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Regent Airways & Competitor Analysis

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Regent Airways & Competitor Analysis Regent Airways & competitor analysis Bangladesh Airline market Current market scenario •Bangladesh’s domestic and regional international markets are becoming competitive day by day as the country’s private airline sector continues to expand rapidly •There are now three privately owned airlines operating in Bangladesh with two more preparing to launch operations •Currently four airlines are operating in Bangladesh: 1.Bimaan Bangladesh 2.United Airways 3.Regent Airways 4.Novoair •BIMAAN is the largest but is still a relatively small carrier, operating 10 aircraft (all jets) to 19 international and three domestic destinations •UNITED AIRWAY’S is Bangladesh’s second largest carrier and the oldest of the active airlines in the private sector, having been established in 2006; Currently serves seven domestic and six international destinations with an in-service fleet of nine aircraft (five jets and four turboprops) •REGENT AIRWAYS and NOVOAIR are the two most recent new entrants •Regent Airways launched in late 2010 and added international services in mid-2013; It currently serves three domestic and four international destinations with a fleet of five aircraft (two jets and three turboprops) •Novoair launched in early 2013 and currently operates three regional jets to five domestic destinations. It recently secured approval to operate overseas routes and aims to launch international services by the end of 2014 Bangladesh fleet size by operator •Bimaan Bangladesh, United Airways, Regent Airways and Novoair are the only carriers in Bangladesh currently operating scheduled passenger services Bangladesh international capacity share (% of seats) by carrier •In the Bangladesh-Asia market , Bimaan competes with leading Asian full service carriers; •Bimaan is leading with 26% share •Malaysia Airlines is the 2nd largest full service carrier in the international Bangladesh market Air traffic in Bangladesh •Chittagong-Dhaka is particularly competitive with 31 weekly flights currently from Novoair, 26 from United and 24 from Regent •United primarily uses ATR 72s on the route (with some Dash 8-100 and MD- 82 frequencies), while Novoair uses 49-seat ERJ-145s and Regent uses 50- seat Dash 8-300s •As it is a business route frequency is critical •Novoair, Regent and United all have four to five flights on weekdays on an average with attractive timings in the early morning and evening •All three carriers have roughly similar frequency and capacity shares on the route •Biman has a much smaller share of the frequencies but accounts for nearly half of the total capacity as it mainly operates 777s on the route. Dhaka-Chittagong frequency share (% of weekly flights) by carrier •Dhaka-Chittagong has become an intensely competitive route Challenges •According to aviation experts, air traffic in Bangladesh has been increasing steadily on domestic routes in recent years with the growth in business and domestic tourism •Lack of proper policy support, hike in aviation fuel prices, wrong selection of aircraft, shortage of qualified professionals including pilots and technical manpower, high tax rates and airport charges are learnt to be the main reasons for many local airlines becoming financially sick •The participation of too many airlines in a small niche market intensifies the competition , leading to a price war •The operation of old aircraft not only involves a high operational and maintenance cost but also carries possibility of frequent breakdown Learning •While Bangladesh’s market has the potential is and growing sufficiently (at approximately 10% per annum) to support multiple private carriers, there is a risk some of the expansion could prove to be overambitious •There is room in the market for several carriers but only if most stick to relatively small niches, primarily domestic and the handful of short international routes where there is high demand •Five or six airlines is however likely to be too many, especially given the significant competition from foreign carriers on regional international routes •Biman would arguably be better off focusing on the international market, in particular medium and long-haul routes which are unlikely to see local competition Competitor analysis of brands BIMAAN BANGLADESH •Biman Bangladesh Airlines was established on 4rth January 1972 as Bangladesh’s national airline. •National flag carrier airline of Bangladesh. •Main hub is at Shahjalal International Airport in Dhaka & it also operates flights from its secondary hubs. •It has air service agreements with 42 countries & currently flies to 16 different countries. •The airline was owned & managed by the government of Bangladesh until 23rd July 2007, when it was transformed into the country’s largest public limited company by the Caretaker Government of Bangladesh. Advertisements •Ads are talking about discount offers during festive seasons Findings •It is the Bangladesh’s government owned airline •It is planning to expand in the near term •They are focusing on the domestic market for the time being •Bimaan is the largest but is still a relatively small carrier, operating 10 aircraft (all jets) to nineteen international and three domestic destinations •Biman for some time has been planning to acquire two 70-seat turboprops which it intends to use to resume services to more domestic destinations as well as add frequencies to Chittagong and Sylhet UNITED AIRWAYS BANGLADESH •Founded : 28th June, 2005 •Commenced operations: 10th July, 2007 •Hubs: Shahjalal International Airport (Dhaka) •Secondary Hubs: Shah Amanat International Airport (Chittagong) •Fleet size: 11 •Destinations: 15 •Company Slogan: Fly Your Own Airline UNITED AIRWAYS-INTERNATIONAL SCHEDULE UNITED AIRWAYS-DOMESTIC SCHEDULE Advertisements •All the ads talk about their offers and exclusive services Findings •United Airways is Bangladesh’s second largest carrier and the oldest of the active airlines in the private sector, having been established in 2006 •Currently serves seven domestic and six international destinations with an in-service fleet of nine aircraft (five jets and four turboprops) •United Airways has the largest domestic network as it also serves Rajshahi and Saidpur, each with one daily flight •It has also previously served Barisal and Ishwardi but its current schedule does not have any service to these domestic destinations •United Airways also launched Singapore in late 2013 but has since dropped the service •It has also dropped Dhaka-Kolkata but operates Chittagong- Kolkata, a route not served non-stop by any other carrier NOVOAIR •Founded: 2012 •Commenced operations: 9th January 2013 •Fleet size: 3 •Destinations: 5 •Company slogan: The Art of Aviation •Key people: Faiz Khan(Chairman & CEO) Mofizur Rahman(Managing Director) NOVOAIR-DOMESTIC SCHEDULE Advertisements •Ads are mostly talking about offers •Novoair has tried to differentiate its product by offering an all-jet schedule with leather seats, a high standard of service and a consistently reliable operation Findings •Novoair launched in early 2013 and currently operates three regional jets to five domestic destinations •It recently got approval to operate overseas routes and aims to launch international services by the end of 2014 •Novoair has also been looking at Kathmandu and Kolkata as possible destinations in its initial international network •Service to both destinations will likely be launched within the next few months. •Novoair is planning to join Biman on the Dhaka-Yangon route •Being the latest new entrant Novoair has tried to differentiate its product by offering an all-jet schedule with leather seats, a high standard of service and a consistently reliable operation •The market seems to have responded well to the Novoair proposition as the carrier has reported solid initial traffic figures and recently acquired its third ERJ-145 REGENT AIRWAYS •Founded: 2010 •Commenced operations: 10th Novembor,2010 •Hubs: Shahjalal International Airport(Dhaka) •Secondary Hubs: Shah Amanat International Airport(Chittagong) •Fleet Size: 5 •Destinations : 9 •Campaign Slogan: Every little thing counts International & Domestic •Parent company: HG Aviation Ltd •Headquarters: Siaam Tower,15,dhaka-mymensingh Highway,Sector 3,Uttara ,Dhaka1230 CE0: Dr. Abdul Momen Managing director: Mashruf Habib COO: Ashish Rai Choudhury Website: www.flyregent.com Seating configuration •The Bombardier Dash-8-Q300’s accomodates 50 passengers in an all economy layout. •The seating configuration is in a 2-2 layout, with all seats having a pitch of 32” •The Boing 737-700’s seats,126 passengers, with 12 business class and 14 economy class seats. •Business class is set out in 3-3 configuration with 33” seat pitch. Flight routes International flight: •Dhaka to Kualalumpur (Return) •Dhaka to Bangkok (Return) •Dhaka to Singapore (Return) •Dhaka to Kolkata (Return) •Chitagong to (Kolkata Return) •Dhaka to Bangkok via Chittagong (Return) Domestic flight: •Dhaka to Chittagong (Return) •Dhaka to Cox’s Bazaar (Return) Shared routes •United Airways Bangladesh (Shared route-10) •Biman Bangladesh Airlines (Shared route-8) •Jet Airways (Shared route-2) •Thai Airways International (Shared route-2) •Druk Air (Shared route-2) •Bangkok airways (Shared route-2) REGENT AIRWAYS-DOMESTIC SCHEDULE REGENT AIRWAYS-INTERNATIONAL SCHEDULE Advertisements •All the ads are about their offers and discounts on tickets as well as their exclusive service Advertisements •Ads talking about flight schedule and their exclusive service Findings • Regent launched in late 2010 and added international services
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