Ot Analysis of Aviation Industry

Topics: Porter generic strategies, Airline, Avianca Pages: 11 (3409 words) Published: December 26, 2012
The past year has been one of change for corporate travel and the airline industry, and nearly every corporate travel program has been affected. For some, these effects have been positive; leading to lower air travel prices, but for others the effect has been negative, resulting in travel restrictions and budget cuts. Regardless, for many companies now is the time to start rebuilding travel programs through negotiations or sourcing projects, with the intent of improving savings and reducing costs in the years ahead. India’s airlines industry had a smooth take-off ever since the government initiated its open skies policy a few years ago. After encountering some initial turbulence, it is now cruising smoothly across clear blue skies. India is today one of the fastest expanding aerospace markets in the world, as a growing number of airlines and corporate are expected to acquire about a thousand planes over the next 5 years.

Every region- the east, west, north, south and center - has five airlines. India has Indian Airlines, which is the mother of the Indian Aviation Industry, followed by Jet Airways, Spice Jet. Deccan Airways and Kingfisher. Sahara has been taken over by Jet Airways. These are airlines, which fly into Metro have and are well connected.

Airline market growth offers continual expansion opportunities for both leisure and business destinations. This is particularly true for international destinations. Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground. Technology can also result in increased revenue due to customer-friendly service enhancements like inflight Internet access and other value added products for which a customer will pay extra. Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via a code share agreement with a partner carrier. 1. EXPECTING INVESTMENTS

The Indian aviation industry requires $30 billion (Rs.135, 000 crore) in the next 15 years to develop infrastructure and manpower to cope with increasing passenger and cargo traffic. "We need around $30 billion-worth investment in various sub-sectors of the aviation industry, including infrastructure development and aircraft acquisition, in the next 15 years," (Civil Aviation Secretary Nasim Zaidi said in his inaugural address during an industry summit here). According to Zaidi, apart from investment, long-term planning and new regulatory framework were required to give a boost to the sector . "We must have a long-term planning matched with a vibrant regulatory for make-work as Indian aviation has all the necessary ingredients to grow exponentially,” The official data with the ministry has revealed that the industry has seen a passenger growth of 15 percent in 2010-11, and a total of 142 million passengers checked in and out of airports across the country. 2. EXPECTED MARKET SIZE

Now Market share of private players in domestic markets are Kingfisher 20%, indigo 19.7 %, Jet Airways 17.5% Jet Lite 7.3% so Jet Airways totally (24.8%), Spice Jet 13.6%, Air India 15.4% and finally Go Air 6.4% market share in domestic markets as per the data given by DGCA .The expected market size is projected to grow upto100 million by 2012. 3. JOB OPPORTUNITIES

India would require approximately 8000-9000 pilots and an equal number or more air cabin crew by 2012.Heavy pay packets are awaiting pilots with a commercial pilot license (CPL). Even an amateur pilot can start his career with a salary of Rs. 2.5-3 lakh a month with a commercial airline. With the sudden increase in the number of airlines, pilots are in great demand. There is already a shortage of pilots in the sector and so is that of commanders and captains. Currently, 2,500 pilots are working with...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Industry Analysis Essay
  • Pestel Industry and Competitive Analysis Essay
  • industry analysis Essay
  • Essay about industry analysis
  • Aviation Industry Essay
  • industry analysis Essay
  • industry analysis on pharmaceutical industry Essay
  • Essay about Industry Analysis

Become a StudyMode Member

Sign Up - It's Free