AVIATION SECTOR

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.

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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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