SIZE OF THE AVIATION MARKET:
• India's strong economic growth has boosted the market for air travel.
• Flying has become more affordable in India.
• India recorded a 25% growth in air passenger traffic in last year alone.
• Aviation has been a major opening for women, particularly in the area of flying.
• The air transport (including air freight) in India has attracted foreign direct investment (FDI)
worth US$ 449.26 million from April 2000 to march 2013.
Airline Market Share (%)
Jet Airways (India) 22.6
Air India (Dom) 19.2
Market Share For April 2013
• Primarily Indian cuisine
• Breakfast, lunch and dinner
• No Hot Meal for Economy Class for flight duration 0-60 mins. & 61-90 mins (provided
• Exclusive Air Bazar catalogue Selection of preferred product Presenting the
order form to any AVA “Shop & Collect” counters and pay via cash/credit card or
redeeming of points against any great offers.
• Deals with on-board duty free products such as fragnances, toys, cosmetics, jewellery,
cigarettes, gifts and liquor .
• Personal Entertainment Appliance sets to decide what to see or hear. Variety of music,
both traditional and western or even latest films.
Belongs to Wadia Group, Mumbai.
Key people: Jehangir Wadia (MD), Giorgio De Roni (CEO)
• Free for business class travellers.
• Has to be purchased by economy class travellers.
• It is a magazine, mainly for the advertisers, and has a reader profile of male, female,
housewives, businessmen, youngsters, etc.
• It provides information starting from personal care, cuisine, tourism, etc.
In flight product sampling or brochure distribution
• A product like sample bottle, sachet, discount coupon, mini brochure, tri fold brochure,
subscription forms, redeem vouchers etc can be distributed.
• These articles will be distributed by the cabin crew itself during a flight.
• Only one client at a time can do this activity hence extremely clutter free.
• Direct handover creates a lot of impact and ensures high brand recall and boost in sales.
Founder: Rakesh S. Gangwal and Rahul Bhatia, 2006
Key people: Rahul Bhatia (MD), Aditya Ghosh (President)
In flight product sampling or brochure distribution
• IndiGo offers an assortment of vegetarian/non-vegetarian sandwiches, flavored
cashew nuts, cookies, soft drinks and juices for sale on-board.
• Drinking water is provided free of charge on all its flights to all customers.
• Food can also be carried on board, and the allowed food items include: cold snacks,
non-alcoholic drinks, snack bars and biscuits (except: messy, oily or smelly food
Founder: Naresh Goyal, 1st April 1992 (commenced operations from 5th May, 1993)
• It offers a virtual feast of entertainment for travellers- from blockbuster movies to the
latest music albums, from award-winning TV shows to the best games.
In-flight Child care
Washrooms are equipped with a diaper changing table. Our cabin crew can assist you to
While making a reservation, guests travelling with infants may request for seats with
bassinets. Bassinet seats are available on our international flights operated by aircrafts
Airbus 330 and Boeing 777-300ER.On our Boeing 777-300ER, bassinets are available in
Economy (only for international flights).
Owner: Sun Group, India
• in-flight entertainment magazine.
• SpiceJet is a low cost airline, for which there is no electronic in-flight entertainment.
• Both vegetarian and non-vegetarian (but has to be purchased).
• Choice of meal and preference of seat during the time of booking can be done.
JetEscapes Holidays (Jet Airways)
• It is a one stop shop for amazing worry free vacations and weekend getaways across jet
• JetEscapes Holidays include air travel, accommodation, sightseeing and travel insurance.
JetEscapes Land Packages(Jet Airways)
• On the basis of customers selection of time and type of travel, jet airways manages
holiday essentials and also special requests at preferred destination.
• JetEscapes Land Packages include transfers, accommodation, sightseeing and travel
THREAT OF NEW ENTRANT – LOW
• Entry cost is very high
• Intense competition
• Slow growth rate
THREAT OF SUBSTITUTES–MODERATE
• Due to existence of roadways and railways
• With the increase in technology, many business dealings can be completed without even
travelling to respective places
BARGAINING POWER OF CUSTOMER – MODERATE
• Lack of differentiation in terms of services provide.
• Low switching costs
• Price sensitivity (with emergence of online booking options)
BARGAINING POWER OF SUPPLIERS – HIGH
• Limited numbers aviation fuel suppliers
• Supply of aircraft spare parts are mainly from Boeing and Airbus
• Labour unions – pilots, cabin crew, ground personnel, etc.
COMPETITION WITHIN THE INDUSTRY – HIGH
• Price competition is intense
• Increase in air travelers
• High number of players
“PROBABLE” INNOVATIONS IN THE NEAR FUTURE
• Installation of Wi-Fi systems
• Allowance to carry one or more digital devices
• Reading lights that does not spread onto a neighbour’s space.
• More localised temperature controls that can be operated from a personal display
Adaptors are classified into five types:
• Innovators (2.5%)
• Early adopters (13.5%)
• Early majority (34%)
• Late majority (34%)
• Laggards (16%)
NEW PRODUCT LAUNCH THAT
OCCURRED OR COULD BE
Expected in India:
• C series aircrafts, which would give 12% cost advantage compared to other
• A possible tie-up of SpiceJet with Singapore based low-cost airlines caleed Tiger
• Wi-Fi technologies
• More leg space
• Intelligent interface cabin
Indigo has adopted strategy to sustain in the current difficult environment.
• It tries to keep its cost lowest amongst the low cost airlines
• Provide passengers with best on time performance
• Clean aircraft, and high reliability
• To offer its passengers a consistent, quality-assured and efficient performance at
• Best on-time performance
• Quick turnaround of aircraft (loading, unloading, re-fueling, and re-arming) that
average around 25 minutes
• Delivering value to customers
COMMUNICATION EFFORTS BY
• Corporate tie-ups( hoarding: Petrol Pumps)
• Bill Boards
• Radio Promotion
• In-Flight magazines
• Electronic mailer, SMS promotion