WAR FOR THE SKY

GROUP NO:- 7 ROLL NOs

21,14,35,

Airlines Industry

What is Service Marketing?

Services are distinguished from products mainly because they are generally produced at the same time as they are consumed and cannot be stored away or taken and enhanced marketing mix need to be deployed .

Its not about simply reaching about to customers with the right service. But, its also about creating that right desire to possess service.

AIRLINES AS A SERVICE INDUSTRY

The Airline industry came into existence during the 17th centuries. Origin of Indian aviation industry can be traced back to the year 1912. Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries

 India has the private airlines as its key players 75% of the market share is owned by the private sector. India is the 9th largest aviation market in the world.

Entry Of Private Players

Bharat Airlines
This is the state carrier owned by the government. Annual turnover touching over 4,500 crores. Bharat airlines is able to cloak about 260 flights touching over 65 domestic destination. These airlines is have biggest capacity with close to 35,000 seats.

Set Airways
This airline has very seriously challenged the monopoly of Bharat Airline. It operats close to 250 weekly flights covering around 45 destinations. Total seating capacity is about 30,000 seats. Set Airways cloked turnover of around 4,000 crore annually.

Depend Air
Depend air is started its operations in 1993. This is the smallest of the three operations. It operates around 120 flights ina wek, covering about 24 destination. In comparison with Bharat airlins, Depend airs seating capacity is about one third, at about 11,500. Depend air is is not able to achieve a strong differentiated position in market.

Kingfisher Airlines
Dr Vijay Mallya is the Chairman and CEO of Kingfisher Airlines
Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005 with 4 daily flights between BOM & BLR and one A-320 aircraft. There are tools for mood lighting such as web chat, inseat plugins for music, liveTV with 16 channels on each seat 100 percent E ticket airline

Jet Airlines
Jet Airways is an airline based in Mumbai, India. It is India's third largest airline. Jet Airways also operates two low-cost airlines, namely Jetlite (formerly Air Sahara) and Jet Airways Konnect.

Top 10 Airline Companies Of India

S.No 1. 2. 3. 4. 5. Site Indian Airways Kingfisher Air India Air Deccan Lufthansa India Airlines

6.
7. 8.

Air Sahara
IndiGo Alliance Air Paramount Airways Private Limited Jet Airways

9. 10.

RAINBOW OF SERVICE MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

PEOPLE

PROCESS

PHYSICAL EVIDENCE

Product Mix
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.

Price Mix
Premium pricing:- Use a high price where there is a uniqueness about the product or service. Such high prices are charge for luxuries

Cheap-value pricing:- This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales APEX fares:- Apex or advance purchase fares are special fares valid on economy class on specified sectors. They are much lower than the normal fares.

Promotion Mix
Advertising- keep in mind the image of the country, tourist attraction, cultural heritage

Publicity- Travel agent, PRO, media people

Sales promotion- Tour operators, frontline staff

Place mix
Online 24-hour reservation Systems.

Tour Operator Travel Agent

People Mix
Reliability

Caring Attitude

Goodwill

Process mix
Reservation.
Flight Information. Facilities at The Airport. Baggage Handling. Meal Service. Flight Entertainment. Deliver Quality Service

PHYSICAL EVIDENCE
On the ground:
Booking offices or ticket counters. Paperwork.

In-flight:

Aircraft, Seating Configuration. Good Inner-exteriors.

Tickets.

Ambience.

Strength Of Airlines Industry

Air South and Spice Air are Using Aggressive Price driven strategy to lure customer to Fly With Them. They Attempted to Dig Into Indian Airlines s Market With The High Quality Services, Primarily in Plan Care and Entertainment. Air Travel Market is One Of The Fastest Growing Market.

Strength Of Airlines Industry

They Offer Services Connecting Various Metros and First Class Cities. In August(2003), Air decan Become India s First Low Cost Airline After it launched What Was No more than Just a Point to Point air Ferry. Post-nineteen Indian Policies began to Move Toward Liberalization and ProCompetition Regime.

Strength Of Airlines Industry

Due to growth in tourism, there has been an increase in number of the international and domestic passengers. The estimated growth of domestic passenger segment is at 50% per annum and growth for international passenger segment is 25% Due to the rise in income levels, the disposable income is also higher which are expected to enhance the number of flyers.

Weakness Of Airlines Industry

The Services Were Expensive so only a Few Could afford Them. Besides Due To Increased Competition, the Industry is incurring mounting losses The Customer Did Not Have Much Choice, but to rely upon their services irrespective of Services Quality ,Price, connection ,and Schedule issues. Air Industry In India Was not Open To Private Players For Long Lack Of Experience Of The Industry and Other Glitches Forced Them to Exit the Market

Weakness Of Airlines Industry

Air cargo market has not yet been fully taped in the Indian markets and is expected that in the coming years large number of players will have dedicated fleets. The infrastructure development has not kept pace with the growth in aviation services sector leading to a bottleneck. Huge investment requirement for physical infrastructure for airports. The infrastructure development has not kept pace with the growth in aviation services sector leading to a bottleneck. Huge investment requirement for physical infrastructure for airports.

Challenges
Indias civil-aviation sector, estimated to be growing at a robust annual rate of 15-20 percent, is considered Indias second emerging sunrise industry after Information Technology. The growth rate is one of the fastest in the Asia-Pacific region, and the country is currently the ninth-largest aviation market in the world. A massive boom in the tourism industry, coupled with a growing, cash-rich middle class and strong government support have helped, alongside growing private participation and foreign investment, and a favourable business environment.

Challenges
Airport challenge The key challenge will be to ensure that Indian airports function with the same efficiency as global hubs such as Dubai and Singapore. That not only calls for a huge infrastructure investment, but also a totally new approach to setting up and handling airports. Interestingly, while India allows 100 percent FDI(Foreign Direct Investment) into the green-field airport projects, it does not allow direct or indirect equity participation by foreign airlines into the Indian carriers. Cash-strapped Indian carriers have, however, been vigorously advocating the need to lift this restriction.

Challenges
Fleet expansion The New Delhi-based South Asian branch of the consultancy Centre for Asia Pacific Aviation (CAPA) says the expansion of the Indian civil aviation industry in terms of traffic, yields and profitability, buttressed by strong, long-term fundamentals will inevitable stimulate airlines to expand their fleets. Indian Prime Minister Dr Manmohan Singh says this expansion could lead to total investment in the Indian civil aviation sector in excess of US$120 billion in the years ahead.

Challenges
No-frills airports With airports trying to cover the cost of upgrades and construction by charging airlines higher landing and parking fees, there has been a growing demand for setting up no-frills airports meant for the exclusive use of the budget carriers. According to Civil Aviation Secretary Nasim Zaidi, Air India Regional the low-cost Air India subsidiary formerly called Alliance Air is proposing to develop green-field airports intended for operations by smaller aircraft such as ATR 72 turboprops in three Indian states.