2. Current Status
Where we are
We are
• low cost
• People focused
• Operating in South India connecting
Bangalore, Chennai, Cochin, Coimbatore, Hyde
rabad and Madurai
• Headquarters in Madurai
• Have 5 aircrafts – Boeing 737
3. Objective
Where we want to be
• Pan-India presence
• Phased approach to expansion starting from
the west, east and north of India
• West – Mumbai, Goa, Jaipur
• East - Kolkata, Guwahati, Agartala
• North – Delhi, Chandigarh, Patna, Lucknow
• Add 5 aircrafts per phase on a lease.
4. Business Model
• Low cost
– Less operational cost
• Direct import of aviation turbine fuel
• Max time flying, less time on land
• Aircrafts stationed near the runway
• Aircrafts acquired on lease.
• Operating using only Boeing 737
5. Business Model
People
• Passengers
– Affordable prices
– Food charged separately
– Only ‘Economy’ class
– Comfortable prices
– Prime time flights
• Employees
– Pilots
– Cabin Crew
– Administration
6. High barriers to entry due to
Threat of the lucrativeness of the
New business
Entrants Depends on government
If operates using a single
policies, huge capital
type of aircraft
cost, fuel availability, etc
(Boeing), then greater
power of the
supplier, airports
Better Deal
Bargaining Bargaining
Competitive
Power of Power of
Rivalry
Suppliers Buyers
For big customers such as
HNIs or large corporates,
buyers have an influence
else not much bargaining
power, CRM
- For Business purposes, with Threat of
the advent of Substitutes
internet, meetings can be
done online
7. Business Environment
• Indian Airline industry
• Region – phased expansion
• Regulatory Bodies
– Directorate General of Civil Aviation
– Bureau of Civil Aviation Security
– Airports Authority of India
– Airports Economic Regulatory Authority
8. Challenges
• Competition
• Expansion (going pan-India)
• Risk Management
• Capital requirements
• Regulatory Policies (DGCA)
• Retention of employees (pilots, crew members)
• Procurement of ATF
• Facilitators like airport authorities, aircraft and its
component vendors
• Competitive tariff rates
