Aviation

Industry Breakdown
 Overview
In FY20, 341.05 million passengers were
travelling within India, representing a
CAGR of 11.13% from FY16 to FY20.
According to projected air passenger
numbers, the civil aviation market will
rank third globally by 2024.
India will have 153 operational airports
by 2020, and the aviation sector will
contribute about $72 billion to GDP.
 Overview
By 2040, GOI intends to increase the
number of operational airports from 153
to 190–200 to handle the increasing air
traffic.
The 125 airports owned by the Airport
Authority of India account for 78% of
domestic and 22% of international
passenger traffic.
For the month of January 2020, there
were roughly 0.62 complaints per
10,000 passengers.
 classification
(BASED ON TRANSPORT)

Scheduled Non-Scheduled Air Cargo

Air Transport Air Transport Services

Domestic & Charter & Transportation

Int. Airlines AirTaxi Operations of Cargo & Mail
 value chain

Inbound Operations
Logistics

Supply chain,
Ticket Counter
Selection of route,
Operations, Gate
Passenger service
Operations, Aircraft
system, Flight crew
Operations,
scheduling,
Baggage Handling,
Facilities Planning,
Ticket Offices
Fue
 value chain

Outbound Marketing &

Logistics Sales

Baggage System, Frequent Flyer

Flight Connections, Programs, Travel
Rental Cars, Agent Programs,
Passenger Hotel Promotions and
reservation systems Advertising
 value chain

Services

Feedback,
Complaint
Redressal, Lost
Baggage Service,
Baggage Tracking
System
 Business Model
CLASSIFICATION
Low-Cost Carrier (LCC)
Reduces overhead to provide the
most affordable tickets.
Although LLCs typically have
low ticket prices, they shouldn't
be confused with FSC economy
class tickets.
LCCs are "low-cost" because of
the way they conduct
business.LCCs frequently use
secondary airports farther from
their cities than big, expensive
ones.
Full-Service Carrier (FSC)
Although everything is
supposedly included in the
flat ticket price charged by
full-service airlines, there are
some instances where this isn't
quite the case.
It is a portfolio approach to
generating revenue that is
intended to safeguard the
airline if one area of its
operations underperforms
over time.
 revenue
Streams
Passenger Ticket Sales

On-board passenger services like

meals

Cargo and freight charges

Off-board services like seat

booking
Cost Drivers
Aircraft maintenance and
purchase

On ground Cost of handling

passengers, cargo and aircraft.

Labour and fuel cost

Airport charges

Advertising & Selling expenses

 MAJOR
Players
Major Players

Major
Player

Market 48% 17% 12% 7% 10%

Share
 growth
drivers
By 2026, the Government of India (GOI)
intends to invest US$1.83 billion in airport
infrastructure development and aviation
navigation services.
Investment in the Indian aviation sector is
anticipated to total Rs. 35,000 crore (US$
4.99 billion) over the following four years.
The Regional Connectivity Scheme (RCS)
will improve air accessibility to NE states
and smaller cities.
 growth
drivers
In the upcoming years, growing
disposable income will support increased
passenger traffic.
Large potential for growth in penetration
among the expanding middle class
India has a lower than 3% air travel
penetration rate, with 0.1 trips per person
annually compared to 2 in the US.
 Government
Initiatives
100% FDI is permitted through an
automatic route in MRO for maintenance
and repair organisations.

On components or parts used in aircraft

production by government-run
departments under the Ministry of
Defence, the government reduced the
customs duty from 2.5% to 0%.
 Government
Initiatives
To encourage MRO units to establish
facilities at its airports, the Airport
Authority of India intends to abolish
royalties and offer significant lease rent
discounts.

100% FDI is permitted in new construction

and renovation projects for airports.
 Emerging
Trends
A rise in regional flights that are shorter
and more affordable will enable quicker
and more efficient door-to-door
transportation of people and goods.
Strive for carbon neutrality by utilising
sustainable aviation fuel (SAF) and carbon
offset programmes.
The concept of using flying taxis to
transport passengers to terminals quickly
and conveniently while avoiding traffic and
congestion on the roads.
 Emerging
Trends
To digitise the experience and keep the
passengers current, there is seamless
inflight connectivity with wifi at 40.000
feet.
To recruit young people to work in the
aviation maintenance industry, personal
training should be made available to
inexperienced mechanics.
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