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    AirAsia Case

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    Adarsh Chhajed
    This case study examines AirAsia's entry into the Indian aviation market. It provides an overview of the Indian aviation industry, outlining key players and business strategies. It also analyzes the macroenvironment using PEST analysis and the competitive landscape using Porter's Five Forces. Additionally, it discusses AirAsia India's plans and profiles the company. Finally, it considers factors that may impact AirAsia's ability to succeed in India and questions whether it can replicate its success there.

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    AirAsia Case

    Uploaded by

    Adarsh Chhajed
    686 views22 pages
    This case study examines AirAsia's entry into the Indian aviation market. It provides an overview of the Indian aviation industry, outlining key players and business strategies. It also analyzes the macroenvironment using PEST analysis and the competitive landscape using Porter's Five Forces. Additionally, it discusses AirAsia India's plans and profiles the company. Finally, it considers factors that may impact AirAsia's ability to succeed in India and questions whether it can replicate its success there.

    Original Description:

    air asia

    Original Title

    AirAsia Case (1)

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    This case study examines AirAsia's entry into the Indian aviation market. It provides an overview of the Indian aviation industry, outlining key players and business strategies. It also analyzes the macroenvironment using PEST analysis and the competitive landscape using Porter's Five Forces. Additionally, it discusses AirAsia India's plans and profiles the company. Finally, it considers factors that may impact AirAsia's ability to succeed in India and questions whether it can replicate its success there.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    686 views22 pages

    AirAsia Case

    Uploaded by

    Adarsh Chhajed
    This case study examines AirAsia's entry into the Indian aviation market. It provides an overview of the Indian aviation industry, outlining key players and business strategies. It also analyzes the macroenvironment using PEST analysis and the competitive landscape using Porter's Five Forces. Additionally, it discusses AirAsia India's plans and profiles the company. Finally, it considers factors that may impact AirAsia's ability to succeed in India and questions whether it can replicate its success there.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 22
    At a glance
    Powered by AI
    The key takeaways from the document are that the Indian aviation industry is dominated by low cost carriers like IndiGo and SpiceJet. The major players include AirAsia which is looking to enter the Indian market. Factors like growing middle class, GDP growth and increasing income are opportunities for the industry while rising fuel costs and competition pose threats.

    The major players in the Indian aviation industry discussed are IndiGo, SpiceJet, GoAir, Air India, Jet Airways and new entrants like Vistara, AirAsia India and Air Costa. Government bodies and airport authorities are also mentioned.

    Some of the macro environmental factors discussed are growing middle class, expected GDP growth, increase in average income, growth in tourism, rising aviation fuel prices, modernized airports and online ticket booking.

    CASE STUDY

    AIRASIA INDIA: CLASH FOR THE INDIAN


    SKIES

    Apoorva Sharma
    Anoop Kumar Sharma
    Adarsh Chhajed
    Rahul Gupta
    Rushikesh N. C.

    Presentation Outline

    Evolution of Indian Aviation


    News statements
    Indian Aviation Industry (overview)
    Macro Environmental factors
    Porters 5 forces
    SWOT Analysis
    PEST Analysis

    Recent in News
    Despite having started at least a decade later than Jet
    Airways, IndiGo accounts for the lion's share in the domestic
    market
    The dogfight to watch in Indian skies will be between three
    players (IndiGo, Spice jet and Air Asia)
    Indian skies are for LCC who have gained market share
    from their fatter FSC cousins and will continue to down so
    going forward
    There is little to distinguish between LCCs and FSC
    economy class products
    Indias domestic aviation has shifted to an almost100%
    lowfaresmarket
    Conditions may support the launch ofnew long haulLCC
    based in India, AirAsia may be the first to take advantage
    GoAir could become India's first hybrid carrier, making it
    more attractive to a potential foreign airline investor

    ndian Aviation Industry


    Indias domestic traffic up 13.9% year-on-year and
    international traffic up 9.0%
    IndiGo market share soared to 36.4% by the end of the
    financial year, widening the gap between itself and the
    second largest carrier,Jet Airways, which had a market
    share of 25.4%
    Total international traffic to/from India grew at 9.0% in
    FY2015, Jets growth rate was around twice that at
    20.6%, with the airline accounting forclose to75% of the
    incremental international traffic carried on Indian airlines.
    New start-ups, which include anFSC(Vistara),
    anLCC(AirAsia India) and a regional carrier (Air Costa) all
    performed below expectations.

    Macro Environmental
    factors

    INDIAN AVIATION SPREADING ITS


    WINGS

    ndian Aviation Industry


    Players
    Government
    IndiGo
    SpiceJet
    GoAir
    Fuel Suppliers
    Airport authority

    Strategy models
    LCC
    FSC
    Hybrid`

    Porters Five Forces of


    Threat of New Entrants (High)
    Industry
    -Saturated industry hence there is hardly any space for a new comer
    -High cost of entry
    -High Operating cost. (Fuel, Taxes, fees, Airport charges)
    -High cost of buying & leasing Aircraft.
    -Strong existing player

    Threat of substitute (Low)


    -No perfect substitute for international carriers.
    -Domestic airlines can be substituted by cars, buses, trains & video call
    service
    Bargaining power of supplier (High)
    -Aircraft is dominated by Boeing & Airbus.
    -Very less number of manufacturers of Boeing & Airbus
    -Aviation fuel is a commodity

    Porters Five Forces of Industry


    Bargaining power of Buyer (High)
    -Large No. of players competing for same set of customers.
    -Large No. of players provide huge option for buyers
    Rivalry (High)
    -Many Players
    -Intense price competition
    -High fixed cost
    -Low Marginal cost
    -Homogeneous product
    -Excess capacity

    AirAsia
    AirAsia Berhad
    Worlds best LCC
    Operates 22 countries spanning 100+ destinations

    AirAsia India
    Got the permit in March 2014
    Plan to offer travel at 35% cheaper than competition
    Will Achieve Aircraft Utilization Rate of 16 hours & Turnaround time
    of 20minutes

    SWOT Analysis
    Strength
    Effective top management
    Strong strategy and execution
    plan on fuel hedging, buying low
    cost airbuses
    Strong brand name and joint
    venture with TATA, reputed name
    in INDIA
    Low cost model
    Single type fleet

    Weakness
    Limited human resource
    Heavy reliance on IT
    Rising fuel cost
    Rising labor cost

    Opportunities
    Low Price
    Vast population/Strong Demand
    Enormous size and growing
    middle class
    Can target one million people
    traveling by train

    Threats
    Political & Economical Factor
    Regulatory uncertainty of Indian
    govt.
    Competitor

    PEST Analysis
    Political

    Economical

    Open sky policy/ deregulation


    (+)
    FDI limits(+)
    Unstable government policies
    (-)

    Growing middle class income


    (+)
    Expected GDP growth (+)
    Hike in average income (+)
    Growth in tourism 9% (+)
    Rising ATF price (-)

    Socio cultural

    Technological

    Growing middle class (+)


    Domestic leisure travel (+)
    Foreign tourist (+)
    Status symbol (+)
    Security issue and terrorism
    (-)

    Modernized airports (+)


    Greenfield airports (+)
    Online ticket booking (+)
    Video conferencing (-)

    Can AirAsia replicate the success story


    in Indian Skies?

    Thank You!

    NOW EVERYONE CAN FLY

    LCC and FSC

    Low Cost Carrier (LCC) is an airline that has low fares and
    fewer comforts. e.g. Indigo, SpiceJet and GoAir
    Full Service Carrier (FSC) is an airline that offers more
    comforts such as in-flight entertainment, checked
    baggage, meals, more seat recline and legroom in the
    ticket price. e.g. Air India and Jet Airways
    Estimated Profitability:

    19

    Market Share

    inancial Performance

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