m


V

Õ Industry ± Civil Aviation
Õ Company ± Go Air
Õ About Go Air
Õ Swot Analysis
Õ EFE, IFE Analysis
Õ Survival Strategies
Õ Conclusion
Õ What we suggest
Õ Q&A
 O

  V 

! ©et Airways
! Kingfisher Airlines
! Indian Airlines
! Air India

î
O


V
V 
! Go Air
! Indigo
! Spice jet
! Kingfisher Red
(formerly Deccan)
! ©et Lite (formerly Sahara)
!MDLR
 Úefore 2003, the market of
aviation industry was mainly
captured by the following players

Úut after Air Deccan started its operations in 2003,as a Low cost Airline
targeting mainly passengers travelling by train, by giving cheap air
tickets, there was a series of airlines opening up as Low cost Airlines

à  


 î

Õ 0perations started 04 Nov
2005

Õ Fleets - Airbus A320

Õ No of Aircrafts - 10

Õ No of Aircrafts ordered - 20

Õ No of Sectors in operation -
19

Õ No of flights daily - 160

Õ No of flights weekly - 1120

   

î
 

       

 
 V
 
 
 


 


  

  
    
ie-ups with various 0nline Check in not
travel agents & travel available
sites Delays are frequent
0 fare scheme Limited online shopping
Strong promotional options
campaigns & Marketing No frequent flier
Strong Úacking by program
Wadia Group

!
     
Reduction in delays New low cost airlines
Growth of Low Cost Sector Economic Downturn
Corporate tie-ups Climbing prices of key
Cargo planes inputs
Can extend shopping line Many full fledge airlines
offer more benefits
Can seeks to add
international routes Mergers of low cost airlines
 " 
O 

 
#O$  " method is
a strategic-management tool often used for
assessment of current business conditions. he
EFE matrix is a good tool to visualize and prioritize
the opportunities and threats that a business is
facing.
Õ EFE matrix is concerned solely with `
`
factors.
Õ External factors assessed in the EFE matrix are the
ones that are subjected to the will of social,
economic, political, legal, and other external forces
Õ he O  " together with the EFE matrix is a
strategy-formulation tool that can be utilized to
evaluate i
 
   in regards
to identified 
i




of
a company. he IFE matrix method conceptually
relates to the Úalanced Scorecard method in
some aspects
Õ he IE matrix belongs to the group of strategic portfolio management tools. In a
similar manner like the ÚCG matrix, the IE matrix positions an organization into a
nine cell matrix.
Õ he IE matrix is based on the following two criteria:
Õ Score from the O  " -- this score is plotted on the y-axis
Õ Score from the O  " -- plotted on the x-axis
Õ he IE matrix works in a way that you plot the total weighted score from the EFE
matrix on the y axis and draw a horizontal line across the plane. hen you take the
score calculated in the IFE matrix, plot it on the x axis, and draw a vertical line
across the plane. he point where your horizontal line meets your vertical line is
the determinant of your strategy. his point shows the strategy that your company
should follow.
Õ 0n the x axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99
represents a weak internal position. A score of 2.0 to 2.99 is considered average. A
score of 3.0 to 4.0 is strong.
Õ 0n the y axis, an EFE total weighted score of 1.0 to 1.99 is considered low. A
score of 2.0 to 2.99 is medium. A score of 3.0 to 4.0 is high.
3.26

3.20
 m
  
 

 
 
 
Ô


 
   Ô
   Ô
   Ô
 

      

 
 
 
 
       
 
   


   
       

Ô  
  


   

  
       
       
!  Ô 
       
"        

    

 Product

Present New

Expand Network, All Premium Cabin,

Present Lower Prices Free Meals

Market
Ansoff¶s
Matrix

New GoAir Cargo,

Cater to virgin sectors, Hospitality,
International 0perations MR0 Services,
raining Schools
I, HRM, CRM, Corp Strategy

echnology, Logistics,
Service
Infrastructure,
0perations SCM, Procurement
Sales & Inboun Logistics 0utboun Logistics
Marketing Distribution
 360deg -Advertising
 Sales Promotion
 Corp ie ups
 Sponsorships
 Efficient CRM
echnology, Logistics, Infrastructure,

Úetter Aircraft Utilization

Ô
, r r t
Õ Go Air airlines has tried to target the
First, Second and hird A/C Railway
passengers and Volvo Úus
Passengers. GoAir has strategically
divided the fare structure in such a
way that the railway passengers can
benefit most from this arrangement.

Õ Its fares are 40% lower than that of

traditional airlines.
Õ he chief motto of GoAir is to
provide a consistent, time-efficient
operation while maintaining the
low fare scheme through the
state-of-the-art Airbus A320
Aircraft fleets

Õ Quick turnaround of aircraft that

average around 25 minutes
O% Oà


Õ A new scheme under which the passenger would be able to make unlimited
changes in its travel itinerary free of cost.
Õ Go Flexi bundle
Õ A passenger booked under GoFlexi Fare will not be charged the transaction
fee applicable for re-booking a confirmed GoAir ticket.
Õ he passenger will only have to pay the difference in fare amount between
the original booked fare and the applicable fare of the revised booking.
Õ In case, the new fare is lower than the originally booked fare, the difference
in fare amount will be retained in the passengers' credit account with the
airline for utilization within six months period.
Úy having more turn around flights
Connecting sectors
For eg.

 Del-Nagpur-Nanded-Úombay-Delhi
 Úom-Srinagar-©ammu-Úom
 Úom-Goi-Úom-Chandigarh-Úom
 Del-Úom-Cochin-Úom
 Úom-Goi-Úom-Delhi-Úom

Charter flights for corporate

ie-up with Yatra.com for bulk booking
Starting schemes for Passengers
Õ m
à  
&&m
 
Õ     

  V
  



V

Facilities provided to Go Úusiness passengers
 hey need to follow the grow
and build strategy.
 his means intensive and
aggressive tactical strategies.
 he strategies should focus on
market penetration, market
development, and product
development.
 From the operational perspective,
a backward integration, forward
integration, and horizontal
integration should also be
considered.
  0ne management survival strategy
for GoAir is to focus on cutting labor
costs by paying the lowest possible
wages and benefits, keeping staffing
as lean as possible and avoiding
unionization or minimizing trade
union influence if or when employees
organize

  Strategies also include achieving

low total costs by increasing
employee and aircraft productivity,
for example, by speeding up
turnaround times of aircraft at
airports.
 




   




 

I. GoAir will be able to control prices.

II. GoAir can maintain and train the
staff to be friendly and helpful at all
times thereby maintaining
customers¶ satisfaction.
III. hey can have paperless tickets
thereby reducing costs
Õ Mergers and
Acquisitions : Code
sharing would enable
GoAir to expand its
network
Õ Alliances can also be
extended for the purpose
of joint aircrafts
purchasing/ leasing, and
could also cover other
fields of commercial,
technical and operating
activities
Õ Code sharing, also enables
airlines to sell tickets on one
another¶s flights in order to
serve more destinations
 hey could even look at
starting an all premium cabin
(like Paramount) to leverage
the travellers who want to
experience business class
travel but could not afford it
so far. Úy paying a nominal
fare hike, flyers can fly in
style.
Õ IP0 ± to fund global
expansion : his will give
GoAir the financial
independence and the
flexibility to develop its own
growth strategy
   & 

Õ raining academy and flight
schools.
Õ In ±house maintenance
(0ffering MR0 solutions) Úy
offering maintenance they can
extend their service portfolio,
and also help sustain in case
of a hit in the core business.
Õ ake up the MR0 services for
other airlines, thereby
opening up a revenue stream.
 hank You !!!

Õ Presented by ± Melissa D
Deepti P
Harsha R
Sukanya S
Manoj K
Sushan K
©ovi P