Air India Marketing Strategy
Air India
Marketing Strategy
Name: Harsha Sinha
Enrollment No. 11BSPHH010328
Section – B
Seat No. - 2
AirIndia is a state-owned flag carrier, the oldest airline of India. It is part of the Indian government-owned AI Limited. The airline operates a fleet of Airbus and Boeing aircrafts.
According to the International Air Transport Association (IATA), by its latest estimates, India will contribute significantly to air travel, which is to grow from US$ 5.1billion to US$ 5.6billion. Market research firm PhoCus says that domestic air traffic is likely to more than double and touch 86.1 million passengers , up from 32.2 million passengers .For AI it is imperative that it formulates a marketing strategy to tap this growing demand.
To understand the strengths and areas of improvement for AI we need to look at the microenvironment and macroenvironment.
Macroenvironment :
Political Factors :
- Excise Duty and Sales Tax on Aviation Turbine Fuel
- Modernization of Airports
- The government does not allow any domestic airline operator to operate international flights unless they have served minimum of 5 years in the domestic market. This acts as deterrent for the other operators to enter the industry. AI also has to deal with Safety Regulatory Authorities (DGCA,FAA etc.).
Technological Factors :
- Growth of Electronic Ticketing Systems
- Satellite based Navigation Systems for aircrafts
- Time and speed of delivery being of special importance in the aviation industry, AI has rolled out the ORACLE supply chain solution, a module of ORACLE ERP application.
Demographic Factors : * India has a wide demographic reach and hence at times it becomes difficult for AI to operate on this hug scale. Also the expectations of customers across regions is very varied.
It is very important for AI to attract passengers as the average passenger load on AI 's domestic flights was jus 22.2% in 2010, according to Directorate General of Civil Aviation(DGCA).
Marketing Strategy
Name: Harsha Sinha
Enrollment No. 11BSPHH010328
Section – B
Seat No. - 2
AirIndia is a state-owned flag carrier, the oldest airline of India. It is part of the Indian government-owned AI Limited. The airline operates a fleet of Airbus and Boeing aircrafts.
According to the International Air Transport Association (IATA), by its latest estimates, India will contribute significantly to air travel, which is to grow from US$ 5.1billion to US$ 5.6billion. Market research firm PhoCus says that domestic air traffic is likely to more than double and touch 86.1 million passengers , up from 32.2 million passengers .For AI it is imperative that it formulates a marketing strategy to tap this growing demand.
To understand the strengths and areas of improvement for AI we need to look at the microenvironment and macroenvironment.
Macroenvironment :
Political Factors :
- Excise Duty and Sales Tax on Aviation Turbine Fuel
- Modernization of Airports
- The government does not allow any domestic airline operator to operate international flights unless they have served minimum of 5 years in the domestic market. This acts as deterrent for the other operators to enter the industry. AI also has to deal with Safety Regulatory Authorities (DGCA,FAA etc.).
Technological Factors :
- Growth of Electronic Ticketing Systems
- Satellite based Navigation Systems for aircrafts
- Time and speed of delivery being of special importance in the aviation industry, AI has rolled out the ORACLE supply chain solution, a module of ORACLE ERP application.
Demographic Factors : * India has a wide demographic reach and hence at times it becomes difficult for AI to operate on this hug scale. Also the expectations of customers across regions is very varied.
It is very important for AI to attract passengers as the average passenger load on AI 's domestic flights was jus 22.2% in 2010, according to Directorate General of Civil Aviation(DGCA).