Civil Aviation

Presented by

Chetan Shringarpure – Roll No 8 Sharony Ray – Roll No 7

Agenda
        

Introduction History Reform & Evolution Civil Aviation Policy Today Administrative & other bodies Major Players Growth of the Industry SWOT analysis Problems and prospects

Introduction
Pre-Independence history Abrupt Nationalization Liberalization
 

History
1912 : Civil Aviation in India Born 1932: JRD Tata launches India first scheduled airline, Tata Airlines 1945: India second domestic airline, Deccan Airways 1946: Air India Born 1953: Airlines Nationalized – Air Corporation Act 1994: Air Corporation Act repealed
  

Reform and Evolution
  The repeal of the Air Corporation Act from 1 March 1994 Six operators given status of scheduled operators on 1 February 1995  Currently 11 international airports and 87 domestic airport in the country with 30 civilian enclaves for defence purposes.  AAI plans to invest Rs 35,000 million for the construction and upgradation of airports.  Budgetary support of Rs 485.50 million was allocated to AAI in 1996-97.  In august 1996, in a major policy decision, the government allowed the private sector to set up air cargo complexes

Civil Aviation Policy Today
 Boosting international trade and tourism  Providing airport capacity ahead of demand  Ensuring safe and secured aircraft operations with the introduction of stateof-art systems and technologies  Smooth airport operations with private sector participation in terms of skill and capital  Provide multi-nodal linkages

Administrative Bodies

Ministry of Civil Aviation – Nodal Authority

  Director General of Civil Aviation – Principal Regulatory Body  Bureau of Civil Aviation Security – Security standards  Chief Commissioner of Railway Safety – Reports to MCA

PSUs under MCA & Autonomous Bodies
National Aviation Company of India Ltd. Airports Authority of India Pawan Hans Helicopters Ltd. Alliance Air – Subsidiary of Indian Airlines Ltd.  Hotel Corporation of India ( Subsidiary of Air India Ltd. )     
 Autonomous Body - Indira Gandhi Rashtriya Uran Akademi

Major Players - Passenger

Market Share of Scheduled Airlines 2009
Source : DGCA Market Report 2009

Key Players - Cargo
        NACIL Deccan Cargo Spicejet Indigo Go Air Flyington - Hyderabad Aryan Cargo Express – Delhi Avicore Aviation - Mumbai

GROWTH OF DOMESTIC PASSENGER TRAFFIC
25

PAX. CARRIED (MILLIONS)

20

13.32

11.98

11.91

11.64

11.86

12.23

15

12.81

13.32

10.5

8.06

10

8.47

5

0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

8.84

YEAR

14.54

18.17

PASSENGERS CARRIED BY SCHEDULED DOMESTIC AIRLINES
In 2009, passengers carried by domestic airlines were 445.13 lakhs as against 412.71 lakhs in the year – growth of + 7.86%.

Source : DGCA Report 2009

Air India

Source : DGCA Report 2009

Problems with Air India
        Skills shortage Overcapacity Mismanagement & Extravagance Unprecedented liquidity crunch High oil prices Widespread economic gloom Declining passenger traffic Learnt its lessons ? Unlikely – Fleet Expansion !

FDI in Aviation Sector
 Airports – 100% FDI allowed   Air Transport :
  Scheduled – 49% , 100% if NRI Non-Scheduled – 74% , 100% if NRI

  Other Services
  Ground Handling – 74% , 100% if NRI Flight training institutes – 100%

SWOT Analysis
STRENGTHS

Liberal Environment Modern Fleet High Quality Economic Growth Political Stability

WEAKNESS Airport Infrastructure Congestion on Ground National Carrier problems Deep pockets High Cost structure Shortage of skilled labour THREATS Rising Costs, ATF Security threats

OPPORTUNITIES Air Cargo Market Increasing passenger traffic

Upcoming Projects
Modernization – Kolkata, Delhi, Mumbai, Chennai New Airports –  Goa – Mopa Airport  Navi Mumbai – International Airport  Kerala – Kannur Airport  Karnataka – Bijapur, Shimoga, Hassan, Gulbarga
  

Prospects
 IATA, estimates, reckons India to be a driving force  World's civil aviation business globally expected to grow from US$ 5.1 billion to US$ 5.6 billion in 2008.  Cargo component is promising  FDI investment is expected to rise

Q&A

THANK YOU !