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Research methodology aviation industry

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  • 1. A STUDY ON AVIATION INDUSTRY OF INDIA Annapurna Juhi Gupta Lalit Kumar Anirudh T. Venkat Chinna Srinivas
  • 2. 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
  • 3. 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.
  • 4. MARKET SHARE Airline Jet Airways Market share (%) 26 (Jet Airways +Jet Lite) (18.6+7.4) Kingfisher Airlines NACIL 20.6 IndiGo 16.3 Spice Jet 12.9 Go Air 5.9 Paramount 0.9 17.6
  • 5. 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.
  • 6. 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
  • 7. • Social Diversity in population Crew members behaviour Increasing expectations of the customers • Technological Internet (Online facilities) Modernization of airports Satellite based Navigation system
  • 8. 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.
  • 9. BUSINESS DIVERSIFICATION • Kingfisher • Spice jet • Air India • Indigo • Jet airways
  • 10. 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.
  • 11. Technology Intensity • • • • • • • Remote controlled airliners Bio monitors Remote video monitoring Light guns to dazzle attackers Bar code technology Whole body imaging The touch screen
  • 12. 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.
  • 13. 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.
  • 14. 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.
  • 15. 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.
  • 16. THANK YOU