Air India Strategy

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

1) Introduction to airline industry 2) Drivers of globalisation using yip’s model 2.1 Market globalisation 2.2 Cost globalisation 2.3 Globalisation of government policies 2.4 Globalisation of competition 3) Localisation- arguments against globalisation 4) Pestle Analysis 5) Porter’s 5 forces analysis and their application to Airline industry 5.1 Rivalry amongst Existing Firms 5.2 Threat of substitution 5.3 Threat of new entrants 5.4 Power of customers 5.5 Power of buyers 6) Opportunities and Threats of Airline industry 7) Internal analysis of Virgin Airlines: Strengths and Weakness 8) Financial Statics of Virgin Atlantic Airline 9) Strategic

Air Asia leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines Air Asia and Japan Air Asia.

The opening of new markets within the EU exposed many national carriers to strong competition. This trend has been furthered by the continuous liberalization of the global aviation industry and specifically the recent OpenSkies agreement between EU and the US which allows the national carriers to arrange the Atlantic flights from the airports that are not airlines’ ports of origin. (BATA, 2010).

Air India is the national airline of India and also one of the biggest air company of the country in terms of passengers carried. It was started by Jehangir Ratanji Dadabhoy Tata in 1932 and was called Tata Airlines at that time. It started off carrying passengers and air mail between Bombay, Karachi, Ahmedabad, Bellary, and Madras. After World War II it became a public company and was christened ‘Air India’. Today Air India has a fleet size of around 108 aircrafts and flies to 84 destinations worldwide. It is mainly operated from Indira Gandhi international Airport, Delhi and Chhatrapati Shivaji International Airport, Mumbai. As of February 2016, Air India has a strength of 28,085 employees. In 2007 the airline was merged with the state owned Indian Airlines, thus forming a new company called National Aviation Company of India. In 2014 Air India entered the Star Alliance, thus becoming the 27th member of the globes largest airline alliance.

The accurate financial data of Indigo airlines could not be obtained because of corporate policies and non-disclosure agreement of the company. However, the research and analysis have been conducted based on the most recent and reliable data sources available.

Government regulations are strict. Due to competitive in airline industry and protects on national airlines, MAS which facing losses in these year, it is quite difficulty to apply for licensing and permit for operating airline company.

Air Asia is a World’s Best Low Cost Airline. It had been established since 2001 with only two aircraft. The company started with a debt of USD11 million (MYR 40 million). Starting from year 2001, Tony Fernandes served as Chief Executive Officer. Nowadays, Air Asia has strengthened its position in the market and it manages to be a great competitor in the airlines industry. Recently, they have won the World’s Best Low Cost Provider and Asia’s Best Low Cost Airline for seventh consecutive year at the Skytrax World’s Airline Awards. This proves that the company has served as a low cost provider.

Air Deccan , being India’s first low cost airline, is a part of Deccan Aviation Private Limited, which is India's largest private heli-charter company. Established in 2003 and started operations in August that year, it has revolutionized air travel in India. It was taken over by Kingfisher Airlines in 2008.

This is in stark contrast with what we see outside the country where there is full privatisation, especially in the USA. Also, most of the operators are under the Build-Operate-Transfer Contract with Airport Authority of India.

When the economy goes down turn, it has inspired the life style of people to fly from walk of life style. For example, Airbus A320 would inspire larger passenger size and It also can offer the comfortable service to passengers. Besides, Air asia also introduces the customer use message to do booking of their seat at anytime and anywhere. Through the guarantee of the safety of the flight, they will be more trust to fly by using the Air Asia.

In 2013, Etihad, a company incorporated in the United Arab Emirates (UAE), a national airline of UAE, proposed to acquire 24% in Jet, a listed company incorporated in India. Etihad is wholly owned by the Government of Abu Dhabi and is primarily engaged in the business of international air passenger transportation services, commercial holiday services and cargo services. It is also stated to hold 29.21 percent equity in Air Berlin; 40 percent equity in Air Seychelles; 10 percent equity in Virgin Australia and 2.9 percent equity in Aer Lingus. Jet on the similar lines, is primarily engaged in the business of providing low cost and full service scheduled air passenger transport services to/from India along with cargo, maintenance, repair & overhaul services and ground handling services. The proposal got approved by the Security Exchange Board of India (SEBI), the Foreign Investment Promotion Board (FIPB) and Cabinet Committee of Economic Affairs (CCEA). Thereafter the Investment Agreement, Shareholders Agreement and a Commercial Cooperation Agreement between Jet and Etihad were submitted to CCI for its approval. This has been considered as a landmark case in the aviation sector, as CCI examined the details of the impact caused by the deal on air passenger services and consequently on competition in

To be able to adjust with stiff competition that keep increasing in the airlines market, airlines industries tend to come up with different approaches and strategies to be more competitive. Air Asia, like any other airlines adopt strategic approach to marketing and expand their market reach and give better and satisfying service delivery to their target market. Being an industry that considers differentiation strategy, Air Asia continue to focus on their low cost approach, frequently flights approach, guest convenience, ticketless services, easy payment channels, internet booking, reservations and sales offices, and authorized travel

The SWOT analysis is a study that can determine Emirates Airline’s Strengths, Weakness as well as the Opportunities and the Threats. This report will clearly analyze Emirates Airlines using the

Profits dropped again in the quarter ending 30-Jun-2014, representing 1st quarter of Financial Year 2015, with the company posting a 52% decrease in operating profits to SGD39 million (USD31 million). (Center for Aviation, 2015). Singapore Airlines is still one of the most competitive airlines in the world market and has not suffered an annual loss s far however, the fact is that the airline has faced in the recent past - and continues to face – some of the greatest challenges ever as a business. The airline company has to make strategic adjustments for the group to be better positioned for profitability, sustainability and growth. Singapore Airlines still has a number of core strengths as well as a lot of opportunities, however, serious challenges are also present ahead with any proposal of strategic adjustments coming with risks. In this SWOT analysis, the report incorporates Singapore Airline's 1st Quarter Financial Year 2015