AVIATION INDUSTRY IN INDIA

History of Indian Airlines

First Commercial flight Airmails from Allahabad to Naini(10 km) The Aviation Department of Tata Sons ltd. established Tata Airlines(successor to Aviation division of Tata Son) Tata Air Lines converted into a public Company and renamed as Air India Limited 1948 Air India International incorporated 1953 Nationalization of Aircraft Industry Air India(serving the international sectors) Indian Airlines(serving domestic sectors) Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Services of India 1986 Private Sector Players permitted as Air Taxi operators Players including Jet, Air Sahara, NEPC, East West, Modiluft, etc started service 1911 1932 1938 1946

History of Indian Airlines

1990 Open sky policy 1994 Private Carriers permitted to operate scheduled services 2003 Entry of low-cost carriers 2007 Merger of Indian Airlines into Air India Acquisition of Air Sahara by Jet Airways 2008 Kingfisher acquired 49% stake in Deccan Aviation

Airline Industry in India

One of the fastest Growing Aviation market. There are approximately 1 billion people & only about 0.05% of them fly. More and more middle class families now prefer Air Travel to Traditional Rail travel. The Indian Travel market is expected to triple to $51 billion by 2011 from 16.3 billion in 2005-06. AAI totally manages 127 airports - includes 13 International airports; - 7 custom Airports; - 80 Domestic airports; - 28 Civil enclaves. Over 1100 registered aircrafts. By 2020, Indian airports are estimated to handle 100 million passengers including 60 million domestic passengers. The amount of cargo handled will fall in the range of 3.4 million tones per annum.

Regulatory Authorities
Ministry of Civil Aviation Responsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing airport facilities, air traffic services and carriage of passengers and goods by air. Other Attached/Autonomous Organizations: Directorate General of Civil Aviation (DGCA) Promote safe and efficient Air Transportation through regulation and proactive safety oversight system Bureau of Civil Aviation Security (BCAS) Regulatory authority for civil aviation security in India Airport Authority of India (AAI) Accelerate the integrated development, expansion a modernization of the operational, terminal and cargo facilities at the airports.

Major Players
Spice Jet Air India

Indigo

Go Airways

Jagson Airlines

Alliance Air

Jet Airways

King Fisher

Forecast: Clear skies?

Future Trends : Passenger Forecast

Top 3 Players

LAST FIVE YEARS REVENUE AND PROFIT OF JET

SOURCE: www.moneysights.com

LAST FIVE YEARS REVENUE AND PROFIT OF KINGFISHER

SOURCE: www.moneysights.com

Indigo is an unlisted airline and not required to make its revenues and profits public, but company insiders say its 2010/11 revenues were around Rs 3,200 crore and net profits Rs 700 crore.

SOURCE: Businesstoday

COMPARISON OF GROWTH RATE

Competitive Pressure Service Low cost Carriers changing the game

Indigo

Price

DIFFERENT PRICING STRATEGY Full range carriers with medium price Low cost carriers with low price Very high service with high price Good service with medium price

Pricing Strategies
Demand-based pricing
Season-based pricing Competition-based pricing Pricing strategies when customer means Value is Low price

WHY DIFFERENTIAL PRICING HELPS THE POOR

Differential pricing is the practice of charging some customers or clients more, while charging others less, for the same product or service Airlines have a range of fares they charge customers based on when and how they make their reservation

Whether they want to fly first or business class Many passengers fly free by using frequent flier miles

Differential Pricing as a Social Benefit

Differential pricing permits companies and individuals to make their products or services available to people in a wider range of incomes

THANK YOU

Presented by: Avinaba Mukherjee