Airlines

Summary:

Currently the fourth largest air passenger market, India is expected to overtake UK as number three by 2024
As of 2020, there were 128 airports in the country, GoI has been working towards increasing the number of airports by 190-200 by 2024.
Due to the pandemic, there was a reduction in 60% in domestic and 80% international traffic in the country.
The industry is currently losing 70-95 Cr per day due to fall in air transport since March 2020.
Rakesh Jhunjhunwala plans to launch ultra-low-cost airline called Akasa Air with 70 aircraft.

Step 1

Inbound

aircraft lease, fuel supplier

Step 2

Operations

Inflight service providers, on ground staff, baggage handlers

Step 3

Marketing

frequent flyers programs, add on services

Step 4

Customer service

lost baggage, rescheduling of flights

Cost Drivers

•FC: aircraft leases, airport gate leases, IT/admin costs, salaried employees (i.e., pilots)

•VC: fuel, food and beverage, ground crew/hourly employees

•Raw material costs and commodity prices

•Advertisement & sales promotions

•Distribution expenses

Revenue Drivers

•Volume Growth

•Brand Value

•Distribution reach, penetration and availability

•Repeat purchase and customer loyalty

•Value proposition meeting customer preferences

Growth Drivers

•Increased per capita consumption

•Population Growth

•GDP Growth

•Reduction in costs of travelling via air

•Per capita Income Growth

•Large customer segment in rural areas and BOP customers

•Favorable demographics

•Implementation of GST

Key Customers

•Leisure: highly price sensitive

•Business: not price sensitive, hard to reach

•Individual consumers

•Corporates

•Travel web sites

Key Players

•Indigo (ML)

•SpiceJet

•Air Asia

•Vistara

•Air India

•Goair

Channels

•Online Travel site/aggregators

•Own websites

•Telephones

•OTC