...INDIAN AVIATION INDUSTRY CURRENT CHALLENGES AND OPPORTUNITIES COVENTRY UNIVERSITY LONDON CAMPUS APS-PROFESSIONAL AND ACADEMIC SKILLS ASSIGNMENT 4 NAME: VINITHA R STUDENT ID: 5216846 COURSE: MBA Global Business DATE: 28/02/2014 SUBJECT: APSLON EXECUTIVE SUMMARY: Aviation plays a vital role in nation’s economic growth. This is an industry which consistently contributes the growth of GDP and provides employment massively. In this study I have found out the challenges faced by the industry and the opportunities raised on aviation industry. INTRODUCTION: The aviation industry in India has the rapid growth in the world with private airline acquiring more than domestic aviation. There are huge annual growth rate of airport and airstrips along with the domestic aviation .The Government have offered many steps in order to develop the growth of the industry players. The Government aim is to change the industry to more equality and investment of social atomosphere.The government added a lot of new airports and converted Morden airports for the country. It also improved the policies which provide eventual opportunities. In the aviation Industry there are also severe challenges faced by the air carriers in order to survive in the marketing industry. Though there are a lot of new entrants entered the industry they were unable to compete and eventually withdrawn them from the industry. They also met heavy...
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...fuel and provide pilot support with weather and flight planning facilities. As such they are the backbone of general aviation. Airport Tenant – An airport tenant is a person, firm, or corporation leasing or using airport property solely for the purpose of storing an aircraft and is not engaged in or providing any aviation related commercial activity or service at the airport. An airport tenant is not authorized to function as or provide the services of an FBO Current Products and Services With committed capital and deep industry experience in general aviation services transactions (having closed over thirty transactions in the last fifteen years), we can move quickly and discreetly with minimum disruption of day to day operations. Ideal FBO acquisition candidates will have: • Annual general aviation fuel uplift in excess of one million gallons • Long term lease rights at its airport operating location • Ancillary business segments such as maintenance and charter will be considered but should be anchored by a strong core line service segment • Both single operations and multi-location chains will be considered . The financial backing of Moelis Capital Partners affords us the wherewithal to quickly consumate transactions. For more information please contact Steven Levesque or any of our other firm professionals. Source of Revenue: • Sale of aviation fuel – piston aircraft...
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...The term Business Environment is composed of two words ‘Business’ and ‘Environment’. In simple terms, the state in which a person remains busy is known as Business. The word Business in its economic sense means human activities like production, extraction or purchase or sales of goods that are performed for earning profits. On the other hand, the word ‘Environment’ refers to the aspects of surroundings. Therefore, Business Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are uncontrollable in nature and affects the functioning of organization.Business Environment has two components: 1.InternalEnvironment 2. External Environment Internal Environment: It includes 5 Ms i.e. man, material, money, machinery and management, usually within the control of business. Business can make changes in these factors according to the change in the functioning of enterprise. External Environment: Those factors which are beyond the control of business enterprise are included in external environment. These factors are: Government and Legal factors, Geo-Physical Factors, Political Factors, Socio-Cultural Factors, Demo-Graphical factors etc. It is of two Types: 1.Micro/OperatingEnvironment 2. Macro/General Environment Micro/Operating Environment: The environment which is close to business and affects its capacity to work is known as Micro or Operating Environment. It consists of Suppliers, Customers, Market Intermediaries, Competitors...
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...Introduction to air transport The impact of recession in air transport(passengers demand, economic cycles, current developments) The reports covers the entire aviation industry and will include the recession aspect and its consequences on the passengers demand, the economic cycle and also on the current developments. 1.0 Introduction One of the biggest international industries, the air transport, has the largest sensitivity on the economic crisis. That crisis hit and still continues to effect the populations, industries and economic growth in developed and developing countries. Every sector has been effected by the crisis, every industry has had a reaction and an immediate research for solutions. Instability of revenue and expenditure in the airline industry was effected from the global change. That for is easy to deduce that these reactions are different from each other. This in according to available founds, resources and differences in management. 2.0 Impacts on demand The demand aspect, is a factor that shows us the relationship between population and economic crisis. In fact, the perception of crisis brings different fears and uncertainty in people. Thus leading to an increase of the overall savings, with consequences under the economic factor, with less expenditure incurred by each person. This is one of the things that influenced more directly the airline industry, with a sharp drop in demand. Taking into account only two points is easy to imagine on one...
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...Airline industry Indian Airline Industry Management Economics P a ge |1 Airline industry A Project report on INDIAN AIRLINE INDUSTRY Submitted on 13Oct2012 in partial fulfillment for the requirement of the subject "Managerial Economics” during academic course of PGDM-Executive 2012-13. Submitted by Abhas Desai(06) Bharat Dalvi (05) Nitin Palve (19) Prasad Babu (10) Arjun Singh (04) Ravi Sastry (22) Vivek Misra (16) Guide: Prof. J Bhargavi K.J.Somaiya Institute of Management studies and research Mumbai Management Economics P a ge |2 Airline industry Industry Outlook: Global Positioning Airlines Industry analysis : Management Economics P a ge |3 Airline industry • • • • Economic growth environment is weak Industry profitability not perfectly but closely correlated High fuel price no problem when growth is strong But growth now close to point where profit turns to loss Management Economics P a ge |4 Airline industry • • • • Price of jet fuel persistently high In 2008 spiked higher but just 7 months Jet fuel price >$120/b for past 15 months Even after recent fall still higher than early 2011 Given difficult environment cash flow performance to date good at around 10% of revenues, except Europe (1/2 that) Financial market signal more or less consistent with change in cash flows since 2009 Management Economics P a ge |5 Airline industry • • • Demand for air travel expanding well above trend...
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...Analysis 1.1.1Political factors ‘“Open skies” refers to an international policy concept and air transport agreements, which liberalize the rules and regulations on international aviation’. It includes regulation relate to international airline market, and make able to reduce control by government. This regulation has a relationship with various factors, which includes both of both of travelers and freights, of airline industry (USlegal,2013). Nowadays, many countries joined to this regulation, such as EU and ASEAN. India joined to this regulation without exception. September 2012, the Indian government announced that they designed to give permission to foreign airline industry to corner 49percent of airline industry of India. Therefore, six greatest Indian airlines have loan of combined $13billion, and have been expected to loose combined $1.6billion for this year by Center for Aviation since March 2013. In short, it is consequently difficult to develop their business within India for Indian airline companies, and the loose of the business has to expected. On the other hand, airline industry in other countries hesitate to enter the market, cause they expect they are not able to earn enough profits from Indian due to their low incomes (The Economist,2013). Therefore, it can be an opportunity to develop Indian airline industry even within the regulation. 1.1.2 Economic factors Nowadays, the increasing cost of fuel can been seen in airline industry in every countries...
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...Aviation Industry Prepared by Madhulika Appasani The Indian Aviation Industry has been going through a turbulent phase over the past several years facing multiple headwinds – high oil prices and limited pricing power contributed by industry wide over capacity and periods of subdued demand growth. At the industry level, long term viability also requires return of pricing power through better alignment of capacity to the underlying demand growth. Aviation Industry Indian hospitality sector contributes 8-9 percent of the country’s GDP. The sector encompasses travel and tourism and major segments that fall under this category include accommodation and catering (hotels, restaurants), transportation (cruise, railway, rentals, airline companies), travel agencies and tour operators. The tourism and hospitality sector together contributed US $32.7bn in 2011, and registered a CAGR of 13 percent. Currently, India has 114,000 hotel rooms, which stands 150,000 rooms short in meeting the current requirement. Thus, the growth opportunity for this sector is immense, but is tangled with challenges across parallel sectors and the overall economy. According to estimates provided by World Travel & Tourism Council (WTTC), contribution of travel and tourism to nation’s GDP will grow consistently in the next decade though this growth opportunity will be closely linked to the growth of India’s hotel and restaurant business. Structure of Indian Aviation Industry: ECO 561 – IMT Hyderabad ...
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... With the development of a national market economy, the Chinese aviation industry is now confronted with international competition. Therefore, it is necessary to research the competitive status of Chinese national aviation, as well as advice on how to enhance the competitiveness of the Chinese aviation industry. The main objective of this paper is to propose FAHP as an effective solution for resolving the uncertainty and imprecision in the evaluation of airlines’ competitiveness. In this paper, we review the research of industrial international aviation competitiveness at both home and abroad, discuss a theoretical framework for the study of aviation competitiveness, establish an index system with 5 first-order indicators and 17 second-order indicators, set up a Chinese aviation competitiveness model based on simple fuzzy numbers from the Fuzzy Analytic Hierarchy Process, and evaluate the competitiveness of 5 major Chinese airlines. The results show that this model and these indicators are scientific and practical, with a wide range of application prospects for the purpose of improving and increasing Chinese airline competitiveness in the international market. The effective approach presented in this paper is especially applicable when subjective judgments on performance ratings and attribute weights are not accessible or reliable, or when suitable decision makers are not available. Keywords: aviation competitiveness; simple fuzzy numbers; fuzzy analytic hierarchy process ...
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...Commercial aviation in Australia has undergone significant change over the past thirty years. Substantial flaws in the security systems of the aviation industry have been revealed by external factors like terrorist attacks. Environmentalists, economists, and society are constantly increasing the pressure they put on the aviation industry in regard to more sustainability. Few entry barriers allow more and more low cost carriers (LCC) to enter the market, increasing competition, and forcing the network carriers to follow the new trend of the so called “carriers-within-carriers” (CWC). As the list of major factors that have recently influenced the industry is long, the three above mentioned will be critically analysed in the following. Australia’s aviation industry is not only of great importance to the whole nation, but it is also one of the oldest aviation industries in the world. Following the end of the Second World War, aviation was seen to be critical to nation building and broader economic considerations. Significant support from governments allowed it to develop quickly. As flying became more common, the need for safety regulations grew stronger. In Australia, the Civil Aviation Safety Authority (CASA) was founded in 1995. It is responsible for safety regulations of civil air operations in Australia and the operation of Australian aircraft overseas. Today CASA is still based on the Civil Aviation Act from 1988. Under the authority of this act, CASA is able to execute regulations...
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...Managerial Economics Term Paper DEMAND IN THE DOMESTIC AIRLINE INDUSTRY OF INDIA Submitted by: Akshata Shirodkar ePGP-02-002 This term paper explores the rational economics behind the demand and its affect on dynamic pricing in the domestic airline industry in India, where both of these vary often with time and units available. Based on the learning gained during microeconomics course, this paper analyses the current pricing strategies and norms practiced by the airline industry. Managerial Economics Term Paper Demand in the Domestic Airline Industry of India CONTENTS 1. INDUSTRY OVERVIEW ............................................................................................................................................... 3 1.1 MARKET SHARE ................................................................................................................................... 3 1.2 INDUSTRY GROWTH ............................................................................................................................ 4 1.3 CAPACITY VS DEMAND ........................................................................................................................ 5 2. AIRLINE INDUSTRY CUSTOMERS ............................................................................................................................... 5 2.1 CUSTOMER SEGMENTS ..............................................................................................................
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...Strategic Management: Porter Analysis for Civil Aviation Industry Ajay Kr. Dhamija¤(N-1/MBA PT 2006-09) Abstract "The air transportation system has become essential to the economic progress for the citizens and businesses of this nation" The airline industry must: ² Be e±cient and technologically superior ² Have the ¯nancial strength to respond to rapid change and opportunity. ² E±ciently move people, products and services to markets, wherever they exist Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid °eet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid °eet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. We present here the porter ¯ve force analysis of Civil Aviation Industry and hance try to ¯nd out whether it would be advantageous to enter into this industry or not. Keywords: Porter Analysis, Airline Industry , Available Seat Mile, Revenue Passenger Mile , Revenue per Available Seat Mile , Air Tra±c Liability , Load Factor , Threat of New Entrants , Bargaining Power...
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...2.1 product and services marketing 3. Critically examine the winning strategy of Indigo Airlines which has recently posted net profit. Identify and evaluate the reasons for the failure of other Airlines. INDIGO AIRLINES Was an American airline headquartered in Chicago, Illinois. It is generally regarded as the world's first business jet airline. It was founded in 1997 by aviation veteran and University of Chicago graduate Matt Anderson business executive and Embry-Riddle Aeronautical University alumnus John N. Fenton and McKinsey consultant and MIT PhD Tom Svrcek. Its headquarters were first located in Chicago's Near North Side, and later at Chicago Midway Airport WINING STRATEGY OF INDIGO AIRLINES: Consumer response to Indigo was strong. The company held a perfect[clarification needed] safety record and delivered unusually[clarification needed] high on-time and flight completion performance. Its passenger repeat rate was nearly 100% and its revenue per passenger mile or yield, over $1.00. The company was actively followed by major media including The Wall Street Journal, The New York Times, the Financial Times, Fortune, Time, USA Today, CNN, CBS and ABC television and was featured in a 2001 Pulitzer Prize winning article in the Chicago Tribune.[citation needed] Indigo also became the object of organized lobbying from Congressman Steven Rothman of New Jersey (D-NJ9), who felt that Indigo represented unwelcome expansion at New Jersey's Teterboro Airport.[citation...
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...This report analyses and evaluates the potential for EasyJet to continue to be competitive in the UK and Europe but also the opportunity to expand into India INTRODUCTION – THE COMPANY AN OVERVIEW Easyjet Airline was established in 1995 by Sir Stelios Haji-Ioannou a Greek Cypriot as part of EasyGroup Holdings Ltd. He envisaged it as a low cost airline which could impact on the existing domestic market in the UK which was at the time dominated by large British companies such as British Airways and British Midland. The Company started with two leased airplanes and began operating from London Luton to Glasgow and Edinburgh In 1996 they began operating from Luton to Amsterdam and now in 2014, operate on 633 routes across more than 30 countries and own 217 Airbus aircraft. They employ over 8,000 people including 2,000 pilots and 4,500+ cabin crew and in 2013 they flew over 60 million passengers They now claim that “over 300 million people within a one hour drive of an EasyJet airport” (Easyjet About Us 2013) The obvious move for the airline for further growth may now be outside of Europe and India may be the best market to consider. PESTLE Analysis Political/Legal Up to April 1997 the European Airline Market was regulated strictly and each county controlled their own airline companies. After 1997 and deregulation the European market opened up for carriers and subsequently for example an Irish low cost carrier like Ryan Air was allowed to operate between two other European countries...
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...routes. Vietnam Airlines is the airline also has a large scale in Southeast Asia with dual brands: (1) Traditional airlines (Full-service carrier) with the goal of building the image into a 4-star airline years 2015-2016 , (2) Subsidiaries are Jetstar Pacific meeting the increasing demand in in the cheap aviation segment (Low-cost carrier). Vietnam Airlines is a member of Organization International Civil Aviation (ICAO), the Air Transport Association International Aviation (IATA) and the Alliance Aviation Skyteam (one of the 3 largest airline alliance in the world great). Vietnam Airlines’ History: Vietnam Airlines’ history is deeply rooted in the the earliest days of the Vietnam civil aviation industry, since January 1956 when Civil Aviation Administration was established by the Government of Vietnam. 1956 . . . . . . . . . . . . . The Civil Aviation Administration was established by the Government of Vietnam, commencing the beginning of the country’s civil aviation industry. 1993 . . . . . . . . . . . . . Establishment of Vietnam Airlines. 1995 . . . . . . . . . . . . . Establishment of Vietnam Airlines Corporation on the basis of merging Vietnam Airlines and 20 aviation companies. 2002 . . . . . . . . . . . . . Vietnam Airlines introducing new symbol - the Golden Lotus. 2003 . . . . . . . . . . . . . Restructued of Vietnam Airlines pursuant to Decision No. 372/QĐ-TTG dated...
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...AIR TRAVEL, STILL A DREAM FOR MAJORITY OF POPULATION IN RAJASTHAN: REASONS Dr.Ashok Singh Rathore; Madhu Raj Kothari Associate Professor, FMS, MLSU, Udaipur Research Scholar, FMS, MLSU, Udaipur ------------------------------------------------- ABSTRACT ------------------------------------------------- The purpose of this study is to identify the reasons for why air travel is still a dream for majority of population in Rajasthan and why still people of the state are not ready to choose airline as a mode of transport over other modes. Survey method of data collection was used for this study. This data has been collected from 700 respondents and 12 districts were surveyed across Rajasthan. Frequently changeable high fare and poor connectivity are the paramount reasons for majority of the population. Increment in the number of flights and connectivity between major towns provides opportunities as well as challenges for the airline companies. Studies have been conducted on sample sizes of people who can afford air travel but are not willing to choose it. For the first time, this study has made an attempt to explore the growing airline market, the varying interests of frequent travelers towards air travel and the root causes which are keeping them away from it. ------------------------------------------------- ------------------------------------------------- Keywords: Air Travel, Reasons, population ------------------------------------------------- INTRODUCTION Human beings...
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