Southwest Airlines should consider entering the Indian market by 2015 due to several key factors: 1) The rise in domestic air passengers, urban population, and number of cities with over one million people represents untapped market potential. 2) Southwest's expertise in low-cost and efficient operations as well as financial hedging strategies could be beneficial in the Indian aviation market which is 64% comprised of low-cost carriers. 3) Potential strategies for Southwest include forming joint ventures with established Indian players and initially operating in tier I and II cities and states with lower aviation fuel taxes to gain a foothold in the market.

1. Should SOUTHWEST
AIRLINES Enter india

2. Southwest Airlines should enter Indian Market by 2015.
SHOULD SOUTHWEST AIRLINES ENTER
INDIA BY 2015?
YES
NO
Company
Market
Potential
Potential
Operational
Uniform Fleet
Low turn
around time
Bargaining
Power
On time
arrivals
Financial
Demographic
Fuel Hedging
Expanding
middle
income group
Single
Booking
Platform
Rising Urban
Population
Economic
High Cost
Untapped
market
potential
Fuel cost
Price Wars
Multiple
taxation
Rising GDP
Rupee
depreciation
Aviation Fuel
Significant increase
in LCC market
High crude oil
prices
Political
Issues
High Govt.
Intervention
Government
service fees
Growth in
tourism sector
tax
High Level of
Corruption
Airport
Development
fees
KEY Factors: Rise in domestic passengers, urban population and
cities with more than million population.
Untapped market Potential, SWA’s expertise in Operational and
Financial departments.
Indian aviation market includes 64% of LCC airlines.

3. Joint Venture with established Indian players, Operating in Tier I & II cities, Operating
in states with lower ATFs will help SWA enter Indian Market
What strategies
should SWA adopt
enter India by 2015
Existing
Strategies
Operating
Strategies
Point to
Point
Tier I and
Tier II cities
Skilled Labor
for Lower
turn around
time
New
Strategies
J.V with 2 or
more partners
Low Cost
Operating
Cost
MRO
outsourcing
Ticket Cost
Single online
Booking
Platform
Single Fleet
Smaller
Aircrafts
Get into Cargo
Business
Industry
Experts
National
Established
players with
understandi
ng of Indian
Market
International
Begin with
operations
in states
with lower
AFTs
Better customer
Connect
Social Media
Engage with
Corporate
Rewards and
Bonus during
festivals
To
Customers
To
Employees
No price hike
during festive
season
Fuel and Currency
Hedging
Key Insight : States like Orissa and Bengal
have decrease AFTs by 50%
81% of Passengers fly from Tier I & II Cities

4. Threat Of Substitutes
Railways – 9billion passengers annually
Focus on busiest routes
Roadways- over 1.1 billion passengers
Bargaining Power Of Buyers
Loyalty reward programs to attract customers
Deals and packages
Price Elasticity of demand
Bargaining Power Of Suppliers
12 times increase in ATF from 2011
India pays 60% more fuel tax than its international counterparts.
Fuel hedging and currency hedging
Threat Of New Entrants
Upcoming Tata-Air Asia JV targeting LCC segment
Aggressive marketing strategies.
Competitors
High competition from IndiGo and jet airways which
contribute to majority market share.
Targeting minor airline players like jetlite