Airline Industry in India
454 airports and airstrips
(includes Operational, Non Operational, Abandoned and Disused
127 are owned & operated by AAI
16 - international, 7 custom airports, 28 civil enclaves
Scheduled domestic air services - available from 82 airports
May 2007- May 2008
25.5 million domestic & 22.4 million international passengers
20% growth – highest in the world
Growth Rate Projections (for next 5 yrs)
15% p.a (Passenger Traffic)
11.4% p.a (Cargo Traffic)
first commercial flight airmails from allahabad to nani (10 km)
the aviation department of tata sons ltd . Established
tata airlines (successor to aviation sivision of tata son )
Tata Air Lines converted into a public Company and
renamed Air India Limited
• 1948 Air India International incorporated
• 1953 Nationalization of Aircraft Industry
Air India (serving the international sectors)
Indian Airlines (serving domestic sectors)
Deccan Airways, Airways India, Bharat Airways,
Himalayan Aviation, Kalinga Airlines, Indian National
Airways and Air Services of India
1986 Private Sector Players permitted as Air taxi operators
Players including Jet, Air Sahara, NEPC, East West,
Modiluft, etc started service
1990 Open sky policy
1994 Private Carriers permitted to operate scheduled services
2003 Entry of low-cost carriers
2007 Merger of Indian Airlines into Air India
Acquisition of Air Sahara by Jet Airways
2008 Kingfisher acquired 49% stake in Deccan Aviation
• Ministry of Civil Aviation
Responsible for the formulation of policy, development and regulation of
Civil Aviation. Its functions also extend to overseeing airport facilities, air
traffic services and carriage of passengers and goods by air
• Other Attached/Autonomous Organizations:
Directorate General of Civil Aviation (DGCA)
Promote safe and efficient Air Transportation through regulation and
proactive safety oversight system
• Bureau of Civil Aviation Security (BCAS)
Regulatory authority for civil aviation security in India
• Airport Authority of India (AAI)
Accelerate the integrated development, expansion and modernization
of the operational, terminal and cargo facilities at the airports
Open Sky Policy
100% for green field operations
74% for existing airports - 100% with special permissions
100% tax exemptions for 10 yrs.
49% in domestic airlines - 100% for NRI’s
74% in cargo & non-scheduled airlines
Low cost Carriers
changing the game
Others Airlines Market Share
Spice Jet 2%
Jet Lite Jet Airways
Air Deccan Kingfisher
15% Spice Jet
The Kingfisher AIRLINES
T h e ki n g o f go o d t i m e s
• Dr Vijay Mallya is the Chairman and CEO of Kingfisher
• Kingfisher Airlines Limited launched scheduled airline
services on May 9, 2005 with 4 daily flights between BOM
& BLR and one A-320 aircraft.
• There are tools for mood lighting such as web chat, inseat
plugins for music, liveTV with 16 channels on each seat
• 100 percent E ticket airline
• The Kingfisher Airlines family will
consistently deliver a safe, value-based
and enjoyable travel experience to all our
• Geographic Region
Segmentation • Social Classes
• Income Level
• Kingfisher First
• company executives
Targeting • Kingfisher Class
• lower middle, upper middle, lower upper segment
Positioning • Benefits
• Strengths Opportunities
First airline with full new fleet of Under penetrated domestic
Quality hospitality provided to International market
customers Untapped air cargo market
Route rationalization Expanding tourism industry
Already have training academy
• Weaknesses Threats
Service delivery to metros and Existing Operators
other big cities Infrastructure issue
Yet not in profit Fuel price hike
High ticket pricing Economic slowdown
High attrition in top brass
1) Open sky policy
2) FDI limits: 100% for Greenfield airports
74% for the existing airports
100% through special permission
49% for airlines.
1) Contribution to the Indian economy.
2) Rising cost of fuel.
3) Investment in the sector of aviation.
4) The growth of the middle income group family affects the aviation
1) Development of cities leads to better services and airports.
4) The status symbol attached to a plane travel
1) The growth of e-commerce and e-ticketing.
2) Satellite based navigation system.
3) Modernisation and privatisation of the airports.
4) Developing green field airports with private sector for example in
Bangalore the airport corporation limited.
1)The increase in the global warming.
2)The sudden and unexpected behavior of the atmosphere and the
dependency on whether.
3)Shortage of the infrastructural capacity
1) FDI limits
2) Bilateral treaties
3) Airlines acquisitions and the leasing cost.
• Fleet Size
• International Foray
• Magazine and Newspaper ads
• Exposure at non-corporate event
• Participation in International Airshows
Promotions • Endorsing celebrities like Katrina Kaif and Yana Gupta
• Booking the ticket - online booking or tele-booking or from any of the kingfisher outlet
• Personal valets
• Exclusive lounge space
• Hi! Blitz
• Gourmet cuisine
• world class cabin crew
Physical • 5 trendy video- Fun TV; 10 music stations -Kingfisher Radio
•Dynamic pricing model - Multiple fare levels
•No hidden restrictions.
•Pricing model - 8 different levels
Price •Discounts provided from time to time
•Backbone of the brand
•Hospitality industry and consider their customer as guests
•Interpersonal skills, aptitude, and service knowledge
•Online Booking - www.flykingfisher.com
•Online Booking - Yatra.com, MakeMyTrip.com, ezeego1.com
•Credit Cards & Debit Cards Payment
•SMS / Call
•Outlets in every major city and at every airport across the country
PORTERS FIVE FORCE
Indian airlines Increasing
Fuel supplier awareness
Exposer to globle
Other models of
• Kingfisher Airlines has posted a net loss of Rs
577 crore in the financial year ended March
2007, the balance sheet of UB
Holdings, which owns the airline, shows.
Founded in 1993, Chairman - Mr.Naresh Goyal
HQ in Mumbai
Country’s second largest international airline
Largest domestic airline - 31%
Primary base - Mumbai's Chaatrapathi ShivajiAirport
Secondary hubs - Bangalore, Brussels, Chennai, Delhi,
Hyderabad, Kolkata and Pune.
April,2007 - Acquired Air Sahara - JetLite
Now JetLite integrated into Jet Airways
Jet Airways will be the most preferred domestic airline in India. It
will be the automatic first choice carrier for the travelling public and
set standards, which other competing airlines will seek to match.
Jet Airways will achieve this pre-eminent position by offering a high
quality of service and reliable, comfortable and efficient operations.
Jet Airways will be an airline which is going to upgrade the concept
of domestic airline travel - be a world class domestic airline.
Jet Airways will achieve these objectives whilst simultaneously
ensuring consistent profitability, achieving healthy, long-term returns
for the investors and providing its employees with an environment for
excellence and growth
Primary Segments (Geographic) - Domestic & International
First class, Premiere(Business) class & Economy class
Business travelers, contribute 48% of passengers & 66% of revenues,
ready to pay higher prices, last time booking, don’t like transit
Leisure travelers, prefer low cost airlines, ready for transit if there is cost
advantage, large % of passengers
Seat Allocation – Yield Management Technique
Positioning – High value for High price
Unique Selling Price – Customer relationship and Punctuality
Experience exceeding 14 year
Only private airline with international operation
Largest fleet size
Loosing domestic market share
Old fleet with average age around 4.79 years
Scope for improvement in in-flight service
Weak brand promotion
Untapped air cargo market
Scope in international service and tourism
Fuel price hike
Overseas market competition
License issue for international
ATF price policy
Rising income level
Reduced fare but yet not enough
Modernization of aircrafts
Modern technology like CAT3
Economy & Club Premiere Fare
Discounted fare for senior citizens & defense personnel
Advance Passenger Excursion/ APEX Fares
Night Saver Fares
US Dollar Fares & Visit India Fares
Place of Service - Aircraft
Companion Free Offer, One Fare, Concessional fares, JetPrivilege
Jet Airways Citibank Credit Cards, Corporate Deal Offers, International
Specials, Camp Rock contest, Festival specials, Student
specials, Surprises etc.
Advertising and Branding
People physically enter the service system to receive the service.
Aircraft is the
service factory where service is delivered.
Luggage & Courier
Servicescape usage - Interpersonal
Complexity of Servicescape - Elaborate
Offices - Org. & Ticket Booking Agents
Jet Airways - Performance
Annual Revenues - Rs.9481.5 crores (2007-08)
Rs.7401 crores (2006-07)
Profit(Loss) After Tax - Rs.253 crores loss (2007-
Rs.27 crores profit
- All Other Domestic Players showed loss(2006-
Kingfisher Jet Airways
• Kingfisher is one of the • Jet Airways is the
latest Airlines in experienced airline in
• Overall growth in year • Overall growth in
2006-07 is 37%. year 2006-07 is 16%.
• Kingfisher acquired • Jet airways acquired
46% share in Air Air Sahara in 2006.
Deccan. • Jet Airways already
• Domestic airlines has domestic as well
poised to go as international
international flights flights.
Kingfisher Jet Airwayss
• In a short span of 2 • Jet Airways has its
years its market share market share 31%
has become 28% including Air Sahara.
including Air Deccan. • Average
• Personal in-flight entertainment
entertainment in every services.
seat. • Jet Airways won
• It was awarded the Double Honour Travel
‘Best New Airline Of Trade Gazette Travel
the Year’ award. award.
• Already have training • They are plan to start
academy training academy.