The Aviation Industry In India

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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. Fig: World Bank data on increase
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It boasts of 109 aircrafts in service with another 425 in order with 679 daily flights to 40 destinations. It focuses on its low cost, single class model which is helping it to improve its efficiency and effectiveness as the costs to train crew members reduce significantly. IndiGo is also the leanest firm in the industry. By having turnaround time less than 30 minutes, the lowest in the industry, it further cuts its costs by reducing fuel burning. It is also playing technologically smart by buying fuel efficient models and decreasing fuel cost by 15%. The minimalist on-board facilities further helps save costs. Its fleet is comparatively younger and technologically advanced as compared to its competitors as it works on the basis of selling and leasing back the planes. . It basically advertises on 3…show more content…
Since then Jet Airways has gone on to become the second largest airline in the country today with a passenger market share of 18.9%. With 116 aircrafts in service and 85 in order, it operates over 300 flights daily to 68 destinations which includes 48 domestic and 20 international destinations. With its various services like Jet Konnect, Jet Privilege, Jet Escapes, Jet Mobile, Jet Viva, Jet Lite etc, it has created a niche for itself in the industry. It optimizes its revenue through network rationalization, inventory optimization and margin maximization. Jet Airways is continuously losing out on its market share and it also needs improvement in its in-flight services. It can also focus on the cargo market which is largely untapped at present. The major threat it faces is its competitors. High ATF costs and increasing inflation are another cause of worry for the airlines apart from international competition and government regulation

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