Acknowledge that the types and sources of expectations are similar for end passengers and business passengers, for pure service and product-related service, for experienced passengers and inexperienced passengers. They are as follows:. It is one of the oldest and the largest airline of India. Air-India was founded by J. Tata in July as Tata Airlines. Founded as a small, private, domestic carrier in , Air-India is now owned by government. It operates only on International routes and has negligible presence in the domestic traffic.
Indian Airlines emerged as a merger of 8 domestic carriers. It caters mainly to domestic routes and in some nearest nations. The two national carriers have enjoyed sole monopoly in the air transport segment over a long period of time as private carriers were debarred from entering the segment under the Air Corporation Act, The private players like Jet, Sahara and others were made to enter the segment only after the New Economic Policy, came into existence. This Mega Merger marked the first marriage in the Indian skies which was followed by other mergers.
The name of the new airline remained Air India, since it is known worldwide. In May Jet air Private Limited was founded. In , as part of the ongoing diversification programme of his business activities, Naresh Goyal founder of Jet Airways took advantage of the opening of the Indian economy and the enunciation of the Open Skies Policy by the GOI, to set up the company for the operation of scheduled air services on domestic sectors in India.
It started its International Operations in the year and carries more than 7 million passengers per annum.
It is owned by the diversified Sahara India Parivar group. Jet has intensions of converting Air Sahara in sync with LCC model to reach every segment of air travelers. It is headed by Captain Gopinath, Air Deccan redefined the accessibility to the Indian Skies with new model and concept in the aviation sector.
It injected competitive spirits into the system and gave common man wings by reducing airfares which matched the first Class Railway Fares. Air Deccan is the Nano of the Airline sector; what Tata — Nano plans to do to the automobile industry converting two wheelers into four wheelers Air Deccan has done to Aviation industry shifting people from rail travel to travel by air.
Presently, there is a new segment of travelers; the leisure customers. Yet another segment is introduced and that is the first time travelers. Air Deccan introduced the concept of dynamic pricing which means selling at a higher price during high season tourist season and selling cheap during the off-seasons. Therefore, everyday the price would change depending upon the kind of competition and also the load factor.
Also it introduced various schemes and programmers. The King Fisher initiated its operations in May, It is a major Indian luxury airline operating an extensive network to 34 destinations, with plans for regional and long-haul international services. GoAir is an Indian low-cost airline based in Mumbai. It was established in June , the airline started its operations in October with a fleet of 20 leased Airbus A aircraft.
What's ailing the Indian aviation industry?
IndiGo Airlines commenced its operations in and went on to swiftly establish itself as one of the premier budget airlines in the country. IndiGo Airways soon added IndiGo flights and destinations to its network. The unimpeachable services and timely performances of IndiGo flights added to the popularity of the airline.
SpiceJet, a rebirth of ModiLuft marked its entry in service by offering fares priced at Rs. The carrier is giving tough competition to Railways. Given the strong market fundamentals, it is expected that the civil aviation market will register a compound annual growth rate CAGR of more than 16 per cent during Indian airlines reported a continuous growth trend and a strong domestic passenger growth rate of Passenger traffic has grown at 18 per cent year on year y-o-y basis and the year closed at 90 million passengers both domestic and international.
India is the fastest growing aviation market and expected to be within big aviation markets by and 3rd in terms of domestic market after US and China. In July , airlines in India handled 5 million domestic passengers, according to data released by the DGCA on September 12, , marking the 11th consecutive month of double-digit growth. Passengers carried by domestic airlines during Jan-Aug were India is expected to cross the million mark of domestic passengers by During the last two decades from a fleet of only about , the scheduled operators now have reached aircrafts connecting the nation and the world.
Domestic capacity is also projected to grow by per cent for the assessment period. Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. Airline Reservation System is one of the intermediaries of the distribution channel in the aviation industry. An airline reservation system is part of the so-called passenger service systems PSS , which are applications supporting the direct contact with the passenger. Airline reservations systems contain airline schedules, fare tariffs, passenger reservations and ticket records.
A second type of direct distribution channel is consumers who use the internet or mobile applications to make their own reservations. Since airline reservation systems are business critical applications, and their functionally quite complex, the operation of an in-house airline reservation system is relatively expensive. Prior to deregulation, airlines owned their own reservation systems with travel agents subscribing to them.
Aviation Industry Issues And Opportunities Essay | Leo Green
Today, the GDS are run by independent companies with airlines and travel agencies as major subscribers. The inventory of an airline is generally divided into service classes e. Inventory data is imported and maintained through a schedule distribution system over standardized interfaces. One of the core functions of the inventory management is the inventory control. Inventory control steers how many seats are available in the different booking classes, by opening and closing individual booking classes for sale.
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In combination with the fares and booking conditions stored in the Fare Quote System the price for each sold seat is determined. It contains all offered flights for a particular city-pair with their available seats in the different booking classes. This display contains flights which are operated by the airline itself as well as code share flights which are operated in co-operation with another airline.
If the city pair is not one on which the airline offers service it may display a connection using its own flights or display the flights of other airlines. The availability of seats of other airlines is updated through standard industry interfaces. Depending on the type of co-operation it supports access to the last seat last seat availability in real-time. Reservations for individual passengers or groups are stored in a so-called passenger name record PNR. Among other data, the PNR contains personal information such as name, contact information or special services requests SSRs e.
Some reservation systems also allow storing customer data in profiles to avoid data re-entry each time a new reservation is made for a known passenger. In addition most systems have interfaces to CRM systems or customer loyalty applications aka frequent traveler systems. Before a flight departs the so-called passenger name list PNL is handed over to the departure control system that is used to check-in passengers and baggage.
Reservation data such as the number of booked passengers and special service requests is also transferred to flight operations systems, crew management and catering systems.
Once a flight has departed the reservation system is updated with a list of the checked-in passengers e. Finally data needed for revenue accounting and reporting is handed over to administrative systems. Rules like booking conditions e. Inventory control can also be manipulated manually through the availability feeds, dynamically controlling how many seats are offered for a particular price by opening and closing particular classes. The role of the ticketing complex is to issue and store electronic ticket records and the very small number of paper tickets that are still issued.
The electronic ticket information is stored in a database containing the data that historically was printed on a paper ticket including items such as the ticket number, the fare and tax components of the ticket price or exchange rate information. So far, the industry has not been able to comply due to various technological and international limitations. Long term planning in line with a clear vision is imperative. We require imagination, strong commitment, a clear and robust regulatory framework and capital. National Agenda: A long term, structured national plan as part of a broader transportation plan with an appropriate policy framework is necessary to attract capital.
Safety: Implementation of safety systems and culture which are comprehensive, enforced and collaborative. Liberalisation: Market access should be liberalized but there must be a level playing field for Indian operators. Taxation: A less punitive fiscal regime -particularly sales tax on fuel -which recognizes that airlines must be viable, is imperative. Profile: Enhanced profile and recognition of aviation within government.
And state governments must be educated on the role that aviation plays economic competitiveness. Air travel has grown in the past decade. Travel grew strongly for both Leisure and business purposes.
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Some of them are linked to international factors. The oil price plunge briefly masked the full effects of this. Carriers once again lack that luxury. This is particularly so when competing hubs like Dubai and Singapore charge far lower rates. There was speculation earlier this year that the government would bring ATF under the goods and services tax, but the Centre swiftly shut it down. Little wonder; states would howl at the loss of revenue.
They must find some way to square the circle regardless. The current structure is unsustainable. Other reasons are to do with the nature of the Indian market. The breakneck growth sets up competing tensions. On the one hand, the intense competition among domestic carriers, the need to capture a slice of the ever expanding market and passenger price sensitivity mean that airlines find it difficult to raise ticket prices.
Its goal is laudable and it may well benefit potential flyers in smaller towns. But the ticket price caps it imposes under the scheme, the fact that the viability gap funding will last only for three years and various operational issues, such as the lack of slots for connecting flights at major airports, mean that carriers are, by and large, left holding the can. Against this is the need for heavy capex to keep up with market growth. Indian carriers are already operating at near capacity.
Boeing estimates a need for over 1, planes over the next two decades.
But when future capex cycles run afoul of oil price spikes and currency movements, they are bound to feel the pinch again. Perhaps more consolidation would help. But until then—and until there is more policy support—Indian carriers will continue to live on the edge. You are now subscribed to our newsletters. Why are passenger airlines struggling in India? Tell us at views livemint.
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