Aviation Industry The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as low-cost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced information technology (IT) interventions and growing emphasis on regional connectivity.India’s passenger traffic grew at 16.52 per cent year on year to reach 308.75 million.
It grew at a CAGR of 12.72 per cent during FY06-FY18.Domestic passenger traffic grew YoY by 18.28 per cent to reach 243 million in FY18 and is expected to become 293 million in FY20E. International passenger grew YoY by 10.43 per cent to reach 65 million in FY18 and traffic is expected to become 76 million in FY20E.
In FY18, domestic freight traffic stood at 1,213.06 million tonnes, while international freight traffic was at 2,143.97 million tonnes.India’s domestic and international aircraft movements grew 14.40 per cent YoY and 9.40 per cent YoY to 1,886.
63 thousand and 437.93 thousand during 2017-18, respectively.As of March 2018, there are nearly 550 commercial aircraft in operation in India.Players in the industryMarket Leader: IndiGOIndiGo is India’s largest passenger airline with a market share of 39.8% as of June, 2018. We primarily operate in India’s domestic air travel advertise as a low cost bearer with emphasis around our three columns – offering low passages, being on-time and conveying a considerate and bother free understanding. IndiGo has turned out to be synonymous with being on-time. Since the initiation in August 2006, they have developed from a carrier with one plane to an armada of 173 aircraft today.
A uniform armada for each task, high operational dependability and a honor winning administration makes them standout amongst the most reliable airlines. IndiGo at present function flights to 55 destinations – 46 domestic and 9 international. Furthermore, they have opened bookings for Gorakhpur and Surat. IndiGo remained the market pioneer by flying 39.7% of aggregate passengers amid the long stretch of December.
Jet Airways followed IndiGo regarding piece of the overall industry by flying 16.6% of the aggregate travelers flown amid the month. Air India is the third biggest transporter as far as piece of the overall industry by flying 13.3% of the aggregate passengers flown amid the month. Indigo is traveling to 40 destinations and day by day working 680 flights has helped the organization in developing as a market pioneer. It outsources inflight providing food/eatables from an outside merchant. These are introduced to clients on payable premise.
Indigo is the market leader because of its single class model.Marketing Strategies of Indigo Indigo’s adhered to its minimal effort, low cost and single class model. IndiGo stayed with its strategy of offering one class of no nonsense administration on a solitary kind of plane.
Indigo has adhered to the world’s best selling single aisle airplane, the Airbus A320. Selling and leasing back planes for its balance sheetIndigo figured out how to build its passenger traffic as well as its armada measure. It maintains a young fleet by selling and leasing back the planes. IndiGo uses six year sale and leaseback agreements, so its constantly replacing its aircrafts. This keeps the requirement for by and large checks and significant repairs, which implies IndiGo sees how to function the edges. Quality and detail key to great serviceIndiGo’s administrators, including staff at the registration counters, air crew and sales and marketing staff are enlisted simply after Mr.
Bhatia’s meets every one of them separately. In addition, the aircraft likewise utilizes far less individuals, with one of the business’ most slender work powers. The airline also broke industry models with straightforward things like turnaround time. This is the time taken for a plane to be prepared for the next trip between landing and take off. IndiGo boasts of a turnaround time of less than 30 minutes. It’s all about customer focus IndiGo’s success to a great extent depends on steady low fares, regular on-time performance and minimal flight cancellations. Be that as it may, the airlines greatest edge over others is its emphasis on customer focus.
Fliers need on time travel at reasonable costs and this has helped IndiGo inch past stalwarts to reach this milestone. Market Challenger: Jet Jet Airways flies to a total of 65 destinations including 45 domestic and 20 international including both intercontinental and within the extended neighbourhood in Asia starting at July, 2018. Jet Airways is known for its strong customer service and providing inflight entertainment, lounges, frequent flier programs, etc. Jet Airways is a little expensive as compared to IndiGo airlines. It tries to compete with IndiGo but the single class model of the market leader helps to maintain its market share and remain customer friendly. Marketing Strategies of Jet Jet Airways has adopted many promotional plans for its airlines. It has launched several ad campaigns which are shown via television, newspapers and magazines.
It likewise depends intensely on mouth publicity and its travel agents. Jet Airways has understood the capability of star showcasing and has roped in Indian film actor Shahrukh Khan as its image representative. He is seen in different promotion crusades in this way making a positive hype and visibility for the company. To its regular customer , Jet Airways offers Visa Card from Citibank that gathers points after each flight and can be redeemed later. Jet Airways has got client helpdesks in every working air terminal and a committed ticket counter for instant ticket purchase and cancellations. Market Follower: Air India Air India has an fleet of more than 110 air ships, for example, Boeing747-400, 777-200LR, 777-300ER, B-787, A-319, A-320 A-321 and Boeing 737-800.
It serves 90 domestic locations and 60 international locations. As of now, Air India Express works around 550 flights each week interfacing 15 Indian urban areas and 14 international destinations in the Middle East and South East Asia. It flies to Abu Dhabi, Al Ain, Bahrain, Dammam, Dhaka, Doha, Dubai, Kuwait, Muscat, Ras Al Khaimah, and Singapore, among different spots. Marketing Strategies of Air IndiaBy promoting their tagline “Air India… Truly Indian”, Air India has utilized enormous picks up by having the capacity to advance their image. By being incorporated with Government of India, it sets up a standard just like a completely government controlled transport system. Air India has tied up with different travel agencies like yatra.com, goibibo.com, and so on.
This has helped them to be easily presentable to their customers and in such ways the customers are easily able to avail tickets. Its promotional activities continue in the Indian Railways website, wherein clients are effortlessly able to avail Air India tickets by means of the IRCTC portal, in this way it makes simple for the customers to design travel as needs be and effectively. Joint promotion with Amadeus, is a short term promotional strategy which Air India actualizes. Point of purchases i.e.
ticketing counters at travel agencies, online choices (example- membership promotions, couple tickets, tourist packages for agencies and various other individual and corporate offers. The way that Air India is an Indian government worked aircraft in itself makes a brand value for the airline. Other than this, regular banners and outdoor promotions are carried out by Air India. Lastly, the airline offers various discounts and trade tie ups to promote its business via B2B channel. Market Follower: SpiceJet Spice Jet operates 312 daily flights to 55 destinations, including 47 domestic and 7 international destinations from its hub at Delhi, Mumbai, Hyderabad and Kolkata. The market share of Spice Jet is 12.
4%. Marketing Strategies of Spice Jet SpiceJet offers SpiceMax premium services whereby a traveler can acquire additional advantages like seats with additional legroom, complimentary suppers and need boarding, things taking care of and registration at a higher passage. Spice Jet has a solid presence in the airline industry because of its advertising and branding policies. It advertises via print and social media platforms like newspapers, Facebook, its own website and portals of travel agents.
As a major aspect of its pJet offers romotional strategy Spice rebates on group bookings, discounts at intervals and special offers like tickets at rupees 99. and exceptional offers like tickets at rupees 99. Its prevalent tag line ‘Flying for everyone; Red Hot Spicy and Get more when you fly’. On Holi, a group of 35 trained performers, all volunteers from the airline’s cabin crew, seemed apparently haphazardly among the travelers in Delhi air terminal’s T1 takeoffs lobby, and performed a choreographed dance sequence on the bollywood track Balam Pichkari from the film Yeh Jawaani Hai Deewani.
SpiceJet claims to be amongst the first low cost airlines to offer hot meals for sale on board and dedicated leg room seats in a specially configured cabin. The airline guarantees that its two key differentiators are Hot Meals and SpiceMax. The airline has also unveiled a set of commercials placed through everyday life situations and narrated it with a sense of humour. Nicher: Vistara Vistara is a joint venture of Tata Sons Limited and Singapore Airlines Limited (SIA), wherein Tata Sons holds 51% stake in association and Singapore Airlines possesses 49% stake.
The organization is enlisted as TATA SIA Airlines Limited. The airline flies to a total of 22 domestic destinations. Marketing Strategies of Vistara Vistara works on premium market section in airline industry which is significantly ruled by low cost operating carriers. Vistara charges premium costs for its administrations both on-board and on-ground. The organization has faith in giving great and noteworthy flying knowledge to its voyagers at a sensibly premium cost. Rather than giving steep rebate, Vistara has its own club of faithful clients ‘Club Vistara’,which is a regular customer program, which causes voyagers to get remunerate focuses based on consumption done by him/her for ticket booking.
These reward points acts as a discount for loyal customers. Thus, the pricing strategy of Vistara is not solely dependent on competitiors and regulation authorities, but also covers the market dynamics. Vistara has an intergrated marketing campaign focusing on TV, Digital, Print, Outdoor, Cinema and Airports for its advancement. The organization has picked Deepika Padukone as its brand ambassador. Vistara has done numerous advertisements to promote its brand campaign ‘Fly the new feeling’ by trying to connect with the viewers emotionally and showing feeling of joy in their ads.
A 360 marking approach in the promotional strategy in the marketing mix of Vistara. Vistara additionally utilized a tag line ‘High standards’ in print ads to target people who want to feel unique experience at value for money. Vistara has focused on both entertainment channels like Colors, Sony and news channels like NDTV and so on for special advertisements.
Vistara additionally uses outdoor channels like banners at airports or any prime location. Vistara likewise addresses issues and engages with its customers on social media like Facebook, Twitter, etc. Vistara declared a strategic partnership with Adobe to use cutting edge innovation in Adobe Experience Cloud to reinforce the company’s end customer experiences.