Civil Aviation

 Presented by


Chetan Shringarpure – Roll



No 8
Sharony Ray – Roll No 7
Agenda
 Introduction
 History
 Reform & Evolution
 Civil Aviation Policy Today
 Administrative & other bodies
 Major Players
 Growth of the Industry
 SWOT analysis
 Problems and prospects

Introduction
Pre-Independence history
Abrupt Nationalization

Liberalization


History
1912 : Civil Aviation in India Born
1932: JRD Tata launches India first

scheduled airline, Tata Airlines

1945: India second domestic airline,

Deccan Airways
1946: Air India Born

1953: Airlines Nationalized – Air

Corporation Act
1994: Air Corporation Act repealed


Reform and Evolution
 The repeal of the Air Corporation Act from 1 March 1994
 Six operators given status of scheduled operators on 1
February 1995
 Currently 11 international airports and 87 domestic airport
in the country with 30 civilian enclaves for defence
purposes.
 AAI plans to invest Rs 35,000 million for the construction
and upgradation of airports.
 Budgetary support of Rs 485.50 million was allocated to
AAI in 1996-97.
 In august 1996, in a major policy decision, the government
allowed the private sector to set up air cargo complexes
Civil Aviation Policy Today
 Boosting international trade and tourism

 Providing airport capacity ahead of demand

 Ensuring safe and secured aircraft

operations with the introduction of state-
of-art systems and technologies

 Smooth airport operations with private

sector participation in terms of skill and
capital
 Provide multi-nodal linkages
Administrative Bodies
 Ministry of Civil Aviation – Nodal Authority

 Director General of Civil Aviation – Principal
Regulatory Body
 Bureau of Civil Aviation Security – Security standards
 Chief Commissioner of Railway Safety – Reports to
MCA

PSUs under MCA & Autonomous Bodies
 National Aviation Company of India Ltd.
 Airports Authority of India
 Pawan Hans Helicopters Ltd.
 Alliance Air – Subsidiary of Indian Airlines
Ltd.
 Hotel Corporation of India ( Subsidiary of Air
India Ltd. )

 Autonomous Body - Indira Gandhi Rashtriya Uran
Akademi
Major Players - Passenger

Market Share of Scheduled Airlines 2009

Source : DGCA Market Report 2009
Key Players - Cargo
 NACIL
 Deccan Cargo
 Spicejet
 Indigo
 Go Air
 Flyington - Hyderabad
 Aryan Cargo Express – Delhi
 Avicore Aviation - Mumbai
GROWTH OF DOMESTIC PASSENGER TRAFFIC

25
PAX. CARRIED (MILLIONS)

18.17
20

14.54
13.32

13.32
12.81
15


12.23
11.98

11.91

11.86
11.64
  
 
10.5

  

8.84
8.47

10
8.06

 

5

0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

YEAR
PASSENGERS CARRIED BY SCHEDULED
DOMESTIC AIRLINES
In 2009, passengers carried by domestic airlines were 445.13
lakhs as against 412.71 lakhs in the year – growth of +

7.86%.

Source : DGCA Report 2009

Air India

Source : DGCA Report 2009

Problems with Air India
 Skills shortage
 Overcapacity
 Mismanagement & Extravagance
 Unprecedented liquidity crunch
 High oil prices
 Widespread economic gloom
 Declining passenger traffic
 Learnt its lessons ? Unlikely – Fleet
Expansion !
FDI in Aviation Sector
 Airports – 100% FDI allowed

 Air Transport :
 Scheduled – 49% , 100% if NRI
 Non-Scheduled – 74% , 100% if NRI

 Other Services
 Ground Handling – 74% , 100% if NRI
 Flight training institutes – 100%

SWOT Analysis
STRENGTHS WEAKNESS
Liberal Environment Airport Infrastructure
Modern Fleet
Congestion on Ground
High Quality

Economic Growth National Carrier problems

Political Stability
Deep pockets

High Cost structure

Shortage of skilled labour

OPPORTUNITIES THREATS
Air Cargo Market Rising Costs, ATF

Increasing passenger Security threats

traffic

Upcoming Projects
 Modernization – Kolkata, Delhi, Mumbai,
Chennai
New Airports –

 Goa – Mopa Airport

 Navi Mumbai – International Airport
 Kerala – Kannur Airport
 Karnataka – Bijapur, Shimoga,
Hassan, Gulbarga



Prospects
 IATA, estimates, reckons India to be a
driving force
 World's civil aviation business globally
expected to grow from US$ 5.1 billion to
US$ 5.6 billion in 2008.
 Cargo component is promising
 FDI investment is expected to rise
Q&A


THANK YOU !