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Airlines - Belts Tightened, Nowhere to Fly

Airlines - Belts Tightened, Nowhere to Fly

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Published by ankit_85

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Categories:Types, Research
Published by: ankit_85 on Nov 18, 2010
Copyright:Attribution Non-commercial


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Presented By: Ankit Agarwal (01) Disha Dahiya(06) Piyush Deora(07) M a d a n Pa r m a r ( 3 1 ) Vinay Pingle (32) Ka m a l P u r o h i t ( 3 4 )

History of Indian Airline Industry
1953 1986 1994 2003 The Monopoly Era Air Taxi Operators Opening up of the Aviation Sector Emergence of a new Indian Airline Industry

Take Off«.. Expected«..
Indian Aviation Industry to grow at 20-35% per year 80 million passengers by 2020. India·s air traffic expected to rise by 5 million annually. Indian carriers fleet size to reach 236 (domestic) and 428 (international) by 2019.

The Ground Realities«
200 aircrafts in operation, average 12 on ground due to pilot shortages... Indian Aviation Industry accounted for 2% of global traffic but 17% of global losses in 2008. $8 billion cumulative debt of the top 3 airlines of India. The total air passenger traffic in April 2009 has shown a YoY decrease of 10.7% Formation of Federation of Indian Airlines (FIA), pilots wanting to form ´Labour Unionsµ

The Ground Realities« contd«
Indian Airlines reluctant to accept their order of 400 planes for $37 million made in 2006. The stocks prices of airline industries are on a downward spiral. Low cost airlines looking to sell stake, cut jobs and have put all expansion plans on hold. Director of a prominent airline calling his pilots ´Terroristsµ. Kingfisher has reported its 10th straight quarterly loss for April-June 2009 worth $48 million.

Selected countries¶ GDP per capita^ and propensity to travel* by air

*Flights per capita (µ000), Aug-2009 ^ GDP at purchasing power parity (PPP), per capita: 2008

Major Hurdles«
Oil Price ² ATF price Regulatory Risks Infrastructure constraints Government Policies Poor scheduling of flights Low Cost Carriers (LCC)

Major Hurdles«
Barriers to Entry Growth of Indian Railways Regionalization. High Operational Cost. Shortage of skilled man power.

Is there still hope«????


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