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Sanket Bharte
Sanket Bharte

A Project Report On Aviation Industry Submitted By Name Roll Number Miss. KiranBendre 05 Mr. KalidasBhandwalkar 06 Mr. SanketBharte 07 Miss. SangitaBhilare 08 Class: - MBA I, VIIT,Baramati Under The Guidance Of Dr. RupendraGaikwad Subject:- Industry Analysis- Desk Research (215) Index Chapter No Contents Page No 1 Industry Analysis Nature of the Industry, Market share of the company 3 2 Promoters & Management Ethos Background of promoters CSR policies 3 External environment Controlling ministry 4 Financials Ratio analysis of financial data 5 Recent development Margers & Acquisition Indian Aviation Industry Chapter 1 : Industry Analysis – the Basics History of the Industry The first commercial flight in India was made on February 18, 1911, when a French pilot MonsignorPiquet flew airmails from Allahabad to Nain, covering a distance of about 10 km in as many minutes. Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350. For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful. In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth. Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issui

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1 A Project Report On Aviation Industry Submitted By Class: - MBA I, VIIT,Baramati Under The Guidance Of Dr. RupendraGaikwad Subject:- Industry Analysis- Desk Research (215) Name Roll Number Miss. KiranBendre 05 Mr. KalidasBhandwalkar 06 Mr. SanketBharte 07 Miss. SangitaBhilare 08
2 Index Chapter No Contents Page No 1 Industry Analysis Nature of the Industry, Market share of the company 3 2 Promoters & Management Ethos Background of promoters CSR policies 3 External environment Controlling ministry 4 Financials Ratio analysis of financial data 5 Recent development Margers & Acquisition
3 Indian Aviation Industry Chapter 1 : Industry Analysis – the Basics History of the Industry The first commercial flight in India was made on February 18, 1911, when a French pilot MonsignorPiquet flew airmails from Allahabad to Nain, covering a distance of about 10 km in as many minutes. Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350. For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful. In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth. Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issuing all rules and procedures governing Indian airports and airspace. Finally, the Airports Authority of India was entrusted with the responsibility of managing all national and international air ports and administering every aspect of air transport operation through the Air Traffic Control. With the opening up of the Indian economy in the early Nineties, aviation saw some important changes. Most importantly, the Air Corporation Act was repealed to end the monopoly of the public sector and private airlines were reintroduced.
4 Nature of the Industries: - The airline industry is highly competitive and subject to rapid change. We may be unable to compete effectively against other airlines with greater financial resources or lower operating costs, or to adjust rapidly enough in the event the nature of competition in our markets changes. The airline industry is highly competitive as to fares, flight frequency, frequent flyer benefits, routes and service. The industry is particularly susceptible to price discounting because airlines incur only nominal costs to provide service to passengers occupying otherwise unsold seats. Over the past few years, airlines have reduced domestic routes and the number of planes available, which has resulted in reduced domestic industry capacity and a trend towards increased fares. Although capacity has declined based on a nationwide average, capacity on the West Coast has not declined to the same degree due to increased competition from new market entrants. If airlines decide to increase their capacity in the future, this could cause fares to decline, which may adversely affect our business and results of operations. Many of our competitors are larger than we are and therefore, may have significantly greater financial resources and name recognition or lower operating costs than we do. In addition, competitors who have successfully reorganized out of bankruptcy have lowered their operating costs as a result of renegotiated labor, supply and financing agreements. From time to time in the past, some of these competitors have chosen to add service, reduce their fares, or take other competitive steps in our key markets. We may be unable to compete effectively against other airlines that introduce service or discounted fares in the markets that we serve. The airline industry, and particularly regional airlines like Horizon, also faces competition from ground transportation alternatives, such as buses, trains or automobiles. Increased use of technology such as video conferencing and internet-based meeting tools have also resulted in a change in business travel, especially in short-haul markets like those that Horizon serves. Players of the Industry- • Air Deccan • Air-India Express • Air India • Go Air • Indian Airlines
5 • IndiGo • Jet Airways • Jet Lite • SpiceJet • Air Charter Services Pvt Ltd • Air Charters India Size of the Industry There are about 450 airports and 1091 registered aircrafts in India Today. Geographical distribution Mumbai, Kolkata, Hyderabad, Delhi, Pune, Bangalore, Chennai. Output per annum Growth rate of 18% per annum Nature of Competition From an economist’s perspective in the Industry Following types of competition ins exists in Indian Automobile Industry : Perfect Competition Monopolistic Competition Oligopoly Monopolistic Competition : Current Trends in the current Monopolistic Automobile Market : Considering huge market potential, production of passenger cars is projected to grow at CAGR of 11% between 2010-11 and 2013-2014.
6 Market Size  Domestic Air Traffic quadrupled from 13 million to 52 billion in last decade  International Traffic more than tripled to 38 million  87 foreign airlines fly to and from India and 5 Indian airlines fly to and from 40 countries  45 million tons of cargo through 920 airlines, using 4200 airports and deploying 27000 aircrafts  Projections for traffic during the Eleventh Five Year Plan, which shows increase in passenger traffic (i.e. 18.8%) as compared to cargo (i.e. 11.4%). The figure is as follows: Indian Aviation Industry a glance in 2011 - 2012  Indian aviation witnessed growth, both in domestic as well as international passenger traffic - 18%  Operational losses despite growth in passenger traffic  Debt trapped industry - combined debt of Indian airlines companies was around USD 15 Billion as of March 2012  Negative sentiment observed from international Financial Institutions  The total loss for all the airlines FY12 was approximately USD 2.5 billion according to the Ministry of Civil Aviation.  The only carrier that remained a profit-making operation was low-cost IndiGo, which also hit the headlines by announcing an order for 180 aircraft from Airbus Industries worth as much as $15.6 billion.  They also reported the fullest aircraft in Jul-2012India’s carriers today face a deteriorating cost environment on a number of fronts.
7 Oligopoly Competition: Oligopoly Features:  Small number of sellers  Products may be similar or different  Significant barriers to entry  Interdependence among competitors (Decisions made by one firm affect the demand, price and profit of others in the industry)nd C Kink Demand Curve Model
8  The airlines often use other means to create psychological impact. They use advertising to stimulate the potential traveler by depicting glamorous vacations and exciting adventures in distant places, and they emphasize that these places are only a few hours away by air. This is to gain more business from other transportations.  The effects of advertising manifest themselves in both the short and the long run. In terms of intra-industry competition, an airline can at best only hope to use advertising as a means of increasing market share in the short run. Demographic and Natural • Changing pattern of consumers • Highest percentage people of group 20-25 • Educational environment • High energy cost GROWTH OF THE INDUSTRY • The growth of airlines traffic in Aviation Industry in India is almost four times above international average. • Domestic airlines passengers traffic in increasing at the rate of 25%. • India ranks fourth after US, China and Japan in terms of domestic passengers volume. • The domestic aviation sector is expected to grow at a rate of 9-10 per cent to reach a level of 150-180 million passengers by 2020. • The industry witnessed an annual growth of 12.8 per cent during the last 5 years in the international cargo handled at all Indian airports. • Further, there has been an increase in tourist charter flights to India with around 686 flights bringing 150,000 tourists. • It is predicted that international passengers will grow upto 50 million by 2015 • Aviation is now affordable with check fares and discount schemes. • Various Operators with different business model. • Regional connectivity – Tier II & Tier III cities
9 Top 3 Players in theaviation industry with market share : IndiGo Rank: 1 Market Share: 32.6% SpiceJet Rank:2 Market Share: 19.5% AirIndia Rank: 3 Market Share: 16.2% Leaders : • Go Air • Jetairways Bottom 3 players in the industry with market share  kingfisher  bluedart CHALLENGES  Initializing privatization in the airport activities  Modernization of the airlines fleet to handle the pressure ofcompetition in the aviation industry  Rapid expansion plans for the major airports for the increased flow of air traffic  Development for the continuously growing Regional Airports  Costs pressures (ATF Prices & Staff Cost) Followers :  Vistara
10 About air lines The total fleet size of commercial airlines in India was 371 by 20 February 2013. In 1994, the Air Corporation Act of 1953 was repealed with a view to remove monopoly of air corporations on scheduled services, enable private airlines to operate scheduled service, convert Indian Airlines and Air India to limited companies and enable private participation in the national carriers. Since 1990 private airline companies were allowed to operate air taxi services, resulting in the establishment of Jet Airways and Air Sahara. These changes in the Indian aviation policies resulted in the increase of the share of private airline operators in domestic passenger carriage to 68.5% in 2005 from a meager 0.4% in 1991. Operational airlines Airline ICAO IATA Call Sign Commenced Operations Headquarters Status Air India AIC AI AIRINDIA October 1932 as Tata Airlines Delhi National Carrier Air India Express AXB IX EXPRESS INDIA April 2005 Kochi National Carrier Air India Regional LLR CD ALLIED 1996 (as Alliance Air) Delhi National Carrier AirAsia India ADI I5 ARIYA 12 June 2014 Bengalore Scheduled Air Costa LEP LB LECOSTA October 2013 Vijayawada Scheduled Air Pegasus — — — 2015 Bengaluru Scheduled Air Odisha — — 02 November 2012 Bhubaneswar Non- Scheduled Blue Dart Aviation BDA BZ BLUE DART 1995 Chennai Cargo Club One Air — — — August 2005 Mumbai Non- Scheduled Chhattisgarh Air Link — — — 2012 Raipur Scheduled Deccan Charters DKN DN 1997 Bengaluru Non- Scheduled Deccan Shuttles DKS DS 2012 Ahmedabad Non- Scheduled Fly Easy — — — 2015 Bangalore Scheduled GoAir GOW G8 GOAIR 2005 Mumbai Scheduled IndiGo IGO 6E IFLY August 2006 Gurgaon Scheduled Invision Air — — — March 2011 Mumbai Non- Scheduled
11 Jagson Airlines JGN JA JAGSON Delhi Scheduled Jet Airways JAI 9W JET AIRWAYS May 1993 Mumbai Scheduled Pinnacle Air PNC PX PINNACLE October 2013 Ranchi Non- Scheduled Quikjet Cargo FQA QO QUIK LIFT Feb 2012 Bengaluru Cargo SpiceJet SEJ SG SPICEJET May 2005 Chennai Scheduled TajAir MGE TX — November 1993 (as Megapode) Mumbai Non- Scheduled Ventura Airconnect VNT — AIRCONNECT July 2011 Gurgaon Non- Scheduled Vistara VTI UK VISTARA 9 Jan 2015 Delhi Scheduled Defunct airlines This is a list of now defunct airlines from India. Airline Commenced operations Ceased operations Headquarters Air India Cargo 1954 2012 Mumbai Air Deccan 2004 2007 Merged with Kingfisher Airlines and rebranded as Kingfisher Red Bengaluru Air Mantra 2012 2013 Delhi Air Sahara 1991 2006 Merged with Jet Airways and rebranded as JetLite Mumbai Air Services of India 1936 1953 Mumbai Airways (India) Limited 1945 1955 Kolkata Ambica Airlines 1947 1949 Bombay Archana Airways 1991 1999 New Delhi Aryan Cargo Express 2005 2010 New Delhi Bhaarat Airways 1995 1999 Mumbai Crescent Air Cargo 2000 2006 Chennai Damania Airways 1993 1997 Renamed Skyline NEPC after takeover by the owners of NEPC Airlines Mumbai DarbhangaAviations 1950 1962 Kolkata Deccan 360 2009 2011 Bangalore
12 East-West Airlines 1992 1995 Mumbai Elbee Airlines 1994 1998 Mumbai Gujarat Airways 1995 2001 Vadodara Himalayans Air Transport & Survey Limited 1934 1935 Kolkata Himalayan Aviation 1948 1953 Kolkata Indian 1953 2011 Merged with Air India New Delhi Indian National Airways 1925 1945 Delhi Indian Overseas Airlines 1947 1950 Mumbai Indian State Air Service (ISAS) 1929 1931 Kolkata Indian Transcontinental Airlines 1933 1948 Kolkata Indus Airways 2006 2007 New Delhi Irwaddy Flotilla & Airways 1934 1939 Chennai Jamair 1946 1977 Kolkata JetKonnect 2012 2014 Mrged with Jet Airways Mumbai Jetlite 2007 2012 Merged with JetKonnect Mumbai Jupiter Airways 1948 1949 Mumbai Kalinga Airlines 1946 1965 Kolkata Kingfisher Airlines 2005 2013 Bengaluru Kingfisher Red 2007 2013 Mumbai MDLR Airlines 2007 2009 New Delhi ModiLuft 1994 1996 Mumbai NEPC Airlines 1993 1997 Chennai Orient Airways 1946 1955 Moved to Karachi and later merged into PIA Kolkata Paramount Airways 2005 2010 Chennai Pushpaka Airlines 1979 1983 Mumbai Tata Airlines 1932 1946 Mumbai Vayudoot 1981 1997 New Delhi VIF Airways 1993 1996 Hyderabad Vijay Airlines 1981 1997 Chennai
13 Profile of Top 3 Companies 1. INDIGO IATA 6E ICAO IGO Callsign IFLY Founded 2006 Commenced operations 15 August 2006 Hubs  Indira Gandhi International Airport (Delhi)  SardarVallabhbhai Patel International Airport (Ahmedabad) Secondary hubs  ChhatrapatiShivaji International Airport (Mumbai)  NetajiSubhash Chandra Bose International Airport (Kolkata) Focus cities  Chennai International Airport (Chennai)  Kempegowda International Airport (Bengaluru)  ChaudharyCharan Singh International Airport (Lucknow)  Rajiv Gandhi International Airport (Hyderabad)  Cochin International Airport (Kochi)  Pune Airport (Pune)  LokNayakJayaprakash Airport (Patna) Fleet size 90 Destinations 37 Parent company InterGlobe Enterprises Headquarters Gurgaon, Haryana, India Key people Rahul Bhatia, MD AdityaGhosh, president Revenue 111.17 billion (US$1.7 billion) (2014)
14 Net income 3.17 billion (US$50 million) (2014) Website www.goindigo.in IndiGo is an Indianbudget airline company headquartered at Gurgaon, India. It is the fastest growing and also the largest airline in India with a market share of 36.1% as of December 2014. The airline offers 564 daily flights connecting to 37 destinations including 5 international destinations with its primary hub at Delhi's IGI Airport. It presently operates a fleet of 90 aircraft belonging to Airbus A320 family.
15 Chapter 1 :History History of IndiGo IndiGo was set up in early 2006 by Rahul Bhatia of InterGlobe Enterprises and Rakesh S Gangwal, a United States-based NRI. InterGlobe holds 51.12% stake in IndiGo and 48% is held by Gangwal'sVirginia-based company Caelum Investments. IndiGo placed a firm order for 100 Airbus A320-200 aircraft in June 2005 with plans to commence operations in mid-2006. IndiGo took delivery of its first Airbus A320-200 aircraft on 28 July 2006, nearly one year after placing the order, and commenced operations on 4 August 2006 with a service from New Delhi to Imphal via Guwahati. By the end of 2006, the airline had six aircraft. Nine more aircraft were acquired in 2007 taking the total to 15. By December 2010, IndiGo replaced the state run flag carrier Air India as the top third airline in India. It already had 17.3% of the market share, behind Kingfisher Airlines and Jet Airways. By early 2012, IndiGo had taken the delivery of its 50th aircraft in less than six years. IndiGo is known to have placed the largest order in commercial aviation history during 2011 at that time, when Airbus won the US$15 billion deal for 180 aircraft. This deal pushed up the percentage of Airbus aircraft in India to 73%. By February 2012, IndiGo was expanding rapidly and was making solid profits, the only airline in India to do so. It had replaced Kingfisher as the second largest airline in India in terms of market share. IndiGo's strong adherence to a low-cost model, buying only one type of aircraft and keeping operational costs as low as possible along with an emphasis on punctuality are said to be some of the reasons for its success even when the airline industry in India was going through a bad patch. IndiGo focuses on adding a new plane every six weeks and sometimes even faster. However, this rapid expansion led to a scathing report by the DGCA in December 2011, which highlighted problems resulting from this expansion in the airline that could impact safety. On 17 August 2012, IndiGo became the largest airline in India in terms of market share (27%),which is more than one-fourth of total market share of all the Indian airlines combined, in the process dethroning the full-service carrier Jet Airways, which had held that position for many years. The airline had reached the position just six years after operations commenced. In January 2013, the Centre for Asia Pacific Aviation announced that, following Indonesian airline Lion Air, IndiGo was the second fastest growing low-cost carrier in the continent. In the same month, IndiGo became India's first airline to take the delivery of the Airbus A320-200 aircraft equipped with sharklets. AdityaGhosh, IndiGo's president said that this move would help them reduce fuel burn. In February 2013, following the civil aviation ministry announcing that they would be allowing IndiGo to take the delivery of only five aircraft that year, reports suggested that the airline was in plans to introduce low- cost regional flights by setting up a subsidiary. However, AdityaGhosh, IndiGo's president said that all such reports were untrue and IndiGo was actually in plans to seek permission from the ministry to acquire four more aircraft, therefore taking the delivery of nine aircraft in 2013. In August 2013, the Centre for Asia Pacific Aviation ranked IndiGo amongst the 10 biggest low-cost carriers in the world.
16 Marketing mix of indigo airlines Set up in the year 2006, Indigo Airlines is one of the cheapest domestic airlines in India which is owned by InterGlobe Enterprises and Mr. RakeshGangwal. This marketing mix of Indigo airlines discusses the 4P’s which have been executed in an excellent manner by Indigo such that Indigo is one of the leading low cost carrier in the country. In the marketing mix of Indigo airlines, the price plays a crucial role which we will discuss further. Indigo Airlines is considered one of the best airlines that offer professional services at economical prices. Starting its services with six aircrafts on 4th of August 2006, IndiGo now has 78 of them. It adds a new plane every 45 days and sometimes even faster. Within no time IndiGo has dethroned Kingfisher and stood as the second largest player in aviation industry only after Jet Airways. In the year 2013, Centre for Asia Pacific Aviation announced that IndiGo is the second and the fastest growing airline service in the continent. It is important to note that the airline operates all major cities in India. One of its major competitive advantages is that the air tickets can be booked online and the customer services are very friendly at the same time. Products in the marketing mix of Indigo airlines The core product of Indigo airlines is of course Air travel. The traveling is mostly for passengers but the cargo line of Indigo airlines is growing fast as well. Indigo airlines, being the country’s largest low-cost carrier offers one of the best airline services in the country. For the past three years, Indigo has managed to create profit whereas its competition has been making loses. This has largely been due to the fact that the airline increased its capacity and efficiency in its services while containing costs. As a way of increasing capacity, new flights have been introduced in order to get more passengers. For instance, while the total airline capacity in India reduced by 4%, Indigo managed to increase its capacity by unprecedented 39%. Another strategy that Indigo applied is deft route planning such that it increased the number of aircrafts per route instead of only increasing the number of routes. The low-cost model strategy, purchasing only one type of aircraft and keeping the operational costs as low as possible coupled with an emphasis on punctuality are the main reasons for its success even when the airline industry in India was going through its rough. Place in the marketing mix of Indigo airlines Customers who want to book their tickets can do so online or through various agencies throughout the country. The airline is trying to reduce the headache one has to go through to get a ticket and that is why it has availed the online tickets. The airline’s destinations can be found throughout the major cities of the country. As a matter of fact, there are about 29 current Indigo destinations but expansion is ongoing. While that is the case, the airline has ensured that its core strategies are maintained. The core strategies include keeping the airline the most affordable airline in India and keeping flying a pleasant experience. With its fleet of 78 aircrafts and as many as 508 flights daily, it operates 29 domestic and international destinations whiles its competitor SpiceJet as 56 of its aircraft operating 45 destinations. Thus, the strategy is to provide more capacity on fewer routes than thinly spread itself over many destinations. This is advantageous in that: it helps contain costs because new destinations will require infrastructure
17 costs and help in creating more customers because they will be viewed as reliable in the few destinations they operate. Promotion in the marketing mix of Indigo airlines No airline has worked harder at capturing the local market better than IndiGo Airlines. The airline relies on its cost and availability to promote its brand across the market. These investments in advertisements are low because it affects the cost. However, Indigo did come out with a few TVC’s of its own as well as does good advertising online. The airline has adopted a strategy of connecting flights to other destinations from one destination such that customers will not have to book another airline to arrive to their destination. For instance, it has connected four flights from Ranchi to Delhi, Mumbai, Patna and Bangalore and plans are underway for it to add Kolkata and Raipur. Although not a direct marketing strategy, this strategy has seen it gain more customer base because customers would want to cut costs by using just one aircraft to reach their destination. Other promotion methods used by Indigo aircraft include media vehicles like billboards, print media advertising and advertising on travel portals. Price in the marketing mix of Indigo airlines As already mentioned, price is one of the major factors in the marketing mix of Indigo airlines. It is because of price and maintaining costs that the airlines has received so much success. IndiGo Airlines is one of the cheapest, if not the cheapest airline in India. In fact, that happens to be its competitive advantage when travelers are comparing prices. This makes it one of the most sought airline services in India because of its quality services as well. The complete credit for Indigo’s success goes to the cost control department at Indigo airlines. Indigo uses computer generated mechanisms to determine how much petrol it will need from Point A to point B. Thus, its savings on petrol is high and airline petrol is very very costly. Furthermore, the servings on flight are minimum. Indigo wants to control cost but does not build relationships with its customers. This might irk some but then the airline is the only airline which is making good profits even at this stage. With decrease in prices and increase in the number of passengers every day, Indigo faces a tough competition from SpiceJet and Air India. With a market share of 31.7% at present, it would be safe to say that Indigo provides what no other airlines can offer when it comes to cheap prices. There are also constant discounts that keep customers coming back.
18 Indigo SWOT Analysis Strength 1. Strong backing Promoters and is one of the largest low cost carriers in India 2. Only LCC to make consistent profits 3. It has one of the major airlines in India in terms of market share 4. LCC which has entered international markets has boosted its brand value 5. Good advertising and marketing strategies have increased its brand recall Weakness 1.Not on too many routes as compared to competitors 2. Still has to establish itself on international destinations Opportunity 1. Opening up of International routes 2. Largest Market share among LCCs in Indian Market 3. Middle Class taking to the skies Threats 1. Plenty of new LCCs to compete with 2. Rising Labor costs and changing govt policies 3. Rising Fuel Costs
19 2.Spice jet India ltd IATA SG ICAO SEJ Callsign SPICEJET Founded 2005 Commenced operations 18 May 2005; 9 years ago Hubs  Chennai International Airport (Chennai)  Indira Gandhi International Airport (Delhi)  Rajiv Gandhi International Airport (Hyderabad) Secondary hubs  ChhatrapatiShivaji International Airport(Mumbai)  Kempegowda International Airport (Bangalore) Focus cities  Cochin International Airport(Kochi)  NetajiSubhas Chandra Bose International Airport(Kolkata)  Pune International Airport(Pune)  SardarVallabhbhai Patel International Airport(Ahmedabad) Frequent- flyer program SpiceJet MAX Fleet size 38 Destinations 49 Company slogan Whatever We Do, We Do It With All Our Heart Headquarters Gurgaon, India
20 Revenue US$ 964.13 million (2013) Employees 5,252 (2013) Website Founded: Founders: spiceJet.com 1. February 9, 1984 2. 3. Ajay Singh, Bhupendra S. Kansagra
21 2 Spice Jet Company History - Spice jet Ltd. YEAR EVENTS 1984 – The Company was incorporated on 9th February as a private limited company in the name and style of Genius Leasing Finance and Investment Company Limited. The business was commenced on 14th March. It was promoted by S.K. Modi of the Modi Group of Companies. The main objective of the company is to manufacture Private air taxi operation. 1993 The name of the company was changed to MG Express Ltd. on 17th February.The Company diversified its activities into domestic aviation operations. Since May, has been providing safe and reliable air transportation for both the passenger and cargo. In the first phase of operations, three Boing 737-200 advance air craft was commissioned in service.The Company entered into an agreement with Lufthansa for spares, services and maintenance and training of flight crew. The Company was to pay DM 102,000 per plane, per month for dry lease.The Company is to provide two classes of services, first class and economy class. Telecommunication lines were to be established between airlines.In the second phase of operations, the Company was to acquire on dry lease, four Boing 737-400, Advance Fuel Economic Aircrafts and one Boing 737-200 aircraft. Three of the 737-400airafts would have a capacity of 150 seats and the remaining one with a capacity of 164 seats.The Company entered into agreement with International airlines such as Swissair, KLM-Royal Dutch Awtun, Qantas airways, Air Canada etc. - 2,00,000 shares allotted to public. 240,00,000 No. of equity shares of Rs. 10 each issued in May-June, as follows: - 214,00,000 rights equity shares of Rs. 10 each in proportion 107:1 (all were taken; up). - 24,00,000 shares reserved for allotment to shareholders of Modi Threads Ltd. - 2,00,000 shares to employees of Modi Threads Ltd. - Another 150,00,000 shares were allotted to Business associates on preferential basis. 1994 – In September, the Company signed an MOU with Indian Oil Corporation Ltd. to arrange the imports of aviation turbine fuel and the first consignment was expected in the 2nd week of January 1995.- Effective 12th April, the name of the company was changed from MG Express Ltd. to Modiluft Ltd.242,00,000 No. of equity shares of Rs. 10 each were then issued in November, at a premium of Rs. 30 per share on rights basis in prop. 1:1 (6,000 shares kept in abeyance).During the year under review
22 the Company opened up several new stations and at present is connecting most of the major business and tourist locations across the Country.The Company proposes to expand its operations by adding 4 Boeing 737-400 aircraft to its existing fleet.On 23rd November, 1994, your Company was awarded the coveted status of a Scheduled Airline. Consequently, the Company has also obtained the Associate Membership of International Air Transport Association (IATA).The Company further issued 1.50 crore Equity Shares of Rs. 10/-each for cash at par aggregating to Rs.15.00 crore to business associates on preferential basis, thus taking the total Paid Up Capital of the Company to Rs. 39.20 crore during the year 1993-94.The Company has inter-line agreements with all major foreign Airlines, an extensive network of sales agents and worldwide communication network for making reservations from any part of the world which enables the Company to earn revenue in foreign exchange. 1995 – The Company in its initial stage entered into an "Agreement on Technical Support" which was further strengthened with "Management Agreement" on 28th June, 1994. The Company is also setting up a working group in respect of each of the areas to ensure the desired results are achieved. ModiLuft has tied up their Frequent Flyer Programmer - MILES & SMILES with Deutsche Lufthansa AG, with effect from 1st July, 1995. The Company also proposes to come out with a Rights Issue of Rs. 31.70 corers to acquire additional aircrafts as per Company's expansion plans. Mrs. MalvikaPoddar&Mr. Bernd Hildebrand, Directors retire by rotation, being eligible, offer themselves for reappointment. 1997 Mr. D.K.Babbar&Mr. KartikShankerAiyer, Directors retire by rotation &being eligible, offer themself for reappointment. 1999 The company has appointed Millenium Capital Management (Pvt.) Ltd. &Khandwala Securities Ltd. as its Management and financial consultants. Mr. S. K. Modi&Mr. Merchant Bharat Bachubhai, Director retire by rotation and being eligible, offer themself for re-appointment. 2000 Country's defunct private domestic carrier Modiluft Ltd., which suspended its operations in 1996, will be airborne again in January in a Newavataar as Royal Airways. The Board has allotted 81,077,500 redeemable preference shares of Rs 10 each to the Royal Holdings Service Ltd. USA. 2001 Modiluft Ltd has informed BSE that the Mr. Atul Sharma, Mr. Kishore Gupta, Mr. Siddhartha Sharma, Mr. MansukhlalKotecha and Mr. Vijay Kumar have been elected as Directors of the Company with effect from December 31, 2001. The aforesaid persons were earlier co-opted as Additional Directors.The Company has also informed that Mr. J.N.Gupta, Mr. S.K.Modi&Mr. B.B. Merchant have ceased to be Directors of the Company with effect from the same date.
23 2003 The company re-issued 1895348 forfeited equity shares of Rs 10 each at par on private placement basis. The company has been informed by Delhi Stock Exchange that the shares of the company are delisted wef December 10, 2003. 2005 -SpiceJet launches Delhi-Ahmedabad-Mumbai service on May 24, 2005. SpiceJet launches its six-day a week services to Jammu and Srinaga on Nov 11, 05 2005 -Company has changed its name from Royal Airways Ltd. to Spicejet Ltd. 2006 -SpiceJet ties up with Indiatimes .SpiceJet joins hands with Nomura on Aug 15,2006 2007 -Spicejet Ltd has informed that Mr. Osman Qureshi (nominee of Istithmar PJSC) has been appointed as director on the Board of the Company. 2010 - SpiceJet stated that it will order 30 Boeing 737-800 aircraft to take its fleet size to 58 planes. 2011 -Mr. S. Sridharan has been appointed as the Whole Time Director of the Company -Mr. R Neelakantan has been appointed as the Chief Financial Officer (CFO) of the Company -Awarded for Best Website at ‘World Low Cost Airlines Asia Pacific Conference.Voted as India’s Best Low Cost Airline by Outlook Traveller. -Registered Office of the Company has been shifted To MurasoliMaran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai - 600028, Tamil Nadu. 2012 -Mr. Chandan Sand has been appointed as GM (Legal) & Company Secretary of the Company. SpiceJet gets DGFT nod to direct import of ATF -Voted as India’s Favourite Domestic Airline for the year 2012 by Outlook Traveller . India’s International Low Cost Carrier of the Year 2012 by Travel Agents Association of India -India’s Most Outstanding Airline LCC-Domestic Award, by Travel and Hospitality.
24 1993–1996: ModiLuft era A Boeing 737-200 in a livery similar to that of Lufthansa. The origins of SpiceJet track back to February 1993 when ModiLuft was launched by Indian industrialist S K Modi, in technical partnership with the German flag carrier Lufthansa. The airline ceased operations in 1996. 2005–2013: Inception and expansion SpiceJet Boeing 737-900ER taking off from SardarVallabhbhai Patel International Airport in Ahmedabad In 2004, Ajay Singh raised funds and restarted operations as SpiceJet following the low- costmodel. SpiceJet leased 3 Boeing 737-800 aircraft. On 7 March 2005, the Airports Authority of India approved three overnight parking slots to SpiceJet, with two in Delhi and one in Mumbai. SpiceJet opened bookings on 18 May 2005 The first flight was flagged off by then Union Minister of Civil Aviation, Praful Patel. The first Boeing 737-800 aircraft leftIndira Gandhi International Airport, New Delhi for ChhatrapatiShivaji International Airport,Mumbai on 24 May 2005. By 2008, it was India's second-largest low-cost carrier in terms of market share. Indian media baron KalanidhiMaran acquired 37.7% stake in Spicejet in June 2010. In 2012, SpiceJet suffered from a loss of over 390 million (US$6.1 million) owing to increase in global crude prices. On 9 January 2012, the Directorate General of Civil Aviation, reported that several airlines in India, including SpiceJet, have not maintained crucial data for the flight operations quality assurance or the FOQA. The Bombay stock exchange announced that ever since June 2011, Spicejet had been suffering losses. In 2012, Despite the losses, KalanithiMaran increased his stake in Spicejet by investing 1
25 billion (US$16 million) in the airline.The airline returned to making profits at the end of the year. In 2013, SpiceJet launched its first interline pact with Tiger air on 16 December 2013. 2014-present In July 2014, SpiceJet announced up to 50 per cent discounts due to competition. In December 2014, SpiceJet cancelled many domestic flights across the country. Directorate General of Civil Aviation (DGCA) issued warning over non payment of salaries and dues, while the airport operators moved to put the carrier on cash-and-carry mode, which means the airline can use the facilities of an airport only upon immediate payment. On December 17, all flights were grounded after oil companies refused to refuel its planes. Flights resumed the next day. In January 2015, the board of directors of SpiceJet transferred control of the airline to Ajay Singh, the founder of SpiceJet who also used to run the airlines earlier. Destinations Revenue Passenger Kilometres (Total) Year Traffic 2008 4397 2009 4819 2010 6807 2011 8639 2012 10322 SpiceJet currently operates over 230 flights daily to 41 Indian and 9 international destinations. The airline flies Boeing 737-800 and −900ERs &Bombardier Dash 8 Q400s. After completing 5 years of flying, SpiceJet was allowed to commence international flights by the Airports Authority of India on 7 September 2010. SpiceJet launched flights from Delhi to Kathmandu and Chennai to Colombo. The first international flight took off on 7 October 2010 from the Delhi airport. In April 2011, SpiceJet announced that they chose Hyderabad Rajiv Gandhi International Airport as the primary base for its new fleet of Bombardier Q400 NextGen aircraft. On 12 January 2012, SpiceJet's fleet went up to 40 as Boeing delivered a brand new 737-800 aircraft. SpiceJet increases frequency on Delhi-Hyderabad route
26 Codeshare agreements SpiceJet has codeshare agreements with the following airlines (as of September 2013)  Lufthansa Fleet SpiceJet placed its first firm order for 20 Next-Generation Boeing 737-800s in March 2005, with deliveries scheduled up to 2010. Again in November 2010, SpiceJet order for another 30 Boeing 737- 800s with winglets in the presence of the American president, Barack Obama. Neil Mills, the chief executive officer of SpiceJet said "We are extremely satisfied with the Next-Generation 737—an airplane that is reliable, allows for greater efficiency in maintenance and supports the business plan for low-cost carriers". On 9 December 2010, Bombardier Aerospace announced that SpiceJet placed a firm order for 15 Q400 NextGen turboprop airliners and has also placed an option to buy another 15 of those. SpiceJet used its fleet of Q400s for short-haul operations. Each aircraft in the SpiceJet fleet is named after a spice. SpiceJet sold five of its old Boeing 737-800 to other operators on receiving new ones. One of the five was SpiceJet's own which is now in the possession of Somon Air. In February 2012, SpiceJet announced that it would take the delivery of ten more aircraft during 2012, of which seven would be the Bombardier Q400. In March 2014, Spicejet signed a $4.4 Bn deal with Boeing for procurement of 42 737-8 MAX aircraft. As of February 2015, the airline has the following fleet: SpiceJet fleet Aircraft In Service Orders Passengers (Economy) Notes Boeing 737-800 18 — 189 all dry leased Boeing 737MAX 8 — 42 — — Boeing 737-900ER 1 — 212 — Bombardier Dash 8 Q400 15 15 78 1 dry leased Total 38 57
27 Current fleet SpiceJet currently has a fleet of 19 Boeing 737-800/900ER aircraft along with some 15 Bombardier Q400 aircraft.
28 3.AirIndia एअरइंडिया IATA AI ICAO AIC Callsign AIRINDIA Founded July 1930 (as Tata Airlines) Commenced operations 15 October 1932 Hubs  Indira Gandhi International Airport (Delhi)  ChhatrapatiShivaji International Airport (Mumbai) Secondary hubs  Chennai International Airport (Chennai)  NetajiSubhas Chandra Bose International Airport (Kolkata) Focus cities  Hong Kong International Airport (Hong Kong)  Singapore Changi Airport (Singapore)  Kempegowda International Airport (Bangalore)  Trivandrum International Airport (Trivandrum)  Cochin International Airport (Cochin)  Rajiv Gandhi International Airport (Hyderabad)  SardarVallabhbhai Patel International Airport (Ahmedabad) Frequent-flyer program Flying Returns Airport lounge Maharaja Lounge Alliance Star Alliance Subsidiaries  Air India Express  Air India Regional  Air India Cargo  Aryan Cargo Express  Indian Airlines  Pawan Hans Fleet size 100 (30 on orders)(excluding subsidiaries) Destinations 90 Company slogan Your Palace in the Sky
29 Parent company Air India Limited Headquarters Indian Airlines House Parliament Street, New Delhi Delhi, India. Key people JRD Tata (Founder) RohitNandan, IAS (CEO) Syed Nasir Ali, IRS(JMD) Revenue 143 billion (US$2.2 billion) (FY 2013/14) Operating income 192 billion (US$3.0 billion) (FY 2013/14) Net income 21 billion (US$330 million) (FY 2013/14) Employees 23,044 (July 2014) Website www.airindia.in Air India is the flag carrier airline of India owned by Air India Limited (AIL), a Government of India enterprise. It is the third largest airline in India (after IndiGo and Jet Airways) in domestic market share, &operates a fleet of Airbus and Boeing aircraft serving various domestic &international airports. It is headquartered at the Indian Airlines House in New Delhi. Air India has two major domestic hubs at Indira Gandhi International Airport & ChhatrapatiShivaji International Airport, &secondary hubs at Chennai International Airport and NetajiSubhas Chandra Bose International Airport, Kolkata. The airline formerly operated a hub at Frankfurt Airport which was terminated on account of high costs. However, another international hub is being planned at the Dubai International Airport. Air India was once the largest operator in the Indian subcontinent with a market share of over 60%. Indifferent financial performance and service, labor trouble pushed it to fourth place in India, behind low cost carriers like IndiGo, SpiceJet, and its full service rival Jet Airways. Between September 2007 &May 2011, Air India's domestic market share declined from 19.2% to 14%, primarily because of stiff competition from private Indian carriers. However, after financial restructuring &enforcement of strict rules and regulations, the airlines showed signs of turning around. In March 2013, the airlines posted its first positive EBITDA after almost 6 years. The airlines bolstered its financial &physical performance with a 44 per cent slash in its operating losses in 2013-14 &an almost 20 per cent growth in its operating revenue since the previous financial year. As of January 2014, Air India is the third largest carrier in India, after IndiGo and Jet Airways with a market share of just above 19%. The airline was invited to be a part of the Star Alliance in 2007. Air India completed the merger with Indian Airlines & some part of the agreed upgrades in its service and membership systems by 2011. In August 2011, Air India's invitation to join Star Alliance was suspended as a result of its failure to meet the minimum standards for the membership. However, in October 2011, talks between the airline and Star Alliance resumed. On 13 December 2013, StarAlliance announced that Air India and the alliance have resumed the integration process &the airline became the 27th member of Star Alliance on 11 July 2014.
30 History Early years (1932-1945) Tata Sons, a division of Tata Sons Ltd. (now Tata Group) was founded by J. R. D. Tata in 1932. The aviator NevillVintcent had an idea to run mail flights from Bombay and Colombo that connected with the Imperial Airways flights from the United Kingdom. He found a supporter for his plans from J. R. D. Tata of the Tata Iron and Steel Company. After three years of negotiations Vincent and Tata won a contract to carry the mail in April 1932 and in July 1932 the Aviation Department of Tata Sons was formed. On 15 October 1932, J.R.D. Tata flew a single-engineDe Havilland Puss Moth carrying air mail (postal mail of Imperial Airways) from Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The aircraft continued to Madras via Bellary piloted by Vincent. Tata Airlines initially consisted of one Puss Moth aircraft, one Leopard Moth, one palm-thatched shed, one whole time pilot assisted by Tata and Vincent, one part-time engineer and two apprentice-mech According to The New York Times, Tata Air Mail made a profit of 60,000 rupees its first year, and by 1937, that profit had risen to 600,000 rupees. Initial service included weekly airmail service with a Puss Moth aircraft between Karachi and Madras via Ahmedabad & Bombay, covering over 1,300 miles. In its very first year of operation, Tata Airlines flew 160,000 miles, carrying 155 passengers &10.71 ton of mail. In the next few years, Tata Airlines continued to rely for its revenue on the mail contract with the Government of India for carriage of surcharged mail, including a considerable quantity of overseas mail brought to Karachi by Imperial Airways. The same year, Tata Airlines launched its longest domestic flight – Bombay to Trivandrum with a six-seaterMiles Merlin. In 1938, it was re-christened as Tata Air Services and later same year was renamed as Tata Airlines. By this time Delhi &Colombo were also serviced. Post-war expansion and jet age (1946-1999) After World War II, regular commercial service was restored in India, &Tata Airlines became a public limited company on 29 July 1946 under the name Air India. In 1948, after the independence of India, 49% of the airline was acquired by the Government of India, with an option to purchase an additional 2%. In return the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International. On 8 June 1948 a Lockheed Constellation L-749A named Malabar Princess (registered VT-CQP) took off from Bombay bound for London Heathrow via Cairo and Geneva. This was the airline's first long-haul international flight, soon followed by service in 1950 to Nairobi via Aden. On 25 August 1953 the Government of India exercised its option to purchase a majority stake in the carrier &Air India International Limited was born as one of the fruits of the Air Corporations Act that nationalized the air transportation industry. At the same time all domestic services were transferred to Indian Airlines (now a part of Air India). In 1954, the airline took delivery of its first L-1049 Super Constellations and inaugurated services to Bangkok, Hong Kong, Tokyo, and Singapore. Air India International entered the jet age on 21 February 1960 when its first Boeing 707–420, named Gauri Shankar (registered VT-DJJ), was delivered, thereby becoming the first Asian airline to induct a jet aircraft in its fleet. Jet services to JFK International Airport in New York City via London were inaugurated that same year on 14 May 1960. On 8 June 1962, the airline's name was officially truncated to Air India. On 11 June 1962, Air India became the world's first all-jet airline. In 1971, the airline took delivery of its first Boeing 747-200B named Emperor Ashoka (registered VT-EBD). This coincided with the introduction of the 'Palace in the Sky' livery and branding. A feature of this livery is the paintwork around each aircraft window, in the cusped arch style of windows in Indian palaces. In 1986 Air India
31 took delivery of the Airbus A310-300; the airline is the largest operator of this type in passenger service. In 1988, Air India took delivery of two Boeing 747-300Ms in mixed passenger-cargo configuration. In 1993, Air India took delivery of the flagship of its fleet when the first Boeing 747-400 named Konark (registered VT-ESM) made history by operating the first non-stop flight between New York City &Delhi. In 1994 the airline was registered as Air India Ltd. In 1996, the airline inaugurated service to its second US gateway at O'Hare International Airport in Chicago. In 1999, the airline opened its dedicated Terminal 2-C at the renamed ChhatrapatiShivaji International Airport in Mumbai. SWOT analysis Air India Strengths in the SWOT analysis of Air India  Air India has been the largest air carrier in India in terms of traffic volume &company assets.  It owns the most updated fleet and competent repairs and maintenance expertise.  Its information systems are advanced and compatible with its operation &service.  It has a good reputation in both international and domestic markets, quality service and the age- old Goodwill that has still kept it alive in the interests of the rescue operators.  Has financial backing of the Government Weaknesses in the SWOT analysis of Air India  Air India is operating across broad international &domestic markets competing with world leading giant airlines as well as local small operators. This lack of clarity on the strategic direction largely dilutes its capabilities and confuses its brand within markets.  Low profitability &utilization of capacity.  Growing Competitor base &entry of Low-Cost Carriers (LCC’s)  The airline’s high-cost structure &the compulsions of being a public sector unit are the reasons and it had been making a loss and shall continue to make losses for some more quarters.
32 Opportunities in the SWOT analysis of Air India  India airline industry is growing faster and will continue to grow as the GDP increases, and the trend is predicted to continue once the slowdown recedes.  Worldwide deregulations make the skies more accessible; the route agreement is easier to be achieved. The number of foreign visitors and investors to India is increasing rapidly.  Complementary industry like tourism will increase demand for airline service. The Civil Aviation Ministry’s strong regulation and protection provides opportunities for consolidation and optimization.  Customers are getting wealthier, tend to be less price-conscious and prefer to choose quality service over cost.  Best time for introducing LCC’s Threats in the SWOT analysis of Air India  Air India faces imminent aggressive competition from world leading airlines and price wars triggered by domestic players.  The Indian Railway Ministry has dramatically improved speed and services in their medium/long distant routes, attracting passengers away from air service, with prices almost at par with the low cost carriers
33 Leaders in aviation industry 4. GoAir IATA G8 ICAO GOW Callsign GO AIR Founded 2005 Commenced operations November 2005 Hubs ChhatrapatiShivaji International Airport(Mumbai) Secondary hubs Indira Gandhi International Airport (Delhi) Focus cities Kempegowda International Airport (Bangalore) SardarVallabhbhai Patel International Airport(Ahmedabad) Frequent-flyer program GoClub Fleet size 19 Destinations 22 Company slogan Fly Smart Parent company Wadia Group Headquarters Worli, Mumbai, Maharashtra, India Key people JehangirWadia (MD) Giorgio De Roni (CEO) Profit 104 million (US$1.6 million)(2013) Website www.goair.in GoAir is an Indian Low cost carrier based in Mumbai. It commenced operations in November 2005. It is the aviation foray of theWadia Group. As of January 2014, it is the fifth largest airline in India by market share. It operates domestic passenger services to 22 cities with over 140 daily flights and approximately 975 weekly flights. Its hubs are at ChhatrapatiShivaji International Airport, Mumbaiand Indira Gandhi International Airport, New Delhi.
34 History GoAir was founded in the year 2005 by JehangirWadia, the younger son of eminent Indian industrialist NusliWadia. The airline marked the entry into the critical aviation sector for the Wadia Group, an Indian business conglomerate famous for its companies like Bombay Dyeing and Britannia Industries. The Wadia group wholly owns the airline. JehangirWadia is also the Managing Director (MD) of the airline.GoAir launched its operations in November 2005 using Airbus A320 aircraft. Since January 2007, GoAir has been recording an average load factor of 76%.But the airline's growth has been slow, with other airlines established at the same time such as IndiGo and SpiceJet having overtaken GoAir in terms of market share, fleet size and destinations served as of 2013. However, according to Wadia and Chief Executive Officer (CEO) Giorgio De Roni, the slow growth of the airline is a company strategy taken up due to the tough aviation environment in India, as a result of which the focus is on maintaining profitability rather than on capturing market share and increasing the destinations and fleet size. In April 2012, the airline moved from sixth and last place to fifth in terms of market share due to the financial crisis at Kingfisher Airlines. But following the grounding of Kingfisher Airlines, the airline once again has the lowest market share (8.8%) as of January 2014. Destinations GoAir operates to 22 destinations in India, with over 140 daily flights and approximately 975 weekly flights.Due to the small size of its fleet (19 aircraft), GoAir does not operate any international flights as per the guidelines of the Ministry of Civil Aviation, Government of India, but in 2012 the airline has applied for a waiver regarding the same to the ministry which is yet to be approved. City IATA ICAO Airport Ahmedabad AMD VAAH SardarVallabhbhai Patel International Airport Bangalore BLR VOBL Kempegowda International Airport Bhubaneswar BBI VEBS BijuPatnaik International Airport Chandigarh IXC VICG Chandigarh Airport Chennai MAA VOMM Chennai International Airport
35 City IATA ICAO Airport Delhi DEL VIDP Indira Gandhi International Airport Goa GOI VOGO Goa International Airport Guwahati GAU VEGT LokpriyaGopinathBordoloi International Airport Jaipur JAI VIJP Jaipur International Airport Jammu IXJ VIJU Jammu Airport Kochi COK VOCI Cochin International Airport Kolkata CCU VECC NetajiSubhas Chandra Bose International Airport Leh IXL VILH LehKushokBakulaRimpochee Airport Lucknow LKO VILK Amausi Airport Mumbai BOM VABB ChhatrapatiShivaji International Airport Hub Nagpur NAG VANP Dr. BabasahebAmbedkar International Airport Patna PAT VEPT LokNayakJayaprakash Airport Port Blair IXZ VOPB Veer Savarkar Airport
36 City IATA ICAO Airport Pune PNQ VAPO Pune Airport Siliguri IXB VEBD Bagdogra Airport Srinagar SXR VISR Srinagar Airport Ranchi IXR VERC BirsaMunda Airport Fleet As of February 2015, the fleet of GoAir consists of the following aircraft. The average fleet age is 3 years. GoAir Airbus A320 at ChhatrapatiShivaji International Airport GoAir Fleet Aircraft In Service Orders Passengers Notes Airbus A320- 200 19 — 180 One owned and 15 dry leased Five equipped with Sharklets (VT-GOL,VT- GOM,VT-GON,VT-GOO & VT-GOP) Airbus A320neo — 72 TBA Deliveries begin 2015 Total 19 72
37 A320neo order In June 2011, GoAir placed an order for 72 Airbus A320neo(New Engine Option) aircraft worth 324 billion (US$5.1 billion). Deliveries will begin from 2015, with an induction rate of 12-15 aircraft per year. Livery GoAir's aircraft are painted in blue & white, with the carrier's logo on the tail. Some of the aircraft are in different color schemes including pink, sky blue, light green, grey and brown. GoAir's official website is mentioned on the engines as well. Services GoAir does not provide any complimentary meals in its flights, but it does have a buy-on board in- flight meal programmer, passengers have a wide choice of Café Coffee Daysnacks, sandwiches, samosa, cookies, nuts, soft drinks, tea, coffee, mineral water and more. The airline provides GoAir's exclusive in-flight magazine "Go-getter" which gives the information about seasonal Indian holiday destinations, product information about GoAir& various duty-free products which can be bought on board. GoAir offers a premium service known as "Go Business" for a seamless flying experience in which the passengers, at a nominal higher fare, get comfortable leg room seats in the first two rows of the aircraft with vacant middle seat, as well as welcome drink with free hot meals and an increased baggage allowance going up to 35kg with priority boarding and deplaning amenities, GoAir also offers GoAir Holidays through its official website. Awards GoAir has won the following awards:  Best Domestic Airline For Excellence in Quality and Efficient Service by Pacific Area Travel Writers Association (2008).  Best Performing Airline by Airbus (2011).
38 5. Jet Airways IATA 9W ICAO JAI Callsign JET AIRWAYS Founded 1 April 1992 Commenced operations 5 May 1993 Hubs ChhatrapatiShivaji International Airport (Mumbai) Secondary hubs  Brussels Airport  Chennai International Airport (Chennai)  Indira Gandhi International Airport (Delhi)  NetajiSubhash Chandra Bose International Airport(Kolkata) Focus cities  Cochin International Airport(Kochi)  SardarVallabhbhai Patel International Airport(Ahmedabad)  Kempegowda International Airport (Bengaluru)  ChaudharyCharan Singh International Airport(Lucknow)  Rajiv Gandhi International Airport (Hyderabad) Frequent-flyer program JetPrivilege Airport lounge Jet Lounge Alliance Etihad Equity Alliance Subsidiaries  Jet Lite Fleet size 117 Destinations 74 Company slogan The Joy of Flying Parent company Tailwinds Limited Headquarters Mumbai, India
39 Key people  NareshGoyal, Founder & chairman  Cramer Ball, CEO  SubodhKarnik, COO Revenue 173 billion (US$2.7 billion) (2012) Profit -14.20 billion (US$−220 million) (2012) Employees 13,945 (2012) Website www.jetairways.com Airbus A330-202 VT-JWL in Hong Kong Jet Airways is a major Indian airline based in Mumbai. It is the second largest airline in India, both, in terms of market shareand passengers carried, after IndiGo. It operates over 300 flights daily to 74 destinations worldwide. Its main hub is Mumbai, with secondary hubs at Delhi, Kolkata, Chennai, Bengaluru.
40 Chapter1: History 1992-2009: Inception and growth SM Centre, the former head office Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft from Malaysia Airlines. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. NareshGoyal – who already owned Jetair (Private) Limited, which provided sales and marketing for foreign airlines in India – set up Jet Airways as a full-service scheduled airline to compete against state-owned Indian Airlines. Indian Airlines had enjoyed a monopoly in the domestic market between 1953, when all major Indian air transport providers were nationalized under the Air Corporations Act (1953), and January 1994, when the Air Corporations Act was repealed, following which Jet Airways received scheduled airline status. Jet began international operations from Chennai to Colombo in March 2004. The company is listed on the Bombay Stock Exchange, but 80% of its stock is controlled by NareshGoyal (through his ownership of Jet's parent company, Tailwinds). It has 13,177 employees (as at 31 March 2011). In January 2006 Jet Airways announced that it would buy Air Sahara for US$500 million in an all-cash deal, making it the biggest takeover in Indian aviation history. It would have resulted in the country's largest airline but the deal fell through in June 2006. On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion (US$340 million). Air Sahara was renamed JetLite, and was marketed between a low-cost carrier and a full service airline. In August 2008 Jet Airways announced its plans to completely integrate JetLite into Jet Airways. In October 2008, Jet Airways laid off 1,900 of its employees, resulting in the largest lay-off in the history of Indian aviation. However the employees were later asked to return to work; Civil Aviation Minister Powerful Patel said that the management reviewed its decision after he analyzed the decision with them. Jet Airways and their rival Kingfisher Airlines announced an alliance which primarily includes an agreement on code- sharing on both domestic and international flights, joint fuel management to reduce expenses, common ground handling, joint utilization of crew and sharing of similar frequent flier programs. On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The decision to launch a new brand instead of expanding the JetLite network was taken after considering the regulatory delays involved in transferring
41 aircraft from Jet Airways to JetLite, as the two have different operator codes. The brand was launched on sectors that had 50% or less load factor with the aim of increasing it to 70% and above. Jet officials said that the brand would cease to exist once the demand for the regular Jet Airways increases. 2010-present A Jet Airways ATR 72-500 According to a PTI report, for the third quarter of 2010, Jet Airways (Jet+JetLite) had a market share of 22.6% in terms of passengers carried, thus making it a market leader in India, followed by Kingfisher Airlines with 19.9%. In July 2012, Jet Airways officially sought government approval to join Star Alliance. In June 2011, Jet Airways was the first domestic airline to ban carrying fish, crab, meat, poultry products and liquid items as check-in baggage. Early in 2013, Etihad Airways, one of the flag carriers of the United Arab Emirates based in Abu Dhabi, planned to buy a stake in Jet Airways. On 24 April 2013, Jet announced that they were ready to sell a 24% stake to Etihad for US$379 million. Earlier, in September 2012, the government of India announced that foreign airlines could take a stake of up to 49% in Indian airlines, thereby making this deal possible. Etihad, which had already purchased stakes in four other loss-making airlines, said they were "concentrating on future potential rather than past performance", and were ready to take the stake in Jet. Initially, Jet announced that they were likely to sign the stake sale deal with Etihad between 22 January and 3 February, which they later confirmed to as 25 January. However, that date passed and the deal was further postponed. Meanwhile, Jet Airways concentrated well on revenues, costs and network side, which resulted in the airline making profits for the first time since the rupee depreciation. Nikos Kardassis, the Chief Executive Officer of Jet Airways, said "The combined impact of higher yields and lower costs (ex-fuel) have resulted in significantly lowering the breakeven seat factor levels in the business." The airline announced a sale on its website, which offered two million seats for travel within India, till 31 December 2013. This sale was announced a little over one month after rival low-cost carrier SpiceJet announced a sale, which was expected to have triggered a fare war. High airfares throughout 2012 due to grounding of Kingfisher Airlines caused passengers to opt out of air travel, leading to negative growth in traffic for the first time since 2009. Jet Airways planned to attract more passengers by subsequently lowering the fares, which was followed by SpiceJet again. With two airlines offering cheaper travel, India's flag carrier started losing passengers and it too offered cheaper tickets. This was followed by IndiGo and GoAir, resulting in a full-fledged fare war. Jet had introduced four different slabs of discounts depending upon the distance to destination. Under the offer, the fare up to 750 kilometers was priced at 2250 (US$35), while for 750–1000 kilometers it was 2850 (US$45). For air travel over a distance ranging from 1000 to 1400 kilometers, tickets were sold for 3300 (US$52) and for travel beyond 1400 kilometers, tickets were sold for a maximum of 3800 (US$60). Based on a calculation by The Economic Times, on average, Jet Airways was selling 6400 tickets per day, or 14 tickets per flight, at those discounted rates. According to the news agency, several Indian travel sites started experiencing severe issues following a sudden increase in bookings. MakeMyTrip chief operating officer Keyur Joshi said that this move would help airlines increase aircraft occupancy from 75% to 85%.However, soon after the sale, the airline's market value started going down. This drop in market value was considered to have happened because of the indefinitely postponed
42 Etihad deal. The stock had fallen by 18% in a period of one week. Economic Times reported that "The froth that developed around Jet stock was largely deal driven and has now fizzled away." In August 2014, Jet Airways announced that it is discontinuing its low fare arm JetKonnect and JetLite making Jet Airways 3rd full service airline in India besides Air India and Vistara (proposed) Jet Airways Boeing 777-300ER atSan Francisco International Airport Corporate affairs and Identity Jet Airways's head office is located in the Siroya Centre in Andheri, Mumbai. Jet Airways's head office was previously located in the S.M. Centre, a rented, unmarked six-storey building in Andheri. In 2008 Robyn Meredith of Forbes stated that the complex was "as shabby as [Jet Airways] CEO NareshGoyal's home is posh" and that the complex was "In need of a fresh coat of paint". The complex was 15 minutes driving time from ChhatrapatiShivaji International Airport. In 2013, it was announced that Etihad Airways would buy a 24% stake in the airline through preferential allotment of shares. Subsidiaries JetLite JetLite was a wholly owned subsidiary of Jet Airways. It was established as Sahara Airlines on 20 September 1991 and began operations on 3 December 1993 with two Boeing 737-200 aircraft. Initially services were primarily concentrated in the northern sectors of India, keeping Delhi as its base, and then operations were extended to cover all the country. Sahara Airlines was rebranded as Air Sahara on 2 October 2000. On 12 April 2007 Jet Airways took over Air Sahara and on 16 April 2007 Air Sahara was renamed as JetLite. JetLite operated a fleet of mixed owned–leased Boeing 737 Next Generation aircraft and Bombardier CRJ-200ER. JetLite ceased operations on 25 March 2012 after merger with Jet Konnect. The Bombardier jets were phased out but the Boeings remained in service and operated for JetKonnect. JetLite offered a buy on board service called JetCafé, offering food for purchase. JetKonnect JetKonnect, formerly Jet Airways Konnect, the low-cost brand of Jet Airways, was launched on 8 May 2009. It operated a fleet of Boeing 737 Next Generation aircraft. The rationale for launching Jet Konnect was to close down loss-making routes and divert the planes to more profitable routes with higher passenger load factors. Jet already ran a low-cost airline named JetLite. According to Jet Airways, the decision to launch a low-cost brand instead of expanding the existing JetLite was taken to avoid the regulatory delays associated with moving excess aircraft and assets from Jet Airways to JetLite, which have separate operating codes. Jet Connect offers a no frills flight where meals and other refreshments have to be purchased on board. To identify if the flight is a full service or Connect the flight numbers for Connect are in the series 9W 2000-2999. Jet Airways merged the Jet Lite brand into Jet Connect on 25 March 2012. Jet Airways offered eight business class seats in Connect to cash in on Kingfisher Airlines' woes. In December 2012, Jet Airways placed an order for 5 ATR 72-600 aircraft to
43 "enhance regional connectivity." The first aircraft was delivered the same month, leased from GECAS and was operated for JetKonnect. Jet Airways announced on 11 August 2014 that it would phase out Jet Konnect by the end of the year as part of plans to reposition itself as a uniform full-service operator., on 1 December 2014 Jet Connect was fully merged with Jet Airways. Destinations Jet Airways serves 47 domestic destinations and 22 international destinations, a total of 69 in 19 countries across Asia, Europe and North America. Short-haul destinations are served using Boeing 737 Next Generation. ATR 72-500s are used only on domestic regional routes, while long-haul routes are served using its Airbus A330-200 and Boeing 777-300ER aircraft. London, England was the airline's first long-haul destination and was launched in 2005. Since 2007 Jet Airways has had a scissors hub at Brussels Airport in Belgium for onward trans-atlantic connections to Canada and the United States. The recession forced Jet Airways to discontinue the following routes: Ahmedabad– London, Birmingham-Brussels, Amritsar–London, Bangalore–Brussels,Mumbai–Shanghai–San Francisco and Brussels-New York City. It also had to put an indefinite delay on its expansion plans. Jet Airways was forced to lease out seven of its ten Boeing 777-300ERs to survive the financial crunch. Due to the recession all flights to North America were operated on an Airbus A330-200 replacing the Boeing 777-300ERs. It also had to sell a brand-new, yet-to-be-delivered Boeing 777-300ER in 2009 and had to defer all new aircraft deliveries by at least two years. The airline planned to restore theMumbai-Shanghai route by the end of 2011 but never went through with it. As the economic crisis in the Eurozone countries worsened, Jet also closed the Delhi-Milan route. Jet Airways relaunched service to New York's JFK International Airport and San Francisco via Abu Dhabi on May 1, 2014, and November 18, 2014, respectively, using its joint venture relationship with Etihad Airways. Jet Airways Airbus A340-300 atLondon Heathrow Airport in 2005 with the 1993-2007 livery Also, Jet Airways will introduce the Mumbai-Paris route using the Airbus A330 aircraft from Mid May 2014 - a mid-day departure from Mumbai to reach evening in Paris CDG and Leaving CDG Paris in night arriving next morning in Mumbai similar to Air India's schedule on Delhi-Paris route. Codeshare agreements Jet Airways has codeshare agreements with the following airlines (as of June 2013): Air Canada [Star Alliance] Air France [Sky Team] All Nippon Airways [Star Alliance] Alitalia [Sky Team] Brussels Airlines [Star Alliance] Etihad Airways Garuda Indonesia [Sky Team] Kenya Airways [Sky Team] KLM [Sky Team] Korean Air [Sky Team] Turkish Airlines [Star South African Airways [Star Alliance] Qantas [One World] United Airlines [Star Alliance] Vietnam Airlines [Sky Team]
44 Alliance] MalaysiaAirlines [OneWorld] Jet Airways also has a codesharing agreement with Thalys European rail serviceEffective 1 February 2014, the U.S. Federal Aviation Administration lowered India's aviation safety rating to a Category 2. As a result of the FAA action, all U.S.-based airlines are required to suspend all codeshare cooperation with any India-based airlines. This FAA decision is country specific for India, not airline specific. Fleet 4 Airbus A330 in Delhi Airport Jet Airways Boeing 777-300ER with the present livery Jet Airways Boeing 737-800 As of November 2014, the Jet Airways fleet consists of the following aircraft with an average age of 5.4 years: Jet Airways Fleet Aircraft In Service Orders Passengers Notes F J Y Total Airbus A330-200 3 — 0 30 196 226 3 more Dry Leased to Turkish Airlines
45 Airbus A330-300 4 1 0 34 259 293 ATR 72-500 15 — 0 0 62 62 -0 0 68 68 ATR 72-600 3 1 0 0 68 68 Boeing 737-700 4 — 0 8 126 134 Boeing 737-800 62 8 0 16 138 154 0 8 162 170 Boeing 737-900 2 — 0 28 138 166 Boeing 737-900ER 4 – 0 8 178 184 Boeing 737 MAX 8 — 50 TBA Entering service in 2017 Boeing 777-300ER 10 10 8 30 274 312 New Deliveries In 2016. 8 30 312 350 Boeing 787-9 — 20 TBA Deliveries starting 2015 Total 107 90 Livery 1993–2007 Jet Airways' original livery was Navy Blue, Light Grey and Chrome Yellow. The top and bottom of the aircraft were painted in light grey and had the flying sun logo in the navy blue background. 2007–present Jet Airways' current livery was introduced in 2007. The design retained the dark blue and gold-accented color scheme of Jet Airways' previous corporate identity, along with the airline's "flying sun" logo. The new livery, created with Landor Associates, added yellow and gold ribbons. A new yellow uniform was simultaneously introduced, created byItalian designer Roberto Cappuccino. Jet Airways introduced its new identity in conjunction with a global brand re-launch which included new aircraft and seating. Jet Airways unveiled India's first Disney branded Boeing 737 on 9 July 2012. Services Cabin International long haul First Class on board the Boeing 777-300ER With the arrival of its new Airbus A330-200 and Boeing 777-300ER aircraft, Jet Airways has introduced a new cabin with upgraded seats in all classes. The Airbus A330-200 aircraft have two classes: Première and Economy. The Boeing 777-300ER aircraft has three classes of service: First, Première (Business), and Economy. Being a Full Service Airline, meals are served on all classes of travel.
46 First Class First class private suites are available on all Boeing 777-300ER aircraft. All seats convert to a fully flat bed, similar to Emirates or Etihad first class seat. It was the second airline in the world to have private suites. All seats in First have a 23-inch widescreen LCD monitor with audio-video on-demand systems (AVOD), BOSE noise cancelling headphones, in seat power supply, and USB ports etc. Jet Airways is the first Indian airline to offer fully enclosed suites on its aircraft; each suite has a closable door, making for a private compartment. Première Première on board the Boeing 777-300ER Première (Business Class) on the Airbus A330-200 and Boeing 777-300ER international fleet has a fully flat bed with AVOD entertainment. Seats are configured in a herringbone pattern (1-2-1 on the Boeing 777-300ER, and 1-1-1 on the Airbus A330-200), with each seat offering direct access to the aisle. Première seats on the A330-200s leased from ILFC are configured differently in a 2-2-2 non- herringbone pattern. Each Première Seat has a 15.4-inch flat screen LCD TV with AVOD. USB ports and in-seat laptop power are provided. All seats are standard recliner business-class seats with a few newer aircraft with electronic recline and massager. Economy Class Economy class on Jet's A330-200/777-300ER aircraft has 32-inch seat pitch. Seats on the A330- 200/777-300ER have a "hammock-style" net footrest. The cabin is configured in 2-4-2 abreast on the Airbus A330-200, and was recently changed to 3-4-3 on the Boeing 777-300ER from 3-3-3 to increase revenue. Each Economy seat on the A330-200/777-300ER has a personal 10.6-inch touch screen LCD TV with AVOD. All three classes feature Mood lighting on the Airbus A330-200 and Boeing 777-300ER, with light schemes corresponding to the time of day and flight position. JetScreen IFE in Economy class on board a Boeing 737-800
47 International short haul & Domestic Boeing 737 Next Generation aircraft are configured in Première and Economy Classes. The ATR 72- 500 have Economy class configuration only. The Première features 40-inch extra-wide seats with a personal Widescreen LCD attached to each seat. The Première cabin is configured in a 2-2 abreast pattern. Jet Airways Economy class on its Boeing 737 Next Generation features 30-inch seat pitch with personal Widescreen LCD behind each seat. Jet Airways was the World's first airline to introduce in- flight entertainment systems on theBoeing 737 aircraft. The Economy class cabin is configured in a 3-3 abreast pattern on the Boeing 737 Next Generation and 2-2 abreast pattern on the ATR 72-500. In-flight entertainment Jet Airways' Panasonic eFX IFE system on board the Boeing 737-700/800 and Panasonic eX2 IFE system on board the Airbus A330-200/Boeing 777-300ER, called "JetScreen", offers audio video on- demand programming (passengers can start, stop, rewind, and fast-forward as desired). It has over 100 movies, 80 TV programs, 11 audio channels and a CD library of 125 titles. The system operates via individual touchscreen monitors at each seat, and is available in all classes. In late 2012, Jet introduced a feature on their Airbus A330-300, called export. export allows passengers to plug-in their personalApple devices such as iPods, iPads and iPhones through an export socket located immediately below the video screen. This would allow passengers to access their own media during the flight. Airport lounges Jet Airways Lounges are offered to First and Première Class passengers, along with Jet Privilege Platinum & Gold card members. The international lounge at Brussels has showers, business center, entertainment facilities and children's play areas. Lounges access is offered at the following locations: Awards and achievements Best First Class — Service in the World award at Business Traveller's 20th annual 'Best in Business Travel' awards  Best Business Class & Best Economy Class at the Business Traveller Awards  Best Programmed of the Year by Freddie Awards 2007 & 2006  Best Elite Level for the second year in a row, at the 21st Annual presentation ceremony of the Freddie Awards 2008  Best Overall in Entertainment at the Avian Awards 2010  India's Popular Domestic Airline at the SATTE 2006 Awards  India's Airline at the World Travel Awards, 2006  Best Technical Despatch Reliability by Beaver 2002  Best Cargo Airline of North Asia by Cargo Airline of the Year Awards  Best Domestic Airline award for the 1st consecutive year and the 5th time in the past two years at the 18th TTG (Travel Trade Gazette) Travel Awards 2007  India's Most Respected Company in the Travel and Food Sector by Business world 2003  Best Long Haul Carrier ex-Brussels award at the Tm Travel Awards 2009.  Best Eastbound Airline from India and Best domestic Airline in India awards at the Abacus Tafi Awards 2009.  Business Traveller's Best Indian Airline Award in London. According to
48 6.AirAsia. IATA AK ICAO AXM Callsign RED CAP Founded 1993 Commenced operations 18 November 1996 Hubs Kuala Lumpur International Airport Secondary hubs  Kota Kinabalu International Airport  Penang International Airport  Kuching International Airport  Senai International Airport Focus cities Singapore Changi Airport Frequent-flyer program BIG Loyalty Programme
49 Subsidiaries (affiliates)  AirAsia India  AirAsia X  Indonesia AirAsia  Indonesia AirAsia X  Philippines AirAsia  AirAsia Zest  Thai AirAsia  Thai AirAsia X  AirAsia Japan Fleet size 182 Destinations 121 incl. affiliate airlines Company slogan Now Everyone Can Fly Parent company Tune Group Headquarters Kuala Lumpur International Airport Sepang, Selangor, Malaysia Key people  Tony Fernandes, Co-founder and CEO of AirAsia Group  Aireen Omar, CEO[2] Revenue RM 5.19 billion/US$1.58 billion(2013) Net income RM 364 million/US$ 111 million(2013) Employees +10,000 (2014) Website www.airasia.com An AirAsia Boeing 737-300 in special livery denoting the Malaysian flag.
50 AirAsia Airbus A320 departingKuala Lumpur International Airport AirAsia Berhad (MYX: 5099) is a Malaysian low-cost airline headquartered near Kuala Lumpur, Malaysia. AirAsia group operates scheduled domestic and international flights to 100 destinations spanning 22 countries. Its main hub is klia2, the low-cost carrier terminal at Kuala Lumpur International Airport (KLIA) in Sepang, Selangor, Malaysia: all its Kuala Lumpur departures and arrivals operate through this terminal. Its affiliate airlines Thai AirAsia, Indonesia AirAsia, Philippines AirAsia,AirAsia Zest, and AirAsia India have hubs in Don Mueang International Airport, Soekarno– Hatta International Airport, Ninoy Aquino International Airport, and Kempegowda International Airport respectively, while its subsidiary, AirAsia X, focuses on long-haul routes. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport. AirAsia operates with the world's lowest unit cost of US$0.023 per available seat kilometres (ASK) and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines, and achieves an average aircraft utilization rate of 13 hours a day. In 2007 Joshua Kurlantzick of The New York Times described the airline as a "pioneer" of low-cost travel in Asia. AirAsia is the sponsor of Malaysia national football team, Singapore national football team andQueens Park Rangers. History AirAsia was established in 1994 and began operations on 18 November 1996. It was founded by a government-owned conglomerate, DRB-Hicom. On 2 December 2001, the heavily-indebted airline was bought by former Time Warner executiveTony Fernandes' company Tune Air Sdn Bhd for the token sum of one ringgit (about USD 0.26 at the time) with USD 11 million (MYR 40 million) worth of debts. Fernandes turned the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as MYR 1 (US$0.27). In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahrunear Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai affiliate, added Singapore to the destination list, and started flights to Indonesia. Flights toMacau began in June 2004, and flights to mainland China (Xiamen) and the Philippines (Manila) in April 2005. Flights toVietnam and Cambodia followed in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia. In August 2006, AirAsia took over Malaysia Airlines's Rural Air Service routes in Sabah and Sarawak, operating under the FlyAsianXpressbrand. The routes were returned to MASwings a year later, citing commercial reasons. At the end of 2006, Fernandes unveiled a five-year plan to further enhance AirAsia's presence in Asia. Under the plan, AirAsia proposed enhancing its route network by connecting all of its existing destinations throughout the region and expanding further into Vietnam, Indonesia, Southern China (Kunming, Xiamen, Shenzhen) and India. Through its sister companies, Thai AirAsia and Indonesia AirAsia, the plan called for a focus on developing its hub in Bangkok and Jakarta. With increased frequency and the addition of new routes, AirAsia increased passenger volume to 13.9 million in its 2007 fiscal year.
51 During 2007, passengers from "The Barrier-Free Environment and Accessible Transport Group" protested against the airline over its refusal to fly passengers who were completely immobile. They claimed that people with disabilities were discriminated against when booking tickets online; the CEO of the airline said it did not turn away wheelchair-bound passengers. An AirAsia A320 with the Malaysian flag on the tail and Cartoon drawings on the fuselage. On 27 September 2008, the company announced 106 new routes to be added to its list of 60. The number of old routes discontinued has not been disclosed. In August 2011, AirAsia agreed to form an alliance with Malaysia Airlines by means of a share swap.[11] The alliance was struck down by the Malaysian government, in effect voiding the agreement of both airlines. By early 2013, AirAsia's profits increased by 168% on a year-over-year basis compared to the same period in 2012. For the quarter ending 31 December 2012, the airline's net profit stood at 350.65 million ringgit (US$114.08 million). Despite a 1% rise in the average fuel price, the airline recorded profits of 1.88 billion ringgit for its full 2012 fiscal year. In February 2013, AirAsia submitted an application to the Indian Foreign Investment Promotion Board, through its investment arm, AirAsia Investment Limited, to seek approval for commencing its operations in India. AirAsia asked to take a 49% stake in the Indian sister airline, which was the maximum allowed by the Indian government at that time. AirAsia committed to invest up to US$50 million in the new airline. Operations would begin in Chennai, expanding its network throughout South India, where AirAsia already operates flights from Malaysia and Thailand. Corporate affairs KLIA LCCT, which houses the AirAsia head office The head office is the LCC Terminal at Kuala Lumpur International Airport in Sepang, Selangor. The registered office is on level 13 of the Menara Prima Tower B in Petaling Jaya. The airline plans to move its head office to a new facility constructed at klia2. Until the new head office opens, the airline's head office will remain at LCCT. The new klia2 head office is scheduled to open in the end of 2015. Aireen Omar, the AirAsia Country CEO of Malaysia, stated that the headquarters
52 needed to be redesigned because in the klia2 plans the location of the control tower had been changed. Construction on the facility was scheduled to begin in July 2014. Malaysia Airports Holdings is leasing the land that will be occupied by the headquarters. Affiliate airlines AirAsia India In October 2012, Air Asia's management said that they were keen to have more presence in India if the aviation environment and tax structure were conducive and friendly for low-cost airline operations. With the Indian Government allowing a foreign direct investment of up to 49%, the airline CEO Tony Fernandes tweeted "Fantastic news that India has opened up investments to foreign airlines." He said that it was now easier for him to set up an airline in India. Tony Fernandes called the joint venture with Tata Sons a marriage made in heaven. He said that the Tatas know India very well and have a good reputation. A tie-up with the company would help AirAsia operate efficiently. Fernandes said that he would concentrate mainly on the one million south Indians who travel by rail. AirAsia announced its Indian low-cost affiliate airline on 19 February 2013. The airline would be operated as a joint venture, with AirAsia holding 49% of the airline. Arun Bhatia, father of Lakshmi Mittal's son-in-law, Amit Bhatia, will take up 21% and Tata Sons will take up a stake of 30% in the airline. The joint venture would also mark Tata Sons' return to aviation industry after 60 years. AirAsia is the first foreign airline to set up an affiliate airline in India. The primary hub of the airlines is at Bangalore and secondary hub is at Cochin International Airport. The maiden flight of AirAsia's India venture on Bangalore-Goa route took off on 12 June 2014. AirAsia Japan AirAsia and Japanese network airline All Nippon Airways announced their joint venture at a press conference in Tokyo on 21 July 2011. Following its establishment in August 2011, AirAsia Japan flew its first flight in August 2012. AirAsia Japan was the first low-cost airline to be based at Narita International Airport. Its formation was announced only months after ANA had announced the formation of Peach, a low-cost airline based at Kansai International Airport in Osaka, and alongside a concurrent effort by Japan Airlines to set up a low-cost affiliate. ANA elected to partner with an existing low-cost airline for efficiency and strategic advantage. It was the fifth affiliate airline for AirAsia and the ninth for ANA. The airline was headquartered alongside ANA in Tokyo, with its main operating base at Narita, and served domestic destinations, utilising the brand and service model of AirAsia. Future planned international destinations included the Philippines, South Korea, and Taiwan. AirAsia Japan terminated its operations on 27 October 2013 after announcing the dissolution of its joint venture in June 2013. In a press release on 1 July 2014 AirAsia announced a relaunch of the AirAsia Japan brand. The first flight is scheduled to depart in the summer of 2015. AirAsia X
53 An AirAsia X Airbus A330-300 taking off at Perth Airport. AirAsia X is the long-haul operation of AirAsia. The franchise is able to keep costs down by using a common ticketing system, aircraft livery, employee uniforms, and management style. AirAsia X is also affiliated with Virgin Group and Air Canada. On 17 May 2007, Tony Fernandes announced plans to commence flights from Malaysia to Australia. Fernandes said he would be avoiding Sydney Airportdue to its high fees. Instead, the airline would concentrate on cheaper alternatives such as Melbourne's Avalon Airport, Williamtown Airport in Newcastle, and Adelaide Airport. Sustained fares were predicted to be around MYR 800 (A$285) for a return fare, plus taxes.Interest was also expressed in using Gold Coast Airport as another Australian destination. On 14 May 2007, AirAsia confirmed that it had ordered 15 Airbus A330-300 aircraft, 5 more than originally announced. The aircraft are scheduled for delivery from the fourth quarter of 2008. On 27 March 2008, AirAsia signed a firm contract for another 10 Airbus A330-300s bringing the airline's total order to 25. AirAsia X received its first A330 on 31 October 2008 in Toulouse, France. As of 14 February 2008, 48% of AirAsia X is owned by Aero Ventures; a venture of Tony Fernandes, other prominent Malaysians, and Air Canada's Robert Milton. Virgin Group own 16% and a further 16% is owned by AirAsia. Bahrain-based Manara Consortium, and Japan-based Orix Corp have taken a 20% stake in AirAsia X for RM250 million. The fleet consists of 15 Airbus A330 and 2 Airbus A340 aircraft. The airline also has 14 A330s and 13 Airbus A350s on order. AirAsia Zest AirAsia Zest Airways, Inc., operating as AirAsia Zest (formerly Asian Spirit, and Zest Air), is a joint venture between AirAsia & AMY Holdings Inc., the company who owns Zest-O corporation in the Philippines. It operates scheduled domestic and international tourist services, mainly feeder services linking Manila and Cebu with 24 domestic destinations in support of the trunk route operations of other airlines. In 2013, the airline became a sister airline of AirAsia Philippines operating their brand separately. Its main base is in Ninoy Aquino International Airport, Manila, and with a hub at Mactan- Cebu International Airport, Cebu. The airline was founded as Asian Spirit, the first airline in the Philippines to be run as a cooperative. It was rebranded to Zest Air on March 2008. On 16 August 2013, the Civil Aviation Authority of the Philippines (CAAP), the regulating body of the Government of the Republic of the Philippines for civil aviation, suspended Zest Air flights until further notice due to safety issues. Less than a year after AirAsia and Zest Air's strategic alliance, the two companies hav rebranded as AirAsia Zest on 18 September 2013. Indonesia AirAsia Indonesia AirAsia operates scheduled domestic, international services and is an Indonesian associate carrier of Malaysian low-fare airline AirAsia. Its main base is Soekarno-Hatta International Airport, Jakarta. Until July 2010, Indonesia Air Asia, along with many Indonesian airlines, was banned from flying to the EU due to safety concerns. However, the ban was lifted on July 2010. The airline was established as Awair in 1999 by Abdurrahman Wahid, former chairman of the Nahdlatul Ulama Muslim organisation. He had a 40% stake in the airline which he relinquished after being elected president of Indonesia in October 1999. On 1 December 2005, Awair changed its name to Indonesia AirAsia in line with the other AirAsia branded airlines in the region. AirAsia Berhad has a 49% share in the airline with Fersindo Nusaperkasa owning 51%. Indonesia's laws disallow majority foreign ownership on domestic civil aviation operations.
54 Indonesia AirAsia X Indonesia AirAsia X is a joint venture of AirAsia X. It serves Indonesia AirAsia's regularly scheduled long haul international flights from Bali's Ngurah Rai International Airport. Indonesia AirAsia X was scheduled to launch its first flight to Melbourne on 22 December 2014. Philippines AirAsia Philippines AirAsia is a joint venture between Filipino investors and AirAsia. The Filipino group include Antonio Cojuangco, Jr., former owner of Associated Broadcasting Companywith flagship television station TV5, Michael Romero, a real estate developer and port operator, and Marianne Hantavirus. The joint venture was approved on 7 December 2010 by the Board of Investments, an agency in the Philippines in charge of big ticket investments. Philippines AirAsia is one of the Philippine air carriers banned in the European Union. On 15 August 2011, Philippines Air Asia took delivery of its first brand-new aircraft, an Airbus A320 which arrived at Clark International Airport in Clark, Angeles City, Pampanga. On 8 November 2011, Philippines Air Asia took delivery of its second A320. On 7 February 2012, the airline received its Air Operator Certificate from the Civil Aviation Authority of the Philippines which gives the airline permission to fly in Philippine airspace. Thai AirAsia Thai AirAsia is a joint venture between AirAsia and Thailand's Asia Aviation. Thai AirAsia launched domestic operations on February 2004. It serves AirAsia's regularly scheduled domestic and international flights from Bangkok and other cities in Thailand. Thai AirAsia was the only low-cost airline operating both domestic and international flights from theSuvarnabhumi Airport. The airline shifted all operations from Suvarnabhumi Airport to Don Mueang International Airport effective 1 October 2012. Thai AirAsia is 55% owned by Asia Aviation, 45% owned by AirAsia International. The airline sponsors the Thai football teams Buriram United, SCG Muangthong United, Chonburi, Osotspa Saraburi, BEC Tero Sasana, Chiangrai UTD, Esan United, Chainat, Samut Prakan CUTD, Bangkok United, FC Phuket, Krabi, Air Force United, Nakhon Phanom, Loei City, Trang and the referee of Football Association of Thailand. Thai AirAsia X Thai AirAsia X is Thailand’s first long-haul low-cost airline. It was scheduled to begin operations in June 2014. After putting off the launch that had been planned for the first quarter, Thai AirAsia X was to launch its maiden service from Bangkok to Incheon, South Korea on 17 June and then begin regular flights to Japan’s Narita Airport in Tokyo and Osaka around July.[48] Destinations Fleet The total AirAsia fleet (excluding AirAsia X) consists of the following aircraft (as of January 2015):
55 AirAsia had witnessed a continuous growth in the amount of revenue passenger kilometres. Click graph to enlarge. AirAsia fleet Aircraft In fleet Orders Passengers Notes Airbus A320- 200 182 56 180 Aircraft are distributed as follows:  AirAsia (Malaysia) - 81  Thai AirAsia - 42  Indonesia AirAsia - 29  AirAsia Zest - 18  Philippines AirAsia - 10  AirAsia India - 2 From 2013 onwards Airasia received A320-200 equipped with sharklets PK-AXC lost as QZ8501 on 28 December 2014. Airbus A320neo 0 291 180 Entering into Service in 2016 Total 182 347 On 28 February 2014, AirAsia deferred 7 Airbus A320 and 12 Airbus A320 in 2014 and 2015 respectively. Fleet renewal AirAsia plane sporting the "Airline of the Year" livery, taxiing at Kuching
56 The interior of an AirAsia Airbus A320-200 aircraft. Previously operating the Boeing 737–300, AirAsia has now completely converted to the Airbus A320- 200. In June 2011 AirAsia ordered 200 Airbus A320neos at the Paris Air Show. The planes are due to become available in 2015, and the deal is one of the largest ever for commercial aircraft in a single order. The deal was worth USD 18 billion at list prices, although it is likely that AirAsia obtained a substantial discount from those prices. The deal makes AirAsia Airbus' single biggest customer. On 13 December 2012, AirAsia placed an order for an additional 100 Airbus A320 jets, splitting it between 64 A320neo and 36 A320ceo. With this, the total number of orders that AirAsia had placed for the Airbus A320 had gone up to 475. Services On board AirAsia offers "Snack Attack," a buy on board programmer offering food and drinks for purchase. Air Asia is accredited by the KL Syariah Index, and in accordance with Shariah law it does not serve alcohol or pork. However, this applies only to the regional AirAsia group flights, and not to the AirAsia X flights, which do sell wine and beer on board. Frequent-flyer program AirAsia is taking the first steps towards starting its own frequent-flyer programmer. The airline has signed an agreement to start a joint venture with financial services firm Tune Money to launch a programmer called "BIG". Under this programmer it will issue loyalty points to AirAsia customers and third-party merchants. Points can then be used to redeem AirAsia flights. Awards and recognition For six consecutive years, AirAsia won the World's Best Low Cost Airline by Skytrax from 2009 until 2014. The 2012 World Airline Awards in Farnborough, England ranked the airline as the world's best low-cost airline.
57 7). Jagson Airlines Ltd. (JAGSONAIRLINES) IATA JA ICAO JGN Callsign JAGSON Founded 1991 Hubs New Delhi, Mumbai Secondary hubs Pune Focus cities Shimla Frequent-flyer program Xaverian Airport lounge The jagsonretreate Alliance Sky team(2006-2012) Fleet size 5 Destinations 9 Company slogan Soarng to new heights. Parent company Jagson group Headquarters Delhi, India Key people JagdishP.Gupta, Chairman
58 Company History Incorporated in Jan.'94, Jagson Airlines (JAL), acquired the operations from Jagson International, a group company, by taking the aircraft on lease. The company provides air taxi services under the Open Sky Policy of the Government of India. It made a public issue in Oct.'94. JAL commenced operations in 1994-95 with one Dornier taken on lease from JIL. During the same year, it inducted one more Dornier to its fleet and opened up new stations like Jaisalmer, Jodhpur, Udaipur, Kullu, etc. The Company proposes to acquire more aircraft in a phased manner and include new stations like Indore, Raipur, Bhopal, Chandigarh and Jammu. The Company provides air-taxi services for transport of passengers, mail, cargo and/or freight. During 2002-03 the company added one more flight vizChetak Helicopter and thus taking the total no of flights to 4. The company is having three dornier aircrafts and one chatak helicopter for its operations. History The airline was established and started operations in November 1991. It began charter operations with two 18-seat Dornier 228-201 aircraft and later operated regular services from Delhi. It is wholly owned by Jagson International. In 2006 they announced plans to expand their services to 9 cities, using leased Airbus A321-200aircraft.The airline currently offers only charter service from Delhi and Mumbai.TheAvro RJ85 registered VT-JJC has been grounded.VT-JJK another AVRO RJ-85 is at london Because of the trouble the airlines were having with cancelled flights and numerous other problems, Jagson Airlines has not and has no plans to launch a nationwide low-cost airline. They are currently continuing as a regional airline in India. Jagson Airlines have two MI-172 helicopters and 3 Dornier-228 aircraft's that are a part of their fleet. Jagson has recently taken deliveries of RJ 80s / BAe 146-200s Avro Regional Jets. They will be starting operations to all their previous routes shortly. Efforts were on to merge the erstwhile MDLR, which operated the same type of aircraft, and form a 5 aircraft airline.
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Aviation Industry analysis

  • 1. 1 A Project Report On Aviation Industry Submitted By Class: - MBA I, VIIT,Baramati Under The Guidance Of Dr. RupendraGaikwad Subject:- Industry Analysis- Desk Research (215) Name Roll Number Miss. KiranBendre 05 Mr. KalidasBhandwalkar 06 Mr. SanketBharte 07 Miss. SangitaBhilare 08
  • 2. 2 Index Chapter No Contents Page No 1 Industry Analysis Nature of the Industry, Market share of the company 3 2 Promoters & Management Ethos Background of promoters CSR policies 3 External environment Controlling ministry 4 Financials Ratio analysis of financial data 5 Recent development Margers & Acquisition
  • 3. 3 Indian Aviation Industry Chapter 1 : Industry Analysis – the Basics History of the Industry The first commercial flight in India was made on February 18, 1911, when a French pilot MonsignorPiquet flew airmails from Allahabad to Nain, covering a distance of about 10 km in as many minutes. Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350. For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful. In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth. Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issuing all rules and procedures governing Indian airports and airspace. Finally, the Airports Authority of India was entrusted with the responsibility of managing all national and international air ports and administering every aspect of air transport operation through the Air Traffic Control. With the opening up of the Indian economy in the early Nineties, aviation saw some important changes. Most importantly, the Air Corporation Act was repealed to end the monopoly of the public sector and private airlines were reintroduced.
  • 4. 4 Nature of the Industries: - The airline industry is highly competitive and subject to rapid change. We may be unable to compete effectively against other airlines with greater financial resources or lower operating costs, or to adjust rapidly enough in the event the nature of competition in our markets changes. The airline industry is highly competitive as to fares, flight frequency, frequent flyer benefits, routes and service. The industry is particularly susceptible to price discounting because airlines incur only nominal costs to provide service to passengers occupying otherwise unsold seats. Over the past few years, airlines have reduced domestic routes and the number of planes available, which has resulted in reduced domestic industry capacity and a trend towards increased fares. Although capacity has declined based on a nationwide average, capacity on the West Coast has not declined to the same degree due to increased competition from new market entrants. If airlines decide to increase their capacity in the future, this could cause fares to decline, which may adversely affect our business and results of operations. Many of our competitors are larger than we are and therefore, may have significantly greater financial resources and name recognition or lower operating costs than we do. In addition, competitors who have successfully reorganized out of bankruptcy have lowered their operating costs as a result of renegotiated labor, supply and financing agreements. From time to time in the past, some of these competitors have chosen to add service, reduce their fares, or take other competitive steps in our key markets. We may be unable to compete effectively against other airlines that introduce service or discounted fares in the markets that we serve. The airline industry, and particularly regional airlines like Horizon, also faces competition from ground transportation alternatives, such as buses, trains or automobiles. Increased use of technology such as video conferencing and internet-based meeting tools have also resulted in a change in business travel, especially in short-haul markets like those that Horizon serves. Players of the Industry- • Air Deccan • Air-India Express • Air India • Go Air • Indian Airlines
  • 5. 5 • IndiGo • Jet Airways • Jet Lite • SpiceJet • Air Charter Services Pvt Ltd • Air Charters India Size of the Industry There are about 450 airports and 1091 registered aircrafts in India Today. Geographical distribution Mumbai, Kolkata, Hyderabad, Delhi, Pune, Bangalore, Chennai. Output per annum Growth rate of 18% per annum Nature of Competition From an economist’s perspective in the Industry Following types of competition ins exists in Indian Automobile Industry : Perfect Competition Monopolistic Competition Oligopoly Monopolistic Competition : Current Trends in the current Monopolistic Automobile Market : Considering huge market potential, production of passenger cars is projected to grow at CAGR of 11% between 2010-11 and 2013-2014.
  • 6. 6 Market Size  Domestic Air Traffic quadrupled from 13 million to 52 billion in last decade  International Traffic more than tripled to 38 million  87 foreign airlines fly to and from India and 5 Indian airlines fly to and from 40 countries  45 million tons of cargo through 920 airlines, using 4200 airports and deploying 27000 aircrafts  Projections for traffic during the Eleventh Five Year Plan, which shows increase in passenger traffic (i.e. 18.8%) as compared to cargo (i.e. 11.4%). The figure is as follows: Indian Aviation Industry a glance in 2011 - 2012  Indian aviation witnessed growth, both in domestic as well as international passenger traffic - 18%  Operational losses despite growth in passenger traffic  Debt trapped industry - combined debt of Indian airlines companies was around USD 15 Billion as of March 2012  Negative sentiment observed from international Financial Institutions  The total loss for all the airlines FY12 was approximately USD 2.5 billion according to the Ministry of Civil Aviation.  The only carrier that remained a profit-making operation was low-cost IndiGo, which also hit the headlines by announcing an order for 180 aircraft from Airbus Industries worth as much as $15.6 billion.  They also reported the fullest aircraft in Jul-2012India’s carriers today face a deteriorating cost environment on a number of fronts.
  • 7. 7 Oligopoly Competition: Oligopoly Features:  Small number of sellers  Products may be similar or different  Significant barriers to entry  Interdependence among competitors (Decisions made by one firm affect the demand, price and profit of others in the industry)nd C Kink Demand Curve Model
  • 8. 8  The airlines often use other means to create psychological impact. They use advertising to stimulate the potential traveler by depicting glamorous vacations and exciting adventures in distant places, and they emphasize that these places are only a few hours away by air. This is to gain more business from other transportations.  The effects of advertising manifest themselves in both the short and the long run. In terms of intra-industry competition, an airline can at best only hope to use advertising as a means of increasing market share in the short run. Demographic and Natural • Changing pattern of consumers • Highest percentage people of group 20-25 • Educational environment • High energy cost GROWTH OF THE INDUSTRY • The growth of airlines traffic in Aviation Industry in India is almost four times above international average. • Domestic airlines passengers traffic in increasing at the rate of 25%. • India ranks fourth after US, China and Japan in terms of domestic passengers volume. • The domestic aviation sector is expected to grow at a rate of 9-10 per cent to reach a level of 150-180 million passengers by 2020. • The industry witnessed an annual growth of 12.8 per cent during the last 5 years in the international cargo handled at all Indian airports. • Further, there has been an increase in tourist charter flights to India with around 686 flights bringing 150,000 tourists. • It is predicted that international passengers will grow upto 50 million by 2015 • Aviation is now affordable with check fares and discount schemes. • Various Operators with different business model. • Regional connectivity – Tier II & Tier III cities
  • 9. 9 Top 3 Players in theaviation industry with market share : IndiGo Rank: 1 Market Share: 32.6% SpiceJet Rank:2 Market Share: 19.5% AirIndia Rank: 3 Market Share: 16.2% Leaders : • Go Air • Jetairways Bottom 3 players in the industry with market share  kingfisher  bluedart CHALLENGES  Initializing privatization in the airport activities  Modernization of the airlines fleet to handle the pressure ofcompetition in the aviation industry  Rapid expansion plans for the major airports for the increased flow of air traffic  Development for the continuously growing Regional Airports  Costs pressures (ATF Prices & Staff Cost) Followers :  Vistara
  • 10. 10 About air lines The total fleet size of commercial airlines in India was 371 by 20 February 2013. In 1994, the Air Corporation Act of 1953 was repealed with a view to remove monopoly of air corporations on scheduled services, enable private airlines to operate scheduled service, convert Indian Airlines and Air India to limited companies and enable private participation in the national carriers. Since 1990 private airline companies were allowed to operate air taxi services, resulting in the establishment of Jet Airways and Air Sahara. These changes in the Indian aviation policies resulted in the increase of the share of private airline operators in domestic passenger carriage to 68.5% in 2005 from a meager 0.4% in 1991. Operational airlines Airline ICAO IATA Call Sign Commenced Operations Headquarters Status Air India AIC AI AIRINDIA October 1932 as Tata Airlines Delhi National Carrier Air India Express AXB IX EXPRESS INDIA April 2005 Kochi National Carrier Air India Regional LLR CD ALLIED 1996 (as Alliance Air) Delhi National Carrier AirAsia India ADI I5 ARIYA 12 June 2014 Bengalore Scheduled Air Costa LEP LB LECOSTA October 2013 Vijayawada Scheduled Air Pegasus — — — 2015 Bengaluru Scheduled Air Odisha — — 02 November 2012 Bhubaneswar Non- Scheduled Blue Dart Aviation BDA BZ BLUE DART 1995 Chennai Cargo Club One Air — — — August 2005 Mumbai Non- Scheduled Chhattisgarh Air Link — — — 2012 Raipur Scheduled Deccan Charters DKN DN 1997 Bengaluru Non- Scheduled Deccan Shuttles DKS DS 2012 Ahmedabad Non- Scheduled Fly Easy — — — 2015 Bangalore Scheduled GoAir GOW G8 GOAIR 2005 Mumbai Scheduled IndiGo IGO 6E IFLY August 2006 Gurgaon Scheduled Invision Air — — — March 2011 Mumbai Non- Scheduled
  • 11. 11 Jagson Airlines JGN JA JAGSON Delhi Scheduled Jet Airways JAI 9W JET AIRWAYS May 1993 Mumbai Scheduled Pinnacle Air PNC PX PINNACLE October 2013 Ranchi Non- Scheduled Quikjet Cargo FQA QO QUIK LIFT Feb 2012 Bengaluru Cargo SpiceJet SEJ SG SPICEJET May 2005 Chennai Scheduled TajAir MGE TX — November 1993 (as Megapode) Mumbai Non- Scheduled Ventura Airconnect VNT — AIRCONNECT July 2011 Gurgaon Non- Scheduled Vistara VTI UK VISTARA 9 Jan 2015 Delhi Scheduled Defunct airlines This is a list of now defunct airlines from India. Airline Commenced operations Ceased operations Headquarters Air India Cargo 1954 2012 Mumbai Air Deccan 2004 2007 Merged with Kingfisher Airlines and rebranded as Kingfisher Red Bengaluru Air Mantra 2012 2013 Delhi Air Sahara 1991 2006 Merged with Jet Airways and rebranded as JetLite Mumbai Air Services of India 1936 1953 Mumbai Airways (India) Limited 1945 1955 Kolkata Ambica Airlines 1947 1949 Bombay Archana Airways 1991 1999 New Delhi Aryan Cargo Express 2005 2010 New Delhi Bhaarat Airways 1995 1999 Mumbai Crescent Air Cargo 2000 2006 Chennai Damania Airways 1993 1997 Renamed Skyline NEPC after takeover by the owners of NEPC Airlines Mumbai DarbhangaAviations 1950 1962 Kolkata Deccan 360 2009 2011 Bangalore
  • 12. 12 East-West Airlines 1992 1995 Mumbai Elbee Airlines 1994 1998 Mumbai Gujarat Airways 1995 2001 Vadodara Himalayans Air Transport & Survey Limited 1934 1935 Kolkata Himalayan Aviation 1948 1953 Kolkata Indian 1953 2011 Merged with Air India New Delhi Indian National Airways 1925 1945 Delhi Indian Overseas Airlines 1947 1950 Mumbai Indian State Air Service (ISAS) 1929 1931 Kolkata Indian Transcontinental Airlines 1933 1948 Kolkata Indus Airways 2006 2007 New Delhi Irwaddy Flotilla & Airways 1934 1939 Chennai Jamair 1946 1977 Kolkata JetKonnect 2012 2014 Mrged with Jet Airways Mumbai Jetlite 2007 2012 Merged with JetKonnect Mumbai Jupiter Airways 1948 1949 Mumbai Kalinga Airlines 1946 1965 Kolkata Kingfisher Airlines 2005 2013 Bengaluru Kingfisher Red 2007 2013 Mumbai MDLR Airlines 2007 2009 New Delhi ModiLuft 1994 1996 Mumbai NEPC Airlines 1993 1997 Chennai Orient Airways 1946 1955 Moved to Karachi and later merged into PIA Kolkata Paramount Airways 2005 2010 Chennai Pushpaka Airlines 1979 1983 Mumbai Tata Airlines 1932 1946 Mumbai Vayudoot 1981 1997 New Delhi VIF Airways 1993 1996 Hyderabad Vijay Airlines 1981 1997 Chennai
  • 13. 13 Profile of Top 3 Companies 1. INDIGO IATA 6E ICAO IGO Callsign IFLY Founded 2006 Commenced operations 15 August 2006 Hubs  Indira Gandhi International Airport (Delhi)  SardarVallabhbhai Patel International Airport (Ahmedabad) Secondary hubs  ChhatrapatiShivaji International Airport (Mumbai)  NetajiSubhash Chandra Bose International Airport (Kolkata) Focus cities  Chennai International Airport (Chennai)  Kempegowda International Airport (Bengaluru)  ChaudharyCharan Singh International Airport (Lucknow)  Rajiv Gandhi International Airport (Hyderabad)  Cochin International Airport (Kochi)  Pune Airport (Pune)  LokNayakJayaprakash Airport (Patna) Fleet size 90 Destinations 37 Parent company InterGlobe Enterprises Headquarters Gurgaon, Haryana, India Key people Rahul Bhatia, MD AdityaGhosh, president Revenue 111.17 billion (US$1.7 billion) (2014)
  • 14. 14 Net income 3.17 billion (US$50 million) (2014) Website www.goindigo.in IndiGo is an Indianbudget airline company headquartered at Gurgaon, India. It is the fastest growing and also the largest airline in India with a market share of 36.1% as of December 2014. The airline offers 564 daily flights connecting to 37 destinations including 5 international destinations with its primary hub at Delhi's IGI Airport. It presently operates a fleet of 90 aircraft belonging to Airbus A320 family.
  • 15. 15 Chapter 1 :History History of IndiGo IndiGo was set up in early 2006 by Rahul Bhatia of InterGlobe Enterprises and Rakesh S Gangwal, a United States-based NRI. InterGlobe holds 51.12% stake in IndiGo and 48% is held by Gangwal'sVirginia-based company Caelum Investments. IndiGo placed a firm order for 100 Airbus A320-200 aircraft in June 2005 with plans to commence operations in mid-2006. IndiGo took delivery of its first Airbus A320-200 aircraft on 28 July 2006, nearly one year after placing the order, and commenced operations on 4 August 2006 with a service from New Delhi to Imphal via Guwahati. By the end of 2006, the airline had six aircraft. Nine more aircraft were acquired in 2007 taking the total to 15. By December 2010, IndiGo replaced the state run flag carrier Air India as the top third airline in India. It already had 17.3% of the market share, behind Kingfisher Airlines and Jet Airways. By early 2012, IndiGo had taken the delivery of its 50th aircraft in less than six years. IndiGo is known to have placed the largest order in commercial aviation history during 2011 at that time, when Airbus won the US$15 billion deal for 180 aircraft. This deal pushed up the percentage of Airbus aircraft in India to 73%. By February 2012, IndiGo was expanding rapidly and was making solid profits, the only airline in India to do so. It had replaced Kingfisher as the second largest airline in India in terms of market share. IndiGo's strong adherence to a low-cost model, buying only one type of aircraft and keeping operational costs as low as possible along with an emphasis on punctuality are said to be some of the reasons for its success even when the airline industry in India was going through a bad patch. IndiGo focuses on adding a new plane every six weeks and sometimes even faster. However, this rapid expansion led to a scathing report by the DGCA in December 2011, which highlighted problems resulting from this expansion in the airline that could impact safety. On 17 August 2012, IndiGo became the largest airline in India in terms of market share (27%),which is more than one-fourth of total market share of all the Indian airlines combined, in the process dethroning the full-service carrier Jet Airways, which had held that position for many years. The airline had reached the position just six years after operations commenced. In January 2013, the Centre for Asia Pacific Aviation announced that, following Indonesian airline Lion Air, IndiGo was the second fastest growing low-cost carrier in the continent. In the same month, IndiGo became India's first airline to take the delivery of the Airbus A320-200 aircraft equipped with sharklets. AdityaGhosh, IndiGo's president said that this move would help them reduce fuel burn. In February 2013, following the civil aviation ministry announcing that they would be allowing IndiGo to take the delivery of only five aircraft that year, reports suggested that the airline was in plans to introduce low- cost regional flights by setting up a subsidiary. However, AdityaGhosh, IndiGo's president said that all such reports were untrue and IndiGo was actually in plans to seek permission from the ministry to acquire four more aircraft, therefore taking the delivery of nine aircraft in 2013. In August 2013, the Centre for Asia Pacific Aviation ranked IndiGo amongst the 10 biggest low-cost carriers in the world.
  • 16. 16 Marketing mix of indigo airlines Set up in the year 2006, Indigo Airlines is one of the cheapest domestic airlines in India which is owned by InterGlobe Enterprises and Mr. RakeshGangwal. This marketing mix of Indigo airlines discusses the 4P’s which have been executed in an excellent manner by Indigo such that Indigo is one of the leading low cost carrier in the country. In the marketing mix of Indigo airlines, the price plays a crucial role which we will discuss further. Indigo Airlines is considered one of the best airlines that offer professional services at economical prices. Starting its services with six aircrafts on 4th of August 2006, IndiGo now has 78 of them. It adds a new plane every 45 days and sometimes even faster. Within no time IndiGo has dethroned Kingfisher and stood as the second largest player in aviation industry only after Jet Airways. In the year 2013, Centre for Asia Pacific Aviation announced that IndiGo is the second and the fastest growing airline service in the continent. It is important to note that the airline operates all major cities in India. One of its major competitive advantages is that the air tickets can be booked online and the customer services are very friendly at the same time. Products in the marketing mix of Indigo airlines The core product of Indigo airlines is of course Air travel. The traveling is mostly for passengers but the cargo line of Indigo airlines is growing fast as well. Indigo airlines, being the country’s largest low-cost carrier offers one of the best airline services in the country. For the past three years, Indigo has managed to create profit whereas its competition has been making loses. This has largely been due to the fact that the airline increased its capacity and efficiency in its services while containing costs. As a way of increasing capacity, new flights have been introduced in order to get more passengers. For instance, while the total airline capacity in India reduced by 4%, Indigo managed to increase its capacity by unprecedented 39%. Another strategy that Indigo applied is deft route planning such that it increased the number of aircrafts per route instead of only increasing the number of routes. The low-cost model strategy, purchasing only one type of aircraft and keeping the operational costs as low as possible coupled with an emphasis on punctuality are the main reasons for its success even when the airline industry in India was going through its rough. Place in the marketing mix of Indigo airlines Customers who want to book their tickets can do so online or through various agencies throughout the country. The airline is trying to reduce the headache one has to go through to get a ticket and that is why it has availed the online tickets. The airline’s destinations can be found throughout the major cities of the country. As a matter of fact, there are about 29 current Indigo destinations but expansion is ongoing. While that is the case, the airline has ensured that its core strategies are maintained. The core strategies include keeping the airline the most affordable airline in India and keeping flying a pleasant experience. With its fleet of 78 aircrafts and as many as 508 flights daily, it operates 29 domestic and international destinations whiles its competitor SpiceJet as 56 of its aircraft operating 45 destinations. Thus, the strategy is to provide more capacity on fewer routes than thinly spread itself over many destinations. This is advantageous in that: it helps contain costs because new destinations will require infrastructure
  • 17. 17 costs and help in creating more customers because they will be viewed as reliable in the few destinations they operate. Promotion in the marketing mix of Indigo airlines No airline has worked harder at capturing the local market better than IndiGo Airlines. The airline relies on its cost and availability to promote its brand across the market. These investments in advertisements are low because it affects the cost. However, Indigo did come out with a few TVC’s of its own as well as does good advertising online. The airline has adopted a strategy of connecting flights to other destinations from one destination such that customers will not have to book another airline to arrive to their destination. For instance, it has connected four flights from Ranchi to Delhi, Mumbai, Patna and Bangalore and plans are underway for it to add Kolkata and Raipur. Although not a direct marketing strategy, this strategy has seen it gain more customer base because customers would want to cut costs by using just one aircraft to reach their destination. Other promotion methods used by Indigo aircraft include media vehicles like billboards, print media advertising and advertising on travel portals. Price in the marketing mix of Indigo airlines As already mentioned, price is one of the major factors in the marketing mix of Indigo airlines. It is because of price and maintaining costs that the airlines has received so much success. IndiGo Airlines is one of the cheapest, if not the cheapest airline in India. In fact, that happens to be its competitive advantage when travelers are comparing prices. This makes it one of the most sought airline services in India because of its quality services as well. The complete credit for Indigo’s success goes to the cost control department at Indigo airlines. Indigo uses computer generated mechanisms to determine how much petrol it will need from Point A to point B. Thus, its savings on petrol is high and airline petrol is very very costly. Furthermore, the servings on flight are minimum. Indigo wants to control cost but does not build relationships with its customers. This might irk some but then the airline is the only airline which is making good profits even at this stage. With decrease in prices and increase in the number of passengers every day, Indigo faces a tough competition from SpiceJet and Air India. With a market share of 31.7% at present, it would be safe to say that Indigo provides what no other airlines can offer when it comes to cheap prices. There are also constant discounts that keep customers coming back.
  • 18. 18 Indigo SWOT Analysis Strength 1. Strong backing Promoters and is one of the largest low cost carriers in India 2. Only LCC to make consistent profits 3. It has one of the major airlines in India in terms of market share 4. LCC which has entered international markets has boosted its brand value 5. Good advertising and marketing strategies have increased its brand recall Weakness 1.Not on too many routes as compared to competitors 2. Still has to establish itself on international destinations Opportunity 1. Opening up of International routes 2. Largest Market share among LCCs in Indian Market 3. Middle Class taking to the skies Threats 1. Plenty of new LCCs to compete with 2. Rising Labor costs and changing govt policies 3. Rising Fuel Costs
  • 19. 19 2.Spice jet India ltd IATA SG ICAO SEJ Callsign SPICEJET Founded 2005 Commenced operations 18 May 2005; 9 years ago Hubs  Chennai International Airport (Chennai)  Indira Gandhi International Airport (Delhi)  Rajiv Gandhi International Airport (Hyderabad) Secondary hubs  ChhatrapatiShivaji International Airport(Mumbai)  Kempegowda International Airport (Bangalore) Focus cities  Cochin International Airport(Kochi)  NetajiSubhas Chandra Bose International Airport(Kolkata)  Pune International Airport(Pune)  SardarVallabhbhai Patel International Airport(Ahmedabad) Frequent- flyer program SpiceJet MAX Fleet size 38 Destinations 49 Company slogan Whatever We Do, We Do It With All Our Heart Headquarters Gurgaon, India
  • 20. 20 Revenue US$ 964.13 million (2013) Employees 5,252 (2013) Website Founded: Founders: spiceJet.com 1. February 9, 1984 2. 3. Ajay Singh, Bhupendra S. Kansagra
  • 21. 21 2 Spice Jet Company History - Spice jet Ltd. YEAR EVENTS 1984 – The Company was incorporated on 9th February as a private limited company in the name and style of Genius Leasing Finance and Investment Company Limited. The business was commenced on 14th March. It was promoted by S.K. Modi of the Modi Group of Companies. The main objective of the company is to manufacture Private air taxi operation. 1993 The name of the company was changed to MG Express Ltd. on 17th February.The Company diversified its activities into domestic aviation operations. Since May, has been providing safe and reliable air transportation for both the passenger and cargo. In the first phase of operations, three Boing 737-200 advance air craft was commissioned in service.The Company entered into an agreement with Lufthansa for spares, services and maintenance and training of flight crew. The Company was to pay DM 102,000 per plane, per month for dry lease.The Company is to provide two classes of services, first class and economy class. Telecommunication lines were to be established between airlines.In the second phase of operations, the Company was to acquire on dry lease, four Boing 737-400, Advance Fuel Economic Aircrafts and one Boing 737-200 aircraft. Three of the 737-400airafts would have a capacity of 150 seats and the remaining one with a capacity of 164 seats.The Company entered into agreement with International airlines such as Swissair, KLM-Royal Dutch Awtun, Qantas airways, Air Canada etc. - 2,00,000 shares allotted to public. 240,00,000 No. of equity shares of Rs. 10 each issued in May-June, as follows: - 214,00,000 rights equity shares of Rs. 10 each in proportion 107:1 (all were taken; up). - 24,00,000 shares reserved for allotment to shareholders of Modi Threads Ltd. - 2,00,000 shares to employees of Modi Threads Ltd. - Another 150,00,000 shares were allotted to Business associates on preferential basis. 1994 – In September, the Company signed an MOU with Indian Oil Corporation Ltd. to arrange the imports of aviation turbine fuel and the first consignment was expected in the 2nd week of January 1995.- Effective 12th April, the name of the company was changed from MG Express Ltd. to Modiluft Ltd.242,00,000 No. of equity shares of Rs. 10 each were then issued in November, at a premium of Rs. 30 per share on rights basis in prop. 1:1 (6,000 shares kept in abeyance).During the year under review
  • 22. 22 the Company opened up several new stations and at present is connecting most of the major business and tourist locations across the Country.The Company proposes to expand its operations by adding 4 Boeing 737-400 aircraft to its existing fleet.On 23rd November, 1994, your Company was awarded the coveted status of a Scheduled Airline. Consequently, the Company has also obtained the Associate Membership of International Air Transport Association (IATA).The Company further issued 1.50 crore Equity Shares of Rs. 10/-each for cash at par aggregating to Rs.15.00 crore to business associates on preferential basis, thus taking the total Paid Up Capital of the Company to Rs. 39.20 crore during the year 1993-94.The Company has inter-line agreements with all major foreign Airlines, an extensive network of sales agents and worldwide communication network for making reservations from any part of the world which enables the Company to earn revenue in foreign exchange. 1995 – The Company in its initial stage entered into an "Agreement on Technical Support" which was further strengthened with "Management Agreement" on 28th June, 1994. The Company is also setting up a working group in respect of each of the areas to ensure the desired results are achieved. ModiLuft has tied up their Frequent Flyer Programmer - MILES & SMILES with Deutsche Lufthansa AG, with effect from 1st July, 1995. The Company also proposes to come out with a Rights Issue of Rs. 31.70 corers to acquire additional aircrafts as per Company's expansion plans. Mrs. MalvikaPoddar&Mr. Bernd Hildebrand, Directors retire by rotation, being eligible, offer themselves for reappointment. 1997 Mr. D.K.Babbar&Mr. KartikShankerAiyer, Directors retire by rotation &being eligible, offer themself for reappointment. 1999 The company has appointed Millenium Capital Management (Pvt.) Ltd. &Khandwala Securities Ltd. as its Management and financial consultants. Mr. S. K. Modi&Mr. Merchant Bharat Bachubhai, Director retire by rotation and being eligible, offer themself for re-appointment. 2000 Country's defunct private domestic carrier Modiluft Ltd., which suspended its operations in 1996, will be airborne again in January in a Newavataar as Royal Airways. The Board has allotted 81,077,500 redeemable preference shares of Rs 10 each to the Royal Holdings Service Ltd. USA. 2001 Modiluft Ltd has informed BSE that the Mr. Atul Sharma, Mr. Kishore Gupta, Mr. Siddhartha Sharma, Mr. MansukhlalKotecha and Mr. Vijay Kumar have been elected as Directors of the Company with effect from December 31, 2001. The aforesaid persons were earlier co-opted as Additional Directors.The Company has also informed that Mr. J.N.Gupta, Mr. S.K.Modi&Mr. B.B. Merchant have ceased to be Directors of the Company with effect from the same date.
  • 23. 23 2003 The company re-issued 1895348 forfeited equity shares of Rs 10 each at par on private placement basis. The company has been informed by Delhi Stock Exchange that the shares of the company are delisted wef December 10, 2003. 2005 -SpiceJet launches Delhi-Ahmedabad-Mumbai service on May 24, 2005. SpiceJet launches its six-day a week services to Jammu and Srinaga on Nov 11, 05 2005 -Company has changed its name from Royal Airways Ltd. to Spicejet Ltd. 2006 -SpiceJet ties up with Indiatimes .SpiceJet joins hands with Nomura on Aug 15,2006 2007 -Spicejet Ltd has informed that Mr. Osman Qureshi (nominee of Istithmar PJSC) has been appointed as director on the Board of the Company. 2010 - SpiceJet stated that it will order 30 Boeing 737-800 aircraft to take its fleet size to 58 planes. 2011 -Mr. S. Sridharan has been appointed as the Whole Time Director of the Company -Mr. R Neelakantan has been appointed as the Chief Financial Officer (CFO) of the Company -Awarded for Best Website at ‘World Low Cost Airlines Asia Pacific Conference.Voted as India’s Best Low Cost Airline by Outlook Traveller. -Registered Office of the Company has been shifted To MurasoliMaran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai - 600028, Tamil Nadu. 2012 -Mr. Chandan Sand has been appointed as GM (Legal) & Company Secretary of the Company. SpiceJet gets DGFT nod to direct import of ATF -Voted as India’s Favourite Domestic Airline for the year 2012 by Outlook Traveller . India’s International Low Cost Carrier of the Year 2012 by Travel Agents Association of India -India’s Most Outstanding Airline LCC-Domestic Award, by Travel and Hospitality.
  • 24. 24 1993–1996: ModiLuft era A Boeing 737-200 in a livery similar to that of Lufthansa. The origins of SpiceJet track back to February 1993 when ModiLuft was launched by Indian industrialist S K Modi, in technical partnership with the German flag carrier Lufthansa. The airline ceased operations in 1996. 2005–2013: Inception and expansion SpiceJet Boeing 737-900ER taking off from SardarVallabhbhai Patel International Airport in Ahmedabad In 2004, Ajay Singh raised funds and restarted operations as SpiceJet following the low- costmodel. SpiceJet leased 3 Boeing 737-800 aircraft. On 7 March 2005, the Airports Authority of India approved three overnight parking slots to SpiceJet, with two in Delhi and one in Mumbai. SpiceJet opened bookings on 18 May 2005 The first flight was flagged off by then Union Minister of Civil Aviation, Praful Patel. The first Boeing 737-800 aircraft leftIndira Gandhi International Airport, New Delhi for ChhatrapatiShivaji International Airport,Mumbai on 24 May 2005. By 2008, it was India's second-largest low-cost carrier in terms of market share. Indian media baron KalanidhiMaran acquired 37.7% stake in Spicejet in June 2010. In 2012, SpiceJet suffered from a loss of over 390 million (US$6.1 million) owing to increase in global crude prices. On 9 January 2012, the Directorate General of Civil Aviation, reported that several airlines in India, including SpiceJet, have not maintained crucial data for the flight operations quality assurance or the FOQA. The Bombay stock exchange announced that ever since June 2011, Spicejet had been suffering losses. In 2012, Despite the losses, KalanithiMaran increased his stake in Spicejet by investing 1
  • 25. 25 billion (US$16 million) in the airline.The airline returned to making profits at the end of the year. In 2013, SpiceJet launched its first interline pact with Tiger air on 16 December 2013. 2014-present In July 2014, SpiceJet announced up to 50 per cent discounts due to competition. In December 2014, SpiceJet cancelled many domestic flights across the country. Directorate General of Civil Aviation (DGCA) issued warning over non payment of salaries and dues, while the airport operators moved to put the carrier on cash-and-carry mode, which means the airline can use the facilities of an airport only upon immediate payment. On December 17, all flights were grounded after oil companies refused to refuel its planes. Flights resumed the next day. In January 2015, the board of directors of SpiceJet transferred control of the airline to Ajay Singh, the founder of SpiceJet who also used to run the airlines earlier. Destinations Revenue Passenger Kilometres (Total) Year Traffic 2008 4397 2009 4819 2010 6807 2011 8639 2012 10322 SpiceJet currently operates over 230 flights daily to 41 Indian and 9 international destinations. The airline flies Boeing 737-800 and −900ERs &Bombardier Dash 8 Q400s. After completing 5 years of flying, SpiceJet was allowed to commence international flights by the Airports Authority of India on 7 September 2010. SpiceJet launched flights from Delhi to Kathmandu and Chennai to Colombo. The first international flight took off on 7 October 2010 from the Delhi airport. In April 2011, SpiceJet announced that they chose Hyderabad Rajiv Gandhi International Airport as the primary base for its new fleet of Bombardier Q400 NextGen aircraft. On 12 January 2012, SpiceJet's fleet went up to 40 as Boeing delivered a brand new 737-800 aircraft. SpiceJet increases frequency on Delhi-Hyderabad route
  • 26. 26 Codeshare agreements SpiceJet has codeshare agreements with the following airlines (as of September 2013)  Lufthansa Fleet SpiceJet placed its first firm order for 20 Next-Generation Boeing 737-800s in March 2005, with deliveries scheduled up to 2010. Again in November 2010, SpiceJet order for another 30 Boeing 737- 800s with winglets in the presence of the American president, Barack Obama. Neil Mills, the chief executive officer of SpiceJet said "We are extremely satisfied with the Next-Generation 737—an airplane that is reliable, allows for greater efficiency in maintenance and supports the business plan for low-cost carriers". On 9 December 2010, Bombardier Aerospace announced that SpiceJet placed a firm order for 15 Q400 NextGen turboprop airliners and has also placed an option to buy another 15 of those. SpiceJet used its fleet of Q400s for short-haul operations. Each aircraft in the SpiceJet fleet is named after a spice. SpiceJet sold five of its old Boeing 737-800 to other operators on receiving new ones. One of the five was SpiceJet's own which is now in the possession of Somon Air. In February 2012, SpiceJet announced that it would take the delivery of ten more aircraft during 2012, of which seven would be the Bombardier Q400. In March 2014, Spicejet signed a $4.4 Bn deal with Boeing for procurement of 42 737-8 MAX aircraft. As of February 2015, the airline has the following fleet: SpiceJet fleet Aircraft In Service Orders Passengers (Economy) Notes Boeing 737-800 18 — 189 all dry leased Boeing 737MAX 8 — 42 — — Boeing 737-900ER 1 — 212 — Bombardier Dash 8 Q400 15 15 78 1 dry leased Total 38 57
  • 27. 27 Current fleet SpiceJet currently has a fleet of 19 Boeing 737-800/900ER aircraft along with some 15 Bombardier Q400 aircraft.
  • 28. 28 3.AirIndia एअरइंडिया IATA AI ICAO AIC Callsign AIRINDIA Founded July 1930 (as Tata Airlines) Commenced operations 15 October 1932 Hubs  Indira Gandhi International Airport (Delhi)  ChhatrapatiShivaji International Airport (Mumbai) Secondary hubs  Chennai International Airport (Chennai)  NetajiSubhas Chandra Bose International Airport (Kolkata) Focus cities  Hong Kong International Airport (Hong Kong)  Singapore Changi Airport (Singapore)  Kempegowda International Airport (Bangalore)  Trivandrum International Airport (Trivandrum)  Cochin International Airport (Cochin)  Rajiv Gandhi International Airport (Hyderabad)  SardarVallabhbhai Patel International Airport (Ahmedabad) Frequent-flyer program Flying Returns Airport lounge Maharaja Lounge Alliance Star Alliance Subsidiaries  Air India Express  Air India Regional  Air India Cargo  Aryan Cargo Express  Indian Airlines  Pawan Hans Fleet size 100 (30 on orders)(excluding subsidiaries) Destinations 90 Company slogan Your Palace in the Sky
  • 29. 29 Parent company Air India Limited Headquarters Indian Airlines House Parliament Street, New Delhi Delhi, India. Key people JRD Tata (Founder) RohitNandan, IAS (CEO) Syed Nasir Ali, IRS(JMD) Revenue 143 billion (US$2.2 billion) (FY 2013/14) Operating income 192 billion (US$3.0 billion) (FY 2013/14) Net income 21 billion (US$330 million) (FY 2013/14) Employees 23,044 (July 2014) Website www.airindia.in Air India is the flag carrier airline of India owned by Air India Limited (AIL), a Government of India enterprise. It is the third largest airline in India (after IndiGo and Jet Airways) in domestic market share, &operates a fleet of Airbus and Boeing aircraft serving various domestic &international airports. It is headquartered at the Indian Airlines House in New Delhi. Air India has two major domestic hubs at Indira Gandhi International Airport & ChhatrapatiShivaji International Airport, &secondary hubs at Chennai International Airport and NetajiSubhas Chandra Bose International Airport, Kolkata. The airline formerly operated a hub at Frankfurt Airport which was terminated on account of high costs. However, another international hub is being planned at the Dubai International Airport. Air India was once the largest operator in the Indian subcontinent with a market share of over 60%. Indifferent financial performance and service, labor trouble pushed it to fourth place in India, behind low cost carriers like IndiGo, SpiceJet, and its full service rival Jet Airways. Between September 2007 &May 2011, Air India's domestic market share declined from 19.2% to 14%, primarily because of stiff competition from private Indian carriers. However, after financial restructuring &enforcement of strict rules and regulations, the airlines showed signs of turning around. In March 2013, the airlines posted its first positive EBITDA after almost 6 years. The airlines bolstered its financial &physical performance with a 44 per cent slash in its operating losses in 2013-14 &an almost 20 per cent growth in its operating revenue since the previous financial year. As of January 2014, Air India is the third largest carrier in India, after IndiGo and Jet Airways with a market share of just above 19%. The airline was invited to be a part of the Star Alliance in 2007. Air India completed the merger with Indian Airlines & some part of the agreed upgrades in its service and membership systems by 2011. In August 2011, Air India's invitation to join Star Alliance was suspended as a result of its failure to meet the minimum standards for the membership. However, in October 2011, talks between the airline and Star Alliance resumed. On 13 December 2013, StarAlliance announced that Air India and the alliance have resumed the integration process &the airline became the 27th member of Star Alliance on 11 July 2014.
  • 30. 30 History Early years (1932-1945) Tata Sons, a division of Tata Sons Ltd. (now Tata Group) was founded by J. R. D. Tata in 1932. The aviator NevillVintcent had an idea to run mail flights from Bombay and Colombo that connected with the Imperial Airways flights from the United Kingdom. He found a supporter for his plans from J. R. D. Tata of the Tata Iron and Steel Company. After three years of negotiations Vincent and Tata won a contract to carry the mail in April 1932 and in July 1932 the Aviation Department of Tata Sons was formed. On 15 October 1932, J.R.D. Tata flew a single-engineDe Havilland Puss Moth carrying air mail (postal mail of Imperial Airways) from Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The aircraft continued to Madras via Bellary piloted by Vincent. Tata Airlines initially consisted of one Puss Moth aircraft, one Leopard Moth, one palm-thatched shed, one whole time pilot assisted by Tata and Vincent, one part-time engineer and two apprentice-mech According to The New York Times, Tata Air Mail made a profit of 60,000 rupees its first year, and by 1937, that profit had risen to 600,000 rupees. Initial service included weekly airmail service with a Puss Moth aircraft between Karachi and Madras via Ahmedabad & Bombay, covering over 1,300 miles. In its very first year of operation, Tata Airlines flew 160,000 miles, carrying 155 passengers &10.71 ton of mail. In the next few years, Tata Airlines continued to rely for its revenue on the mail contract with the Government of India for carriage of surcharged mail, including a considerable quantity of overseas mail brought to Karachi by Imperial Airways. The same year, Tata Airlines launched its longest domestic flight – Bombay to Trivandrum with a six-seaterMiles Merlin. In 1938, it was re-christened as Tata Air Services and later same year was renamed as Tata Airlines. By this time Delhi &Colombo were also serviced. Post-war expansion and jet age (1946-1999) After World War II, regular commercial service was restored in India, &Tata Airlines became a public limited company on 29 July 1946 under the name Air India. In 1948, after the independence of India, 49% of the airline was acquired by the Government of India, with an option to purchase an additional 2%. In return the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International. On 8 June 1948 a Lockheed Constellation L-749A named Malabar Princess (registered VT-CQP) took off from Bombay bound for London Heathrow via Cairo and Geneva. This was the airline's first long-haul international flight, soon followed by service in 1950 to Nairobi via Aden. On 25 August 1953 the Government of India exercised its option to purchase a majority stake in the carrier &Air India International Limited was born as one of the fruits of the Air Corporations Act that nationalized the air transportation industry. At the same time all domestic services were transferred to Indian Airlines (now a part of Air India). In 1954, the airline took delivery of its first L-1049 Super Constellations and inaugurated services to Bangkok, Hong Kong, Tokyo, and Singapore. Air India International entered the jet age on 21 February 1960 when its first Boeing 707–420, named Gauri Shankar (registered VT-DJJ), was delivered, thereby becoming the first Asian airline to induct a jet aircraft in its fleet. Jet services to JFK International Airport in New York City via London were inaugurated that same year on 14 May 1960. On 8 June 1962, the airline's name was officially truncated to Air India. On 11 June 1962, Air India became the world's first all-jet airline. In 1971, the airline took delivery of its first Boeing 747-200B named Emperor Ashoka (registered VT-EBD). This coincided with the introduction of the 'Palace in the Sky' livery and branding. A feature of this livery is the paintwork around each aircraft window, in the cusped arch style of windows in Indian palaces. In 1986 Air India
  • 31. 31 took delivery of the Airbus A310-300; the airline is the largest operator of this type in passenger service. In 1988, Air India took delivery of two Boeing 747-300Ms in mixed passenger-cargo configuration. In 1993, Air India took delivery of the flagship of its fleet when the first Boeing 747-400 named Konark (registered VT-ESM) made history by operating the first non-stop flight between New York City &Delhi. In 1994 the airline was registered as Air India Ltd. In 1996, the airline inaugurated service to its second US gateway at O'Hare International Airport in Chicago. In 1999, the airline opened its dedicated Terminal 2-C at the renamed ChhatrapatiShivaji International Airport in Mumbai. SWOT analysis Air India Strengths in the SWOT analysis of Air India  Air India has been the largest air carrier in India in terms of traffic volume &company assets.  It owns the most updated fleet and competent repairs and maintenance expertise.  Its information systems are advanced and compatible with its operation &service.  It has a good reputation in both international and domestic markets, quality service and the age- old Goodwill that has still kept it alive in the interests of the rescue operators.  Has financial backing of the Government Weaknesses in the SWOT analysis of Air India  Air India is operating across broad international &domestic markets competing with world leading giant airlines as well as local small operators. This lack of clarity on the strategic direction largely dilutes its capabilities and confuses its brand within markets.  Low profitability &utilization of capacity.  Growing Competitor base &entry of Low-Cost Carriers (LCC’s)  The airline’s high-cost structure &the compulsions of being a public sector unit are the reasons and it had been making a loss and shall continue to make losses for some more quarters.
  • 32. 32 Opportunities in the SWOT analysis of Air India  India airline industry is growing faster and will continue to grow as the GDP increases, and the trend is predicted to continue once the slowdown recedes.  Worldwide deregulations make the skies more accessible; the route agreement is easier to be achieved. The number of foreign visitors and investors to India is increasing rapidly.  Complementary industry like tourism will increase demand for airline service. The Civil Aviation Ministry’s strong regulation and protection provides opportunities for consolidation and optimization.  Customers are getting wealthier, tend to be less price-conscious and prefer to choose quality service over cost.  Best time for introducing LCC’s Threats in the SWOT analysis of Air India  Air India faces imminent aggressive competition from world leading airlines and price wars triggered by domestic players.  The Indian Railway Ministry has dramatically improved speed and services in their medium/long distant routes, attracting passengers away from air service, with prices almost at par with the low cost carriers
  • 33. 33 Leaders in aviation industry 4. GoAir IATA G8 ICAO GOW Callsign GO AIR Founded 2005 Commenced operations November 2005 Hubs ChhatrapatiShivaji International Airport(Mumbai) Secondary hubs Indira Gandhi International Airport (Delhi) Focus cities Kempegowda International Airport (Bangalore) SardarVallabhbhai Patel International Airport(Ahmedabad) Frequent-flyer program GoClub Fleet size 19 Destinations 22 Company slogan Fly Smart Parent company Wadia Group Headquarters Worli, Mumbai, Maharashtra, India Key people JehangirWadia (MD) Giorgio De Roni (CEO) Profit 104 million (US$1.6 million)(2013) Website www.goair.in GoAir is an Indian Low cost carrier based in Mumbai. It commenced operations in November 2005. It is the aviation foray of theWadia Group. As of January 2014, it is the fifth largest airline in India by market share. It operates domestic passenger services to 22 cities with over 140 daily flights and approximately 975 weekly flights. Its hubs are at ChhatrapatiShivaji International Airport, Mumbaiand Indira Gandhi International Airport, New Delhi.
  • 34. 34 History GoAir was founded in the year 2005 by JehangirWadia, the younger son of eminent Indian industrialist NusliWadia. The airline marked the entry into the critical aviation sector for the Wadia Group, an Indian business conglomerate famous for its companies like Bombay Dyeing and Britannia Industries. The Wadia group wholly owns the airline. JehangirWadia is also the Managing Director (MD) of the airline.GoAir launched its operations in November 2005 using Airbus A320 aircraft. Since January 2007, GoAir has been recording an average load factor of 76%.But the airline's growth has been slow, with other airlines established at the same time such as IndiGo and SpiceJet having overtaken GoAir in terms of market share, fleet size and destinations served as of 2013. However, according to Wadia and Chief Executive Officer (CEO) Giorgio De Roni, the slow growth of the airline is a company strategy taken up due to the tough aviation environment in India, as a result of which the focus is on maintaining profitability rather than on capturing market share and increasing the destinations and fleet size. In April 2012, the airline moved from sixth and last place to fifth in terms of market share due to the financial crisis at Kingfisher Airlines. But following the grounding of Kingfisher Airlines, the airline once again has the lowest market share (8.8%) as of January 2014. Destinations GoAir operates to 22 destinations in India, with over 140 daily flights and approximately 975 weekly flights.Due to the small size of its fleet (19 aircraft), GoAir does not operate any international flights as per the guidelines of the Ministry of Civil Aviation, Government of India, but in 2012 the airline has applied for a waiver regarding the same to the ministry which is yet to be approved. City IATA ICAO Airport Ahmedabad AMD VAAH SardarVallabhbhai Patel International Airport Bangalore BLR VOBL Kempegowda International Airport Bhubaneswar BBI VEBS BijuPatnaik International Airport Chandigarh IXC VICG Chandigarh Airport Chennai MAA VOMM Chennai International Airport
  • 35. 35 City IATA ICAO Airport Delhi DEL VIDP Indira Gandhi International Airport Goa GOI VOGO Goa International Airport Guwahati GAU VEGT LokpriyaGopinathBordoloi International Airport Jaipur JAI VIJP Jaipur International Airport Jammu IXJ VIJU Jammu Airport Kochi COK VOCI Cochin International Airport Kolkata CCU VECC NetajiSubhas Chandra Bose International Airport Leh IXL VILH LehKushokBakulaRimpochee Airport Lucknow LKO VILK Amausi Airport Mumbai BOM VABB ChhatrapatiShivaji International Airport Hub Nagpur NAG VANP Dr. BabasahebAmbedkar International Airport Patna PAT VEPT LokNayakJayaprakash Airport Port Blair IXZ VOPB Veer Savarkar Airport
  • 36. 36 City IATA ICAO Airport Pune PNQ VAPO Pune Airport Siliguri IXB VEBD Bagdogra Airport Srinagar SXR VISR Srinagar Airport Ranchi IXR VERC BirsaMunda Airport Fleet As of February 2015, the fleet of GoAir consists of the following aircraft. The average fleet age is 3 years. GoAir Airbus A320 at ChhatrapatiShivaji International Airport GoAir Fleet Aircraft In Service Orders Passengers Notes Airbus A320- 200 19 — 180 One owned and 15 dry leased Five equipped with Sharklets (VT-GOL,VT- GOM,VT-GON,VT-GOO & VT-GOP) Airbus A320neo — 72 TBA Deliveries begin 2015 Total 19 72
  • 37. 37 A320neo order In June 2011, GoAir placed an order for 72 Airbus A320neo(New Engine Option) aircraft worth 324 billion (US$5.1 billion). Deliveries will begin from 2015, with an induction rate of 12-15 aircraft per year. Livery GoAir's aircraft are painted in blue & white, with the carrier's logo on the tail. Some of the aircraft are in different color schemes including pink, sky blue, light green, grey and brown. GoAir's official website is mentioned on the engines as well. Services GoAir does not provide any complimentary meals in its flights, but it does have a buy-on board in- flight meal programmer, passengers have a wide choice of Café Coffee Daysnacks, sandwiches, samosa, cookies, nuts, soft drinks, tea, coffee, mineral water and more. The airline provides GoAir's exclusive in-flight magazine "Go-getter" which gives the information about seasonal Indian holiday destinations, product information about GoAir& various duty-free products which can be bought on board. GoAir offers a premium service known as "Go Business" for a seamless flying experience in which the passengers, at a nominal higher fare, get comfortable leg room seats in the first two rows of the aircraft with vacant middle seat, as well as welcome drink with free hot meals and an increased baggage allowance going up to 35kg with priority boarding and deplaning amenities, GoAir also offers GoAir Holidays through its official website. Awards GoAir has won the following awards:  Best Domestic Airline For Excellence in Quality and Efficient Service by Pacific Area Travel Writers Association (2008).  Best Performing Airline by Airbus (2011).
  • 38. 38 5. Jet Airways IATA 9W ICAO JAI Callsign JET AIRWAYS Founded 1 April 1992 Commenced operations 5 May 1993 Hubs ChhatrapatiShivaji International Airport (Mumbai) Secondary hubs  Brussels Airport  Chennai International Airport (Chennai)  Indira Gandhi International Airport (Delhi)  NetajiSubhash Chandra Bose International Airport(Kolkata) Focus cities  Cochin International Airport(Kochi)  SardarVallabhbhai Patel International Airport(Ahmedabad)  Kempegowda International Airport (Bengaluru)  ChaudharyCharan Singh International Airport(Lucknow)  Rajiv Gandhi International Airport (Hyderabad) Frequent-flyer program JetPrivilege Airport lounge Jet Lounge Alliance Etihad Equity Alliance Subsidiaries  Jet Lite Fleet size 117 Destinations 74 Company slogan The Joy of Flying Parent company Tailwinds Limited Headquarters Mumbai, India
  • 39. 39 Key people  NareshGoyal, Founder & chairman  Cramer Ball, CEO  SubodhKarnik, COO Revenue 173 billion (US$2.7 billion) (2012) Profit -14.20 billion (US$−220 million) (2012) Employees 13,945 (2012) Website www.jetairways.com Airbus A330-202 VT-JWL in Hong Kong Jet Airways is a major Indian airline based in Mumbai. It is the second largest airline in India, both, in terms of market shareand passengers carried, after IndiGo. It operates over 300 flights daily to 74 destinations worldwide. Its main hub is Mumbai, with secondary hubs at Delhi, Kolkata, Chennai, Bengaluru.
  • 40. 40 Chapter1: History 1992-2009: Inception and growth SM Centre, the former head office Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft from Malaysia Airlines. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. NareshGoyal – who already owned Jetair (Private) Limited, which provided sales and marketing for foreign airlines in India – set up Jet Airways as a full-service scheduled airline to compete against state-owned Indian Airlines. Indian Airlines had enjoyed a monopoly in the domestic market between 1953, when all major Indian air transport providers were nationalized under the Air Corporations Act (1953), and January 1994, when the Air Corporations Act was repealed, following which Jet Airways received scheduled airline status. Jet began international operations from Chennai to Colombo in March 2004. The company is listed on the Bombay Stock Exchange, but 80% of its stock is controlled by NareshGoyal (through his ownership of Jet's parent company, Tailwinds). It has 13,177 employees (as at 31 March 2011). In January 2006 Jet Airways announced that it would buy Air Sahara for US$500 million in an all-cash deal, making it the biggest takeover in Indian aviation history. It would have resulted in the country's largest airline but the deal fell through in June 2006. On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion (US$340 million). Air Sahara was renamed JetLite, and was marketed between a low-cost carrier and a full service airline. In August 2008 Jet Airways announced its plans to completely integrate JetLite into Jet Airways. In October 2008, Jet Airways laid off 1,900 of its employees, resulting in the largest lay-off in the history of Indian aviation. However the employees were later asked to return to work; Civil Aviation Minister Powerful Patel said that the management reviewed its decision after he analyzed the decision with them. Jet Airways and their rival Kingfisher Airlines announced an alliance which primarily includes an agreement on code- sharing on both domestic and international flights, joint fuel management to reduce expenses, common ground handling, joint utilization of crew and sharing of similar frequent flier programs. On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The decision to launch a new brand instead of expanding the JetLite network was taken after considering the regulatory delays involved in transferring
  • 41. 41 aircraft from Jet Airways to JetLite, as the two have different operator codes. The brand was launched on sectors that had 50% or less load factor with the aim of increasing it to 70% and above. Jet officials said that the brand would cease to exist once the demand for the regular Jet Airways increases. 2010-present A Jet Airways ATR 72-500 According to a PTI report, for the third quarter of 2010, Jet Airways (Jet+JetLite) had a market share of 22.6% in terms of passengers carried, thus making it a market leader in India, followed by Kingfisher Airlines with 19.9%. In July 2012, Jet Airways officially sought government approval to join Star Alliance. In June 2011, Jet Airways was the first domestic airline to ban carrying fish, crab, meat, poultry products and liquid items as check-in baggage. Early in 2013, Etihad Airways, one of the flag carriers of the United Arab Emirates based in Abu Dhabi, planned to buy a stake in Jet Airways. On 24 April 2013, Jet announced that they were ready to sell a 24% stake to Etihad for US$379 million. Earlier, in September 2012, the government of India announced that foreign airlines could take a stake of up to 49% in Indian airlines, thereby making this deal possible. Etihad, which had already purchased stakes in four other loss-making airlines, said they were "concentrating on future potential rather than past performance", and were ready to take the stake in Jet. Initially, Jet announced that they were likely to sign the stake sale deal with Etihad between 22 January and 3 February, which they later confirmed to as 25 January. However, that date passed and the deal was further postponed. Meanwhile, Jet Airways concentrated well on revenues, costs and network side, which resulted in the airline making profits for the first time since the rupee depreciation. Nikos Kardassis, the Chief Executive Officer of Jet Airways, said "The combined impact of higher yields and lower costs (ex-fuel) have resulted in significantly lowering the breakeven seat factor levels in the business." The airline announced a sale on its website, which offered two million seats for travel within India, till 31 December 2013. This sale was announced a little over one month after rival low-cost carrier SpiceJet announced a sale, which was expected to have triggered a fare war. High airfares throughout 2012 due to grounding of Kingfisher Airlines caused passengers to opt out of air travel, leading to negative growth in traffic for the first time since 2009. Jet Airways planned to attract more passengers by subsequently lowering the fares, which was followed by SpiceJet again. With two airlines offering cheaper travel, India's flag carrier started losing passengers and it too offered cheaper tickets. This was followed by IndiGo and GoAir, resulting in a full-fledged fare war. Jet had introduced four different slabs of discounts depending upon the distance to destination. Under the offer, the fare up to 750 kilometers was priced at 2250 (US$35), while for 750–1000 kilometers it was 2850 (US$45). For air travel over a distance ranging from 1000 to 1400 kilometers, tickets were sold for 3300 (US$52) and for travel beyond 1400 kilometers, tickets were sold for a maximum of 3800 (US$60). Based on a calculation by The Economic Times, on average, Jet Airways was selling 6400 tickets per day, or 14 tickets per flight, at those discounted rates. According to the news agency, several Indian travel sites started experiencing severe issues following a sudden increase in bookings. MakeMyTrip chief operating officer Keyur Joshi said that this move would help airlines increase aircraft occupancy from 75% to 85%.However, soon after the sale, the airline's market value started going down. This drop in market value was considered to have happened because of the indefinitely postponed
  • 42. 42 Etihad deal. The stock had fallen by 18% in a period of one week. Economic Times reported that "The froth that developed around Jet stock was largely deal driven and has now fizzled away." In August 2014, Jet Airways announced that it is discontinuing its low fare arm JetKonnect and JetLite making Jet Airways 3rd full service airline in India besides Air India and Vistara (proposed) Jet Airways Boeing 777-300ER atSan Francisco International Airport Corporate affairs and Identity Jet Airways's head office is located in the Siroya Centre in Andheri, Mumbai. Jet Airways's head office was previously located in the S.M. Centre, a rented, unmarked six-storey building in Andheri. In 2008 Robyn Meredith of Forbes stated that the complex was "as shabby as [Jet Airways] CEO NareshGoyal's home is posh" and that the complex was "In need of a fresh coat of paint". The complex was 15 minutes driving time from ChhatrapatiShivaji International Airport. In 2013, it was announced that Etihad Airways would buy a 24% stake in the airline through preferential allotment of shares. Subsidiaries JetLite JetLite was a wholly owned subsidiary of Jet Airways. It was established as Sahara Airlines on 20 September 1991 and began operations on 3 December 1993 with two Boeing 737-200 aircraft. Initially services were primarily concentrated in the northern sectors of India, keeping Delhi as its base, and then operations were extended to cover all the country. Sahara Airlines was rebranded as Air Sahara on 2 October 2000. On 12 April 2007 Jet Airways took over Air Sahara and on 16 April 2007 Air Sahara was renamed as JetLite. JetLite operated a fleet of mixed owned–leased Boeing 737 Next Generation aircraft and Bombardier CRJ-200ER. JetLite ceased operations on 25 March 2012 after merger with Jet Konnect. The Bombardier jets were phased out but the Boeings remained in service and operated for JetKonnect. JetLite offered a buy on board service called JetCafé, offering food for purchase. JetKonnect JetKonnect, formerly Jet Airways Konnect, the low-cost brand of Jet Airways, was launched on 8 May 2009. It operated a fleet of Boeing 737 Next Generation aircraft. The rationale for launching Jet Konnect was to close down loss-making routes and divert the planes to more profitable routes with higher passenger load factors. Jet already ran a low-cost airline named JetLite. According to Jet Airways, the decision to launch a low-cost brand instead of expanding the existing JetLite was taken to avoid the regulatory delays associated with moving excess aircraft and assets from Jet Airways to JetLite, which have separate operating codes. Jet Connect offers a no frills flight where meals and other refreshments have to be purchased on board. To identify if the flight is a full service or Connect the flight numbers for Connect are in the series 9W 2000-2999. Jet Airways merged the Jet Lite brand into Jet Connect on 25 March 2012. Jet Airways offered eight business class seats in Connect to cash in on Kingfisher Airlines' woes. In December 2012, Jet Airways placed an order for 5 ATR 72-600 aircraft to
  • 43. 43 "enhance regional connectivity." The first aircraft was delivered the same month, leased from GECAS and was operated for JetKonnect. Jet Airways announced on 11 August 2014 that it would phase out Jet Konnect by the end of the year as part of plans to reposition itself as a uniform full-service operator., on 1 December 2014 Jet Connect was fully merged with Jet Airways. Destinations Jet Airways serves 47 domestic destinations and 22 international destinations, a total of 69 in 19 countries across Asia, Europe and North America. Short-haul destinations are served using Boeing 737 Next Generation. ATR 72-500s are used only on domestic regional routes, while long-haul routes are served using its Airbus A330-200 and Boeing 777-300ER aircraft. London, England was the airline's first long-haul destination and was launched in 2005. Since 2007 Jet Airways has had a scissors hub at Brussels Airport in Belgium for onward trans-atlantic connections to Canada and the United States. The recession forced Jet Airways to discontinue the following routes: Ahmedabad– London, Birmingham-Brussels, Amritsar–London, Bangalore–Brussels,Mumbai–Shanghai–San Francisco and Brussels-New York City. It also had to put an indefinite delay on its expansion plans. Jet Airways was forced to lease out seven of its ten Boeing 777-300ERs to survive the financial crunch. Due to the recession all flights to North America were operated on an Airbus A330-200 replacing the Boeing 777-300ERs. It also had to sell a brand-new, yet-to-be-delivered Boeing 777-300ER in 2009 and had to defer all new aircraft deliveries by at least two years. The airline planned to restore theMumbai-Shanghai route by the end of 2011 but never went through with it. As the economic crisis in the Eurozone countries worsened, Jet also closed the Delhi-Milan route. Jet Airways relaunched service to New York's JFK International Airport and San Francisco via Abu Dhabi on May 1, 2014, and November 18, 2014, respectively, using its joint venture relationship with Etihad Airways. Jet Airways Airbus A340-300 atLondon Heathrow Airport in 2005 with the 1993-2007 livery Also, Jet Airways will introduce the Mumbai-Paris route using the Airbus A330 aircraft from Mid May 2014 - a mid-day departure from Mumbai to reach evening in Paris CDG and Leaving CDG Paris in night arriving next morning in Mumbai similar to Air India's schedule on Delhi-Paris route. Codeshare agreements Jet Airways has codeshare agreements with the following airlines (as of June 2013): Air Canada [Star Alliance] Air France [Sky Team] All Nippon Airways [Star Alliance] Alitalia [Sky Team] Brussels Airlines [Star Alliance] Etihad Airways Garuda Indonesia [Sky Team] Kenya Airways [Sky Team] KLM [Sky Team] Korean Air [Sky Team] Turkish Airlines [Star South African Airways [Star Alliance] Qantas [One World] United Airlines [Star Alliance] Vietnam Airlines [Sky Team]
  • 44. 44 Alliance] MalaysiaAirlines [OneWorld] Jet Airways also has a codesharing agreement with Thalys European rail serviceEffective 1 February 2014, the U.S. Federal Aviation Administration lowered India's aviation safety rating to a Category 2. As a result of the FAA action, all U.S.-based airlines are required to suspend all codeshare cooperation with any India-based airlines. This FAA decision is country specific for India, not airline specific. Fleet 4 Airbus A330 in Delhi Airport Jet Airways Boeing 777-300ER with the present livery Jet Airways Boeing 737-800 As of November 2014, the Jet Airways fleet consists of the following aircraft with an average age of 5.4 years: Jet Airways Fleet Aircraft In Service Orders Passengers Notes F J Y Total Airbus A330-200 3 — 0 30 196 226 3 more Dry Leased to Turkish Airlines
  • 45. 45 Airbus A330-300 4 1 0 34 259 293 ATR 72-500 15 — 0 0 62 62 -0 0 68 68 ATR 72-600 3 1 0 0 68 68 Boeing 737-700 4 — 0 8 126 134 Boeing 737-800 62 8 0 16 138 154 0 8 162 170 Boeing 737-900 2 — 0 28 138 166 Boeing 737-900ER 4 – 0 8 178 184 Boeing 737 MAX 8 — 50 TBA Entering service in 2017 Boeing 777-300ER 10 10 8 30 274 312 New Deliveries In 2016. 8 30 312 350 Boeing 787-9 — 20 TBA Deliveries starting 2015 Total 107 90 Livery 1993–2007 Jet Airways' original livery was Navy Blue, Light Grey and Chrome Yellow. The top and bottom of the aircraft were painted in light grey and had the flying sun logo in the navy blue background. 2007–present Jet Airways' current livery was introduced in 2007. The design retained the dark blue and gold-accented color scheme of Jet Airways' previous corporate identity, along with the airline's "flying sun" logo. The new livery, created with Landor Associates, added yellow and gold ribbons. A new yellow uniform was simultaneously introduced, created byItalian designer Roberto Cappuccino. Jet Airways introduced its new identity in conjunction with a global brand re-launch which included new aircraft and seating. Jet Airways unveiled India's first Disney branded Boeing 737 on 9 July 2012. Services Cabin International long haul First Class on board the Boeing 777-300ER With the arrival of its new Airbus A330-200 and Boeing 777-300ER aircraft, Jet Airways has introduced a new cabin with upgraded seats in all classes. The Airbus A330-200 aircraft have two classes: Première and Economy. The Boeing 777-300ER aircraft has three classes of service: First, Première (Business), and Economy. Being a Full Service Airline, meals are served on all classes of travel.
  • 46. 46 First Class First class private suites are available on all Boeing 777-300ER aircraft. All seats convert to a fully flat bed, similar to Emirates or Etihad first class seat. It was the second airline in the world to have private suites. All seats in First have a 23-inch widescreen LCD monitor with audio-video on-demand systems (AVOD), BOSE noise cancelling headphones, in seat power supply, and USB ports etc. Jet Airways is the first Indian airline to offer fully enclosed suites on its aircraft; each suite has a closable door, making for a private compartment. Première Première on board the Boeing 777-300ER Première (Business Class) on the Airbus A330-200 and Boeing 777-300ER international fleet has a fully flat bed with AVOD entertainment. Seats are configured in a herringbone pattern (1-2-1 on the Boeing 777-300ER, and 1-1-1 on the Airbus A330-200), with each seat offering direct access to the aisle. Première seats on the A330-200s leased from ILFC are configured differently in a 2-2-2 non- herringbone pattern. Each Première Seat has a 15.4-inch flat screen LCD TV with AVOD. USB ports and in-seat laptop power are provided. All seats are standard recliner business-class seats with a few newer aircraft with electronic recline and massager. Economy Class Economy class on Jet's A330-200/777-300ER aircraft has 32-inch seat pitch. Seats on the A330- 200/777-300ER have a "hammock-style" net footrest. The cabin is configured in 2-4-2 abreast on the Airbus A330-200, and was recently changed to 3-4-3 on the Boeing 777-300ER from 3-3-3 to increase revenue. Each Economy seat on the A330-200/777-300ER has a personal 10.6-inch touch screen LCD TV with AVOD. All three classes feature Mood lighting on the Airbus A330-200 and Boeing 777-300ER, with light schemes corresponding to the time of day and flight position. JetScreen IFE in Economy class on board a Boeing 737-800
  • 47. 47 International short haul & Domestic Boeing 737 Next Generation aircraft are configured in Première and Economy Classes. The ATR 72- 500 have Economy class configuration only. The Première features 40-inch extra-wide seats with a personal Widescreen LCD attached to each seat. The Première cabin is configured in a 2-2 abreast pattern. Jet Airways Economy class on its Boeing 737 Next Generation features 30-inch seat pitch with personal Widescreen LCD behind each seat. Jet Airways was the World's first airline to introduce in- flight entertainment systems on theBoeing 737 aircraft. The Economy class cabin is configured in a 3-3 abreast pattern on the Boeing 737 Next Generation and 2-2 abreast pattern on the ATR 72-500. In-flight entertainment Jet Airways' Panasonic eFX IFE system on board the Boeing 737-700/800 and Panasonic eX2 IFE system on board the Airbus A330-200/Boeing 777-300ER, called "JetScreen", offers audio video on- demand programming (passengers can start, stop, rewind, and fast-forward as desired). It has over 100 movies, 80 TV programs, 11 audio channels and a CD library of 125 titles. The system operates via individual touchscreen monitors at each seat, and is available in all classes. In late 2012, Jet introduced a feature on their Airbus A330-300, called export. export allows passengers to plug-in their personalApple devices such as iPods, iPads and iPhones through an export socket located immediately below the video screen. This would allow passengers to access their own media during the flight. Airport lounges Jet Airways Lounges are offered to First and Première Class passengers, along with Jet Privilege Platinum & Gold card members. The international lounge at Brussels has showers, business center, entertainment facilities and children's play areas. Lounges access is offered at the following locations: Awards and achievements Best First Class — Service in the World award at Business Traveller's 20th annual 'Best in Business Travel' awards  Best Business Class & Best Economy Class at the Business Traveller Awards  Best Programmed of the Year by Freddie Awards 2007 & 2006  Best Elite Level for the second year in a row, at the 21st Annual presentation ceremony of the Freddie Awards 2008  Best Overall in Entertainment at the Avian Awards 2010  India's Popular Domestic Airline at the SATTE 2006 Awards  India's Airline at the World Travel Awards, 2006  Best Technical Despatch Reliability by Beaver 2002  Best Cargo Airline of North Asia by Cargo Airline of the Year Awards  Best Domestic Airline award for the 1st consecutive year and the 5th time in the past two years at the 18th TTG (Travel Trade Gazette) Travel Awards 2007  India's Most Respected Company in the Travel and Food Sector by Business world 2003  Best Long Haul Carrier ex-Brussels award at the Tm Travel Awards 2009.  Best Eastbound Airline from India and Best domestic Airline in India awards at the Abacus Tafi Awards 2009.  Business Traveller's Best Indian Airline Award in London. According to
  • 48. 48 6.AirAsia. IATA AK ICAO AXM Callsign RED CAP Founded 1993 Commenced operations 18 November 1996 Hubs Kuala Lumpur International Airport Secondary hubs  Kota Kinabalu International Airport  Penang International Airport  Kuching International Airport  Senai International Airport Focus cities Singapore Changi Airport Frequent-flyer program BIG Loyalty Programme
  • 49. 49 Subsidiaries (affiliates)  AirAsia India  AirAsia X  Indonesia AirAsia  Indonesia AirAsia X  Philippines AirAsia  AirAsia Zest  Thai AirAsia  Thai AirAsia X  AirAsia Japan Fleet size 182 Destinations 121 incl. affiliate airlines Company slogan Now Everyone Can Fly Parent company Tune Group Headquarters Kuala Lumpur International Airport Sepang, Selangor, Malaysia Key people  Tony Fernandes, Co-founder and CEO of AirAsia Group  Aireen Omar, CEO[2] Revenue RM 5.19 billion/US$1.58 billion(2013) Net income RM 364 million/US$ 111 million(2013) Employees +10,000 (2014) Website www.airasia.com An AirAsia Boeing 737-300 in special livery denoting the Malaysian flag.
  • 50. 50 AirAsia Airbus A320 departingKuala Lumpur International Airport AirAsia Berhad (MYX: 5099) is a Malaysian low-cost airline headquartered near Kuala Lumpur, Malaysia. AirAsia group operates scheduled domestic and international flights to 100 destinations spanning 22 countries. Its main hub is klia2, the low-cost carrier terminal at Kuala Lumpur International Airport (KLIA) in Sepang, Selangor, Malaysia: all its Kuala Lumpur departures and arrivals operate through this terminal. Its affiliate airlines Thai AirAsia, Indonesia AirAsia, Philippines AirAsia,AirAsia Zest, and AirAsia India have hubs in Don Mueang International Airport, Soekarno– Hatta International Airport, Ninoy Aquino International Airport, and Kempegowda International Airport respectively, while its subsidiary, AirAsia X, focuses on long-haul routes. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport. AirAsia operates with the world's lowest unit cost of US$0.023 per available seat kilometres (ASK) and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines, and achieves an average aircraft utilization rate of 13 hours a day. In 2007 Joshua Kurlantzick of The New York Times described the airline as a "pioneer" of low-cost travel in Asia. AirAsia is the sponsor of Malaysia national football team, Singapore national football team andQueens Park Rangers. History AirAsia was established in 1994 and began operations on 18 November 1996. It was founded by a government-owned conglomerate, DRB-Hicom. On 2 December 2001, the heavily-indebted airline was bought by former Time Warner executiveTony Fernandes' company Tune Air Sdn Bhd for the token sum of one ringgit (about USD 0.26 at the time) with USD 11 million (MYR 40 million) worth of debts. Fernandes turned the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as MYR 1 (US$0.27). In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahrunear Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai affiliate, added Singapore to the destination list, and started flights to Indonesia. Flights toMacau began in June 2004, and flights to mainland China (Xiamen) and the Philippines (Manila) in April 2005. Flights toVietnam and Cambodia followed in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia. In August 2006, AirAsia took over Malaysia Airlines's Rural Air Service routes in Sabah and Sarawak, operating under the FlyAsianXpressbrand. The routes were returned to MASwings a year later, citing commercial reasons. At the end of 2006, Fernandes unveiled a five-year plan to further enhance AirAsia's presence in Asia. Under the plan, AirAsia proposed enhancing its route network by connecting all of its existing destinations throughout the region and expanding further into Vietnam, Indonesia, Southern China (Kunming, Xiamen, Shenzhen) and India. Through its sister companies, Thai AirAsia and Indonesia AirAsia, the plan called for a focus on developing its hub in Bangkok and Jakarta. With increased frequency and the addition of new routes, AirAsia increased passenger volume to 13.9 million in its 2007 fiscal year.
  • 51. 51 During 2007, passengers from "The Barrier-Free Environment and Accessible Transport Group" protested against the airline over its refusal to fly passengers who were completely immobile. They claimed that people with disabilities were discriminated against when booking tickets online; the CEO of the airline said it did not turn away wheelchair-bound passengers. An AirAsia A320 with the Malaysian flag on the tail and Cartoon drawings on the fuselage. On 27 September 2008, the company announced 106 new routes to be added to its list of 60. The number of old routes discontinued has not been disclosed. In August 2011, AirAsia agreed to form an alliance with Malaysia Airlines by means of a share swap.[11] The alliance was struck down by the Malaysian government, in effect voiding the agreement of both airlines. By early 2013, AirAsia's profits increased by 168% on a year-over-year basis compared to the same period in 2012. For the quarter ending 31 December 2012, the airline's net profit stood at 350.65 million ringgit (US$114.08 million). Despite a 1% rise in the average fuel price, the airline recorded profits of 1.88 billion ringgit for its full 2012 fiscal year. In February 2013, AirAsia submitted an application to the Indian Foreign Investment Promotion Board, through its investment arm, AirAsia Investment Limited, to seek approval for commencing its operations in India. AirAsia asked to take a 49% stake in the Indian sister airline, which was the maximum allowed by the Indian government at that time. AirAsia committed to invest up to US$50 million in the new airline. Operations would begin in Chennai, expanding its network throughout South India, where AirAsia already operates flights from Malaysia and Thailand. Corporate affairs KLIA LCCT, which houses the AirAsia head office The head office is the LCC Terminal at Kuala Lumpur International Airport in Sepang, Selangor. The registered office is on level 13 of the Menara Prima Tower B in Petaling Jaya. The airline plans to move its head office to a new facility constructed at klia2. Until the new head office opens, the airline's head office will remain at LCCT. The new klia2 head office is scheduled to open in the end of 2015. Aireen Omar, the AirAsia Country CEO of Malaysia, stated that the headquarters
  • 52. 52 needed to be redesigned because in the klia2 plans the location of the control tower had been changed. Construction on the facility was scheduled to begin in July 2014. Malaysia Airports Holdings is leasing the land that will be occupied by the headquarters. Affiliate airlines AirAsia India In October 2012, Air Asia's management said that they were keen to have more presence in India if the aviation environment and tax structure were conducive and friendly for low-cost airline operations. With the Indian Government allowing a foreign direct investment of up to 49%, the airline CEO Tony Fernandes tweeted "Fantastic news that India has opened up investments to foreign airlines." He said that it was now easier for him to set up an airline in India. Tony Fernandes called the joint venture with Tata Sons a marriage made in heaven. He said that the Tatas know India very well and have a good reputation. A tie-up with the company would help AirAsia operate efficiently. Fernandes said that he would concentrate mainly on the one million south Indians who travel by rail. AirAsia announced its Indian low-cost affiliate airline on 19 February 2013. The airline would be operated as a joint venture, with AirAsia holding 49% of the airline. Arun Bhatia, father of Lakshmi Mittal's son-in-law, Amit Bhatia, will take up 21% and Tata Sons will take up a stake of 30% in the airline. The joint venture would also mark Tata Sons' return to aviation industry after 60 years. AirAsia is the first foreign airline to set up an affiliate airline in India. The primary hub of the airlines is at Bangalore and secondary hub is at Cochin International Airport. The maiden flight of AirAsia's India venture on Bangalore-Goa route took off on 12 June 2014. AirAsia Japan AirAsia and Japanese network airline All Nippon Airways announced their joint venture at a press conference in Tokyo on 21 July 2011. Following its establishment in August 2011, AirAsia Japan flew its first flight in August 2012. AirAsia Japan was the first low-cost airline to be based at Narita International Airport. Its formation was announced only months after ANA had announced the formation of Peach, a low-cost airline based at Kansai International Airport in Osaka, and alongside a concurrent effort by Japan Airlines to set up a low-cost affiliate. ANA elected to partner with an existing low-cost airline for efficiency and strategic advantage. It was the fifth affiliate airline for AirAsia and the ninth for ANA. The airline was headquartered alongside ANA in Tokyo, with its main operating base at Narita, and served domestic destinations, utilising the brand and service model of AirAsia. Future planned international destinations included the Philippines, South Korea, and Taiwan. AirAsia Japan terminated its operations on 27 October 2013 after announcing the dissolution of its joint venture in June 2013. In a press release on 1 July 2014 AirAsia announced a relaunch of the AirAsia Japan brand. The first flight is scheduled to depart in the summer of 2015. AirAsia X
  • 53. 53 An AirAsia X Airbus A330-300 taking off at Perth Airport. AirAsia X is the long-haul operation of AirAsia. The franchise is able to keep costs down by using a common ticketing system, aircraft livery, employee uniforms, and management style. AirAsia X is also affiliated with Virgin Group and Air Canada. On 17 May 2007, Tony Fernandes announced plans to commence flights from Malaysia to Australia. Fernandes said he would be avoiding Sydney Airportdue to its high fees. Instead, the airline would concentrate on cheaper alternatives such as Melbourne's Avalon Airport, Williamtown Airport in Newcastle, and Adelaide Airport. Sustained fares were predicted to be around MYR 800 (A$285) for a return fare, plus taxes.Interest was also expressed in using Gold Coast Airport as another Australian destination. On 14 May 2007, AirAsia confirmed that it had ordered 15 Airbus A330-300 aircraft, 5 more than originally announced. The aircraft are scheduled for delivery from the fourth quarter of 2008. On 27 March 2008, AirAsia signed a firm contract for another 10 Airbus A330-300s bringing the airline's total order to 25. AirAsia X received its first A330 on 31 October 2008 in Toulouse, France. As of 14 February 2008, 48% of AirAsia X is owned by Aero Ventures; a venture of Tony Fernandes, other prominent Malaysians, and Air Canada's Robert Milton. Virgin Group own 16% and a further 16% is owned by AirAsia. Bahrain-based Manara Consortium, and Japan-based Orix Corp have taken a 20% stake in AirAsia X for RM250 million. The fleet consists of 15 Airbus A330 and 2 Airbus A340 aircraft. The airline also has 14 A330s and 13 Airbus A350s on order. AirAsia Zest AirAsia Zest Airways, Inc., operating as AirAsia Zest (formerly Asian Spirit, and Zest Air), is a joint venture between AirAsia & AMY Holdings Inc., the company who owns Zest-O corporation in the Philippines. It operates scheduled domestic and international tourist services, mainly feeder services linking Manila and Cebu with 24 domestic destinations in support of the trunk route operations of other airlines. In 2013, the airline became a sister airline of AirAsia Philippines operating their brand separately. Its main base is in Ninoy Aquino International Airport, Manila, and with a hub at Mactan- Cebu International Airport, Cebu. The airline was founded as Asian Spirit, the first airline in the Philippines to be run as a cooperative. It was rebranded to Zest Air on March 2008. On 16 August 2013, the Civil Aviation Authority of the Philippines (CAAP), the regulating body of the Government of the Republic of the Philippines for civil aviation, suspended Zest Air flights until further notice due to safety issues. Less than a year after AirAsia and Zest Air's strategic alliance, the two companies hav rebranded as AirAsia Zest on 18 September 2013. Indonesia AirAsia Indonesia AirAsia operates scheduled domestic, international services and is an Indonesian associate carrier of Malaysian low-fare airline AirAsia. Its main base is Soekarno-Hatta International Airport, Jakarta. Until July 2010, Indonesia Air Asia, along with many Indonesian airlines, was banned from flying to the EU due to safety concerns. However, the ban was lifted on July 2010. The airline was established as Awair in 1999 by Abdurrahman Wahid, former chairman of the Nahdlatul Ulama Muslim organisation. He had a 40% stake in the airline which he relinquished after being elected president of Indonesia in October 1999. On 1 December 2005, Awair changed its name to Indonesia AirAsia in line with the other AirAsia branded airlines in the region. AirAsia Berhad has a 49% share in the airline with Fersindo Nusaperkasa owning 51%. Indonesia's laws disallow majority foreign ownership on domestic civil aviation operations.
  • 54. 54 Indonesia AirAsia X Indonesia AirAsia X is a joint venture of AirAsia X. It serves Indonesia AirAsia's regularly scheduled long haul international flights from Bali's Ngurah Rai International Airport. Indonesia AirAsia X was scheduled to launch its first flight to Melbourne on 22 December 2014. Philippines AirAsia Philippines AirAsia is a joint venture between Filipino investors and AirAsia. The Filipino group include Antonio Cojuangco, Jr., former owner of Associated Broadcasting Companywith flagship television station TV5, Michael Romero, a real estate developer and port operator, and Marianne Hantavirus. The joint venture was approved on 7 December 2010 by the Board of Investments, an agency in the Philippines in charge of big ticket investments. Philippines AirAsia is one of the Philippine air carriers banned in the European Union. On 15 August 2011, Philippines Air Asia took delivery of its first brand-new aircraft, an Airbus A320 which arrived at Clark International Airport in Clark, Angeles City, Pampanga. On 8 November 2011, Philippines Air Asia took delivery of its second A320. On 7 February 2012, the airline received its Air Operator Certificate from the Civil Aviation Authority of the Philippines which gives the airline permission to fly in Philippine airspace. Thai AirAsia Thai AirAsia is a joint venture between AirAsia and Thailand's Asia Aviation. Thai AirAsia launched domestic operations on February 2004. It serves AirAsia's regularly scheduled domestic and international flights from Bangkok and other cities in Thailand. Thai AirAsia was the only low-cost airline operating both domestic and international flights from theSuvarnabhumi Airport. The airline shifted all operations from Suvarnabhumi Airport to Don Mueang International Airport effective 1 October 2012. Thai AirAsia is 55% owned by Asia Aviation, 45% owned by AirAsia International. The airline sponsors the Thai football teams Buriram United, SCG Muangthong United, Chonburi, Osotspa Saraburi, BEC Tero Sasana, Chiangrai UTD, Esan United, Chainat, Samut Prakan CUTD, Bangkok United, FC Phuket, Krabi, Air Force United, Nakhon Phanom, Loei City, Trang and the referee of Football Association of Thailand. Thai AirAsia X Thai AirAsia X is Thailand’s first long-haul low-cost airline. It was scheduled to begin operations in June 2014. After putting off the launch that had been planned for the first quarter, Thai AirAsia X was to launch its maiden service from Bangkok to Incheon, South Korea on 17 June and then begin regular flights to Japan’s Narita Airport in Tokyo and Osaka around July.[48] Destinations Fleet The total AirAsia fleet (excluding AirAsia X) consists of the following aircraft (as of January 2015):
  • 55. 55 AirAsia had witnessed a continuous growth in the amount of revenue passenger kilometres. Click graph to enlarge. AirAsia fleet Aircraft In fleet Orders Passengers Notes Airbus A320- 200 182 56 180 Aircraft are distributed as follows:  AirAsia (Malaysia) - 81  Thai AirAsia - 42  Indonesia AirAsia - 29  AirAsia Zest - 18  Philippines AirAsia - 10  AirAsia India - 2 From 2013 onwards Airasia received A320-200 equipped with sharklets PK-AXC lost as QZ8501 on 28 December 2014. Airbus A320neo 0 291 180 Entering into Service in 2016 Total 182 347 On 28 February 2014, AirAsia deferred 7 Airbus A320 and 12 Airbus A320 in 2014 and 2015 respectively. Fleet renewal AirAsia plane sporting the "Airline of the Year" livery, taxiing at Kuching
  • 56. 56 The interior of an AirAsia Airbus A320-200 aircraft. Previously operating the Boeing 737–300, AirAsia has now completely converted to the Airbus A320- 200. In June 2011 AirAsia ordered 200 Airbus A320neos at the Paris Air Show. The planes are due to become available in 2015, and the deal is one of the largest ever for commercial aircraft in a single order. The deal was worth USD 18 billion at list prices, although it is likely that AirAsia obtained a substantial discount from those prices. The deal makes AirAsia Airbus' single biggest customer. On 13 December 2012, AirAsia placed an order for an additional 100 Airbus A320 jets, splitting it between 64 A320neo and 36 A320ceo. With this, the total number of orders that AirAsia had placed for the Airbus A320 had gone up to 475. Services On board AirAsia offers "Snack Attack," a buy on board programmer offering food and drinks for purchase. Air Asia is accredited by the KL Syariah Index, and in accordance with Shariah law it does not serve alcohol or pork. However, this applies only to the regional AirAsia group flights, and not to the AirAsia X flights, which do sell wine and beer on board. Frequent-flyer program AirAsia is taking the first steps towards starting its own frequent-flyer programmer. The airline has signed an agreement to start a joint venture with financial services firm Tune Money to launch a programmer called "BIG". Under this programmer it will issue loyalty points to AirAsia customers and third-party merchants. Points can then be used to redeem AirAsia flights. Awards and recognition For six consecutive years, AirAsia won the World's Best Low Cost Airline by Skytrax from 2009 until 2014. The 2012 World Airline Awards in Farnborough, England ranked the airline as the world's best low-cost airline.
  • 57. 57 7). Jagson Airlines Ltd. (JAGSONAIRLINES) IATA JA ICAO JGN Callsign JAGSON Founded 1991 Hubs New Delhi, Mumbai Secondary hubs Pune Focus cities Shimla Frequent-flyer program Xaverian Airport lounge The jagsonretreate Alliance Sky team(2006-2012) Fleet size 5 Destinations 9 Company slogan Soarng to new heights. Parent company Jagson group Headquarters Delhi, India Key people JagdishP.Gupta, Chairman
  • 58. 58 Company History Incorporated in Jan.'94, Jagson Airlines (JAL), acquired the operations from Jagson International, a group company, by taking the aircraft on lease. The company provides air taxi services under the Open Sky Policy of the Government of India. It made a public issue in Oct.'94. JAL commenced operations in 1994-95 with one Dornier taken on lease from JIL. During the same year, it inducted one more Dornier to its fleet and opened up new stations like Jaisalmer, Jodhpur, Udaipur, Kullu, etc. The Company proposes to acquire more aircraft in a phased manner and include new stations like Indore, Raipur, Bhopal, Chandigarh and Jammu. The Company provides air-taxi services for transport of passengers, mail, cargo and/or freight. During 2002-03 the company added one more flight vizChetak Helicopter and thus taking the total no of flights to 4. The company is having three dornier aircrafts and one chatak helicopter for its operations. History The airline was established and started operations in November 1991. It began charter operations with two 18-seat Dornier 228-201 aircraft and later operated regular services from Delhi. It is wholly owned by Jagson International. In 2006 they announced plans to expand their services to 9 cities, using leased Airbus A321-200aircraft.The airline currently offers only charter service from Delhi and Mumbai.TheAvro RJ85 registered VT-JJC has been grounded.VT-JJK another AVRO RJ-85 is at london Because of the trouble the airlines were having with cancelled flights and numerous other problems, Jagson Airlines has not and has no plans to launch a nationwide low-cost airline. They are currently continuing as a regional airline in India. Jagson Airlines have two MI-172 helicopters and 3 Dornier-228 aircraft's that are a part of their fleet. Jagson has recently taken deliveries of RJ 80s / BAe 146-200s Avro Regional Jets. They will be starting operations to all their previous routes shortly. Efforts were on to merge the erstwhile MDLR, which operated the same type of aircraft, and form a 5 aircraft airline.