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Indian Logistics Industry Insight

Aviation

May 2007

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Disclaimer: All information contained in this report has been obtained from sources believed to be accurate by Cygnus Business Consulting & Research (Cygnus). While reasonable care has been taken in its preparation, Cygnus makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. The information contained herein may be changed without notice. All information should be considered solely as statements of opinion and Cygnus will not be liable for any loss incurred by users from any use of the publication or contents

airline companies.5 trillion in 2005. Logistics costs in India is estimated to be around 13% of the GDP.65%.5%) and Japan (10. investor consultants. 25% of the global logistics industry. market size.56m tonnes against 1. total air cargo traffic is estimated to be over 1.4m tonnes during 2005-06. In addition. Transport sector’s contribution to the GDP has been firming up over the last couple of years. mostly because of the growing economic activities in the country.2% to the country’s GDP at constant prices (1999-2000 prices). special chemicals and high-value pharmaceuticals. The report will be highly significant for industry analysts. Indian Logistics Industry Insight . overview of air transport system in India. air cargo traffic trends. demandsupply scenario. The report covers the overview of Indian logistics industry. India’s air cargo movements would grow at over CAGR of 11. and future outlook of the global as well as Indian air cargo industry. cost components. whereas international air cargo traffic has been moving at CAGR of 13% during the same period.80% from 2001-02 to 2006-07.5% from 2007-08 to 2011-12.5%). growth drivers. logistics companies and freight forwarders. Air transport sector contributes over 0. However. Riding high on export of gems and jewellery.SYNOPSIS The global logistics industry was valued at US$3. whereas US logistics industry size was around US$900 billion.Aviation No of Pages: 85 No of Tables: 19 2 © Cygnus Business Consulting & Research 2007 . banks and financial institutions. Domestic air cargo traffic has been growing at CAGR of 12. the report also includes profiles of four major players in the sector. India’s spending on logistics industry is much higher than the developed economies like the US (9. registering a growth rate of 14. According to the Planning Commission. which comes to around US$94 billion in 2005-06. During 2006-07. international air cargo traffic at all Indian airports has been growing rapidly. technology and innovation.

1. Air cargo market 4.6. Airport Infrastructure Status in India 4.1. Airport Authority of India and its Role 4. Overview 4.2. Air Deccan 4. 3.4. 1.2. Opportunities Galore. Jet Airways 4. AIR TRANSPORT SYSTEM IN INDIA 4.2.6. Reasons to outsource logistics functions 5.3. Fourth Party Logistics (4PL) Indian Logistics Industry Insight . HIGHLIGHTS 3.1.1.1.2. 7.2.1. 3. Requirements to become schedule Air Transport Operator 4.1. Function of 3PL 5.1. Introduction 5. Structure of Global Logistics Industry 3. LOGISTICS INDUSTRY STRUCTURE 3. Recent trends 5. 2.5. 6. Infrastructure Development – Boost to Logistics Industry 4.1. Airports 4. Carriers 4. 5.1. 5. Role of AAI 4.1. Performance of Top 46 Airports 4. Indian Logistics Industry Overview 3. State of 3PL in India 5. Cost Component of Indian Logistics Industry 3.3.2. 1. Characteristics of Indian Aviation Sector 4. 3PL Market Size 5. Indian Airlines & Air India 4.3. EXECUTIVE SUMMARY 2. Major International Airport Infrastructure Status 4.6.1. INTERMEDIARIES AND SUPPORT SERVICE PROVIDERS 5. Air Transport Sector and Indian GDP 4. Component of Global Logistics Cost 3.Aviation 3 © Cygnus Business Consulting & Research 2007 .3.1.1.2. 4. 4. Global Logistics Industry Overview 3.CONTENTS 1.1. 6.2.Indian Air Cargo Industry 4.2. Spending on Logistics in India 3. 2.

2.1.3. Financial Performance 8.3.1. TECHNOLOGY & INNOVATION 7.1 Market Size of Air Transport System in India 6.5. Business Strategies Indian Logistics Industry Insight .3. Communication/Navigation/Surveillance 7.2.1 Indian 8. Market Share 6. MARKET DYNAMICS 6.2. Business Profile 8.5.3. Clearing & forwarding agents 5. MAJOR PLAYERS 8.3.4.1. Growth Drivers 6.Aviation 4 © Cygnus Business Consulting & Research 2007 .1. Physical Performance of Indian 8. Air India 8.5 Liberalisation and De-regulation 7.5. Corporate Profile 8.3.4.4.3. Corporate Profile 8.4 Information Technology 6.1.3.2.2 Global Trade 6.1 Economic Growth 6. Air Traffic Management 7.3.1. Financial Performance 8.3.1 Overview of aviation industry 6. Warehousing 6. Electronic Data Interchange (EDI) 7. Business Profile 8. Business Strategies 8.2.2.1.1. Business Strategies 8.3.1.2. Financial Performance 8. Jet Airways 8.1.2.3.2 Demand Supply Scenario 6. 8.3.3 Infrastructure 6.2.3.1. 7. Global Air Cargo Forecast 6.3.4. Business Profile 8. Physical Performance of Air India 8.2. Advance Passenger Information System 8.2.1. Corporate Profile 8.2.

Guidelines for Foreign Equity Participations in the Domestic Air Transport Sector 11. FUTURE OUTLOOK 12. Business Strategies 9.4.1. Taxation 10.1.5.7.6. PPP in Airport Infrastructure 11.6.4. Aviation Growth through Growth in Air Cargo 11. SCHEMES & REGULATIONS 11.4.4. Indian Air Cargo Market Indian Logistics Industry Insight . COST STRUCTURE 9. Introduction 11. Financial Performance 8. Major Indian Airports Running Out of Capacity 10.4.2. Introduction 10.1. Requirements for becoming an Air Cargo Operator 11.4. Corporate Profile 8. High Fuel Cost 10. ISSUES AND CHALLENGES 10.3. Lack of Manpower 11.1.3. High Waiting Time and Congestion in Airports 10.1. Blue Dart 8. Initiative on Safety 11.7.2.1.8. Aviation Security 10.4. GOVERNMENT INITIATIVES. Business Profile 8.2.Aviation 5 © Cygnus Business Consulting & Research 2007 .2. Regulations 12. Air Transport System in India 10. Global Air Cargo Market 12.3.4.1. Cost Drivers 9.5.

IGI.LIST OF TABLES Table 1: Infrastructure Development – Boost to Logistics Industry Table 2: Terminal Areas and No.IGI. Delhi Table 4: Status of Domestic Terminal. of Counters. Delhi Table 3: Status of International Terminal.IGI.Aviation 6 © Cygnus Business Consulting & Research 2007 . Delhi Table 5: Mumbai Airport Cargo Handling Facilities Table 6: Netaji Subhash Chandra Bose International Airport Cargo Handling Facility Table 7: Cargo Traffic Handled at Top 46 Airports in India Table 8: Operational Fleet of Indian Airlines/Alliance Air Table 9: Operational Fleet of Air India Ltd Table 10: Total Cargo Traffic Trends Table 11: Global Air Cargo Forecast (2007-2009) Table 12: Physical Performance of Indian Table 13: Financial Highlights of Indian Table 14: Physical Performance of Air India Table 15: Financial Highlights of Air India Table 16: Financial Highlights of Jet Airways Table 17: Financial Highlights of Blue Dart Table 18: Comparative Airport Charges Table 19: Airport Development Programme in India Indian Logistics Industry Insight .