2. Aviation Industry
• Witnessing a growth of 17.62 per cent over the previous year, total
passenger traffic stood at a 223.6 million in FY16, which was recorded at
190.1 million in FY15 in India.
• India is the third largest domestic civil aviation market in the world and is
projected to become overall third largest aviation market by March 2018.
38%
17%
13%
13%
12%
3% 3% 1%
Domestic market share
IndiGo Jet Airways Air India
Spicejet GoAir Vistara
AirAsia India other
3. SWOT ANALYSIS
STRENGTHS OPPORTUNITIES
WEAKNESS THREATS
• Backed by theTATA group &
Singapore airlines.
• Good in-flight experience.
• Frequent flier program.
• Change in government policies.
• Consistent growth in the
industry for the past 2 years.
• Increase in regional air traffic.
• Higher degree of competition.
• Lack of brand awareness.
• Less number of aircrafts.
• Higher price.
• Less locations served.
4. PORTER’S FIVE FORCE MODEL
Threat of
substitution
Threat of new
entrants
Competitive
rivalry
Bargaining
power of
suppliers
Bargaining
power of
buyers
- Other
mediums of
transport.
-Capital
requirement.
- High fixed
cost.
- Supply of
aviation fuel.
- Direct
customers.
-Travelling
distance.
-Government
rules &
regulation.
- Brand
identity.
- High cost for
building
aircrafts.
- Customers
buying through
agents.
5. PESTLE ANALYSIS
:
Political
factors
Economic
Factors
Social factors Technological
factors
Legal
factors
Environmental
factors
- Government
policies.
- Economic
growth.
Development
of tier-II cities.
- Advanced
technology
- FDI limits - Sudden
climate change.
-Trade pacts - Entry of
low cost
(budget)
flights.
-Tourism. - Internet
based ticket
booking.
- Passenger
safety.
- Air pollution.
-Terrorism.
-Taxation
policy
Employment
generation.
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