OUTLINES  Current Scenario of Indian Aviation industry  Market Size  Air Traffic  Type of market  Airport Infrastructure  Aviation Policy  Effect on Indian Economy  Factors influencing growth rate  Aviation Sector Outlook .

16 designated international airports  With the liberalization of the Indian aviation sector aviation industry has undergone rapid transformation  Being primarily a government-owned industry. 2011  The Indian Aviation Industry is one of the fastest growing aviation industries in the world  454 airports and airstrips. Indian aviation now dominated by privately owned full-service airlines and low cost carriers  Private airlines account for around 75% share of domestic airline aviation market  Airline business growing at 27% per annum: Ministry of Civil Aviation .Current Scenario of Indian Aviation Industry  India completed 100 years in aviation sector on 18 February.

Market Size  India is currently the ninth largest aviation market in the world  India's domestic air traffic grew at a rate. which is the second highest after Brazil according to global figures for June 2011. compiled by IATA  Domestic traffic growth 25-30% annually and international traffic 15% in 2010 :CAPA .

Domestic Airlines           Air India Go Air Airlines Indigo Airlines Jagson Airline Jet Airways JetLite Kingfisher Airline Paramount Airways Spice Jet Airways MDLR Airlines .

Market share .

according to data released by the Directorate General Civil Aviation (DGCA) on 12 September 2011.3 per cent in July 2011  Passenger traffic has grown at 18 per cent year on year (y-o-y) basis and the year 2010 closed at 90 million passengers both domestic and international  In July 2011.Air Traffic  The country's domestic traffic grew by 14 per  Strong domestic passenger growth rate of 22. airlines in India handled 5 million domestic passengers. marking the 11th consecutive month of double-digit growth .

Passengers carried by scheduled domestic airlines .

Aircraft Class Statistics Class G H A U X M D B Number 61 300 1169 40 0 8 1 24 20 A B D G H M U X Aircraft Balloon Hang Glider Glider Helicopter Motor Glider Ultralight Experimental .

Aviation Sector: Some facts  In present scenario around 11 domestic airlines operating in India  Growth of airlines traffic in Aviation Industry in India is almost four times above international average  Aviation Industry in India holds around 69% of the total share of the airlines traffic in the region of South Asia .

Government open the gates for private entrants  Sensing a huge opportunity.Type of market  In 1953. all airlines merged into Indian Airlines or Air India  Monopoly perpetuated for next 40 years  Controlled by Directorate General of Civil Aviation  On 1 March 1994. a large number of players jumped into the fray  Now the market is Oligopoly .

upgraded at an estimate investment of US$ 4 billion over 2006-16 . 16 are designated international airports  97 airports owned and operated by Airport Authority of India (AAI)  India’s Civil Aviation Ministry aims 500 operational airports in next 12 years as per report by CAPA  Government aims to attract private investment in Aviation Infrastructure  Mumbai and Delhi airports already privatized.Airport Infrastructure  Of the 454 airports and airstrips in India.

5billion  35 other city airports proposed to be upgraded  Over next five years. developed using public-private partnership mode at an estimated cost of US$ 2. AAI planned massive investment of US$ 3.7 billion – 43% of which for Kolkata. built by private consortia at total investment of over US$ 800 million  A second Greenfield airport planned at Navi Mumbai. Chennai and Trivandrum and rest for other non metro airports .Continued…  A Greenfield airport already operational at Bangalore and Hyderabad.

FDI up to 100% permitted through automatic approvals  For existing airports. FDI up to 74% permitted through special permission from FIPB  Private developers allowed to set up captive airstrips and general airports 150 km away from existing airports  100% tax exemption for airport projects for a period of 10 years .Aviation Policies Many policies supporting the infrastructure are now in place  For Greenfield airports.

resulted in the entry of several new privately owned airlines and increased frequency/flights for international airlines .Continued…  49% FDI permissible under automatic route. but not by foreign airline companies. 100% equity ownership by non-resident Indians (NRI’s) is permitted  74% FDI permissible in cargo and non.scheduled airlines  The “Open Sky” policy of the Government and rapid air traffic growth.


Increased in no.How aviation industry is effecting India’s economy? Earlier there were just two airlines. Increased no. India’s improving economy Other factors: 1. In last few years economy has opened up. Increased no. India experienced growth rate of 8% per year Main factors which effect the Indian Economy are: 1. of incoming tourist and business enterprises . of domestic airlines 2. of business travelers to different countries 2. Low cost airlines 3. both state owned.

Known factors Influencing Growth Rate  Increase inward and outward tourism  Increased competition driven down prices and margins  Additional purchasing power due to rapidly rising real income amongst the middle class  Increased business trade due to rapidly growing economy and free trade agreements with neighboring countries  Favorable Government policies and tax reforms .

with 80 billion in new aircraft and US$ 30 billion in development of infrastructure  Air cargo traffic to grow at over 11.a. attracting huge investment  Passenger traffic is projected to grow at a compound annual growth rate (CAGR) of over 15% in next 5 years  The vision 2020 statement announced by Ministry of Civil Aviation. over next 5 years . aviation sector is likely to boom further in the coming years.Aviation Sector Outlook As per the Investment Commission of India. envisages creating infrastructure to handle 280 million passengers by 2020  Investment opportunities of US$ 110 billion envisaged up to 2020.4% p.

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