Reliance airlines

reliance airlines

1. RELIANCE AIRLINES

2. RELIANCE AIRLINES A joint venture of Reliance Industries and Deutsche Lufthansa. An Indian based full-service airlines based in Mumbai. The carrier will commenced operations on 9 th Oct 2019 with its inaugural flight between Delhi to Mumbai. This airlines will be 3 rd largest domestic airline because of a large fleet of Airbus A320 and Boeing 737-800NG aircraft.

3. MISSION & VISION To become the lending name in the world of air travel by being the top preference of customers and shareholders. To increase the fleet capacity to double in next 5 years, to provide top notch quality to the customers. To increase the connectivity base to 30 countries in next 5 years.

4. GOALS & OBJECTIVES The common goal of this joint venture is to redefine air travel in India to provide Indian travellers a seamless and personalized flying experience. It’s main goal to continue shaping the global aviation market as a key player in the future. To provide premium product to pursue a consistent quality in airlines domain.

5. Weaknesses Increasing long term Debt Legal Issues Strengths Leading Market Position Operational efficiency in refining Strong Financial Performance Opportunities More investment in the new tech International Market Tie Up with global companies Threats Intense Domestic Competition Existing Competitors Govt. Regulations

6. Market share: 13.3% Passenger load traffic: 95.5% Market share: 12.4% Passenger load traffic: 83.8% Market share: 43.2% Passenger load traffic: 90.7% Market share: 8.7% Passenger load traffic: 90.0% Major Airlines Operate In the Country :

7. Indigo Airlines An Indian Low-cost airline company Headquartered at Gurgaon, India. Offers more than 633 daily flights connecting to 38 destinations including 5 international destinations Operates fleets belonging to the Airbus A320 family. Total Market Share: 43.2 % Fleet size: 97 Passenger Load Factors: 90.7% Cancellation Rate:0.10% 3. Air India flag carrier airline of India owned by Air India Limited (AIL), a Government of India enterprise. operates a fleet of Airbus and Boeing aircraft serving various domestic and international airports. headquartered - New Delhi Total Market Share: 12.4% Fleet Size: 108 Passenger load factors: 83.8% Cancellations : 1.20% 2. Spice Jet Indian low-cost airline headquartered in Gurgaon, It is the country’s fourth largest airline by number of passenger The airline operates more than 270 daily flights to 41 destinations, including 34 Indian and 7 international cities. Total Market Share: 12.6% Fleet Size: 34 Passenger Load factors: 95.5% Cancellations: 0.70% 4. Go Air Indian Low cost carrier based in Mumbai. It commenced operations in November 2005. It is the aviation foray of the Wadia Group. It operates domestic passenger services to 22 cities with over 140 daily flights and approximately 975 weekly flights. Total Market Share: 8.9% Fleet size: 19 Passenger Load factors: 90.0% Cancellations: 0.44%

8. What strategies reliance used to enter in this industry: Can have low cost More services /facilities Faster departure and check-ins On time flight Can create a luxurious airlines segment Response from existing players: They might follow reliance Have same facilities like relicense to retain their existing customers They can increase their no of flights They can provide more offers Increase employment and job switching options

9. Generic Strategy Reliance into a new business of airlines . Aviation sector is bleeding, Reliance can take a great advantage over it. Reliance has- Brand name Capital and Money Trust by millions Experienced and well known creative minds As per sources it many bid at a later date with Etihad Airways. Help 2 renowned airlines who are drowning - Jet and Indian Airlines and with its stable and trusted resources , enter up with new business

10. Reliance Business Lines

11. Porter’s Generic Strategy-

12. Indian Market Benefits-

13. Strategic choices

14. Functional level strategies Single type of aircraft for whole fleet this result in greater flexibility by making use of the same crew from pilots to flight attendants to the ground force thereby cutting hiring, training and up gradation costs. Single Class Having only Economy class means that it does not have to spend time, money and crew on privilege passengers. They also don't need to maintain expensive lounges at airports further reducing cost.

15. Other cost-cutting measures : Turnaround time - An airline is charged for the duration its aircraft stays at the airport. It should have a faster turnaround time (time taken between landing and the next take-off) of 30 minutes.  Marketing:  Little advertising spend , High reliance on word of mouth marketing in its early days by establishing a reputation of being a no frills airline which is always clean and on time.

16. Corporate level strategies Corporate growth With innovative ideas like “check-in counters” for passengers with only cabin baggage so that instead of waiting in lines, they can check-in with an official with a handheld device. Engagement with various travel web-portals and collaboration with hotels will increase its social capital. Salary structure : Unbelievably low. Experienced commanders: 3-4 lacs pm Experienced first officers: 2-2.5 lacs pm New employees: 1 lac pm Cabin crew: 35-50 k pm Engineering: 75-80 k pm The usual scale for the industry is double the amounts here.

17. Business level strategies No free food & beverages: Guests are most welcome to purchase food & drinks at an affordable price from our website before the flight, of from the cabin crew during the flight.   Assigned seating: Guests receive boarding passes with pre-assigned seats and are not allowed to request for a seat change unnecessarily. If the guests have preferences on where or with whom they would like to seat on the aircraft, they are able to do so by paying a small sum when checking-in online. Ticketless airline. Less hassle for the customer, as guests need not worry about collecting tickets before travelling. This also allows flight to keep the costs down (less paper, lower printing and distribution costs) and continue to offer low fares to our guests. 

18. Online check-in: Guests are highly encouraged to check-in online so they do not have to waste time lining up at the check-in counters at the airport. This helps us to improve efficiency and reduce congestion in the airport.  Internet sales: T he bulk of sales (85%) are done via the airline's website, whereby the fares are paid using credit cards, debit cards or via online banking. This is the most cost effective distribution channel.

19. GROWTH PREDICTED