This document discusses India's transportation sector and the growth of air travel within India. It notes that India has a large and diverse transportation system that supports over 1 billion people. While Indian Railways is the largest rail system under single management, roads carry the majority of passenger and freight traffic. The aviation industry has grown significantly in recent decades and is projected to carry over 450 million passengers annually in the coming decade. Air Deccan launched in 2003 as India's first low-cost carrier, making air travel more affordable and accessible. It helped usher in the low-cost carrier model that now dominates the Indian skies, capturing 70% of the market by 2010. However, new competitors like Indigo, Go Air and Spice

1. A New Game to Reign the Skies

2. Transportation
 Transportation is the movement of people, animals
and goods from one location to another.

3. India Transport Sector
 India’s transport sector is large and diverse.
 It caters to the needs of 1.1 billion people.
 2007-Contributed about 5.5% to the nation’s GDP.
Source - http://web.worldbank.org/

4. Transportation Mode

5. Indian Railway
 One of the largest railways(115,000 km of track) under single
management.
 Carries 17 million passengers and 2 million tonnes of freight
in a day.
 2011–12 Indian Railways had revenues of Rs.1119848.9
million.
Source - http://web.worldbank.org/

6. Roads
 Today’s dominant mode of transportation in India.
 Carries almost 90% of the country’s passenger traffic and
65% of its freight.
 Density - 0.66 km of highway per square kilometre of land.

7. Ports
 India has 12 major and 187 minor and intermediate ports along its
more than 7500 km long coastline.
 Foreign trade in petroleum products, iron ore, and coal as well as
the increasing movement of containers.

8. Aviation
 India has 125 airports, including 11 international airports.
 Passenger traffic is projected to cross 100 million.
 Cargo to cross 3.3 million tonnes by year 2010.
 Currently there are 300 Aircrafts Operating in India and
480 air crafts are to be delivered till the end of 2012.

9. Need of better transportation service
 There is monopoly in the form of Indian railway.
 Poor resource management.
 The main problem of the Indian Railways is that ,Trains
mostly never run on time.
 Platforms and Compartments are too dirty.

10. Indian Aviation industry
 Indian Aviation sector growth is increased over past two
decades.
 It takes no. of passenger & cargo traffic to new
destination.
 Over the next decade, India is poised to become one of
the most significant aviation markets with annual 450
million passenger.

11. Conti…
 Indian hospitality sector contributes 8-9 percent of the
country’s GDP.
 The sector encompasses travel and tourism and major
segments that fall under this category.
 Today, India is the 9th largest civil aviation market in the
world and ranks fourth in domestic passenger.

12. Domestic Airlines
 Indian Airlines
 Jet Airways
 Air Sahara
 King Fisher Airlines
 Spice Jet
 Go Air
 Paramount Airways
 Indigo Airlines

13. Market Share

14. Scenario before Air Deccan
 The fare price of air ticket was drastically high.
 To travel with airlines was not possible to every one.
 Flight are not possible in all areas.

15. Creator Of Air Deccan
 Captain G R Gopinath.
 He was aware about Economics Liberalization.
 Referred as ‘Common man Air lines’.
 Tag Line ‘Simply fly’.

16. Revolution In Indian Transportation
 Air Deccan took Birth in 2003.
 This was the first Low Cost Carrier of India.
 Cheaper than Railway’s 2-Tier AC.
 More facilities are provided than railway’s at the same
price.

17. LCC Concept
 Low cost strategy rules the Indian Skies.
 Due to this , LCC grab the 70% of market share in 2010.
 Due to this , full service losing carriers 1.5% market.
share.

18. Business Model
Fare
Target
Passenger Profit
Business
Model

19. Future Prediction
 Till 2012 LCC grabbed 37% over all profit.
 It is estimated that, international traffic will grow up to
15%,and Domestic traffic go up to 25-30% per annum.

20. S.W.O.T. Analysis

21. Strengths
 Leader in LCA segment.
 First to target the middle class.
 First mover advantage.
 Highest load efficiency.
 Lean-and-Mean.
 Approach to staffing.

22. Weaknesses
 Focuses mostly on South Indian market.
 Image plagued by frequent breakdowns and near misses.
 Very limited advertising.
 Reached at the threshold of cost efficiency.

23. Opportunities
 Extensive network to capitalize air cargo business.
 Plenty of scope for expansion of operations.
 Strengthen its position in chartered flight segment.
 Could start, contractual employment.

24. Threats
 High attrition rate.
 The threat of new entrants into Low Price Segment.
 Specially Indigo, Go Air and Spice Jet.
 High Risk Perception.

25. Fare Comparison

26. Load Factor

27. Performance

28. Cancellation Rate

30. Merging
Kingfisher airline
 International permit
 Competition with LCC
 Competition with
International Player
Air Deccan
 For Funding
 Competition with
International Player

31. Reference
 http://en.wikipedia.org/wiki/Kingfisher_Red
 http://www.slideshare.net/guest4ec993/aviation
 http://en.wikipedia.org/wiki/Indian_(airline)
 http://pib.nic.in/newsite/erelease.aspx?relid=94309
 http://www.slideshare.net/dspatra/analysis-of-airlines
 http://www.deccanairlines.in/
 Managerial Economics by Christopher R Thomas
 Mr. Rohit Kumar
 www.maps of world .com