Sector Analysis of Aviation Industry

1

HISTORYM

on

tgolf

ier

bro

ther

s *Unmanned Hot

Air Balloon

*First manned

flight, a tethered

balloon with

humans on board

*First free flight

with human

passengers

Jacq

ues

Ch

arl

es &

Rob

ert

bro

ther

s

world's first

unmanned

hydrogen-

filled balloon

Jacq

ues

Ch

arl

es &

N

icola

s-L

ou

is R

ob

ert manned

hydrogen

balloon

2

Physics

of flight

by

Cayley

Successful

model hang

glider flight

1800

1804

Timeline of aviation history after 18th Century

3

1853

1884

1891-96

1900

1900-05

1909

1910

1919

1958

1961

1969

1970

2010

Towed,

controlled,

manned

glider flight

(Cayley)

Controlled

hang glider

flights

(Lilienthal)

The

Wright

Brothers

World’s

first jet

propelled

aircraft

Boeing

707

Apollo

11 Moon

landing

First 24 hour

flight using

only solar

panels and

electric power

First fully

controllable

lighter than

air flight

First

Zeppelin

First crossing

of the English

Channel in a

heavier-than-

air aircraft

First

Atlantic

crossing

First

manned

space

mission

Airbus

The Wright Brothers

17 December 1903

The first sustained, controlled, powered

heavier-than-air manned flight

By Orville Wright

At Kill Devil Hills, North

Carolina

4

Crossing the English channel

Louis Charles Joseph Blériot

French aviator,

inventor and engineer

Built a successful

aircraftMade the first

flight across the English Channel in a heavier than

air aircraft in 1909

5

World’s first jet propelled aircraft

piston-engine

exhaust gases

adding

heat to an

otherwise

pure air stream

compressed

by rotating fan blades in a duct

Jet Propelled

Aircraft

6

Romanian Henri Coandă (1910)

Boeing 707

7

Airbus

Subsidiary of European aerospace company

First commercially viable fly-by-wire airliner,

A320

World's largest

airliner, A380

Airbus 1970

8

INDIAN AVIATION INDUSTRY

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Aviation sector…..

The sector deals with the transport of passenger and cargo from one place to another, using the aerial route.

Size : About 75 million Passengers $5.6billion

Growth Growth in 2013 : 6% - 8% Vision 2020 statement predicts handling 280 million

customers by 2020

10

From then to now…

11

• 1953: NATIONALISATION OF AIRCRAFT

INDUSTRY

• Assets of 9 existing companies

transferred to two entities in the aviation

sector controlled by the Government in

Indian Airlines, primarily serving

domestic sectors

Air India, primarily serving the

international sectors

•

• IMPLICATIONS

Aviation became a preferred mode of

transport for elite class

Restricted Growth of Aviation Industry

High Cost structure

Underdevelopment of infrastructure

•

1986: Private Sector Players permitted as

Air taxi operators. Jet, Air Sahara, etc

started service.

1994: Private Carriers permitted to operate

scheduled services. Six operators

granted license, however only Jet and Air

Sahara able to service.

2003: Entry of low cost carriers. Air Deccan,

Spice Jet, Go Air, Indigo.

IMPLICATIONS

Aviation is now affordable with check

fares and discount schemes.

Various Operators with different

business model.

Huge growth foreseen in Aviation

7 P’s - AVIATION SECTOR

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Giving a Feel For The “Product” Inside a Service Wrapper

•Consumers are demanding not products, or features of products but the

benefits they will be offered.

•The airline product includes of two types of services:1. On the Ground Services.

2. In-Flight Services.

PRODUCT MIX

Airlines service products

CABIN SERVICE. CATERING SERVICE RAMP SERVICE. OTHER SERVICE.

PRICE MIX

Premium Pricing

Value For Money Pricing

Cheap Value

Pricing

APEX Fares

Low-Cost Pricing

• Online 24-hour reservation Systems.

• Consolidation.

• Tour Operator/ Travel Agent.

• Affiliated with companies.

PLACE MIX

PROMOTION MIX

Advertising

Publicity

Sales promotion

Word of mouth

Airlines Advertisement Needs to Keep in Mind the Image of Country, The Scenic Beauty, Tourist Attractions, Rich Cultural Heritages or Which Would Attract Number of Tourists.

PROMOTION MIX

Advertising

Publicity

Sales promotion

Word of mouth

The PRO, Receptionist, Travel Agents, Media People Are Very Important People in Publicizing The Business.

PROMOTION MIX

Advertising

Publicity

Sales promotion

Word of mouth

The Travel Agents, Tour Operators, Frontline Staffs Contribute a Lot to The Promotion of Airlines Business.

PROMOTION MIX

Advertising

Publicity

Sales promotion

Word of mouth ‘Customer Loyalty Ladder’ .

Competence.

Reliability.

caring Attitude.

Responsiveness.

Initiative.

Problem Solving Ability.

Goodwill.

PEOPLE MIX

• Reservation.

• Flight Information.

• Facilities at The Airport.

• Baggage Handling.

• Meal Service.

• Flight Entertainment.

• Deliver Quality Service.

PROCESS MIX

On the ground:

• Booking offices or ticket counters.

• Paperwork.

• Brand Logo.

• Tickets.

PHYSICAL EVIDENCE

In-flight:

•Aircraft.

•Seating Configuration.

•Good Inner-exteriors.

•Uniforms.

•Ambience.

•Baggage.

•Labels or Tag.

SERVICE FAILURE AND

RECOVERY STRATEGY

23

Lion Airline Crash

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Thank you…

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