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BY Manu Richhoriya
Airways(JA), Air Sahara (Sahara) and Indian Airlines. Sr No Jet Airways Air Sahara Indian Airlines
Net Sales
Net Profit Jet Airwa ys 6% India n Airlin es
252.6
3.18 Air Saha ra 3%
138.4
1.92
4101.5
-196.56
Net Revenues
Indian Airlines
The airline was set up under the Air Corporations Act, 1953 with an
Aviation. It was one of the two flag carriers of India , the other being Air
India.
Air India took over international routes and Indian Airlines Corporation
After liberalization Indian Airlines faced tough competition from private airlines like Jet Airways, Air Sahara, East-West Airlines and Modiluft
Air Sahara
The Indian government opened its domestic air market to
on December 3, 1993
On October 2, 2000, Sahara Airlines was rebranded as Air
Sahara
Air Sahara reported a turnover of INR 40 cr. in the 2000-01
Jet Airways
It was incorporated as an air taxi operator on April 1, 1992. Jet
Kingfisher Airlines that included an agreement on code-sharing on domestic and international flights, common ground handling, join fuel management, join utilization of crew and sharing of similar frequent flier programs.
In May 2009, Jet Airways introduced another low-cost airline Jet
Strategies
Indian Airlines
3-15% cut in fares for all classes on the western classes and on
Delhi-Srinagar, Delhi Jammu and Delhi Khajuraho routes. Launched Advance Purchases Excursion (APEX) fare under its U can fly Scheme Under this scheme Passengers who book their tickets 3 weeks in advance, got a huge discount in fares and cancellation will result into charge of 50% of tickets fare. On 15th Aug-2002, Launched Wings of Freedom Scheme valid from Aug-15 to Mar-3103. This offered Unlimited travel on domestic network for seven Days for Rs 15,000 (Economy Class) and Rs 20,000 (Business Class) Also Launched Bharat Darshan Allows Unlimited travel for passengers who bought tickets more than Rs.80,000
Advantages:
Around 1600 passengers fly every day under U can Fly
scheme only Revenue generation and passenger load factor also increased.
Strategies
Jet Airways
Reduce prices by Rs 635 for the economy class on
Mumbai-Nagpur and Mumbai-Goa Route. Launched Advance Purchases Excursion (APEX) fare under its Everyone can Fly Under this scheme: Passengers who book their tickets 3 weeks in advance, got a huge discount in fares and cancellation will result into charge 50% of its fare. Increase the Commission of its agents and offer incentives for the most productive agents.
Advantages:
Around 1500 passengers fly every day under this
Strategies
Air Sahara
The smallest of the Three was most aggressive, launched
novel bid schemes, Offered highest agent commission to increase volumes and maintained lowest fares. In Mar02, launched Wings and Wheel Scheme. This offered Complementary AC Coaches as pick and drop facility. During July-Aug, launched Sixer offer Enabled passengers to buy a six fly coupon and fly in any six sectors for Rs.25,000 Steal a Seat an online bid scheme in Aug02 and in this scheme Base price was kept at Re1 for min 25 days advance bookings and unsuccessful bidders will have Steal Buy Scheme for 24-15 days in advance booking.
Advantages:
Number of Passengers traveling from Air Sahara increased
SWOT Analysis
Strength
Weakness
Opportunity
Threat
SWOT Analysis
Most experienced player Full Fledged International operations. Largest Fleet Size Loosing market share to LCC Burecracy Inefficiency
SWOT Analysis
Most experienced pvt player Full fledged International operations Large Fleet Size Loosing market share Scope of improvement in in-flight services.
SWOT Analysis
Strong Brand Value , with major sponsor of Cricket Team Quality of Service Most Novel Bid Schemes Profit Margins are very Low. Tough Competitions from Competotors
Strong Competitors Fuel Prices Infrasture Issues Promotions and Sponsorship Declining
Restructuring of Airport Costs) Competitors Terrorism (Sep11, Huge drop in Air Traffic due to safety and regulations concerns. Recession (Airlines are considered as Luxury) Taxation Govt. Policies as Civil Aviation Policy
Thus, Clearly revenues increase but not in proportionate to the fall in prices, due to this, Even though the revenues increased but losses of the Companies Increased further