2. Aviation Industry
Overview
The aviation industry in India is one of those sectors that saw a constant pace of growth
among the other industries in the world over the past many years. The 9th largest aviation
market in the world is India. The prediction stated that international passengers will touch
50 million by 2015. More opportunities in the aviation industry in India are likely to make
way for about 69 foreign airlines from 49 countries.
Name of Players Market
Future of Airlines industry in India Share
The challenges of the Indian aviation
Kingfisher Airlines 28%
industry are cited below:
Jet Airways and Jet Lite 25%
Passenger traffic is estimated to grow at a
CAGR of over 15% in the coming few years. Air India and Indian 16%
The Ministry of Civil Aviation would
handle around 280 million passengers by Indigo 14%
2020. Spice Jet 12%
US$ 110 billion investment is envisaged
till 2020 with US$ 80 billion solely for new Go Air 3%
aircraft and US$ 30 billion for developing
the airport infrastructure. Paramount 2%
3. Paramount’s Overview
Founder: M Thiagarajan
Established: October 2005, head office in Madurai.
Perspective: To offer exceptional value for money and to make your
travelling experience a true delight with a world of difference.
Vision: A dream to revamp air travel, taking it to higher vistas of comfort and
class coupled with incredible economy-ensuring that you the passenger, is
guaranteed true value for money.
Values: Quality, uniqueness, efficiency, sincerity and trust
4. Business Strategy
Operations : They are the first in the country to employ the New Generation
Embraer 170/190 aircraft, and fitting in with the best technology available.
Reach : Paramount Airways connects point to point and unlike the others have
targeted cities with lower air traffic.
Geographically : They operate in 12 cities all over the country, including
destinations like Kolkata , Guwahati and Agartala, and increasing the frequency.
Economical : Offer Full Business Class service at prices comparative to Normal
Economy class fares of other Airlines.
Comfort and experience : They don’t have any middle seats and provide
larger space than the competitors in the same category.
Variety : They provide a wide variety of to satiate the palate.
5. Business Strategy (cont.)
Distribution and Operations : More internet-based than others, where the
distribution is more direct and low-cost.
Frequency : Turn around time of aircraft is less than 20 minutes. This helps to
utilize the aircraft for a much higher period of time, which in turn brings down the
cost per hour of the flight.
Service : Able to differentiate themselves substantially through best Offered cost
effective service excellence.
The dishes have been design taking in consideration various tastes and
nutritional requirements.
Benefit : Looked at aircraft with a small capacity of 88 seats as Government does
not levy landing charges on aircrafts of capacity below 90 passengers.
6. Corporate Strategy
Growth Strategy:
Expansion :
Starting the international services from the year 2011.
Paramount close to Rs 4,000-cr fleet deal : close to signing contracts worth Rs
4,000 crore with Boeing and Airbus.
Paramount in acquisition mood post deal : Fresh from a $2 billion deal with
Brazil for 40 aircraft.
Acquire another airline at the earliest to strengthen its network in the North and
Western parts of the country.
Increase in Air Traffic : Paramount to add 500 flights, increasing the fleet size
and increasing the air traffic.
Customer Experience : Valued-added features including in-flight shopping, a
frequent-flier programme that promises to be a lifestyle product, concierge
services and gifts for passengers.
7. Recommendation
Business Strategy :-
Brand Positioning : Lags in brand building and customer engagement with the
brand. Customers are not so aware of them, and hence more of the
advertisement and engagement is required as they looking for expansion.
Solution :
Real Time Feedback
A holistic Strategy Real Time Response
Efficient
Market Constant Monitoring
Interaction without interruption Research
Special offers on Increase
Co-Creation Twitter sales
Discounts tickets for Volume
students Engaging the
customer in
Having a personality real time
Customer Advocates
Brand Co- Creation
9. Recommendation
Corporate Strategy :-
Cargo Segment : Increasing the products in the cargo segment, which will
increase the efficiency of the company’s revenue by Some fair percent.
CEO stated “ the revenue might increase by 30 to 40 percent”
For E.g., Scope in carrying the floriculture products to different parts of India
and even abroad.
Employees Recruitment and Training : As they are looking for the expansion
in almost all the forms, more ground staff and cabin crew should be
employed who should be decent enough in understanding the key points of
this industry.
More efficient pilots should be employed with proper training facility and
programs for them. As its expansion is also on the international level, it
accounts to key factor.
