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Markovid - Report On Aviation Industry - SDA
Markovid - Report On Aviation Industry - SDA
Markovid - Report On Aviation Industry - SDA
MARKOVID
AVIATION, INDIA
June 2019 (Pre Covid- 19 ) June 2020 (Covid- 19)
74887 69589
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AIRLINE
USP : Indigo Airlines gives on time performance USP : Lowest price air tickets by SpiceJet with USP : Vistara offers affordable and Comfortable
at the lowest prices efficient services Flights with focus on in-flight experience
Airlines Segmentation :
Airlines Segmentation : Cost Conscious Airlines Segmentation : Cost Conscious
Corporate/Executive/Families (Upper Class and
Passengers Passengers
Middle Class)
Tagline/ Slogan : Your Palace in the Sky Tagline/ Slogan : Fly Smart Tagline/ Slogan : Now Everyone Can Fly
USP : Air India is the oldest Indian international USP : Lowest Price
USP : Lowest Price Good service airlines
airline
The elements of the brand communication of Indigo, from the website, to airport
hoardings & kiosks, the recruitment ads in their inflight magazine, the box of snacks,
there is an element of consistency in all of them.
2% 7%
The light touch of humour and the puns have an effect – they make the brand
3%
24% likeable.
5%
59%
On the basis of the above survey, Indigo was the most preferred
airlines followed by Vistara.
Vistara : Premium feel at Low price and Customer Service were some
key reasons why people chose Vistara.
Brand Pyramid, Indigo
Q1 FY2021 Net Sales
Market Share by (unaudited Financials)
Number of Indigo Spicejet
Passengers
1,00,000
Carried Bluedart is the only domestic- Just
Cargo Airline in India
90,000
2015
80,000 Indian airlines operated over 1400
cargo flights during the lockdown
2016 70,000
Q1 FY2021
20,000
2020 No. of
Airline Cargo(Tons)
Flights
10,000 SpiceJet 775 5617
0% 10% 20% 30% 40% 50% 60% 70% BlueDart 256 4405
Indigo 88 442
Go Air Air Asia Vistara Air India Spicejet Indigo 0 Vistara 20 139
2017 2018 2019 2020 2021
Flex pay option to secure
bookings by paying only
10% of total fare amount
and defer their payment
on IndiGo domestic flight
Introduces new
operating procedures to
minimise touchpoints
▪ Most airlines sent mailers of human contact on
to customers from their board by up to 80%. It
CEOs, addressing various also Launched its first
safety concerns in-flight safety video
and ensuring them a safe
and hygienic flight amidst
this pandemic. They also
Released videos
showcasing sanitation ▪ Zero Cancellation The Fly porter service
measures, safety service for passengers for safe door to door
and protocols ▪ Made in India: baggage service to its
▪ Indigo targets its Collaborates with an passengers
customers through
Indian start-up to develop
clickbait Emails.
Domestic airlines started a Twitter thread ▪ Both Indigo and SpiceJet innovative technology
using each other's marketing slogans. offered an option to book ▪ Option to passengers to
The end result; these airlines got a boost multiple seats per buy insurance cover for
over a weekend where the tweets spread individual to ensure extra COVID-16
like wildfires across living rooms in India. safety hospitalization.
• operated numerous relief and evacuation flights worldwide rescuing thousands of stranded
• Ude Desh Ka Aam Naagrik (UDAN) was launched as a regional connectivity scheme under the Ministry of Civil Aviation in
2016.
• In April 2020, the Government introduced ‘Lifeline Udan’ flights to transport essential medical cargo to remote parts of the
country to support India’s war against COVID-19. Under this scheme, 465 flights were operated by Air India, Alliance Air, IAF
and private carriers as of May 05, 2020.
• Under Union Budget 2020-21, Government introduced Krishi Udan scheme on both domestic and international routes to
help farmers in transporting agricultural products and improve the product value.
• Pawan Hans Limited helicopters transported critical medical cargo and patients, carrying 2.88 tonnes of cargo to Jammu
and Kashmir, Ladakh, and the North East region.
• Marked 100 days of flying by enabling India’s first ever blood plasma transport in Cargo
• Launched Tough Cookie campaign to thank medical frontline warriors
• Supported Indian Meteorological Dept. with crucial data for weather forecasting amid COVID-19
• Brought in medical Cargo to support the nation’s fight against COVID-19 - operated an international Cargo flight, on the
Kolkata – Guangzhou – Kolkata route, carried Cargo consisting of medical supplies like face masks and GCRs
• Operated relief flights at own cost in the service of the nation
• Offered to support the government of India to ferry vital supply to battle coronavirus
• Introduced ingeniously developed, non-invasive, portable ventilators in its fight against COVID-19
• Carried more than 550 kg of essential cancer medicines free of cost
• Carried a record 20 lakh kg of shrimp & farm produce during lockdown period to boost Indian farmers
• Operated its first cargo freighter to bring critical medical equipment to India
• Carried 14 tons of medical supplies from Guangzhou to Delhi
The problem at hand
• Restrictions on capacity deployment due to COVID
• The flow of travel is primarily unidirectional and limited to largely essential travel
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Robust Screening and testing infrastructure Marketing Strategy
• Pre-travel authorisation and screening – by using electronic • Revive marketing strategy: the entire marketing strategy of aviation sector
authorizations submitted by passengers to identify riskier should be based on ensuring customers that flying is 100% safe. All campaigns,
arrivals and screen them appropriately advertisements, messages should be directed towards safe and hygienic flying
• Ensure contactless travel – by authenticating e-Boarding and addressing the anxiety and concerns of the customers.
passes, e-Tags for luggage, implementing touchless kiosks
• Rework messaging and creative to be in line with current times; e.g.,
• Kiosks can be made touchless by using barcode scanning,
biometrics, and voice commands relevant calls to action, copy that takes an appropriate tone
• Ensure fast and accurate testing: automated temperature • Revive social media marketing – Airlines can connect with customers on
checks need to be conducted like the Elenium Sensor Array, social media and leverage the power of influencers and spark an interest in
which detects temperature using a combination of near- passengers’ minds.
infrared camera and a thermal sensor. • Expand customer engagement - offer Loyalty Programs to retain existing
• Long term commitment to health screening - Most of the
customers and build the trust among new customers
patients are asymptomatic, temperature checks are not
enough. monitoring key vital signs – temperature, respiration • Customer Care –introduce self-service tools and automation for contactless
and heart rate – can predict if a patient has a respiratory customer enquiries through chat bots; help lower costs and enable faster
disease like influenza or COVID-19 with 93% accuracy, responses. Empower customers to build their own itinerary using smarter
compared to just doing temperature screening which only has digital tools. Make bookings, reservations and cancellations flexible
a 65% correlation. • Creating seamless customer experience: emphasize on making travel better
and safer by giving passengers more control, offering greater authenticity and
personalization, and taking an agile approach and keeping their needs first.
• Identify customer pain points that existed before COVID and try to eliminate
them such as high-anxiety purchase journey for flights and lodging, purchases
Driving Sales
that often cannot be returned etc.
• Focus on driving in-flight merchandise sales - e-Commerce, • Effective communication - communication should be focused on what a
both inflight and on-ground, is a great opportunity for airlines company is doing for the passenger, rather than delivering superficial
to realize a new ancillary revenue stream. However, the flight platitudes like mass CEO mails. Frontline staff can be powerful messengers.
has a very limited product storage capacity, to resolve this • Connect with the customers on a more personal level, conduct quick, one-on-
issue, the airlines can incorporate home-delivery of the
one customer interviews and surveys (in the hotel lobby or boarding area) to
products which would allow the customers to browse through
build low cost solutions using metrics like adoption rate and rapid-fire
a limitless product range.
feedback to course correct
• Emphasis on freight/cargo services – Freight services and • Offer distinctive in-flight perks
cargo operations was the only source of income for the airlines
during lockdown. So leveraging this revenue stream might
help to take the burden off the airlines a little.
Post COVID to succeed in the new normal
• Determining the optimal size and dimensions of their
networks and fleet. They should make big decisions—
including which fleet types to recommission first and which
routes are most likely to recover—on the basis of several
demand and market structure scenarios
• Airlines should consider M&A and consolidation
opportunities. We expect that leading airline groups will be
reviewing options, including potential divestitures and the
sale or purchase of minority equity stakes. Virus Progression Demand recovery Market structure
• The next step is to resize and restructure the operating and government scenarios scenarios
model and organization using a zero-based approach, response
which can be done in a matter of weeks
• Finance teams will need to be closely involved to protect National government Consumer sentiment • Financial health of
cash levels, capture revenues as soon as possible, and action for citizens and behaviour: airlines at onset
delay cash-outs as much as possible. Airlines should with specific impact • Overall and by and actions taken
establish a project management office to manage cash on travel: segments to manage through
until the environment stabilizes and regular financial • Virus security and (business vs. crisis (for example,
processes and routines can be implemented once again. spread leisure and short- liquidity
• Specific travel haul vs. long-haul) management)
• Airlines should also prepare for ramping up, once airports restrictions and by market • Level and type of
and countries reopen. Our work with several leading • Announced or • Impact of COVID- financial support by
carriers reveals that the period of ramping up will be even expected duration 19 on governments,
more challenging and dynamic than the one for ramping of restrictions megatrends, such banks, and
down. as ways of insecurities
working and
Operational Efficiency sustainability
THANK
YOU
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