Overview & Scope of the project and Methodologies used - What business does an airline industry participate in? This is a fundamental question which needs to be answered before a marketing analysis on the industry is presented. To a layman the airline industry means carrying the passengers and cargo from one place to another. However, for a marketer this perspective is Marketing Myopia. A better way to look at the business is from the point of view of the needs it is trying to satisfy. On this basis we can say that an airlines business participates in the following areas: Transportation of passengers and cargo. Communication as travel allows opportunities for face to face meetings
Leisure as traveling becomes an important part of a holiday. Information as the cargo business is associated with movement of information.
[...] Initiating and Responding to Price Changes Airlines went for a price cut with the entry of Air Deccan in 2003. It was done to retain their market share. In a price sensitive market like airlines increasing the price might lead to considerable drop in market share so any major price increases are done in coordination with competitor airlines. Price increase leads to higher profits. SUPPLY CHAIN/INBOUND LOGISTICS Primary activities Inbound logistics Aircraft acquisition Airlines must negotiate deals with aircraft manufacturers to acquire planes. [...]
[...] The airline's philosophy is to make air travel accessible to a growing market of time and cost conscious consumers yet at the same time open newer markets. Jet Airways Jet Airways is positioned as a global airline with the highest international standards but with a touch of India. They have retained many of the familiar elements of our corporate identity, but have contemporized them to make the brand more relevant to global markets. Air Deccan - Simplifly Deccan - Kingfisher Red Air Deccan had substantial brand equity among the consumers and had became synonymous with low-cost travel in India. [...]
[...] Identification of factors which make this business a success and registering the insights gained during the study (mentioned in the last section). The report is majorly based on secondary data which includes a number of surveys extremely relevant to the study. The references are duly mentioned in the ‘references' section. Overview of the industry Airlines Industry in India is one of the fastest growing airlines industries in the world. Post-liberalization, airlines industry in India has undergone a rapid transformation. From being primarily a government- owned industry, the Indian airlines industry is now dominated by privately owned airlines and low cost carriers. [...]
[...] operator needs to deploy on less popular routes as well Improve quality of and access to airports and hangars STEPS THAT INDUSTRY SHOULD TAKE Reduce labor costs Simplify flight operations Offer more transparent pricing Get smart on fuel Stop chasing market share Insights derived from study Following are the insights that we derived from this project:- The Airlines industry is cyclical in nature due to uncertainties which are beyond its control. Due to this the brands have to be built in such a manner that they survive the lean periods on their strength of being able to differentiate themselves with others. [...]
[...] With the development of Global Distribution Systems the customer can assess all the tariffs; they shop on internet where it is easy to compare ticket price, flight time and number of stops in route. In case of recessionary periods when supply exceeds demand, airlines find it difficult to fill seats and pricing becomes extremely important to gather market share. For example, for a flight leaving to a business destination on a Monday morning, very few seats will be sold at low prices. [...]
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