 and since then it has gained up a noticeable sector of


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the Indian Aviation Industry. Air Decan Airlines has been

enjoying a reputation in the industry for delivering fast and

reliable heliporting to corporate segment, for tourism,

medical support and transit and logisctics support at off-shore

locations.ath, the MD is a graduate from the highly honored

National Defense Academy and is an ex-serviceman of the

Indian Army. He has also received the ROLEX Award for

Ecological site farming and the WIPRO PRSI Award for

commendable achievements in the industry. Air Decan is

already a major player in the low cost carrier segment

offering low airfares.

Kingfisher Red has the central base situated at the HAL

international airport, Bangalore and has a hub at International

Airport , Chennai. Recently Kingfisher Red has faced some

performance related problems as many of KingfisherRed

flights started getting delayed or cancelled which resulted in

loss in terms of brand value. Another important development

has been the investments made by UB group which is the

parent company of Kingfisher Airlines led by Dr.Vijay

Mallya. With much of the Indian domestic aviation market

still under-explored Kingfisher Red has tremendous scope to

grow into a much larger entity in the future.

Air Deccan Fleet

AirDeccan Air fleet (as of July'06) consists of 31 aircrafts

comprising of 14 A320-200 Airbus, 5 ATR 42-320, 5 ATR

72-212 A and 9 ATR 42-500 civil aircrafts.

The Air Decan Airline has also possessed 30 new A320

Airbus aircrafts which will soon be deployed for service by


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mid 2007. There are also plans to lease 30 ATR 72-500

aircrafts.

Air Deccan Achievements

Air Deccan Airlines opened air fare booking at Rs.3 (plus

taxes) for all Airbus sectors in Oct'06. This scheme is unique

to Deccan Airways.

Air Deccan Flights:

Air Deccan New Delhi

New Delhi-MumbaiFlightsNew Delhi-ChennaiFlightsNew Delhi-KolkataFlightsNew Delhi-BangaloreFlightsNew Delhi-HyderabadFlights

Air Deccan Mumbai

Mumbai-New DelhiFlightsMumbai-Chennai Flights

Mumbai-Kolkata FlightsMumbai-BangaloreFlightsMumbai-Hyderabad

Flights

Air Deccan Chennai

Chennai-New DelhiFlightsChennai-Mumbai FlightsChennai-Kolkata FlightsChennai-Bangalore

FlightsChennai-HyderabadFlights

Air Deccan Kolkata
http://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/New-Delhi-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Mumbai-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Chennai-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata


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Kolkata-New DelhiFlightsKolkata-Mumbai FlightsKolkata-Bangalore

FlightsKolkata-Chennai FlightsKolkata-HyderabadFlights

Air Deccan Hyderabad

Hyderabad-New DelhiFlights

Hyderabad-MumbaiFlightsHyderabad-ChennaiFlights

Hyderabad-KolkataFlightsHyderabad-BangaloreFlights

Air Deccan Bangalore

Bangalore-New DelhiFlightsBangalore-MumbaiFlightsBangalore-ChennaiFlightsBangalore-Kolkata

FlightsBangalore-Hyderabad

Rates

Kingfisher Red

Ahmedabad to

Hyderabad Rs.99Departing - Saturday,April 25, 2009Departing - 02:55 PMArrival - 04:25 PM

Kingfisher Red

Hyderabad to

Ahmedabad Rs.99Departing - Tuesday, April21, 2009Departing - 02:55 PMArrival - 04:25 PM
http://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Kolkata-to-Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabadhttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Hyderabad-to-Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalorehttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-New-Delhihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Mumbaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Chennaihttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Kolkatahttp://www.zoomtra.com/Flights/Air-Deccan-Airlines/Bangalore-to-Hyderabad


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Kingfisher Red

Hyderabad to

Ahmedabad Rs.99

Departing - Wednesday,April 22, 2009

Departing - 02:55 PMArrival - 04:25 PM

Kingfisher Red

Ahmedabad to New

Delhi Rs.500

Departing - Saturday,April 11, 2009Departing - 06:00 AMArrival - 07:35 AM

Kingfisher Red Mumbaito Ahmedabad Rs.500

Departing - Thursday,March 26, 2009Departing - 09:40 PMArrival - 10:40 PM

Kingfisher Red Mumbai

to Ahmedabad Rs.500

Departing - Wednesday,March 25, 2009Departing - 10:00 PMArrival - 11:00 PM

Kingfisher Red New

Delhi to AhmedabadRs.500

Departing - Monday, April13, 2009Departing - 09:30 PMArrival - 10:55 PM

Kingfisher Red New

Delhi to AhmedabadRs.500

Departing - Sunday, April12, 2009Departing - 09:30 PMArrival - 10:55 PM

Kingfisher Red Goa to

Mumbai Rs.1550

Departing - Monday,March 23, 2009Departing - 06:30 AM

Arrival - 07:25 AM

Kingfisher Red Goa to

New Delhi Rs.2800

Departing - Friday, April17, 2009Departing - 06:30 AMArrival - 10:05 AM

Kingfisher Red

Ahmedabad to New

Delhi Rs.500Departing - Monday, April13, 2009Departing - 06:00 AMArrival - 07:35 AM

Kingfisher Red

Ahmedabad to New

Delhi Rs.500

Departing - Sunday, April12, 2009Departing - 06:00 AMArrival - 07:35 AM

Kingfisher Red

Ahmedabad to New

Delhi Rs.500

Departing - Tuesday, April14, 2009Departing - 06:00 AMArrival - 07:35 AM

Kingfisher Red

Ahmedabad to New

Delhi Rs.500

Departing - Friday, April17, 2009Departing - 06:00 AMArrival - 07:35 AM


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Kingfisher Red

Ahmedabad to New

Delhi Rs.500

Departing - Thursday,April 16, 2009

Departing - 06:00 AMArrival - 07:35 AM

Kingfisher Red

Ahmedabad to New

Delhi Rs.500

Departing - Sunday, April19, 2009Departing - 06:00 AMArrival - 07:35 AM

Kingfisher RedAhmedabad to New

Delhi Rs.500

Departing - Saturday,April 18, 2009Departing - 06:00 AMArrival - 07:35 AM

Kingfisher Red

Ahmedabad to New

Delhi Rs.500

Departing - Tuesday, April21, 2009

Departing - 06:00 AMArrival - 07:35 AM

Kingfisher Red

Ahmedabad to New

Delhi Rs.500

Departing - Monday, April20, 2009Departing - 06:00 AMArrival - 07:35 AM

Kingfisher RedAhmedabad to New

Delhi Rs.500

Departing - Wednesday,April 15, 2009Departing - 06:00 AMArrival - 07:35 AM


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Air Deccan route:


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Go:


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Go Airlines (India) Pvt Ltd is the aviation foray of the Wadia

Group, The airline operates its services under the brand

GoAir. GoAir launched its operations in November 2005.

GoAir, a low-fare carrier launched with the objective of

commoditising air travel, offers airline seats at marginal

premium to train fares across India. The airline currently

operates across 11 destinations through 474 weekly flights.

The GoAir route network spans prominent business

metropolis as well as key leisure destinations across the

Indian subcontinent. GoAir is currently servicing the airports

at Ahmedabad, Amritsar, Bengalooru, Chandigarh, Cochin,Delhi, Goa, Jaipur, Jammu, Mumbai and Srinagar. Through

this route network GoAir ensures a smart value-for-money

option for both business and leisure travellers, without

compromising on either safety or service factors.

GoAirs distribution network has been well-researched and

after thorough evaluation of the available mediums, the

Airline has introduced a gamut of options designed to make

tickets very accessible to the end customer. GoAir has

convenient online booking options of on its web site wherein

the passenger or his associate can book GoAir tickets 24x7,

365 days a year from the comforts of his home. For

passengers who do not have a credit or debit card or access to

a Web Networked Computer, tickets can be booked from

other distribution mediums including GoTravel Agents or

GoCallCentre. Tickets are also available at the Airport

Counters.

GoAir is positioned as the Smart People's Airline. Its

captivating theme, Fly Smart is aimed at offering


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passengers a consistent, quality-assured and time-efficient

service through pocket-friendly fares. The airline uses the

state-of-the-art Airbus A320 aircraft fleet.

GoAir is based on 'punctuality, affordability and convenience'

business model. The airline has also partnered with Radixx

International, a leading technology provider of automated

aviation and travel related software solutions, for the use of

its Air Enterprise. The adoption of such technology solutions

enables GoAir to achieve superior process efficiency, thereby

helping transfer a greater portion of time savings to its

passengers.

Since January 2007, GoAir has been consistently recording

Highest Load factors in the industry. It has been recording an

average load factor of 86% achieved through a balanced mix

of good on-time performance and consistent quality of

customer service coupled with smart fares. As part of its

aggressive future outlook, GoAir plans to increase its fleet up

to 10 aircraft by the end of 2009 and to induct new routes

while efficiently servicing existing ones.

The Wadia Group has been in the fore-front of corporate

India for over 116 years. Today, the Group is broadly

diversified in several growth industries covering aviation,

textiles, chemicals, petrochemicals, plantations, foods,

electronics, light engineering, health, laminates, real estate

and consultancy. The Group Company has consistently

emerged as market leaders in every field they have entered.

Over the years, the Wadia Group has developed an enviable

record of successfully managing diverse technologies. The


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Wadia Group has earned a reputation as a household brand

through its businesses like Britannia and Bombay Dyeing.

About Go Air Airlines

Go Air is a domestic budget airline based in Mumbai, India

owned by Mumbai-based Wadia Group, majority owners of

Bombay Dyeing and Britannia Industries. The airline aims to

be the lowest-cost airline in India and will provide passengers

a comfortable and affordable option to popular holiday and

my grand project updated 25th

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