Presentation On Contemporary

Issues OnINDIAN AVIATION INDUSTRY

Submitted to: Submitted by:Mrs. Alka swami Suman Joshi

Overview

The aviation industry in India is one of those sectors that saw a constant pace of growth among the other industries in the world over the past many years.

The open sky policy of the government has helped a lot of overseas players entering the aviation market in India. From then, it has only been growing in terms of players and the number of aircrafts. At present, private airlines account for around 75% portion of the domestic aviation market.

History

Indian Aviation Industry is one of the fastest growing airline industries in the world.

The history of Indian Aviation Industry started in December 1912 with its first domestic air route between Karachi and Delhi.

It was opened by the Indian Air Services in collaboration with the UK based Imperial Airways as an extension of London-Karachi flight of the Imperial Airways. Tata Sons Ltd., the first Indian airline, started a regular airmail service between Karachi and Madras three years later without any backing from the Indian government.

INTRODUCTION

In 1990s, aviation industry in India saw some important changes. The Air Corporations Act was abolished to end the monopoly of the public sector and private airlines were reintroduced.

With the liberalization of the Indian aviation sector, the industry has witnessed a transformation with the entry of the privately owned full service airlines and low cost carriers. In 2006, the private carriers accounted for around 75% share of the domestic aviation market.

Size of the Industry: There are about 450 airports and 1091

registered aircrafts in India Today. Geographical distribution: Mumbai, Kolkata, Hyderabad, Delhi, Pune,

Bangalore, Chennai. Output per annum: Growth rate of 18% per annum

Increasing liberalization and deregulation has led to an increase in the number of private players. There are three types of aviation industry comprise players:

Full cost carriers Low cost carriers (LCC) Other start-up airlines

Market share

Airlines in India % share in market

Kingfisher Airlines 19

Indigo 18.7

Jet Airways 18

Air India 15.8

Spicejet 13.8

JetLite 8.1

Go Air 6.6

Medium Term Growth Forecast :

India GDP : 8.6 % per annum

WTTC Travel & Tourism : 8.8 %Over next 10 years

Domestic air travel : 12 % annually

Players

Air DeccanAir-India ExpressAir IndiaAir Sahara/ jet liteGo AirIndian AirlinesIndiGoJet AirwaysSpiceJetParamount AirwaysKingfisher

Passenger airlines – The players

Indian Airlines  Indian Airlines was founded in 1953. Today, together

with its fully owned subsidiary Alliance Air, it is one of the largest regional airline systems in Asia with a fleet of 62 aircraft(4 wide bodied Airbus A300s, 41 fly-by-wire Airbus A320s, 11 Boeing 737s, 2 Dornier D-228 aircraft and 4 ATR-42).

Air Sahara [jetlite]

Now air sahara known as jetlite Air Sahara has established itself as one of the leading

players in the Indian Aviation industry. Air Sahara is part of the multi-crore Sahara India Pariwar. Sahara India Pariwar has interests in Public Deposit Mobilization, Media & Entertainment, Housing & Infrastructure, Tourism, Consumer Products and Information Technology. Starting on a modest scale and a capital of only Rs.2000 in 1978, Sahara India Pariwar has traversed a long way to become an icon in Indian entrepreneurship.

Jet Airways

In May 1974, Naresh Goyal founded Jetair (Private) Limited with the objective of providing Sales and Marketing representation to foreign airlines in India.

Air Deccan

Come SIMPLIFLY With Us… Market Share : 21.2 % Air Deccan is a unit of Deccan Aviation

Private Limited, India's largest private heli-charter company. Formed in 1995, Deccan Aviation Private Limited has carved a niche for itself in the Indian aviation scene with its reputation for providing speedy and reliable heli-services for company charters, tourism, medical evacuation, off-shore logistics and a host of other services

Kingfisher

Kingfisher Airlines is an airline based in Bangalore, India. It is a major Indian luxury airline operating an extensive network to 34 destinations, with plans for regional and long-haul international services. Its main bases are Bangalore International Airport, Bangalore Chhatrapati Shivaji International Airport, Mumbai and Indira Gandhi International Airport, Delhi, with a hub at Sardar Vallabhbhai Patel International Airport, Ahmedabad

Best international

airports of india

Hyderabad's Rajiv Gandhi International

Airport has been ranked first ranking of the world best airport in the world. The Hyderabad International Airport - being managed by a public-private joint venture of the GMR Group.

Delhi's Indira Gandhi International Airport the fourth in an international ranking of the best airports in the world. Delhi's Indira Gandhi International (IGI) Airport has been handling the maximum number of flight movements per day.

In September 2008, the airport inaugurated a 4.43 kilometre-long runway. Indira Gandhi International Airport (IGIA) was conferred the fourth best airport award in the world (in the 15-25 million category) and 'Best Improved Airport' in the Asia Pacific Region by Airport Council International.

Current trends

Current Trends :Consolidations All Around

Kingfisher-Air Deccan Dealo Kingfisher buys out 26 % stake for Rs.550

crore.o They have combined Market share of 33%o They are second biggest player after Jet

Sahara deal

Jet airways and Air Sahara mergero Air Sahara name changed to JetLite

Some Issues In Industry are…

Security Issue :- This is biggest issue in modern aviation

industry. e.g.-terrorism and crime during air travel.

Plan hijack etc are very important issue. Small town girls can get jobs easily as a air

hostess. Now days one change is that they reduce

facilities. Before some time they serve food water and so many facility during the travel now days they don’t provide such facility to customer

Jobs in aviation industryThe boom in aviation sector is likely to

generated nearly 2.5 lakh jobs by the year 2014.

The study says the civil aviation sector is also set to become a rs55000 crore industry by the same time.

Issue

1 held in fake pilot licence scam New Delhi: One more pilot was arrested here

for getting a licence on the basis of forged documents, Delhi Police said on Friday. Saif Misbah was arrested from Mayapuri area in south Delhi on Thursday after Directorate General of Civil Aviation (DGCA) forwarded three new names to police in the scam.

During the interrogation, Misbah admitted that he used forged marksheets to obtain a commercial pilot licence.

Delhi Police have so far arrested 12 people in the fake pilot licence scam. Two pilots have been arrested by Rajasthan Police. 16-4-11

On the basis of strong market fundamentals, it is anticipated that the civil aviation market will register more than 16 per cent Compound Annual Growth Rate (CAGR) during 2010-2013.

India is expected to be the fastest growing civil aviation market in the world by 2020 with about 420 million passengers being handled by the Indian airport system, according to the Economic Survey 2010-11.

The number of passengers carried by the domestic airlines during January–February 2011 was 9.51 million as against 7.95 million in the corresponding period in 2010, thereby registering a growth of 19.6 per cent, according to the latest data released by the Directorate General of Civil Aviation (DGCA).

Future Trends The projection for Indian Aviation for 2020 is

estimated at:400 million passengers Including 180 million domestic passengers 1,000 aircraft in the civil aviation sector

More emphasis will be on Arabian and South-East Asian circuits.

Likely to follow the footholds of International Low Price Carriers e.g. Air Arabia, Southwest Airlines etc.

Business Model of Low Cost CarriersA single Passenger classA single type of airplane reducing and

service cost No frills such as free food/drinks,

lounges etc.Emphasis on direct sale of ticket through

Internet avoiding fee and commission paid to travel agents.

Employees working in multiple rolesUnbundling of ancillary charges to make

the Headline fare lower

Low Cost Carriers in IndiaAir DeccanSpiceJet IndiGo AirlinesGo Air Jetlite (Formerly known as Air Sahara)

Airline Industry in India : Service Vs Price Graph

P R I C E

SERVICE

Present Scenario

Scheduled Domestic OperatorScheduled Domestic Operator 1414

No. of Aircraft Possessed No. of Aircraft Possessed 334334

No. of Non-scheduled No. of Non-scheduled OperatorOperator

6565

No. of Aircraft Possessed No. of Aircraft Possessed 201201

No. of Import Permit for No. of Import Permit for Aircraft Granted in 2007Aircraft Granted in 2007

7272

No. of Aircraft Set to be No. of Aircraft Set to be Import in Next Five YearImport in Next Five Year

496496

Future Trends : Proposed Addition

Challenges Constraints :

Infrastructure constraints Shortage of airport facilities Parking bays Air traffic control facilities Takeoff and landing slots. Less than 100 airports having more than one

daily service.