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yers. Supplier power is strong as airlines enter into contracts with the suppliers and the industry lacks alternatives or substitutes. Price sensitivity is high and availability of alternative strengthens the buyer power. The entrance into the market poses economic barriers as there needs to be solid financial back up to enter into this industry. Distributions and establishing networks and booking presence regionally are of critical importance for the success of a company.

Rivalry in the Indian Airline industry is strong and has increased since the presence of the low cost carriers. Costs are the determining factor for airlines as the Indian consumer today is more price conscious than ever.

Over the past two decades, the Indian Airline industry has experienced both stagnation and unprecedented growth. The potential for growth in the Indian Airline industry remains strong as with massive population with growing incomes only adds to the fact that the Airline Industry has a long way to go. Currently, only 2% of the Indian population prefers to fly by air. Between the year 2003 and 2006, Indian Airlines industry's open sky policy opened the floodgates for the arrival of new start up carriers which changed the face of the industry beyond recognition. Liberalization in terms of allowing the domestic carriers to go international and allowing the international carriers greater access to the domestic market spurned the industry to achieve double digit growth. However, the increase in traffic increased the top line of the players in the industry, but due to low margins, lower yields, inadequate airport infrastructure and lack of trained pilots and engineers saw many of the companies bleeding with negative bottom lines. As rising oil prices in the year 2008 hurt airlines all over the world, Indian tax systems made the matters even worse as it added 60% of total costs. Carriers were left with no other alternative but to pass on the burden to the customers who in turn chose alternative forms of transportation leading to 10-12 percent drop in traffic.

A more positive environment is starting to emerge as the Centre for Asia pacific Aviation (CAPA) report suggests. According to CAPA, the airline industry is India is on the path of recovery as figures from the mid year 2010 have suggested. Better operating environment, with gradual upgrade of airspace and ground access development, would only help carriers achieve faster turnaround and higher aircraft utilization. The potential lies in the Indian Airlines Industry with CAPA predicting the industry having 1000 planes from 400 in the present and 4 times increase in traffic from the current trends. The performance of the industry is forecasted to accelerate and drive the industry to create positive value for the service providers as well as the customers.

环境分析——Environmental Analysis

An assessment of external macro environment can be carried out by analyzing the Political, Economic, Social & Technological factors. These factors are beyond a company or an industry's controls and sometimes can pose as threats. Following are the PEST analysis for the Indian Airline Industry.

政治因素——Political Factor

In India, Political interference has effects of all the major industries. The airline industry in general is本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。