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Indian airline industry overview
Indian airline industry overview
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INDUSTRY ANALYSIS
Industry analysis is a study in which helps us to understand business and its environment like trade and services, manufacturing, etc. Industry analysis gives assistance in investment business decisions, future opportunities by forecasting.
The objective reveals the technique industry practices to face their competition and to achieve profits and the factors behind for their success. The assessment of company’s performance for investors in making investing decisions either buying or selling of shares, expansion or growth.
Airlines industry is a highly competitive market with limited number of players. The data obtained to analyze are taken from research reports, papers and observations.
Market share
Indigo 28.2 %
Jet Airways 24.6 %
Air India 19.0%
Spice Jet 19.1%
Go Air 8.8%
Source: Economic Times
The market share data taken is as on January 2014 on the basis of revenue generated by each of the company’s to total revenue generated by the industry.
Indigo Airlines
Indigo is a low cost carrier and largest airline with a market share of 28.2% as of January 2014, offering low fare ticket with flights on time. It operates to 36 destinations in India and abroad with 485 daily flights.
Jet Airways
Jet Air is the second largest Indian airline in terms of market share with 24.6% and passenger carried and also the largest listed entity in the aviation sector. It operates over 3000 flights daily to 76 destinations worldwide.
Air India
Air India is at the third position with a market share of 19.0%. It is a flag carrier and a government carried airline, the largest operator in Indian sub-continent. It operates with 103 flights and serves 60 domestic and 31 international destinations in 19 countries. The market...
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...es where contrails are formed
Air Traffic Control
Air navigation services have upgraded air traffic management and communications, navigation and surveillance to have better radar coverage with ADS-B (automatic dependent surveillance-broadcast) enabling communications with airports about their identity, speed and altitude. The ADS-B has three components- a transponder in aircraft, antenna to receive frequency and receiver at Air Traffic Control.
Airports
To have a customer-friendly service common-use kiosks, web o mobile check-in are implemented for easy travelling experience called ‘VeriPax’. This automatically validates the boarding passes or e-ticket and prevents any fraudulent passengers entering the airport
Air India and Jet airways have introduced ‘Mobile check-in’ facility for the travelers to perform basic functions through web-enabled phones.
Air Canada has deliberately set its self around the domestic and also worldwide market of carrier industry. The aircraft has substantiated itself as a superior Canadian brand becoming a part of Star Alliance, joined different famous carriers such KLM, Lufthansa carrier, Thai aircraft and so forth. Moreover, Air Canada has code offering consent to in excess of 26 aircrafts including Swiss Airlines, Singapore Airline, Etihad Airways et
Air Canada is Canada's biggest aircraft and the biggest supplier of booked traveler benefits in the Canadian market, the Canada-U.S. Trans outskirt showcase and in the worldwide market to and from Canada. In 2015, Air Canada together with its Air Canada Express provincial accomplices conveyed more than 41 million travelers, offering direct traveler administration to more than 200 goals on six landmasses. Air Canada is an establishing individual from Star
"To continue to bring humanity back to air travel." This is the promise JetBlue Airways Corporation has made to its shareholders, customers, and "crew members" in order to build a strong, solid and rapidly growing company. JetBlue uses two significant tools that drive its success: low fares and superb customer service. This growing discount airline works to keep its costs down and implies this goal by offering one-class service and eliminating airport lounges and full meal services. JetBlue relies completely on technology with an operation strategy of choosing less crowded airports located near large cities to keep its turnaround down. In addition, JetBlue offers leather seats, LiveTV (a satellite service with programming provided by DirectTV), and began adding XM Satellite Radio to its fleet in 2005 to stress customer value.
Jet2 is a mainly internet-based airline company which flies from six UK based airports to over 30 various locations around Europe.
Airline of choice: Remain the top choice for international flights for premium customers as well a...
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B. Because the reasons can differ greatly in the motivations for a customer wanting to fly, it can be difficult to divide the market into discrete segments, that is, there is always going to be overlap in the preferences and characteristics of any given segment. With that in mind, the commonalities that are shared between the clientele that make up the respective classes can easily withstand analysis.
...d these needs. But the customer preference keeps changing and for example the customers might expect to have internet connection during the flight in order to finish their work related tasks. By having a customer study group constantly analyzing the customer needs and modifying the operating procedures to match with the needs, JetBlue can align itself to the external environment effectively. During the initial stages, all the employees were happy and identified themselves with the company culture since it was a nice challenge and fun to start from scratch and build a new airline during tough times. By effectively promoting team work and managing the employees in small teams, JetBlue can instill the small company thinking in the employees and continue to create a positive environment for the employees.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
Air India airline is one of the biggest airline in the India. It was established by the famous company TATA and since its incorporation. It has grown very well and has spread all over the world in the different destinations. It has become the reputable brand in the airline industry with having the operations over 152 destinations. It has link up connection in the 35 countries and it has currently having 137 fleets. This company becomes the public limited company in the 1946. The company has international and the local route and its performance is increasing day by day with the pace of the good growth as compare to the other airlines in the industries in the area and the channels in which this airline is working.
The target market of JetBlue airlines is customers who along with low cost seek services. The services provided by JetBlue included in-flight entertainment, TV on every seat, satellite radio, extra leg room, free unlimited snacks, and leather seats. The target market of JetBlue is also the leisure traveler, the low cost ticket seeking traveler, and the cost conscious business traveler. JetBlue has actually, posed a threat to the other low cost airlines like the Southwest Airlines.
In India, one can never over-look the political factors which influence each and every industry existing in the country. Like it or not, the political interference has to be present everywhere. Given below are a few of the political factors with respect to the airline industry:
Everyday 1.8 million people are scanned in an airport (Gartenstein-Ross). By having these machines it helps to quicken the amount of time a person is in security. Also, with the new machines T.S.A. has come out with it is now said that the PreCheck is perhaps the best thing that has happened to air travel in the past 13 years, it allows select
AirAsia Berhad is a Malaysian low-cost airline based in Kuala Lumpur, Malaysia. It has been named as the world's best low-cost airline, and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to 100 destinations across 22 countries. AirAsia has risen exponentially since its purchase in 2001, as a result of its confluence of opportunity and its application of the Low-Cost Carrier business model (Poon & Waring, 2010).
The companies I have selected for this assignment is Malaysia Steel Works (KL) Bhd (5098) and Kossan Rubber Industries Bhd. (7153), both of the company is from industrial products sector and its share is traded in main market.
Jet airways India’s second major airline in terms of market shares after Indigo airlines based at Mumbai known as India’s economic capital in addition to being its India’s widest network with 3000 flights a day with 76 destinations worldwide, main operations are handle from Mumbai but secondary hubs are Delhi (Nation Capital of India) Kolkata and Bangalore, It has an international hub at Brussels Airport, Belgium.