Airline Business

Business Concept

• Business Industry/sector

• Aviation Industry/Air transport Industry

• Industry’s current Trends and Opportunities

• Intra Pakistan air traffic growth is 9.9% over

the next 20 years (said IATA)

• Pakistan Aviation Industry got few number of Players so its an easy

opportunity for new Entrance

Industry’s current Trends and Opportunities

• High Traffic growth potential (9.9% Pakistan, World 4.1%)

• Declining Fuel prices

• Great potential with CPEC

• Few Players in the industry

• Unserved or Poorly served needs

• Mismanagement and inefficiencies of PIA

Outcomes of PIA’s Poor Management

• PIA’s Domestic Market Share

• In FY-2010 is 72%

• In FY-2015 decreased to 51%

• And still decreasing

Core Business

• Nature of Business

• Air travelling service

• Unique Selling Preposition(USP) or Core competency

• No schedule Delays

• Cheap Fares

• Equality in Customer treatment

Marketing Plan

• Brand Elements

• Business Name ------------------- Country Link Airlines (CLA)

• Brand Slogan ------------------- Quick - Simple - Comfortable

• Brand Color ------------------- Blue

Brand Logo

airlines

Major Competitors

• Pakistan International Airline (PIA)

• Shaheen Air International (SAI)

• Airblue Limited

Latest Entrants

• Rayyan Air

• Fly Pakistan Air

• Vision Air

Market Share (Domestic Passenger Traffic)

• According to Fiscal Year 2015

13%

9%

27%

51%

Domestic Passenger traffic

Air Blue Indus Airlines Shaheen Airlines PIA

Target Customers

• Business Mix

• Leisure (Holiday or Vocational Travelers)

• VFR

• Focusing on Moderate income groups

Customer Needs

• Apparent Need

• No Delay

• Good Service

• Good Environment

• Real Need (our first priority)

• Safety

• Comfortable Travelling

Marketing Strategies

One of Our Prime Marketing Objective is to Construct Shared

Benefit Relations with Competitor with some overall Economic

Objective of the country in Mind

Product Positioning

• Our customer differentiate us form our competitors by Timely serviceability

• Low-Fares

• High flight Frequency

• Passenger Treatment Philosophy Include

• No first class or status co preference

• Standard light refreshment meals (cost saving)

• No assigned Seats

• No transfer of luggage by other airlines

M Porter’s Competitive Strategy Matrix

Source: M Porter, Competitive Strategy. The Free Press 1980 p.39.

Cost Leadership-Focus

• Low Distribution Costs

• Non-Refundable Tickets (but transferable tickets)

• Point-to-Point Only

• High Aircraft Utilization

• Make possible ways to utilized high load factor

• Hire Air force Retired Pilots

• Low Fleet Costs

• Low maintenance cost without compromising maintenance standards

• Save commission cost by eliminating Travel agents

Distribution Strategies

• Direct Channel Distribution strategy- main focus

• Travel agencies (only a start-up strategy)

• Future Distribution Plans

• Airline call centers

• Sales offices

• Airport ticket desks

• Our future plan is to eliminate paper ticket by replacing confirmation PIN code numbers to identified passenger for flight.

Advertising and promotional Strategies and Objectives

• Direct representation-online

• Promotion and sponsorship

• Frequent flier reward

• Press and public relation

• Advertising (display/media)

• Telecommunication Media

Advertising Objectives

• Promote Brand Image

• Promote Brand Values

• Influence Policy Maker

• To make Effective Staff Motivation Policy

Advertising Decisions

• Based On

• Goal Setting

• Selection advertising agency

• Media buying

• Media relations

• Creative strategies

• Monitoring success

• Advertising life cycle

Fleet Details

• Since we starting business from small scale level we made to choose

• ATR Aircrafts 72-500 or 600 series

• 3 ATR 72-600 at star-up (Dry Lease)

ATR 72-600 Specifications

• Twin turboprop engine

• Short-haul regional aircraft

• Seat capacity max. 78

• Advance aviation system and equipment

Initial Rout Structure