1. The Aviation industry
which hauls the Indian economy
-Battle royal over Elephant’s sky-
Feb / 2006
Border Zero
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2. In the Beginning
We visited several countries in the world in order to grasp big flow from
September 2005 to December 2005.（For more information, please refer our
blog site, http://borderzero.jugem.jp/?cid=2.）
*sorry, only available in Japanese.
The degree of attention to aviation industry is by following two reasons. In
Japan, opening of the Kobe airport and newly founded Star Flyer is
scheduled to launch its maiden flight in March. In the world, competition
between Airbus and Boeing has been more intensified.
As for India which is picked up with this manuscript, as a part of BRICs and
as ahead the out-sourcing which utilizes high IT technology, improvement
of standard of living of the citizen have airliners has been born.
On the basis of the official data and writers individual experience, the
purpose of this manuscript is to understand rapid growing Indian aviation
industry.
If you want to learn further more, please access following URL;
http://www.borderzero.com/indiaaviation.html.
*sorry, only available in Japanese.
*: Data are as of Feb 2006 and rate of exchange handles as Re1 ≒ US$0.022.
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3. The history of Indian aviation industry
《The history of Indian aviation industry》
The Aviation Department of Tata Sons Ltd. established in 1932
Tata Air Lines converted into a public Company and renamed Air India Limited in 1946
Two Corporations - Air India International Limited and Indian Airlines
Corporation (IAC) came into formal existence in 1953
Air India becomes an all-jet carrier in 1962
The second aviation boom in 2005
The first aviation boom in 1993
Deregulation in 1991
1930 1940 1950 1960 1970 1980 1990 2000 2005
The second aviation boom has just begun
Source：Websites of each airlines
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4. Why the Indian aviation industry is so HOT?
Yearly mean 25% industry growth is expected by 2010.
High economic growth rate
Maintains yearly mean 5% economic growth is expected
by 2050
Increase of middle income group
From 2002 extending through 2009, number of household
whose annual income between Rs 100 thousands and Rs 500
thousands will increase from 121 million to 176 million.
Increase of the number of aircraft users past 10 years.
Doubled in 10 years
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5. Fundamental data of Indian airlines
《Fundamental data of Indian airlines》
Destinations
Airlines founded fleet notes
dome inter
Air India 1932 12 27 42 The national carrier focusing international routes. Founded as Tata Air
Lines. Air India has Air-India Express as affiliate airlines.
Indian 1953 41 18 59 The national carrier focusing domestic routes. Some flies to neighboring
Airlines countries. Indian Airlines has Alliance Air as affiliate airlines.
Jet Airways 1993 43 5 50 The market leader of private airlines in India. Very positive to expand
its route to foreign countries. Fares are not low.
Air Sahara 1993 22 4 27 The original price warrior. Who is being forced to come with new
strategy. It is affiliate of Sahara India Pariwar Group.
Air Deccan 2002 56 0 22 Low, no frills. Only economy class. Mix of metro and cross-country
destinations.
Kingfisher 2005 15 0 9 Single Kingfisher class. All frills. Premium in-flight services. Only metro
Airlines destinations. Affiliate of United Breweries.
SpiceJet 2005 11 0 5 Low, variable fare, but not cheap quality service. Low frills, small
complimentary snack.
Paramount 2005 5 0 1 Low fare, all frills. Only business class at less than economy fares.
Airways Mostly non-metros. Focus South India.
GoAir 2005 14 0 3 Low cost, low frill. Mix of metro and small cities. Affiliate of Wadia
Group
Source：Websites of each airlines and Airborne Indians Indian Today July 7, 2005
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6. The stance for the service
《Various attitude for service》
Air Deccan Air Sahara Kingfisher
Airlines
GoAir SpiceJet Jet Airways Paramount
Airways
Low Service circularity High
Actualizing the low price by cost reduction Lower price than major but great service
Source： Websites of each airlines
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7. The case of Jet Airways; Veteran private airlines
Introducing up-to-date fleet
Acquiring the reliance from the passenger for safety
Actualization of high fixed carving/moment takeoff ratio
Actualization of cost reduction
Reduction of fuel cost
《Best Airlines - SOUTH EAST ASIA 2004,2005》
rank 2004（Country） 2005（Country）
1 SriLankan Airlines（SriLanka） Jet Airways（India）
2 Jet Airways（India） SriLankan Airlines（SriLanka）
3 N/A Air Sahara（India）
Source：Martin Roll “Asian Brand Strategy” and SKYTRAX
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8. The case of Kingfisher Airlines; Indian virgin atlantic
The porter who wears the uniform of Kingfisher Airlines taking the initiative
to carry baggage to the check-in counter.
Standardizing all seat in Kingfisher class which has upper quality than
economy class.
The crimson, the corporate color, carpet is spread in the check-in counter.
IFEs are equipped in all seat.
The color of headphone is based on corporate brand color.
The amenity goods are complete（Hand towel, teabags, pens, candies,
headphones in a small poach）.
Packs of Tropicana are served in the flight.
All flight attendant is only model experience person.
To pick up the voice of the passenger the detailed questionnaires are
prepared in the seat pocket.
Several newspapers are inserted in the seat pocket before the embarking.
Actualizing share 6% in opening 1st year
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9. The case of Air Deccan; King of budget cost airlines
《Pricing》
Air Deccan Other Airlines Train
Lowest fare Re 1 (≒US$0.022) Rs 8,155 (≒US$180) AC 1st Rs 2,953 (≒US$65)
Last day fare Rs 7,200 (≒¥18,000) Rs 13,540 (≒US$300) AC 2nd Rs 1,559 (≒US$34)
Time taken 1hr35min 23hrs
In order to offer low fare…
Using small aircraft and saving landing charge.
Shortening in parking time; actualizing the parking charge reduction and
turnover improvement.
Abbreviation of in-flight service such as beverage and meal.
Reduction of operational cost.
Thoroughness of Internet ticketing.
Business in only of economy class; reducing customer unit cost by
increasing seat.
Cutting unused space in aircraft.
Source：Websites of Air Deccan
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10. To increase and keep passengers
《Number of new routes in 2005 by airlines founded before 2005》
Destinations
domestic inter- total
national
Air India 0 5 5
Indian Airlines - - -
Jet Airways 0 3 3
Air Sahara 0 1 1
Air Deccan 8 0 8
Exciting benefits of owning a Air Sahara Standard Chartered Gold Card
Free ticket for your companion when passenger flies.
Free tickets for passenger’s kids when passenger flies with his wife.
Complimentary upgrades to business class.
Cosmos miles even when passenger doesn't fly.
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11. Entry of aircraft manufacturer
《Increasing number of fleet》 《Number of fleet by aircraft manufacturer》
2（1%） 1（1%）
（fleet）
170
7（3%）
162
160
27（12%）
150 94（43%）
140
138
130 87（40%）
132
120 119 118
110
100
Airbus Boeing ATR
1999- 2000- 2001- 2002- 2003-
Bombardier Dornier Embraer
Source：DGCA Source：Websites of aircraft manufacturers
《Number of orders in 2005 by aircraft manufacturer》
（fleet）
250
227
200
150
98
100
50
50
5
0
Airbus Boeing ATR Embraer
Source：Websites of aircraft manufacturers
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12. The return of public owned aviation company
The raising of funds with the execution of IPO.
Reinforcement of fleet.
Positive advance to foreign destinations.
Image improvement.
Establishment of cheap airliner.
Air India（Air-India Express）、Indian Airlines（Alliance Air）
Completeness of customer service.
Completeness of lounges、Execution of various campaigns
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13. Industry reorganization
The second aviation boom in India has begun in 2005 but…
Jet Airways Air Sahara
Announced acquisition of Air Sahara in Jan 2006
Opposing acquisition of two
Air Deccan Kingfisher Airlines GoAir IndiGo Airlines
Four airlines are seeking to cooperate one another
And new airlines are scheduled to enter market…
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14. From Indian sky & to Indian Sky
《The new traffic route to India of the European-American airliners in 2005》
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15. Topics of Indian aviation Industry
Topics of airports
Non-service of infrastructure
The number of runways which are insufficient by comparison
with the number of arrivals and departures etc…
The management which cannot utilize existing environment
Other airport with similar environment can handle twice as much
arrivals and departures as Indian airports etc…
Topics of airlines
Frequent delays
Shortage of pilots and mechanics
Lack of accountability
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16. For development of Indian aviation industry
For development of
《Competitors of Indian
airlines airlines》
Competitions among Indian airlines
Taking in of first flier and repeaters etc…
Foreign airlines
Competitions with the domestic
other means of transportation Airlines A
My-car boom etc…
Indian airlines
Competitions with foreign airlines
Highly appraised airlines of neighboring
countries etc… Train Cars
For development of airports
Highly appraised airports of neighboring
countries etc…
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17. Tail wing for aviation industry, Tourism
《Growing Indian tourism》
（1,000toursts） （US$1million）
3,000 4,000
3,500
2,500
3,000
2,000
2,500
1,500 2,000
1,500
1,000
1,000
500
500
0 0
1990年 1995年 2000年 2001年 2002年 2003年
Tourist Revenue
Both tourists and revenue are increasing and 5million tourists are
estimated to visit India in 2007.
Business chance expands for Indian aviation industry
Source：WTO World Overview & Tourism Topics: 2004 Edition
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18. Who is Border Zero?
《Contact》 【Services of Border Zero】
Border Zero Ltd
Management: Masaya Fukumoto
TEL：+81-3-3777-5805
URL：http://www.borderzero.com/index_e.html
email：post@borderzero.com
If you want to learn further more, please access following URL;
http://www.borderzero.com/indiaaviation.html.
*sorry only available in Japanese.
Copyright ©2007. Border Zero All rights reserved.
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