Airline final
- 1. Airline
- 2. Current Status Where we are We are • low cost • People focused • Operating in South India connecting Bangalore, Chennai, Cochin, Coimbatore, Hyde rabad and Madurai • Headquarters in Madurai • Have 5 aircrafts – Boeing 737
- 3. Objective Where we want to be • Pan-India presence • Phased approach to expansion starting from the west, east and north of India • West – Mumbai, Goa, Jaipur • East - Kolkata, Guwahati, Agartala • North – Delhi, Chandigarh, Patna, Lucknow • Add 5 aircrafts per phase on a lease.
- 4. Business Model • Low cost – Less operational cost • Direct import of aviation turbine fuel • Max time flying, less time on land • Aircrafts stationed near the runway • Aircrafts acquired on lease. • Operating using only Boeing 737
- 5. Business Model People • Passengers – Affordable prices – Food charged separately – Only ‘Economy’ class – Comfortable prices – Prime time flights • Employees – Pilots – Cabin Crew – Administration
- 6. High barriers to entry due to Threat of the lucrativeness of the New business Entrants Depends on government If operates using a single policies, huge capital type of aircraft cost, fuel availability, etc (Boeing), then greater power of the supplier, airports Better Deal Bargaining Bargaining Competitive Power of Power of Rivalry Suppliers Buyers For big customers such as HNIs or large corporates, buyers have an influence else not much bargaining power, CRM - For Business purposes, with Threat of the advent of Substitutes internet, meetings can be done online
- 7. Business Environment • Indian Airline industry • Region – phased expansion • Regulatory Bodies – Directorate General of Civil Aviation – Bureau of Civil Aviation Security – Airports Authority of India – Airports Economic Regulatory Authority
- 8. Challenges • Competition • Expansion (going pan-India) • Risk Management • Capital requirements • Regulatory Policies (DGCA) • Retention of employees (pilots, crew members) • Procurement of ATF • Facilitators like airport authorities, aircraft and its component vendors • Competitive tariff rates
- 9. Strategic Management Market Supply Product Chain Risks Management HR Environment PESTLE Capital
- 10. Market Risk Pricing Airport Aircraft Competitor ATF
- 11. Market Risk cont… Pricing Airport Aircraft Competitor Product ATF Prime time Aircraft ATF cost for slots availability on Pricing Cancellation Fuel prices new routes availability lease. Aircraft Airport Taxes Hanger Product Government utilization on Schedule and rent availability offerings regulations new route Airport Maintenance Aircraft Routes International Admin. space Price charges schedule covered regulations availability Crew expenses Owned/Lease Flight timings Route Other Additional Carrying operating Ordered benefits to capacity Expenses flyer Passenger load
- 12. Data Sources • DGCA reports – Licensing – Statistics – Exemptions – Aircraft approvals – Surveillance & Enforcement • Tickets booked – Manual – Online
- 13. Statistics report From existing DB + MR companies • Passenger data • Market Share & Seat factor • Accidents and incidents • On Time Performance Data • Passenger Complaints • Air traffic – Kms flown – Hours flown – Passenger load factor – Number of passengers carried – Departures • Aircraft & its maintenance statistics
- 14. Statistics • Airport – Schedule availability – Ground traffic – Runway – Hangar • Data Refresh: – Refresh would be 1 to 2 times every day
- 15. ER Diagram for Strategic Business Development
- 16. Sales Admin Fleet Operat HR ions AIR Strategic Custo Crew Management Routes mers System Regulator ATF MoA s Suppli er DGCA Airpor Aircraf t t
- 17. Operations Customers Fleet Routes • Flight • Crew • Fleet • Price • Aircraft • Source • Payment • Airport • Destination Time options • Capacity • Capacity • Flight • Schedule
- 18. Suppliers Product • Type Time • SKU • Quantity • Price
Editor's Notes
- #7: Video conferencing or chatting Leading to multiple suppliers; like of Boeing knows tht if deal is not attractive thn the airline will go for airbus.