Case Study of Indian Aviation IndustryBy: Princy Arya

Overview of the Indian airline industry: The first commercial flight in India was

made on February 18, 1911, from Allahabad to Naini. The first low cost airline Air Deccan was

launched in 2003 with the main objective to increase its reach to a segment of the middle class largely untapped.

Cont The Airport Authority of India (AAI)

manages total 122 Airports in the country, which include 11 International Airports, 94 domestic airports and 28 civil enclaves. However, the airway is still a small part of all transportation services in India with an annual traffic volume of over $ 96 million passengers in 2007 compared to 6 billion passengers carried by rail in the same year.

Estimated domestic passenger segment

growth is at 12% per annum. Anticipated growth for International passenger segment is 7%. While the growth for International Cargo is likely to grow at a healthy rate of 12%.

Challenges facing the airline industry: After a period of intense growth, Indian

Airlines is now the challenges are to the industry high on the world including: i. Aviation turbine fuel (ATF) prices ii. Rising labor costs iii. Lack of confiscated skilled labor iv. Excess capacity

v. The burden of huge debts vi. Intense competition on prices. vii. Poor infrastructure. viii. Regional connectivity. ix. Completion.

Solutions:

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Solutions: Set up of new terminals. For ex.:

Terminal 3 at IGI airport, New Delhi. More Employment on Airports. Building of infrastructure as well as super structure. Launch of Low cost airlines.