THE INDIAN AVIATION INDUSTRY

THE ERA REWINDS

wright brothers 1903

 IN 18 feburary1911:- FIRST COMMERCIAL FLIGHT FROM ALLAHABAD TO NAINI

COVERING A DISTANCE OF ABOUT 10KM.

IN DECEMBER1912:- FIRST DOMESTIC AIR ROUTE BETWEEN KARACHI AND DELHI

WAS OPENED.
IN 1932:- THE AVIATION DEPARTMENT OF TATA SONS LIMITED ESTABLISHED. IN 1938:- TATA AIRLINES[SUCCESSOR TO AVIATION DIVISION OF TATA SONS]

IN 1946:- TATA AIRLINES CONVERTED INTO A PUBLIC COMPANY AND RENAMED

AIR INDIA LIMITED.

IN 1948:- AIR INDIA INTERNATIONAL INCORPORATED.

IN 1953:- NATIONALIZATION OF AIRCRAFT INDUSTRY.

_AIR INDIA[SERVING INTERNATIONAL SECTORS] _INDIAN AIRLINES[SERVING DOMESTIC SECTORS

 IN 1986:- PRIVATE SECTOR PLAYERS PERMITTED ASAIR TAXI OPERATORS.

:PLAYERS INCLUDING:- JET AIRWAYS, AIR SAHARA, ETC STARTED THE SERVICES.
IN APRIL 1990:- THE GOVERNMENT ADOPTED OPEN SKY POLICY. IN 1994:- PRIVATE CARRIERS PERMITTED TO OPERATE SCHEDULED SERVICES. IN 1995:- SEVERAL PRIVATE AIRLINES HAD VENTURED INTO THE AVIATION

BUSINESS AND ACCOUNTED FOR MORE THAN 10% OF THE DOMESTIC AIR TRAFFIC.
IN 2003:- ENTRY OF LOW COST CARRIERS LIKE AIR DECCAN, SPICEJET, GOAIR,

INDIGO.
IN 2007:- MERGER OF INDIAN AIRLINES INTO AIR INDIA.

ACQUISATION OF AIR SAHARA BY JET AIRWAYS.

IN 2008:- KINGFISHER ACQUIRED 49% STAKE IN DECCAN AVIATION.

Domestic airlines in india

Jet airways

Kingfisher airlines
Air india

INDIGO Spicejet Go air

paramount

KINGFISHER AIRLINES

LAUNCHED :- 9 MAY 2005 TAG LINE :- FLY THE GOOD TIMES PARENT COMPANY :- UNITED BREWERIES GROUP (U.B GROUP)

Chairman:- Mr. Vijay mallya

Features:- Variable fare, Single Kingfisher class.

Premium in - flight service. Only metro destinations.

LAUNCHED :- 5 MAY 1993

TAG LINE :- THE JOY OF FLYING

PARENT COMPANY :- TAILWINDS LIMITED

Chairman:- Mr. naresh goyal

Features:- Variable fare, Its economy Class subsidiary Jet lite. Flies to over 62 destinations both domestic & international.

Basic market condition

Supply demand

Market structure

conduct

performance

SUPPLY CONDITIONS
AIRCRAFTS AVIATION TURBINE FUEL TECHNOLOGY UNIONIZATION

Demand conditions
The industry is expected to grow at a rate of 8.5% for the next 5 years Growth of low cost airlines Substitutes Price elasticity

 Kingfisher Airlines has bagged the "Service Excellence for a

New Airline" award from Skytrax, a UK based specialist global air transport advisor.
It has also won an award from Pacific Area Travel Writers

Association (PATWA), the biggest travel writers` organization for" Best New Domestic Airline for Excellent Services and CuisinE
Kingfisher has posted a loss of Rs 187 crore in the Q1FY11 as

against a loss of Rs237 crore reported during the same period in the previous fiscal. The Co. has incurred EBIDTA(earnings before income, taxes, depreciation and amortization)
profit of Rs127crore in Q1FY11 as against a loss of Rs71crore-

an improvement of Rs198crore during the same period of the previous fiscal.

 Jet airways has been judged many times as India's 'Best

DomEstiC AirlinE.

Jet's operations have turned profitable since the Dec'09

quarter. Its profits , though have fluctuated by a wide margin. At mere 3.5crore ,its standalone profit in June'10 quarter was sharply lower than 58 crore of profit in the previous quarter. traffic to 26% from 23% a year ago.

On a positive note, Jet has increased its share of domestic

The airline registered an impressive 21.8% increase in

international operations as compared to the same period last year, carrying 3.76 lakh revenue passengers in August 2010. The revenue passengers for Jet Airways' domestic operations also stood at an imposing 14.9%, a marked improvement over the same period last year.

Market share as per april , 2009

 HIGH START UP COST.

STRONG BRAND IDENTITY.

STRONG CUSTOMER LOYALTY. ABSOLUTE COST DISADVANTAGE.

SHORTAGE OF SKILLED LABOURS.

PRODUCT DIFFERENTIATION and product proliferation

DISADVANTAGE.
EXISTENCE OF REPUTED FIRMS IN BOTH HIGH AND LOW FARE

FLIGHTS.

Technical progress

 Kingfisher airlines limited and dish tv have joined

hands to provide live in flight entertainment on kingfisher aircrafts.

Kingfisher provides tools for mood lighting such as

web chat, inseat plugins for music, live tv with 16

channels on each seat.

Jet airways introduces the modern technology like

cat 3 and ils.

Jet airways provides modernization in aircrafts.

Diversification of ub group

Beverage:some of the famous brands of the ub group are bagpiper whisky , mc dowells no.1 etc.

pharmaceuticals:the group company i.e. Aventis pharma is the second largest pharmaceutical company . It develops market branded prescription drugs and vaccine.

International trading:the group company i.e. ub global ltd is a recognized export house engaged in the export of beer,

leather footwear, processed foods.

Fertilizers:-

Mangalore chemicals and fertilizers ltd is under the ub group management.

Research and development:-

vittal mallya scientific research foundation was established in 1987 with the objective of developing newer and novel technology.
media:-

it also has a shareholding in asian age holding ltd, the company that owns and manages daily newspaper , the asian age.

 19DECEMBER ,2007:- The merger of Air Deccan with

Kingfisher Airlines.
16april,2007:- acquisition of air sahara by jet

airways. And renamed as jet lite.

In 2008:- kingfisher acquired 49% stake in deccan

aviation.

KINGFISHER AIRLINES

JET AIRWAYS

KINGFISHER
KINGFISHER IS ONE OF THE

JET AIRWAYS
JET AIRWAYS IS THE

LATEST AIRLINES IN INDIA.

EXPERIENCED AIRLINE IN INDIA.

OVERALL GROWTH IN YEAR

OVERALL GROWTH IN YEAR

2008- 2009 IS 37%.

KINGFISHER ACQUIRED AIR

2008-2009 IS 16%.
JET AIRWAYS ACQUIRED AIR

DECCAN IN 2008.
DOMESTIC AIRLINES POISED TO

SAHARA ON 16 APRIL 2007.

JET AIRWAYS HAS DOMESTIC

GO INTERNATIONAL FLIGHTS.

AS WELL AS INTERNATIONAL FLIGHTS.

 PERSONAL IN FLIGHT

AVERAGE ENTERTAINMENT

ENTERTAINMENT IN EVERY SEAT.

SERVICES.