PROBLEMS FACED BY THE AVIATION INDUSTRY IN INDIA

CREW MEMBERS ON BOARD

Capt.

Aditya Nair
Capt.Kaanchi

Gupta
Capt.Koreev

Kapadia Doshi

Capt.Nidhi

Capt.Vidit Tambi

Indian Aviation Industry:

Fastest growing Aviation Industry Dec,1912-first domestic route AAI manages all airports Over 450 airports and 1091 aircrafts

DGCA control every aspect: 1. Granting flying licenses 2. Selecting pilots 3. Certifying aircrafts for flights Witnessed transformation after liberalization in the 1990s Increase in domestic

Some challenges faced by Aviation industry in INDIA

Employee shortage Regional connectivity Shortage of airport facilities Huge debt burden Poor infrastructure

1) Employee shortage
Shortage of trained and skilled manpower Cut-throat competition Wages driven to unsustainable levels Industry unable to retain talented employees

2) Regional connectivity
Less regional connectivity due to lack of airports

3) Shortage of airport facilities

No concern for the passengers Around Half of the Indian airports lack websites

4) Huge debt burden

Healthy profits and increasing passenger traffic saw airlines raising significant amount of capital from Financial Institutions and banks The three top airlines are now carrying a debt burden of approx. $ 8 billion Resorting equity capital will also be equally difficult during economic slowdown

5) Poor infrastructure
Projection for 2020:
100 million passengers Including 60 million domestic passengers Cargo in the range of 3.4 million tones per annum

Highly congested Limited ground & handling capacity Problems surrounding land acquisition

Suggestions
Allowing FDI investment could be an option Reducing fuel surcharges Special incentives for airlines that fly non- profitable sectors etc Reduce operating costs, banks should allow longer repayment period Modernization of existing airports & constructing Greenfield airports

THANK YOU !