PEST Analysis

Political- highly regulated in India, FDI will increase beyond 51% ,policy paralysis. Economical-India is one of the top emerging economy, great surge in income of Indian middle class, Easy financing due to liberalization, fluctuating exchange rates ,unpredictable fuel costs. Social-Demographically younger population, air travel more affordable now, due to globalization increase in international travel. Technological -accessibility of internet for Indian public, rate of Obsolescence ,more efficiency

Scenario planning
Scope-For next decade Major stake holders- Competitors, Government, passengers, travel agents, airline employees. Major Trends- Deregulation of Government rules, Increase in Indian middle class income Key uncertainties - Fluctuation of exchange rates, constant adaptation to new technology, changing oil prices Research needs-Changing consumer behavior, Strategies to hedge oil prices against fluctuations, Influence of macro-economic factors

Scenario planning
Developing scenarios Emergence of New foreign players due to increase in FDI beyond 51%, hence more completion from experienced players. Collaboration with foreign low cost carriers. Chances of making losses because of fast change in technology, higher attrition rate, weakening of rupee, increase in oil prices etc. i.e. unable to sustain low cost carriers in long term Huge growth potential due to rising income of population in India, rapid expansion of internet communication technology i.e. smart phones etc.