1. A STUDY ON AVIATION
INDUSTRY OF INDIA
Annapurna
Juhi Gupta
Lalit Kumar
Anirudh T.
Venkat Chinna
Srinivas

2. FLOW OF THE PRESENTATION
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Introduction
Market Share
SWOT analysis
PEST analysis
Porter’s five forces
Business Diversification
Consolidations – Mergers and Acquisitions
Technology Intensity
Marketing Initiatives
Future Outlooks
Comparison
Findings & Conclusion

3. INTRODUCTION
• Indian Aviation Industry has been one of the fastest-growing
aviation industries in the world.
• It showed an impressive growth of 19 percent while
considering 2008 global financial slowdown
• Less than 2 percent of India’s 1.27 billion population travels
by air, which shows massive potential for growth
• As India is becoming a major destination, international travel
has been rising which effect on commercial aviation in India
• These problems include high rise in ATF prices, increase in
inflation rate, shortage in skill labour, entry of low air fare
carriers and intense competition among the players.

4. MARKET SHARE
Airline
Jet Airways
Market share
(%)
26
(Jet Airways
+Jet Lite)
(18.6+7.4)
Kingfisher
Airlines
NACIL
20.6
IndiGo
16.3
Spice Jet
12.9
Go Air
5.9
Paramount
0.9
17.6

5. SWOT ANALYSIS
• Strength: India’s cultural and the scope of
business in the country.
• Weakness: Development of Aviation is slow.
Import of Airplanes with huge tax liabilities.
• Opportunities: It is expected that by 2012 investment in India
would increase US$30 billion and also market share is expected
to grow.
• Threats: 70% is still in rural areas.
Shortage of well trained staff.
Security concerns.

6. PEST ANALYSIS
• Political
Disputes between countries
Trading Business between countries
Corruption
Natural disasters
• Economic
Monetary and Fiscal Policy
Rise in airline turbine fuels (ATF)
Recession

7. • Social
Diversity in population
Crew members behaviour
Increasing expectations of the customers
• Technological
Internet (Online facilities)
Modernization of airports
Satellite based Navigation system

8. Porter’s 5 forces of competition
• Threat of new entrants :- High
entry and exist barriers.
• Bargaining Power of buyers :Low in terms of switching cost.
• Bargaining power of
suppliers:- The powers of
suppliers are high.
• Threat of Substitutes:- Other
means of transport poses little
threat.

9. BUSINESS DIVERSIFICATION
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Kingfisher
• Spice jet
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Air India
•
Indigo
•
Jet airways

10. CONSOLIDATIONS – MERGERS AND
ACQUISITIONS:
• Indian airlines and Air India – NACIL
• Jet Airways and Air Sahara – Jet Lite
• Kingfisher and Air Deccan
• NACIL, Jet Airways and Kingfisher
controlling over 80% of the
market currently.

11. Technology Intensity
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Remote controlled airliners
Bio monitors
Remote video monitoring
Light guns to dazzle attackers
Bar code technology
Whole body imaging
The touch screen

12. Marketing Initiatives
• Less emphasis on television advertisements.
• More emphasis on magazines
which are available at airports.
• Heavy advertisement are done
by Kingfisher airlines domestically.
• Qatar airlines have spent the
highest advertisement budget this year.

13. Future Outlooks
• Growth being 18% as on 2011, in
spite of having global economic slowdown.
• Low cost carriers haven't done well,
recent being Kingfisher.
• India needs 3 times the amount
of airports in future.
• Fuel accounts to 38% of total operating cost.

14. Comparison
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Services - The services are almost
the same of our players with the
global players.
•
Cost/pricing – Indian airlines are
relatively cheaper in terms of the
global personally.
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Quality – Indian airlines have in fact proven
superior in terms of quality.

15. Findings and conclusion
• Though Indian aviation t is doing well. It has a lot more
problems to face.
• The constant increase in the fuel cost has led to heavy losses
in the sector.
• Low cost airlines are phasing out.
• Unpaid bills have led to fuel supply backlash.
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The shortage of trained pilots and other personnel are also
the shortcomings of Indian aviation sector.

16. THANK YOU