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DOMESTIC AVIATION

INDUSTRY

Group - IV



PRESENTED BY

Rupali M04

Milind Sarode M

Amarpreet Singh Ghura M02

Gurpreet Kour Lote M07

Vijeta Wagle M24

Santosh Singh M Sharif M10



Aviation Industry in India

“Once you get hooked on the airlinebusiness, it's worse than dope.”

“This is a nasty, rotten business.”

“Air transport is just a glorified busoperation.”




History :

Before Independence

Public Sector

Privatization

Open Sky Policy

Bilateral Treaties



Players

• Air Deccan

• Air-India Express

• Air India

• Air Sahara

• Go Air

• Indian Airlines

• IndiGo

• Jet Airways

•

Jet Lite • SpiceJet

• Paramount Airways

• Kingfisher

The Domestic Aviation Market Share

34%

20%

21%

8%

8%6%

2%

1%

Jet airways

Indian

Air Deccan

Air Sahara

Kingfisher

Spicejet

Goair

Others

http://www.zoomtra.com/airlines/air-deccan.html

http://www.zoomtra.com/airlines/airindiaexpress.html

http://www.zoomtra.com/airlines/air-india.html

http://www.zoomtra.com/airlines/air-sahara.html

http://www.zoomtra.com/airlines/go-air.html

http://www.zoomtra.com/airlines/indian.html

http://www.zoomtra.com/airlines/indigo.html

http://www.zoomtra.com/airlines/jet-airways.html

http://www.zoomtra.com/airlines/jet-lite.html

http://www.zoomtra.com/airlines/spicejet.html

http://www.zoomtra.com/airlines/paramount-airways.html










http://www.zoomtra.com/airlines/indigo.html

http://www.zoomtra.com/airlines/indian.html

http://www.zoomtra.com/airlines/go-air.html

http://www.zoomtra.com/airlines/air-sahara.html

http://www.zoomtra.com/airlines/air-india.html




http://www.zoomtra.com/airlines/air-deccan.html




Characteristics : Huge Potential

Under penetrated marketoTotal Passenger Traffic : 50 million

oPassenger trips per annum :India : 0.05

United states : 2.02

Untapped air cargo market



Medium Term Growth Forecast :

India GDP : 8.6 % per annum

WTTC Travel & Tourism : 8.8 %Over next 10 years

Domestic air travel : 12 % annually



Macro Environment Analysis

Main Factors

Political : Open Sky Policy

Deregulations in different spheres

Low entry barriers

FDI limits : 49 % for airlines100% for airports



Socio-cultural :

Growing middle class :1993-1999 : 39.5 m to 56.7 m

households

2005 : 300 m2010 : 400 m (Estimated)

Increase in leisure travel by tourists by 15 %in 2005

Foreign tourists in 2006 : 3.2 millionStatus symbol to travel in plane



Economical : Growing middle class income

Consistent GDP growth of more than

8% and projected rate in two digits

Hike in average salary 14%(highest)in the world

Tourism industry growth :8.8 %in2005



Technological : Modernization & Privatization of Airports

Modern Technology for efficient handling

of aircraft, passenger and cargo.Example : ILS, CAT-3

Developing Greenfield Airports withPrivate Sector

Example : Bangalore Airport CorporationLtd.



Other Factors :Demographic and Natural Environment

Changing pattern of consumers Highest percentage people of age group

20-25

Educational environment Shift towards family concept High energy cost



Low Cost Carriers

In the past five years, low-cost airlines have

been growing at more than 40 % a year globally



Business Model of Low CostCarriers

A single Passenger class A single type of airplane reducing training

and service cost No frills such as free food/drinks, lounges

etc. Emphasis on direct sale of ticket through

Internet avoiding fee and commission paidto travel agents.

Employees working in multiple roles Unbundling of ancillary charges to make

the Headline fare lower



Low Cost Carriers in India

Air Deccan

SpiceJet

IndiGo Airlines Go Air

Jetlite (Formerly known as Air

Sahara)



Airline Industry in India :Service Vs Price Graph

P R I C E

S

ERVICE



Current Trends :Consolidations All Around

Kingfisher-Air Deccan Deal

o Kingfisher buys out 26 % stake for Rs.550crore.

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



Present Scenario

Scheduled Domestic Operator 14

No. of Aircraft Possessed 334

No. of Non-scheduled Operator 65

No. of Aircraft Possessed 201

No. of Import Permit forAircraft Granted in 2007 72

No. of Aircraft Set to beImport in Next Five Year

496



Future Trends : PassengerForecast



Future Trends

The projection for Indian Aviation for2020 is estimated at:

o 400 million passengerso Including 180 million domesticpassengers

o 1,000 aircraft in the civil aviation sectorLikely to follow the footholds of

International Low Price Carriers e.g. Air

Arabia, Southwest Airlines etc.More emphasis will be on Arabian and

South-East Asian circuits.



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 morethan one daily service.



References/Acknowledgements Article of Mr. S Sharma, Oct 2007

The Civil Aviation Act, 2000 (Draft)

Business News from Hindustan Times Daily

Report on „Study of the Indian Aviation Industry‟ on www.foolonahill.com

www.findarticles.com

Wikipedia, the free content encyclopedia

Economic servey, 2008

All site of domestic aviation Player

Remote Access Aviation System – RAAS

http://www.foolonahill.com/





Thank You

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