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About Indian aviation Industry

THE INDIAN AVIATION INDUSTRY

EvolutionThe history of civil aviation in India

started with its first coercial fli!ht on

"e#ruary $%& $'$$(It was a )ourney fro

Allaha#ad to Naini ade #y a "rench *ilot

+onsei!neur ,i!uet coverin! adistance of

a#out $- .( Since then efforts were on toi*rove the health of India/s 0ivilAviation

Industry( The first doestic air route

#etween 1arachi and Delhi was o*ened

inDece#er $'$2 #y the Indian State Air

Services in colla#oration with the I*erial

Airways& U1as an e3tension of 4ondon51arachi

fli!ht of the I*erial Airways(The aviation

industry in India !athered oentu after

three years with the o*enin! of are!ular

airail service #etween 1arachi and +adras #y

the first Indian airline& Tata Sons

4td(However this service failed to receive

any #ac.in! fro the Indian 6overnent(At thetie of inde*endence nine Air Trans*ort

0o*anies were o*erational in the

IndianTerritory( 4ater the nu#er reduced to

ei!ht when the Orient Airways shifted its

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#ase to,a.istan( The then o*erational

airlines were Tata Airlines& Indian National

Airways& Air serviceof India& Deccan Airways&

A#ica Airways& 7harat Airways and +istryAirways(8ith an atte*t to farther stren!then

the #ase of the aviation sector in India& the

6overnentof India to!ether with 9et Airways

:earlier Tata Airline; set u* a )oint sector

co*any& 9et AirwaysInternational& in early

$'? #rou!ht the doestic

civil aviation sector underthe *urview of

Indian 6overnent( 6overnent/s intervention

in this sector was eant forreovin! the

o*erational liitations arisin! out of e3cess

co*etition( In $'>?& the Air0or*oration Act

nationali=ed all e3istin! airline assets and

esta#lished the Indian Airline0or*oration and

9et Airways International for doestic and

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international air services res*ectively(These

two co*anies en)oyed ono*oly *ower in the

industry until $''$& when *rivate airlines

were !iven *erission to o*erate charter andnon scheduled services under the @Air Ta3i

schee to #oost touris( These carriers were

not allowed at the tie& to fly scheduled

fli!htsor issue air tic.ets to *assen!ers( As

a result& a nu#er of *rivate *layers

includin! 9et Airways&Air Sahara& +odiluft&

Daania Airways& NE,0 airlines and East 8estAirlines coenceddoestic o*erations( In

$''-- :USD $-rou!hly;& co*ared with "ull

Service fares offered #y the incu#ents&

avera!in! a#out INR?--- or ore( Since then&

S*ice 9et :restructured Royal Airways and

+odiluft;& 6o Airways and1in!fisher Air have

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also entered the industry( ,araount Airways

is another *layer& thou!h it is *ositioned on

the other end of the s*ectru& as an @all

#usiness class airline( 8ith the furtheradvent of online tic.et sales throu!h

co*anies such as a.eytri*(co& *rices have

crashedand tic.ets are availa#le for as

little as INR -(''( In fact& now any airline

tic.ets can #e #ou!htfor a *rice co*ara#le

to an u**er class railway tic.et for the sae

route(In Dece#er 2-- years of

continuouso*erations and a iniu fleet si=e

of 2- aircrafts& were *eritted to o*erate

scheduledservices to internationals

destinations( On 9anuary $$& 2--> the

!overnent desi!nated fourscheduled Indiancarriers :9et Airways& Indian Airlines& 9et

Airways and Air Sahara; to

o*erateinternational services to and fro

Sin!a*ore& +alaysia& Thailand& Hon! 1on!& the

U1 and theUSA(As a conseCuence today we have&

ei!ht *rivate scheduled o*erators vi=(& 9et

Airways:India; 4td(&9et 4ite Airlines 4td(&

1in!fisher Airlines& Deccan Aviation :,;

4td(& S*ice)et& ,araount Airways,vt( 4td &

6o Airways& and Inter 6lo#e Aviation 4td(

:Indi6o; were o*eratin! as Scheduled

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,rivateAirlines( In addition to these *rivate

airlines& two ore airlines naely Alliance

Air& su#sidiary of Indian Airlines and 9et

Airways E3*ress& su#sidiary of 9et Airwaysalso coenced their o*erations in$'' 5'B

and 2-->5- res*ectively( 9et Airways& 9et

Airways E3*ress& 9et Airways and 9et 4ite

Airlines4td as the desi!nated airlines of the

6overnent of India under various #ilateral

air servicesa!reeents have #een authori=ed

to o*erate lon! and ediu haul scheduledinternational airservices( Recently

1in!fisher too have started international

fli!hts(

INTRODUCTION

9ET AIR8AYSis a +u#ai #ased airline *rooted #y +r(

Naresh 6oyal& is the second lar!estairline in

the country after the !overnent owned 9et

Airways and the ar.et leader in thedoestic

airways( It o*erates ore than destinations worldwide( 8ith

9et1onnect and 9et 4ite :forerly Air

Sahara;& it caters to all cate!ories(

Strategies

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Started as 9etair *rivate liited& #y leasin!

< 7oein! B?B5?-- it received scheduled

airlinesstatus in $''>( It went for inor!anic

!rowth #y the acCuisition of Air Sahara for$ #illionru*ees on A*ril $2& 2--B and

renaed it 9et 4ite( It also hel*ed in ar.et

*enetration as 9et 4itewas directed to serve

lower class se!ents( Today it has %(< inchflat screen 40D TV( US7 *orts and

la*to* char!ers are availa#le( On thedoestic

arena the #usiness class seats have theassa!er(The "irst class service :see the

*icture on ri!ht; availa#le in the airlines

has#een recently rated #y S.ytra3 as the $ inch 40D and

AVOD( All the three classes feature

+ood4i!htin! that ad)usts itself to the tie

of the day

The 9et 4ite division has withdrawn the

co*lientary food serviceand has i*leented

#uy on #oard( Unli.e the *arent airline 9et

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litehas its hu# at New Delhi( The airline is

also into charter fli!hts andhelico*ter

service(9et 1onnect airways is the other low

cost no frill airline #y the 9et airways!rou*( Toco*leent the 9et 4ite service it

focuses ore on southern states(

In Flight Entertainment

All the 9et Airways fli!ht *rovide& F9et

ScreenG &which offers audio5video on

deand*ro!rain!( It has over $-- ovies& %-TV *ro!raes& $$ audio channels and a 0D

li#rary of $2> titles( The syste o*erates

via individual touch screen onitors at each

seat& and isavaila#le in all classes(

Airort !ounges

9et Airways 4oun!es are offered to "irst and

,reire 0lass *assen!ers& alon! with 9et

,rivile!e,latinu& 6old or Silver card

e#ers( The international loun!e at 7russels

has showersusiness centre& entertainent

facilities and children/s *lay areas( 4oun!es

are located in7an!alore& 0hennai& 1ol.ata&

Delhi& Hydera#ad& 9ai*ur& +u#ai(

"ar#eting Strategies

Fre$uent Flier %rogramme

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1nown as 9et,rivile!e it hel*s to redee

*oints earn for iles traversed(

&et "all

This is the uniCue all *rovided #y the 9et

Airways to sho* souvenirs at ?---- feet(

&et 'ings

9et 8in!s is the infli!ht a!a=ines(

&et Travel

9et has alliance with a nu#er of hotels Such

as 4eela and Ta) where the *assen!ers can

!etdiscounts if they are *rivile!e e#ers of

the 9et(They *rovide s*ecial service for

infants& olds& edical eer!encies& e3*ectant

others andanials( 0hec. in can #e done #y

S+S& on Net& and 1ios.s( Their 8e#site has

the o*tion tochoose fro a *lethora of

lan!ua!e to cater to understandin! of *eo*le

fro different *arts of world(

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S'OT analysis o( &et Air)ays

Strengths o( &et Air)ays9et Airways has #een the lar!est air

carrier in India in ters of traffic

volue and co*any assets(

It owns the ost u*dated fleet and

co*etent re*airs and aintenance

e3*ertise(

Its inforation systes are advanced and

co*ati#le with its o*eration and service(

It has a !ood re*utation in #oth

international and doestic ar.ets&

Cuality service and the a!e5old 6oodwillthat has still .e*t it alive in the

interests of the rescue o*erators(

Has financial #ac.in! of the 6overnent

'ea#nesses o( &et Air)ays

9et Airways is o*eratin! across #road

international and doestic ar.ets

co*etin! with world leadin! !iant

airlines as well as local sall

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o*erators( This lac. of clarity on the

strate!ic direction lar!ely dilutes its

ca*a#ilities and confuses its #rand

within ar.ets(4ow *rofita#ility and utili=ation of

ca*acity(

6rowin! 0o*etitor #ase and entry of 4ow5

0ost 0arriers :400s;

The airlines hi!h5cost structure and theco*ulsions of #ein! a *u#lic sector unit

are the reasons and it had #een a.in! a

loss and shall continue to a.e losses

for soe ore Cuarters(

Oortunities o( &et Air)ays

India airline industry is !rowin! faster

and will continue to !row as the 6D,

increases& and the trend is *redicted to

continue once the slowdown recedes(

8orldwide dere!ulations a.e the s.iesore accessi#le the route a!reeent is

easier to #e achieved( The nu#er of

forei!n visitors and investors to India

is increasin! ra*idly(

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0o*leentary industry li.e touris will

increase deand for airline service( The

0ivil Aviation +inistrys stron!

re!ulation and *rotection *rovideso**ortunities for consolidation and

o*tii=ation(

0ustoers are !ettin! wealthier& tend to

#e less *rice5conscious and *refer to

choose Cuality service over cost(

7est tie for introducin! 400s

Threats (or &et Air)ays

9et Airways faces iinent a!!ressive

co*etition fro world leadin! airlines

and *rice wars tri!!ered #y doestic*layers(

The Indian Railway +inistry has

draatically i*roved s*eed and services

in their ediuJlon! distant routes&

attractin! *assen!ers away fro air

service& with *rices alost at *ar with

the low cost carriers

%ositioning Strategy

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ositionin! strate!ies can #e conceived and

develo*ed in a variety of ways( It can #e

derived fro the o#)ect attri#utes&

co*etition& a**lication& the ty*es ofconsuers involved& or the characteristics of

the *roduct class( All these attri#utes

re*resent a different a**roach in develo*in!

*ositionin! strate!ies& even thou!h all of

the have the coon o#)ective of *ro)ectin!

a favora#le ia!e in the inds of the

consuers or audience( There are sevena**roaches to *ositionin! strate!iesK

:$; Using %roduct characteristics or Customer

*ene(its as a ositioning strategy

This strate!y #asically focuses u*on the

characteristics of the *roduct or custoer#enefits( "or e3a*le if I say I*orted ites

it #asically tell or illustrate a variety of

*roduct characteristics such as dura#ility&

econoy or relia#ility etc( 4ets ta.e an

e3a*le of otor#i.es soe are e*hasi=in! on

fuel econoy& soe on *ower& loo.s and others

stress on their dura#ility( Hero 0ycles 4td(

*ositions first& e*hasi=in! dura#ility and

style for its cycle(

At tie even you would have noticed that a

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*roduct is *ositioned alon! two or ore

*roduct characteristics at the sae tie( You

would have seen this in the case of

tooth*aste ar.et& ost tooth*aste insists on@freshness and @cavity fi!hter as the

*roduct characteristics( It is always

te*tin! to try to *osition alon! several

*roduct characteristics& as it is frustratin!

to have soe !ood characteristics that are

not counicated(

:2; %ricing as a ositioning strategy 5

uality A**roach or ,ositionin! #y ,rice5

uality L 4ets ta.e an e3a*le and understand

this a**roach )ust su**ose you have to !o and

#uy a *air of)eans& as soon as you enter in

the sho* you will find different *rice ra!e

)eans in the showroo say *rice ran!in! fro

?>- ru*ees to 2--- ru*ees( As soon as loo. at

the )eans of ?>- Ru*ees you say that it is

not !ood in Cuality( 8hyM 7asically #ecause

of *erce*tion& as ost of us *erceive that if

a *roduct is e3*ensive will #e a Cuality

*roduct where as *roduct that is chea* islower in Cuality( If we loo. at this ,rice L

Cuality a**roach it is i*ortant and is

lar!ely used in *roduct *ositionin!( In any

*roduct cate!ories& there are #rands that

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deli#erately atte*t to offer ore in ters

of service& features or *erforance( They

char!e ore& *artly to cover hi!her costs and

*artly to let the consuers #elieve that the*roduct is& certainly of hi!her Cuality(

:?; %ositioning strategy based on Use or

Alication L 4ets understand this with the

hel* of an e3a*le li.e Nescafe 0offee for

any years *ositioned it self as a winter

*roduct and advertised ainly in winter #utthe introduction of cold coffee has develo*ed

a *ositionin! strate!y for the suer onths

also( 7asically this ty*e of *ositionin!5#y5

use re*resents a second or third *osition for

the #rand& such ty*e of *ositionin! is done

deli#erately to e3*and the #rands ar.et( If

you are introducin! new uses of the *roduct

that will autoatically e3*and the #rands

ar.et(

:

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reflectin! the characteristics and ia!e of

the odel or *ersonality counicated as a

*roduct user( 4ets not for!et that 9ohnson

and 9ohnson re*ositioned its sha*oo fro oneused for #a#ies to one used #y *eo*le who

wash their hair freCuently and therefore need

a ild *eo*le who wash their hair freCuently

and therefore need a ild sha*oo( This

re*ositionin! resulted in a ar.et share(

:>; %ositioning strategy based on %roductClass 5 In soe *roduct class we have to a.e

sure critical *ositionin! decisions "or

e3a*le& free=e dried coffee needed to

*ositions itself with res*ect to re!ular and

instant coffee and siilarly in case of dried

il. a.ers cae out with instant #rea.fast

*ositioned as a #rea.fast su#stitute and

virtually identical *roduct *ositioned as a

dietary eal su#stitute(

:; %ositioning strategy based on Cultural

Symbols 5 In todays world any advertisers

are usin! dee*ly entrenched cultural sy#ols

to differentiate their #rands fro that of

co*etitors( The essential tas. is to

identify soethin! that is very eanin!ful to

*eo*le that other co*etitors are not usin!

and associate this #rand with that sy#ol(

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9et Airways uses ahara)a as its lo!o& #y

this they are tryin! to show that we welcoe

!uest and !ive the royal treatent with lot

of res*ect and it also hi!hli!hts Indiantradition( Usin! and *o*ulari=in! tradear.s

!enerally follow this ty*e of *ositionin!(

:B; %ositioning strategy based on Cometitors

5 In this ty*e of *ositionin! strate!ies& an

i*licit or e3*licit frae of reference is

one or ore co*etitors( In soe cases&reference co*etitor:s; can #e the doinant

as*ect of the *ositionin! strate!ies of the

fir& the fir either uses the sae of

siilar *ositionin! strate!ies as used #y the

co*etitors or the advertiser uses a new

strate!y ta.in! the co*etitors strate!y as

the #ase( A !ood e3a*le of this would #e

0ol!ate and ,e*sodent( 0ol!ate when entered

into the ar.et focused on to faily

*rotection #ut when ,e*sodent entered into

the ar.et with focus on 2< hour *rotection

and #asically for .ids& 0ol!ate chan!ed its

focus fro faily *rotection to .ids teeth*rotection which was a *ositionin! strate!y

ado*ted #ecause of co*etition(