The proposal outlines plans for Reliance Airways Limited, a new domestic passenger airline in India that will initially operate in 10 cities. The sources of funds will include equity shares, preference shares, debentures, government loans, and an unsecured loan from Reliance Industries. Reliance Airways aims to target customers who typically travel by train or economy flights by offering quality service at cheaper prices. It estimates needing 215 employees across roles like pilots, flight attendants, marketing, and finance.
3. INTRODUCTION
We are going to
start a new venture
that is RELIANCE
AIRWAYS LIMITED.
Reliance airways is
mainly going to
deal with
passenger airlines
which will be
conducted in only
10 cities of India
i.e. Domestic in
initial stages. The
10 destinations
are:-
1)DELHI
2)MUMBAI
3)KOLKATA
4)CHENNAI
5)BANGALORE
6)JAIPUR
7)SRINAGAR
8)MANGALORE
9)AHAMADABAD
10)AGRA
4. SOURCES OF FUNDS
Sources of funds will be as follows :-
Share capital
Equity shares of Rs. 200 crores
Preference shares of Rs. 100 crores
2 % Debentures of Rs. 200 crores
Long term loan from govt. of Rs. 300 crores
Unsecured loan from reliance industries of Rs. 200 crores
5. IDEA SCREENING
The customers in the target
market will get benefitted with
this types of services because
this type of services will be only
given by reliance i.e. Home
delivery of tickets at a very
cheaper price.
The size of the market will be
domestic only limited to 10 most
important destinations of India.
6. COMPETITORS-
35%
25%
29%
11%
CURRENT MARKET SHARE
Kingfisher Air India
Jet Airways Jet Lite
Totally if we analyze four
airlines like kingfisher, air
India, jet airways, and indigo
have 79.5% of all domestic
passengers in India. The
remaining 21.5%of passengers
were carried by other private
Indian airlines like spice, go air
and paramount. Competitor can
be any other airlines
7. CONTD…
So the major competitors in future will be kingfisher Airlines, jet
airways etc. but Reliance Airways is ready with its strategies and
lowest fares to kick off the competitors of the market.
This sector is technically feasible to reliance industries also as
reliance industries is a major producer of AVIATION
TURBINE FUEL which is used to fly a planes that is why reliance
can give the cheapest deals to its customers.
10. HUMAN RESOURCE REQUIREMENT
CEO
MARKETING
MANAGER
Sales manager
Sales
executives
10
Advertising
manager
Customer
relationship
manager
PRO
10
H R
MANAGER
Recruitment
manager
Training and
development
FINANCE
MANAGER
Accounts
officer
Auditor
AVIATION
MANAGER
Pilots
20
Flight
attendants
150
Flight
engineers
10
Total number of
manpower required
=215
11. MARKETING STRATEGIES
Reliance Airways will be targeting
those customers who generally
travel by trains (first class) and
economy class of airlines because
of the cheaper price of this class.
Reliance airways will provide them
quality services in cost efficient
manner.
12. CONT…
All the marketing process of reliance will be handled online with
a head office in Mumbai. This will be a click only organization i.e.
all the procedures will be handled online through internet and
telecom service.
Reliance Airways will provide customer with free home delivery
service through courier.
Reliance Airways will differentiate its services in terms of luxury
in a cheaper price and distribution channel of the tickets to the
customers.
So the marketing strategy of reliance Airways will be challenging
strategy for competitors.
13. The Financial Statements that will be prepared for reliance
airways will be
Profit and loss account
Balance sheet
Cash flow statement