Aviation IndustryOverviewThe aviation industry in India is one of those sectors that saw a constant pace of growthamong the other industries in the world over the past many years. The 9th largest aviationmarket in the world is India. The prediction stated that international passengers will touch50 million by 2015. More opportunities in the aviation industry in India are likely to makeway for about 69 foreign airlines from 49 countries. Name of Players MarketFuture of Airlines industry in India ShareThe challenges of the Indian aviation Kingfisher Airlines 28%industry are cited below: Jet Airways and Jet Lite 25%Passenger traffic is estimated to grow at aCAGR of over 15% in the coming few years. Air India and Indian 16%The Ministry of Civil Aviation wouldhandle around 280 million passengers by Indigo 14%2020. Spice Jet 12%US$ 110 billion investment is envisagedtill 2020 with US$ 80 billion solely for new Go Air 3%aircraft and US$ 30 billion for developingthe airport infrastructure. Paramount 2%
Paramount’s OverviewFounder: M ThiagarajanEstablished: October 2005, head office in Madurai.Perspective: To offer exceptional value for money and to make your travelling experience a true delight with a world of difference.Vision: A dream to revamp air travel, taking it to higher vistas of comfort and class coupled with incredible economy-ensuring that you the passenger, is guaranteed true value for money.Values: Quality, uniqueness, efficiency, sincerity and trust
Business StrategyOperations : They are the first in the country to employ the New GenerationEmbraer 170/190 aircraft, and fitting in with the best technology available.Reach : Paramount Airways connects point to point and unlike the others havetargeted cities with lower air traffic.Geographically : They operate in 12 cities all over the country, includingdestinations like Kolkata , Guwahati and Agartala, and increasing the frequency.Economical : Offer Full Business Class service at prices comparative to NormalEconomy class fares of other Airlines.Comfort and experience : They don’t have any middle seats and providelarger space than the competitors in the same category.Variety : They provide a wide variety of to satiate the palate.
Business Strategy (cont.)Distribution and Operations : More internet-based than others, where thedistribution is more direct and low-cost.Frequency : Turn around time of aircraft is less than 20 minutes. This helps toutilize the aircraft for a much higher period of time, which in turn brings down thecost per hour of the flight.Service : Able to differentiate themselves substantially through best Offered costeffective service excellence. The dishes have been design taking in consideration various tastes and nutritional requirements.Benefit : Looked at aircraft with a small capacity of 88 seats as Government doesnot levy landing charges on aircrafts of capacity below 90 passengers.
Corporate StrategyGrowth Strategy:Expansion : Starting the international services from the year 2011. Paramount close to Rs 4,000-cr fleet deal : close to signing contracts worth Rs 4,000 crore with Boeing and Airbus. Paramount in acquisition mood post deal : Fresh from a $2 billion deal with Brazil for 40 aircraft. Acquire another airline at the earliest to strengthen its network in the North and Western parts of the country.Increase in Air Traffic : Paramount to add 500 flights, increasing the fleet size and increasing the air traffic.Customer Experience : Valued-added features including in-flight shopping, a frequent-flier programme that promises to be a lifestyle product, concierge services and gifts for passengers.
RecommendationBusiness Strategy :- Brand Positioning : Lags in brand building and customer engagement with the brand. Customers are not so aware of them, and hence more of the advertisement and engagement is required as they looking for expansion. Solution : Real Time FeedbackA holistic Strategy Real Time Response Efficient Market Constant MonitoringInteraction without interruption Research Special offers on IncreaseCo-Creation Twitter sales Discounts tickets for Volume students Engaging the customer inHaving a personality real time Customer Advocates Brand Co- Creation
RecommendationCorporate Strategy :-Cargo Segment : Increasing the products in the cargo segment, which will increase the efficiency of the company’s revenue by Some fair percent.CEO stated “ the revenue might increase by 30 to 40 percent”For E.g., Scope in carrying the floriculture products to different parts of India and even abroad.Employees Recruitment and Training : As they are looking for the expansion in almost all the forms, more ground staff and cabin crew should be employed who should be decent enough in understanding the key points of this industry. More efficient pilots should be employed with proper training facility and programs for them. As its expansion is also on the international level, it accounts to key factor.