.INTRODUCTION  18% growth rate  Fastest growing industry  75% of domestic market is in hands of private players  AAI manages 126 airports. 89 domestic airports and 26 civil enclaves at Defence airfields. which include 11 international airports.

RECESSION ON AVIATION SECTOR  Recession was not expected to hit INDIA initially as it was supposed to be a decoupled market and the aviation sector was doing good therefore nobody expected it to see a downturn. .

.  5 consecutive months of decreasing demand  Fall by 5.BUT IT DID EFFECT LETS SEE WHY???  Appreciation in foreign currency value.6%  Increase in breakeven targets  Reduction in number of first time travelers.


]  Reduction in first time travelers  Reduction in tourism  Increase in breakeven target .Negative effects of recession  Layoffs  Decrease in demand  Losses[Kingfisher’s net losses soared by 48% to Rs 626 crore in the December 2008 quarter. Jet Airways incurred net losses of Rs 214crore and Spice jet’s net losses stood at Rs 18 crore in the same quarter.

Prioritizes  Costs  Infrastructure  Standards .

Future Outlook  One of the fastest growing sectors.1 billion to $5.  India to be a driving force behind the world’s civil aviation business that is globally expected to grow from $5. Indian airports are estimated to handle more than 200 million passengers. .6 billion this year-IATA.  By 2020.

to exceed 2.a.4 per cent p.  Air cargo traffic will grow at over 11.  Vision 2020-creating infrastructure to handle 280 million passengers by 2020.  Investment opportunities of US$ 110 billion envisaged up to 2020. .8 million tonnes by 2010.Aviation Sector Outlook  Passenger traffic is projected to grow at a CAGR of over 15 per cent in the next 5 years.

 ETA Star will invest over US$ 1 billion in booming sectors such as ports and aviation.  GMR Infrastructure is looking to tap the growing corporate jet market in India.  The government plans to invest US$ 9 billion by 2010 to develop airports. which is expected to rise from the existing 150-190 to over 500 in the next four years with investment plans to the tune of US$ 151 million.Major Investments  Richard Branson has sought permission to start a domestic airline in India. .

. For existing airports. 49 per cent FDI is permissible in domestic airlines. 74 per cent FDI is permissible in cargo and nonscheduled airlines.100 % equity ownership by Non-Resident Indians (NRIs) is permitted. FDI up to 74 per cent is permitted 100 per cent tax exemption for airport projects for a period of 10 years.Aviation Policy  For Greenfield airports. FDI up to 100 per cent is     permitted.

Ravi Walia. Rishi Talesra . Raju Mishra. Ronald Dominic Anthony.Mayank Bhartia .