|
  

Flow of presentation
 |
 ||
  

 a


 




 


 



3
 


 



 





 





 


  





 













3  











3 



 





 ndia is the 9th largest aviation market in

the world.
m







 
 
. The market shares of the
Major Airlines (First quarter2010) are as given
in the pie chart below:
 THE SERV
E MARKET 
TR AE
 ne can better understand the workings of
airlines by looking at its marketing triangle.

MPA

EAB  PRM SES MAK  PRM SES

PRV ER
STMER

KEEP  PRM SES


STMERS

ustomers refer to the persons who have certain needs, wants and desires. The
company makes promises to its customers.
n the Airline industry customers are those with the need to travel. They can be:
 ndividual
 nstitutional

MPA
The company dreams up an idea of service offering which will satisfy the customers¶
expectation.
n airline industry basic objective of company is providing the specific transport
service. Thus the airline industry with players like ndian airlines, jet airways, Sahara
airways etc came into being.

PRV ERS
These are finally the persons (staff) who interact with the customer. They are the
ones who carry out the final transaction. This interface of the customer with the
company is through the customer¶s interaction with the employees of the company. n
order to keep its promises, the company enables its employees to through setting up
facilities to deliver the promises that is by setting up ticket and enquiry counters.
Hence the company aims at offering its providers with the required infrastructure and
training to optimize the quality of the transaction. For eg: early employee training
programs and performance appraisals done by Sahara airlines.
‡ G

  
 


‡     
 G  

‡  
   

 

 

‡ 
 ! 
 " "# 

‡    ""  " 
$ %

&$'%  !(

‡ )
 &
* 


" 
 !"
  !


‡ +,  -,$. " !G%

/
.  
$
G "
%
0
)  
$G
 
! !%

‡ 1
/
2G3-
0
.

 !
4
G

'
&  
5
!

6

  


‡ G- -,,
/
)* !
0
   

4
.!
'
! 
 p
 p

  p 



G1-73 G13 G)3 G1-+- -, G-G) G1-3 G893)

2,3
 G


 ÿ

 a
!" #





$


 %




 

 


 
 









 a

   







&
'
ÿ 



()  



1. on-the-ground services :
± a convenient airport with car parking facilities,
± duty free' -shopping quick and efficient checking
of baggage,
± efficient service at reservation counter,
± transport to the airport.

2. n-flight services : The service provided inside is

intangible and is highly variable.
± polite, warm and courteous service of
Airhostesses
±
rew members technical abilities with perfect
training lead to safe and happy journey of
 Airlines usually practice differential pricing.
 There are three classes:
± The First
lass,
± The Executive or Business
lass and
± The Economy
lass.

 "
  &) se a high price where there is a uniqueness

about the product or service. Such high prices are charge for
luxuries
 %
)
 &) This approach is used where external
factors such as recession or increased competition force companies
to provide 'value' products and services to retain sales
 "*+

&) Apex or advance purchase fares are special fares
valid on economy class on specified sectors. They are much lower
than the normal fares.
The place mix of airlines consists of mainly the distribution channels
for marketing their services to their target audience.
 n the ground there are many ticket counters with computerized 24-hour
reservation systems. They have many specially designed check-in counters
for club and premiere passengers.
 There are two principal methods of booking seats on an airline.
1. Phone, fax, and email, or travel agents who book the tickets form the airline & take the
commission from them. nline booking method.
istribution channels
A]
onsolidation
B] Tour perator/ Travel Agent. E.g. ST


] Affiliated with companies
] irect through home leased system, e.g. phone, fax, email and online e-
booking.

The number of destinations that an airline flies to can also contribute

to its place mix. different distribution channels.
 The business magnets, executives, politicians,
actors, high spending tourists etc are some of
the users of the air services.

 Many airlines are facing financial crunch, it is

pertinent that they make optimum use of
different components of promotions
 Advertising
 Publicity
 Sales promotion
 ord of mouth ¶
ustomer oyalty adder¶
 People provide most services
± the selection, training, and motivation of employees can make a
huge difference in attaining customer satisfaction.
± employees should exhibit competence, caring attitude,
responsiveness, initiative, problem solving ability, and goodwill.

1. The airhostess in any airline come in contact with the

customers in the process of providing the service.

2. The cock-pit crew are employees who contribute to the

service product but do not come in direct contact with the
customers.

3. The ancillary service personnel, the travel agent who helps

to create the service exchange but is not a part of the
service.
 G


p




 

 

a


,
-






 *



.

/ 


 The aircraft by itself, the seating configuration meant to be
comfortable and spacious, booking offices, ticket counters, in-
flight food is another, important aspect, a wide selection of
meals is offered to the passengers.

 Reliability ± Flights to promised destinations depart and Arrive on schedule

 Assurance ±Trusted name, good safety record,
ompetent employees
 Tangibles ± Aircraft, ticketing counters, baggage area, uniforms
 Empathy ± nderstanding of special individual needs, anticipates customer
needs
 Responsiveness - Prompt and speedy system for ticketing, in- flight, baggage
handling
O Enquiry of the services, flight timings, routes etc.;

O Purchasing tickets, either from the airlines or from the

travel agencies;

O
hecking in;

O uring boarding;

O n board crew;

O uring disembarkation.
Top 10 Airline
ompanies f ndia
 
×

 




























"#

 

"$

!
#

×%
&
 


‡ 

!

‡ .
!  ""

‡ 8 

‡ "  

‡ 7G!
:
ÿ

  

 

ÿ

ÿ",*a$**0%'01*p*+"*%aa'00.0ÿ**0a"*p%*"a'0

ÿ",*a$**00ÿ**0a"*p%*"a'00.*p %*/12a3

"*% %a'0

ÿ",*a$**0*p %*)/12a3"*% %a'00.*p %*.*2 *p3

ÿ",*a$**0*p %*.*2 *p30.*+a*p02%'10%a'0

ÿ",*a$**0"*p%* *.*p %*0.*+"*%a*.*p %*

 pportunities
‡ A large & growing potential market

‡ Developing alternative revenue streams

± Airframe, engine & component overhaul

± Ground handling

± Training

± Leveraging the internet

‡ Access to new markets

 ÿ -
‡ Ground handling business in India estimated at Rs. 1074 crores
‡ Expected to grow at 15% CAGR till 2011-12
‡ Opportunity lies in 3rd party handling as well as entering into service
contracts with private airports / AAI to offer comprehensive ground handling
solutions, e.g. AI ± CIAL at Cochin
 a

± Airlines in ndia will need training for pilots, engineers, cabin

crew, load & trim, etc.
 Projected requirement for 3600 additional pilots in the short to
medium term

abin crew, engineers, technicians will also be required to support
aircraft being inducted

± pportunity for simulator training establishments

± A already has a
entral Training Establishment at
Hyderabad, with facilities for most categories / types of
trainings on A320
 2





± ncreasing numbers are booking directly from the airlines¶ websites
 Traditional sales channels with paper tickets cost airlines ~10% of ticket price

omparatively, e-ticket sales from own website cost an airline only ~3% of ticket
price
 For every direct booking from their website, airlines save an estimated S$ 4
plus 5% agency commission

± Airlines can also turn their websites into one stop shops for all travel
related services, generating additional revenue
 





 As airlines complete 5 years of domestic operations, those with 20+ aircraft will
get international access
± Access to new revenue streams
± Help even out the seasonality factor of domestic operations
± Spread the risk of downturn in a single market

 The opportunity for some will be a challenge for the existing international players
 The risk ± cycle of increased competition, low yields, and growth transferred to
the international arena
‡ India has 454 airports and airstrips; of these,16 are designated international
airports.

‡ Over 135 aircraft have been added in the past two year alone.

‡ Center for Asia pacific aviation (CAPA) estimates domestic traffic to grow
25-30 % annually and international traffic 15%untill 2010.
‡ Indian Aviation has seen high growth on account of sustained Indian socio economic growth

and liberalized Government initiatives

‡ Airport Infrastructure needs to improve significantly to meet the current and future demand of

the Indian Aviation Sector

‡ Authorities have initiated various steps to implement modernization, reconstruction and

development of airport infrastructure to implement infrastructure development plan

‡ Provides a huge opportunity for private players operating in Aerospace and allied industries

‡ Significant opportunity for foreign companies as Indian companies not technologically equipped

to cater to requirements
 n sum««
 espite a growing market, airlines in ndia are fighting for survival in a
highly competitive environment
 A host of initiatives are required to be taken by all concerned, to tide
over the current situation
±
ontrol
osts
± mprove quality of service
± evelop a large pool of skilled / technical manpower
± Attract more professionals to manage the aviation industry
± evelop infrastructure to match growth plans
± iberalize rules & regulations governing civil aviation, without
compromising on safety & security
± Reduction in ATF prices and taxation on ATF and lease rentals