Marketing in Aviation

8/11/2019 Marketing in Aviation

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MARKETING AN AIRLINE

PRESENTED BY:Ro ll No . 141116-20

Durga Prasad Mishra

Gayatri Gupta

Guru Prasad Chowdhary

Jayant Kushwaha

Jigna Jani


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History

Dec. 1912First flightbetween Karachi & Delhi

1932 - TATA AIRLINES

1948 - Air India International Ltd. (Joint sector company by Govt. of India &

Air India (earlier Tata Airlines))

1990 - Open sky policy

1993 - Emergence of private players : Sahara India Airlines, Jet Air, Archana

Airways

12 June 2014 - Maiden flight of AirAsia's India ventureon Bangalore-Goa

route


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Present Scenario

125 Domestic Airports

11 International Airports

Passenger Output: More than 159 million Growth recorded: 25.6% for the year 2013 in

domestic sector

10 domestic airlines company Private Airlines account for 80.1% share of

domestic aviation market

Source: DGCA


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Market Share

Source: Economic Times


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Lets start an airlines business


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Understanding the Marketing Mix

of

Passenger SeatSales (66%)

Aircraft OperatingLease(16%)

AncilliaryIncome(11%)

Fees andSurcharge(7%)

Revenue

Breakdown

Source: Macquarie Research


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Product/Services

Low Cost Carriers

Cargo Facilities

Cabin Services

Car Rental

Other Services


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Place

Hub: Bangalore

Planned Hub: Chennai & Kochi

Flying Destination (within India): Goa, Chennai,

Kochi, Jaipur, Chandigarh, Trichy

Target: Tier II & Tier III Cities : To avoid higher costs inaircraft parking, navigation and landing charges, Air Asia will

bypass Delhi and Mumbai airports. The airlines adopted anew strategy by tapping the traffic from smaller cities where

the reach of others is poor.

Destinations: 8 (Domestic), 120 (International)


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Price

The key to Air Asia's success is low fares.

The airline is benchmarking its base fares in India

against first-class rail tickets.

It priced its base tariff about Rs1,000 more than rail

fares. Thus by offering competitive prices to smaller

cities it attracts the bigger customer segments.

Lowest Base Fare: Bangalore to Goa/Kochi/Chennai:Rs.600, Bangalore to Jaipur/Chandigarh: Rs.1900.

Ancillary costs kept high.


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Promotion

Guerrilla Marketing: Putting up hoardings and

posters.

Selling of tickets exclusively on Expedia.com

Free seats to holiday destinations

Discount offers

Holiday Packages


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References

Macquarie Research

DGCA market report 2013

Pan-India spread a test for AirAsia's strategy; http://www.business-

standard.com/article/companies/pan-india-spread-a-test-for-airasia-s-strategy-

114080701563_1.html

An airline for the people; http://businesstoday.intoday.in/story/air-asia-to-enter-

india-aviation-sector/1/197970.html

http://www.moneylife.in/article/air-asias-strategy-for-india-no-free-lunch-but-fly-

free-initially/33492.html

Why India needs a Pure LCC like AirAsia; Cuckoo Paul;

http://forbesindia.com/blog/business-strategy

Why AirAsia's Entry Is Good For India's Aviation Sector; Saritha Rai;

forbes.com/blogs

Economics Times; http://m.economictimes.com/industry/transportation/airlines-

/-aviation/airasias-india-entry-to-mark-arrival-of-truly-low-cost-airline-may-face-

delay-in-clearances/articleshow/msid-18884761,curpg-2.cms


12/12A British Airways plane flies over The Mall with a Thank You message during the London Olympics 2012.

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