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The Indian Airlines Industry

The Indian Airlines Industry

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Published by Siddharth

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Published by: Siddharth on Aug 01, 2009
Copyright:Attribution Non-commercial

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12/07/2009

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The Indian Airlines IndustryThe Indian Airlines Industry
 
 
The Rise & Fall of MaharajaThe Rise & Fall of Maharaja
Maharaja SyndromeMaharaja Syndrome
Air travel: an elitist activityAir travel: an elitist activity
Prohibitive cost of air travelProhibitive cost of air travel
Air Corporations Act, 1953Air Corporations Act, 1953
 –Air India nationalized in 1953Air India nationalized in 1953 –all airlines merged into either all airlines merged into either Indian Airlines or Air IndiaIndian Airlines or Air India –The Directorate General of CivilThe Directorate General of CivilAviation controlled every aspectAviation controlled every aspectof flyingof flying –Airports Authority of Airports Authority of administering every aspect of administering every aspect of air transport operation throughair transport operation throughthe Air Traffic Control.the Air Traffic Control.
Post Maharaja (Liberalization)Post Maharaja (Liberalization)
Open skies policy for domesticOpen skies policy for domesticplayers in 1991players in 1991
Air Corporation Act repealedAir Corporation Act repealed
Private airlines reintroducedPrivate airlines reintroduced
Partial open sky policy for Partial open sky policy for international players only ininternational players only inNovember 2004November 2004
Full cost carriers, low cost carriersFull cost carriers, low cost carriers(LCC), start-up airlines (total 21(LCC), start-up airlines (total 21today!!)today!!)
Nose- diving pricesNose- diving prices
Privatization of Delhi and MumbaiPrivatization of Delhi and Mumbaiairportsairports
 
 
Players 2006Players 2006
Taking Indians To PlacesTaking Indians To Places
Set up by J.R.D. TataSet up by J.R.D. Tata
Nationalised in 1953Nationalised in 1953
National flag carrier National flag carrier 
44 world-wide destinations44 world-wide destinations
Profitable in most years since itsProfitable in most years since itsinceptioninception
Net profit of Rs.97 m for 2005-06Net profit of Rs.97 m for 2005-06
Growth of almost 15% over theGrowth of almost 15% over theprevious year.previous year.
Began on 3 Dec 1993with twoBoeing 737-200 aircrafts asSahara Airlines
Initially services concentrated innorthern India
Rebranded as Air Sahara on 2October 2000.
Uncertainty over the airline's farecaused domestic markey share toslide from 11% in Jan 06 to 8.5%in April
“Regular” airline offering normaleconomy and business classseats.
300 flights, 43 Indian destinations
Indian market share 32%
Does not own its brand. Brandowned by Jetair Enterprises Ltd.a separate company substantiallyowned by Naresh Goyal
Prevents possible ‘hostile’takeover bid
State owned domestic airline
Formerly known as Indian Airlines
Company rebranded as Indian inDec 05 to revamp image inpreparation for an IPO
GoI’s plan to merge Air India andIndian into one giant airlineconsisting of 130-140 aircraft
Could take place anytime fromthe end 06 to mid 07

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