AVIATION INDUSTRY

Overview
• India: One of the fastest growing aviation
industry
• 9th largest aviation market in world
• Airport Authority of India manages 128
airports in the country : 13 international
airports, 7 custom airports, 80 domestic
airports and 28 civil enclaves.
 Challenges For Aviation Industry

1. Employee shortage

2. Regional connectivity

3.Rising fuel prices

4.Declining yields

5. Gaps in infrastructure

6. Trunk routes

7. High input costs

 History
• Tata services to Tata airline and then to Air India
• Monopoly by Indian airlines or Air India till 1990
under Air corporation act
• 1991 – Open Skies Policy
• Jet Airways and Sahara Airlines first private airlines
• 2003-2004: Deccan airline started bye Gopinath
which later on merged with Kingfisher
• Jet Airways acquired Sahara (Jet Lite) and Air India
merged with Indian Airlines
 Players in Aviation Industry
The players in aviation industry can be
categorized in three groups:
 Public players : Indian Airlines

 Private players : Jet Airways, Kingfisher

Airlines, Spice Jet, Air Deccan

 Start up players : Omega Air, Magic Air,

Premier Star Air & MDLR Airlines.
Market share of airlines for the month
December 2010
6.4

13.1 25.4

Jet airways+Jet life

IndiGo
Kingfisher
Air India
17.1 Spicejet
Go Air
18.6

18.6
Top 3 Players
 Kingfisher

• Dr. Vijay Mallya is the Chairman and CEO of

Kingfisher Airlines.
• Kingfisher launched its airline services in May 2005.
 Jet Airways

• Naresh Goyal is the founder & chairman

• Started Indian commercial airline operations in
May 1993.
• In April 2007, they acquired Air Sahara.
 Air India
• State-owned, and administered as part of the National
Aviation Company of India Limited- which was created in 2007
to facilitate Air India's merger with Indian Airlines.
• Air India is the 16th largest airline in Asia, serving 25
destinations worldwide, andwith its affiliated carriers, serves
over 100 cities.
 Current status
• Employment created: 50 million jobs
• GDP contribution: 6%
• Foreign Exchange Earning :12 billion USD

2015 potential
• Employment created : 75 million
• GDP contribution : 8%
• Foreign Exchange Earning: 25 billion USD
• Civil aviation market will register more than 16
per cent CAGR (Compound Annual Growth
Rate) during 2010-2013
• In 10 years Indian market will be the third
largest aviation market after the US and China-
Civil Aviation Minister
• 18.9% increase in passengers carried by
domestic airlines
 Investment Policy

• FDI up to 100 per cent is allowed under the

automatic route for Greenfield projects.
• For existing projects, FDI up to 100 per cent is
allowed; while investment up to 74 per cent
under the automatic route and beyond 74 per
cent under the government route.
• AAI (airport Authority of India) plans to spend
around US$ 3.07 billion for developing,
upgrading and modernising metro and non-
metro
 Road ahead
• US$ 110 billion investment up to 2020 with US$ 80
billion towards new aircraft and US$ 30 billion
towards the development of airport infrastructure,
according to the Investment Commission of India.
• Largest deal in civil aviation history, Delhi-based
low-cost domestic carrier IndiGo has placed an
order for 180 aircraft with European-aircraft maker,
Airbus. The deal is valued at US$ 15.6 billion
• Lufthansa Cargo and GMR group have signed
an agreement to develop Rajiv Gandhi
International Airport as a South Asian cargo
hub
 OUTLOOK INDIA 2020……

 The growth of India’s aviation sector has the potential to absorb

up to US$120 billion of investment by 2020.

 However, we must close the gap between the demand for aviation
services and the ability of our aviation system to meet that demand.

 India must prepare a blueprint for the expansion of system

capacity whilst maintaining safety, security and the environment.

 India must develop a roadmap for infrastructure development

beyond 2010.
 BIBLIOGRPHY
• The Economic Times
• www.wttcii.org