DEMAND AND SUPPLY IN AVIATION INDUSTRY

• The civil aviation industry in India has emerged as one of the fastest growing
industries in the country during the last three years.

• India is expected to become the world’s largest domestic civil aviation market in
the next 10 to 15 years.

•India is also expected to displace the UK to become the third largest air
passenger market by 2025.
DETERMINANTS OF DEMAND
• Income: when country experiences growth in economy, the average income of
citizens also increases. Air ticket Normal good there by demand increases.

• Price of related goods: fuel price has a direct impact to the demand of ticket.
Complement relationship. Also depends on condition of economy.

• Number of passengers: The more the passengers the more profit for the airline
firm.
 DETERMINANTS OF SUPPLY
• Technology: improved technology can shift the supply curve to the right. Looking
forward for new technologies in fuel conservation.

• Weather: Snowfall, rain etc disrupts take-off and landing of aircraft. Not
controllable by humans.
• Expectations on future price: air ticket price higher profits , reduce or maintain
the number of flights now.