Emergence of new Indian middle class, information technology boom, had created a demand for both business and leisure travel. In the year 2003, sensing huge pent up demand (air traveler and per capita use of airline in China being 8 times that of India), the Indian aviation industry kicked off a new phase of development. In spite of the fact the most of the operating cost in the industry is fixed irrespective of business model employed. Most of the new operators choose to use low cost airline as their business model. Hoping to create low cost operating model to make low fares viable.
Major players in the industry The aviation industry in India has undergone tremendous change in the recent years. With the rising per capita income and increased spending capacity of the people, the air traffic has increased by a whooping ~472% since the turn of the millennium (Figure). There are 22 players in the Indian domestic market with 6 low cost carriers such as IndiGo, SpiceJet, GoAir etc and premium carriers like Jet Airways and Air India. There are various charter carriers and regional players as well. The industry has seen new players joining the market in the recent years, for instance, Air Costa (2013), Air Asia (2014) and Vistara Airlines (2015) and three regional airlines are planned to be started.
One of the best things happen for the Indian automobile market in the recent years was its improvement in the export sector. In the year 2003-04 for the first time in Indian history vehicle worth more than 1 billion USD were exported with the growth rate of 56%. In the year 2009 India emerged fourth largest exporter of passenger cars, in 2010 with the production of more than 3.7 million automotive vehicles with an increase of 33.9% India became third largest exporter of passenger cars. It contributes 4% of the national GDP and accounts for 5% of the Indian industrial output. With employing 13 million people directly or indirectly it has become one of the major employment generators in the country, with the present growth trend it is expected that employment will double by
The number of airlines that operate in India are few in number and cannot at any point, cater to the demand of the entire population in India. This is because of the inherent nature of the model of oligopoly which does not allow for new firms to enter the market. The other reason which is cited very often is the high costs and risk involved in such a market type. The costs of the carrier are high and their maintenance often exceed the revenue generated. The price of fuels and the constant fluctuation in the market also pose a major threat to an industry of this
INDUSTRY ANALYSIS The automotive industry in India is one of the largest automotive markets in the world. It was previously one of the fastest growing markets globally, but it is currently experiencing flat or negative growth rates. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand, overtaking Thailand to become third in 2010. As of 2010, India was home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making India the second fastest growing automobile market in the world (after China).
Telecom industry witnessed revolutionary changes in recent years. Indian telecom industry is the fastest growing industry in Indian economy. It has one of the lowest call tariffs in the world enabled by the mega telephone networks and hyper-competition among them. On the basis of data as on 2013 the telecom subscriber’s details are shown in the table, which explains the current status of Indian telecom industry. Table 1.1 Trends in Indian Telecommunication Industry Quarter ending December 2011 Quarter ending March 2012 Telecom subscribers (wireless and wire line)in million Total telephone subscribers 926.53 951.34
Indian Airlines, later Indian (Indian Airlines Limited from 1993 and Indian Airlines Corporation from 1953 to 1993), was a major Indian airline based in Delhi and focused primarily on domestic routes, along with several international services to neighbouring countries in Asia. It was state-owned, after merger of eight pre-Independence domestic airlines and was administered by the Ministry of Civil Aviation. Indian was formerly one of the two flag carriers of India, the other being Air India. On 7 December 2005, the airline was rebranded as Indian for advertising purposes as a part of a program to revamp its image in preparation for an initial public offering (IPO).  The airline operated closely with Air India, India 's national carrier.
And also the tickets prices are really good so I recommend it ". 3 – indigo flights It is the fastest growing airline in the world. Indigo follows the policy of discipline and cheap services. The rate of discipline in indigo rises to 99.91 %, this is an excellent rate in comparing with the other airline companies in India. The most powerful start for indigo is that it turns to the world flights begin with Muscat in Oman.
There is large untapped potential for growth due to the fact that access to aviation is still a dream for nearly 99.5 per cent of its population. The Indian civil aviation industry is on a high growth trajectory, albeit with minor hiccups. The industry has ushered in a new wave of expansion driven by Low Cost Carriers (LCC), modern airports, Foreign Direct Investments (FDI) in domestic airlines, cutting edge Information Technology (IT) interventions and a growing emphasis on No-Frills Airports (NFA) and regional connectivity. The Indian civil aviation industry is amongst the top 10 in the world with a size of around USD 16 billion. This is a fraction of what it can actually achieve.
Though it has been able to successfully launch its operation in many Indian cities but because of bad reviews and no strategy in place to retain customers, Ola has lost market to other players. Also it has not been able to take advantage of being the first mover in many cities after Uber entered these cities. e) Quality Strategy Bhavish Aggarwal started Ola with the vision to give quality cab experience to Indians. In the beginning it did stick to this vision but of late many customers with whom I have interacted said that the Quality of Ola is below par. They say the drivers are misbehaved and they often indulge in quarrel.