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    Industry Analysis - Airlines Industry Analysis - Airlines Presentation Transcript

    • INDUSTRY ANALYSIS: Airlines Submitted by: Arunachalam Ramanathan (B11010) SumedhaDutta (B11047)
    • AGENDA• Timeline - Airline Industry• Need Set• List of Operational Airlines• Macro Environmental Factors• Porter’s Five Forces• Growth in India• Segments in Indian Airline Industry• Capacity vs Demand• Cost Structure• Recent Events• Regulations• Critical Success Factors• Dynamics of Industry• Analysis of Players – Jet Airways – SpiceJet – Kingfisher Airlines• Investment Requirement• Future Outlook
    • Timeline – Airline IndustryYear Milestones<1953 Nine Airlines existed including Indian Airlines & Air India1953 Nationalization of all private airlines through Air Corporations Act;1986 Private players permitted to operate as air taxi operators1994 Air Corporation act repealed; Private players can operate schedule services1995 Jet, Sahara, Modiluft, Damania, East West granted scheduled carrier status1997 4 out of 6 operators shut down; Jet & Sahara continue2001 Aviation Turbine Fuel (ATF) prices decontrolled2003 Air Deccan starts operations as India’s first LCC2005 Kingfisher, SpiceJet, Indigo, Go Air, Paramount start operations2007 Industry consolidates; Jet acquired Sahara; Kingfisher acquired Air Deccan
    • Need Set• Need to travel in an airline: – Primary Need: To meet another person/group (Communication) – Secondary Need: Transportation – Tertiary Need: Faster means to travelCOMPETITION:Direct Competitors:• Railways• Bus• CarsGeneric Competitors:• Video Call Services
    • List of Operational AirlinesStatus : Scheduled Airline Call Sign Commenced Operations Air India AIRINDIA October 1932(as Tata Airlines) Air India Express EXPRESS INDIA April 2005 Air India Regional ALLIED 1996(as Alliance Air) Air Kerala — April 2013(Planned) GoAir GOAIR June 2004 IndiGo IFLY August 2006 Kingfisher Airlines* KINGFISHER May 2005 Jagson Airlines JAGSON November 1991 Jet Airways JET AIRWAYS May 1993 SpiceJet SPICEJET May 2005
    • List of Operational Airlines Status : Non-Scheduled Airline Call Sign Commenced OperationsAir Mantra MANTRA July 2012Air Odisha — November 2012Club One Air — August 2005Chhattisgarh Air Link — 2012Deccan Charters DECCAN 1997Deccan Shuttles DECCAN 2012Invision Air — March 2011TajAir — November 1993 (as Megapode)Ventura Airconnect AIRCONNECT July 2011
    • Macro Environmental Factors Airline Industry is highly dependent on the following factors: Factors Outcome Impact on AirlinesIncrease in crude oil Increases Aviation Turbine Fuel (ATF) • Increase in fares leads to lowprices prices (40% of the fare) demand • If fares are fixed, then it affects profits.Implementation of • New Entrants (Joint Ventures) • Increases competition in LCCFDI in Aviation • Mergers with International players segment • Increases operational efficiency • Price War • Reduces operating costsIncrease in fares of • Middle Class segment will prefer • Increases profits as airlinesAC and First Class airlines as it takes less time to travel will travel with full capacitytickets in RailwaysRecession: • People will reduce their frequency of • Decreases profitsIndian Airline travel or will prefer low-priced • Incurs huge expenses asIndustry Growth Rate transportation mediums like Railways the flights will be= 1.8 times GDP etc. grounded • Low demand
    • Porter’s Five ForcesThreat of New Entrant Saturated Industry hence there is hardly any space for a newcomer High cost of entry High State Tax levied on Airline Transport Fuel (ATF) High cost of buying and leasing aircrafts, safety and security measures, customer service and manpower Strong existing playerThreat of Substitutes No perfect substitute for International carriers Domestic airlines can be substituted by Cars, Buses, Train and Video call services
    • Porter’s Five ForcesBargaining Power of Suppliers Airline supply is dominated by Boeing and Airbus Very less number of manufacturers of Boeing & Airbus Aviation fuel is a commodityBargaining Power of Buyers Large number of players competing for same set of customer Large number of players provides huge option for buyers
    • Porter’s Five ForcesRivalry Many players Intense price competition High Fixed Cost Low Marginal Cost Homogeneous Product Excess Capacity
    • Porter’s Five Forces Bargaining Power of Supplier HighThreat of Threat of Rivalry New EntrySubstitute High High Low Bargaining Power of Buyer High
    • Growth in India• Railway fares of AC tier and First class are similar to airline fares – Over 300 million strong middle class present in India Domestic• FDI in Aviation Growth – – Reduces the debt burden 25.6% – Reduces operational costs due to availability of experts in the field of aviation• Tourism in India – Increase in inbound and outbound tourists and medical tourism• Disposable incomes expected to increase an average of 8.5% till 2015• Airports Authority of India (AAI) announces new airports in Tier II and Tier III cities – Increases the demand for airline travel – Operational costs are very low and growth rates are high when compared to metro and Tier I cities • Higher profits
    • Segments in Indian Airline Industry
    • Classifications of Passengers for Airline Industry• Type 1 – Time sensitive and insensitive to Price – Business Travellers, who might be willing to pay premium price for extra amenities – Travel flexibility and last minute seat availability extremely important• Type 2 – Time sensitive and Price sensitive – Some Business Travellers, must make trip, but are flexible to secure reduced fare – Cannot book far enough in advance for lowest fares• Type 3 – Price sensitive and insensitive to Time – Classic Leisure or vacation travellers, willing to change time and day of travel and airport to find seat at lowest possible fare – Willing to make connections• Type 4 – Insensitive to both Time and Price – Few passengers who are willing to pay for high levels of service. – Can be combined with Type 1
    • Segments Domestic Low Cost Carrier (LCC) International Segments inIndian Airline Passenger Industry Domestic Full Service Carrier (FSC) International
    • Segments – Low Cost CarrierLow Cost Carrier:• Air Deccan was the first LCC in 2003• Spicejet, IndiGo, JetKonnect and GoAir entered laterLCC Model:• Have a uniform fleet of aircraft to drive cost efficiencies• Point-to-point system instead of a hub and spoke model to increase aircraft utilization rates• Reduce costs by utilizing second tier airports• Integrate online bookings and drive down their 
(POS) point of sales costs• Have best in class customer service metrics• Single class configuration – Higher number of seats in the aircraft
    • Segments – Full Service CarrierFull Service Carrier:• Jet Airways, Air India and Kingfisher Airlines (Not operational)FSC Model:• Multiple fleet• Multiple class configuration• In-flight services – Entertainment – Food & Drinks
    • Segments – Domestic Passengers Market Share – 2011 606 lakh passengers Indigo6.10% 18% 19.50% Air India 16% Spicejet 18.30% 14.40% Jet Airways7.60% Jet Lite Decline in domestic passengers by 2.97% GoAir • Increase in fares due to increase in ATF prices • Frequent cancellation of flights by Air Market Share – 2012 India and Kingfisher 588 lakh passengers 1% 7% Indigo 6% 27% Air India 18% Spicejet Jet Airways 21% 20% Jet Lite GoAir Kingfisher
    • Segments – Domestic Passengers Airline Activity ReasonKingfisher Airlines • DGCA Forced to stop its operations • High debt • Lost 109 lakh passengers • Improper Revival planAir India • Managed to gain 26.52 lakh • Kingfisher’s inability to operate as a passengers FSC • Frequent cancellation of flights due to pilot strikeIndiGo • Increased its capacity by 30% • Used its cash to increase its • Entered international services capacity as it was the only airline • Each plane had 180 seats of making profits single class • Gained 40.6 lakh passengersSpiceJet • Concentrated mainly in Tier II and • Growth rate of Tier II and Tier III is Tier III cities higher than metros • Gained 30 lakh passengersJet Airways • Increased its capacity slowly • Had small planes of 70-80 seats of • Lost 9 lakh passengers multiple classes • Had huge debt and hence couldn’t increase its capacity like IndiGo
    • Segmental Changes
    • Capacity Vs DemandFig: The graph shows Capacity vs. Demand chart for Domestic Airlines in India
    • CostStructure Parameters Fare Parameters contributionAirline Fuel 40% • Crude oil prices • Rupee depreciation • Block hours (Difference between the time the door was closed (departure) and the time the door was opened (arrival))Maintenance & 12% • Food and Cabin ExpensesRepair Cost • Crew accommodation, transportation and allowances • Landing and Navigation chargesOwnership Cost 13% • Purchase price of airplane • Insurance, Tie down or hangar fees, Subscription feesOther Expenses 30% • Employee Remuneration and benefits • Selling and Distribution costs • Interest Expense – Interest paid for the loan taken • Lease Rental
    • Recent EventsNew Entry Mergers & Exits Acquisitions Kingfisher Airlines has Air Mantra (2012) – been forced to stop Operates between its operations due to Amritsar and Etihad Airways in talks with Jet Airways huge debt ChandigarhJoint Venturebetween Tata Group Tiger Airways in talksand Air Asia with SpicJet• Air Asia plans to invest $60 • To create a hub at mn Hyderabad All Nippon Airways in talks with SpiceJet and GoAir
    • Regulations• DGCA’s enforcement of standardized block times: – All airlines should fly within the average block time fixed by DGCA for all routes across the country and take action against carriers which "cheat“.• Information about Flights and Reservations – Each passenger shall be provided neutral and accurate information on the flight details and reservation status by the airline company – The airline or its designated travel agent must pass on to the passengers the following information in the form of a computer print-out: • The identity of the airline which will actually provide the service, as opposed to the airline mentioned on the ticket; • Changes of aircraft during the journey; • Stops en-route during the journey; • Transfer between the airports during the journey
    • Regulations• Cancellation of Flight – Airlines should inform the passengers of cancellations of their flights as far in advance as possible of the scheduled time of departure provided at the time of effecting his/her reservation – Passengers who have not been informed at least three hours in advance about the cancellation of the flight on which they were scheduled to travel, • Airlines shall provide compensation for the inconvenience caused • Airlines shall refund the ticket prices in the event they do not wish to travel instead on an alternate or subsequent flight of the carrier concerned or on another carrier’s flight • Airline shall provide customers with facilities at the airport in the event they have already reported for their original flight and whilst they are waiting for the alternate flight
    • Regulations• Denied Boarding – Airlines shall be liable to pay compensation to passengers who are denied boarding• Delays in Flight• The airlines shall provide facilities if the passenger has checked in on time, and if the airline expects a delay beyond its original announced scheduled time of departure or a revised time of departure of: – 2 hours or more in case of flights having a block time of up to 2 ½ hrs; or – 3 hours or more in case of flights having a block time of more than 2 ½ hrs and up to 5 hours; or – 4 hours or more in case of flights not falling under above two• ICAO’s Policies on Charges for Airports and Air navigation Services
    • Regulations• DGCA’s minimum capital requirement policy: As per the rules issued by the Director General of Civil Aviation (DGCA), – Applicants for scheduled airline permit must have a minimum paid-up capital of Rs50 crores and a fleet of five large aircraft, with a carrying capacity of over 40,000 kg each to begin operations. These airlines companies will have to put in additional Rs20 crores equity for each additional aircraft beyond the minimum five required to start operations. – Airlines that plan to fly smaller planes should have a minimum fleet of five and a minimum equity of Rs20 crores. They should add Rs10 crores to its equity for each addition of small aircraft.• FAA rules : It limits the number of hourly takeoffs and landings—called “slot” controls
    • Critical Success Factors• Route System – Access to terminals in the airports that are visited the most – Customer demand of route vs maximum aircraft utilization• Revenue /Cost Control – Ability to handle transaction cost • Handling the high transaction cost due to uncertainties from the supply side by combining the operations under one corporate name : Internalisation – Having competitive and innovative pricing schemes to attract and maintain a customer base – Better fuel procurement process and price hedging during volatile periods• Service Product/Promotions – Aircraft seating space – Aircraft type – Class of service offering – Ease of booking
    • Critical Success Factors• People (Service Oriented Industry) – High-caliber staff – Training programs focusing on front-line communicative skills• Ability of the Carrier to benefit from economies of scale and economies of scope by operating the carriers in hub or base in the airport – Acts as a structural entry barrier to other players and new entrants – Reduction of sales and marketing costs, customer service facilities, and flight cancellation costs – Benefits from increase in size of the base: • Flexibility to switch slots • Flexibility to switch crew staff from one route to another • Flexibility to adjust the connections with the fluctuation in demand – Better negotiation power to get attractive time slots and other services from the airport
    • Critical Success Factors• Available Capacity – Number of aircrafts and the seating capacity in case of busy routes (where fixed cost is high)• Ability to diversify – Related Diversification: • Diversify into Air-freight industry • Diversify into Hospitality Industry – Joint Ventures: • JVs with Hotels, Shops in Airports, restaurants etc. • Ability to introduce more routes that are congestion free and less of bottlenecks• Investment in Technology – Helps in mitigating risks due to increase in capacity by opening new routes by competition and hence, to redeploy aircraft and secure gates and ground personnel immediately to react to the competition – Reacting immediately to price war – Better user friendly online booking facility – Ensuring fleet reliability and safety monitoring
    • Dynamics of Airline Industry
    • Basic Terminology• Flight Leg (or “flight sector” or “flight segment”) – Non‐stop operation of an aircraft between A and B, with associated departure and arrival times• Flight – One or more flight legs operated consecutively by a single aircraft (usually) and labelled with a single flight number (usually)• Route – Consecutive links in a network served by single flight numbers• Passenger Paths or Itineraries – Combination of flight legs chosen by passengers in a O‐D market to complete a journey• Enplanement i. Purchasing Tickets ii. Boarding Pass iii. Checking Baggage iv. Undergoing Security Inspections v. Boarding Airplane• Deplanement i. Exiting Airplane ii. Exiting Terminal iii. Baggage Retrieval iv. Immigration and Customs Inspections
    • Measures for Airlines Economics• Air Traffic: Amount of airline output that is actually consumed/sold or enplaned passengers – RPM = Revenue Passenger Mile = (No. of revenue-paying passenger ) X (No. of mile flown during the period) • One paying passenger transported 1 mile – Yield = Revenue per RPM • Average fare paid by passengers, per mile flown – PDEW = Passenger trips per day each way • A common way to measure market demand• Airline Demand: Air traffic + “Rejected demand” – Rejected Demand or Spill are the passengers unable to find seats to fly• Airline Supply: – ASM = Available Seat Mile = (total no. of seats available for transporting passengers) X ( No. of miles flown during period) – Unit Cost = Operating Expense per ASM (“CASM”) • Average operating cost per unit of output• Airline Performance – Average Load Factor (LF)= RPM/ASM • Average Leg Load Factor (ALLF) = Sum of load factors/No. of flights – Average Network or System Load Factor (ALF) = ΣRPM/ΣASM – Unit Revenue = Revenue/ASM – Total Passenger Trip Time
    • Measures for Airlines Economics• Average Stage Length – Average non‐stop flight distance – Aircraft Miles Flown/ Aircraft Departures – Longer average stage lengths associated with lower yields and lower unit costs• Average Passenger Trip Length – Average distance flown from origin to destination – Revenue Passenger Miles (RPM)/ Passengers – Typically it is greater than average stage length, since some proportion of passengers will take more than one flight (connections)• Average Number of Seats per Flight Departure – Available Seat Miles (ASM)/ Aircraft Miles Flown – Higher average seats per flight associated with lower unit costs
    • Airline Profit Maximizing StrategiesStrategy Intended Benefit PitfallsCutting Fares/ Yields Stimulated demand The price cut might generate a disproportional increase in total demand, “elastic demand”Increasing Fares/ Yields Increase in revenue The price increase can be revenue positive if demand is “inelastic”Increasing Flights (ASM) Stimulated demand Increases Operational CostsDecrease Flights (ASM) Reduce Operational Lower Frequencies may lead Costs to market share losses and lost demandImprove Passenger Stimulated demand Increases Operational CostsService QualityReduce Passenger Reduce Operational Excessive cuts can reduceService Quality Costs market share and demand
    • Challenges Faced• Inability of the Indian airlines to achieve cost parity with their global peers – High aviation fuel cost – Infrastructural bottlenecks• Imbalance between the supply and demand for aircraft in India• Lack of differentiation within the domestic carriers leading to intense competition• Price wars among the various players including India’s flag carrier• High levels of leverage of the carriers
    • Players 2012 Airline Revenue Exoenses Gross Margin PAT (in Rs. bn) (in Rs. bn) (in Rs. bn) (in Rs. bn)Jet Airways 169.7 164.55 5.15 (2.87)SpiceJet 53.89 55.72 (1.83) (2.54)Kingfisher 12.63 26.54 (13.91) (32.89) 2011 Airline Revenue Exoenses Gross Margin PAT (in Rs. bn) (in Rs. bn) (in Rs. bn) (in Rs. bn)Jet Airways 140.16 145.19 (5.03) (10.61)SpiceJet 36.43 40.46 (4.03) (2.93)Kingfisher 64.52 84.08 (19.56) (15.2)
    • Analysis of Players
    • Jet AirwaysPassenger Segment Market Size (2012) Market Share Company’s (in passengers) Growth RateDomestic 588 lakh 25% (147lakh) 17.9%International 434 lakh 40% (173.05lakh) 18.1%PassengerSegment No. of Destinations Revenue Total Revenue (InRs. bn) ContributionDomestic 52 69.24 40.8%International 21 75 44.2%
    • Jet AirwaysCodeshare Agreements for International services:Jet Airways’ Services:1. International Long Haul • First Class • Premiere • Economy Class2. International Short Haul & Domestic • Premiere • Economy Class3. In-Flight Entertainment4. Jet Lounges
    • Strengths Weaknesses• Public Listed company and promoters have credible • Jet Airways operates as a FSC in one way and as a LCC in sources to back the airline operation the return• Has wide international presence • Increases operational costs • Improper positioning of Jet Airways and improper merging of Jet Lite and Jet Konnect • Presence of multiple fleet operation SWOT – Jet Airways Opportunities Threats• Expanding operations in Tier -2 and Tier 3 cities of India • Rupee Depreciation• Merging with Etihad Airways • Increase in crude oil prices • Increases operational efficiency and reduces debt • FDI in Aviation • Increases the access to international destinations • New entrants like Air Mantra, Tata-AirAsia in LCC• Increase in AC and First Class fares of Indian Railways Segment • Most of the 300 million Middle class people will prefer • Mergers like All Nippon Airways with SpiceJet or GoAir airlines
    • SpiceJetPassenger Segment Market Size (2012) Market Share Company’s (in passengers) Growth RateDomestic 588 lakh 20% (117.6lakh) 27% PassengerSegment No. of Destinations Revenue (InRs. bn)Domestic 39 52.87SpicJet’ Services:International Short Haul & Domestic: • In-flight Entertainment • SpiceJet MAX
    • Strengths Weaknesses• Public listed company and promoters have credible • Small international presence sources to back the airline operation • Dependency on leased assets• Reaches 35 destinations in India • Strong regional connectivity• Imports ATF and hence has less fuel cost• Presence of single fleet of operation SWOT – SpiceJet Opportunities Threats• Merging with All Nippon Airways/Tiger Airways • Rupee Depreciation • Increases operational efficiency and reduces debt • Increase in crude oil prices burden • FDI in Aviation • Increases international presence • New entrants like Air Mantra, Tata-AirAsia JV in LCC• Increase in AC and First Class fares of Indian Railways Segment • Most of the 300 million Middle class people will prefer • Mergers like Etihad Airways with Jet Airways airlines• Promotion of tourism by the Indian Government
    • Kingfisher AirlinesPassenger Segment Market Size (2012) Market Share Company’s (in passengers) Growth RateDomestic 588 lakh 1% (5.88lakh) Nil PassengerSegment No. of Destinations Revenue (InRs. bn)Domestic 25 11.29Codeshare Agreement (Prior to suspension from IATA in April ‘12):• American Airlines (Oneworld)•Asiana Airlines (Star Alliance)•Phillippine Airlines
    • Kingfisher AirlinesKingfisher Airlines’ Services:1. International (Prior to suspension – April’ 12) • Kingfisher First • Kingfisher Class2. Domestic (Prior to suspension – Oct’12) • Kingfisher First • Kingfisher Class • Kingfisher Red3. In-Flight Entertainment4. King Club
    • Strengths Weaknesses• Provided the best services as a FSC carrier • Unable to generate expected return on investment• Targeted the domestic luxury segment in India • Has huge debt • Overspending of funds • Load factor is very low SWOT - Kingfisher Opportunities Threats• Merging(or acquiring) with(or by) an International airline • Presence of LCC carriers • Increases operational efficiency and reduces debt burden • Rupee Depreciation • Increases international presence • Increase in crude oil prices• Expanding the network within India such as Tier II and Tier III • FDI in Aviation cities • New entrants like Air Mantra, Tata-AirAsia JV in LCC Segment • Disposable incomes are increasing • Mergers like Etihad Airways with Jet Airways
    • Cost Analysis Expenses Jet Airways SpiceJet Kingfisher AirlinesATF 40.18% 47.48% 31.78%Employee Benefits 9.69% 8.71% 7.22%Selling and 8.25% 5.85% 4.49%DistributionAircraft Lease 5.49% 13.01% 9.37%RentalsDepreciation and 5.7% 0.67% 3.69%AmortisationFinance Cost 5.89% 1.13% 13.77%Other Expenses 24.8% 23.14% 29.68%Total Rs.164.55 bn Rs. 55.72 bn Rs. 26.54 bn
    • Cost Analysis Expenses Jet Airways SpiceJet Kingfisher AirlinesATF 40.18% 47.48% 31.78%Reasons:•Kingfisher was able to reduce ATF expenses by • Route Rationalisation: Cut capacity in unprofitable routes • Fuel Consumption Saving Program•SpiceJet has high ATF fuel prices due to increase in block hours
    • Cost Analysis Expenses Jet Airways SpiceJet Kingfisher AirlinesSelling and 8.25% 5.85% 4.49%DistributionReasons:•Jet Airways: 57% of the Selling and Distribution expense comes from commission toselling agents. • Very few consumers buy tickets from Jet Airways website/offices • Many prefer buying from Makemytrip.com, Yaatra.com etc.
    • Cost Analysis Expenses Jet Airways SpiceJet Kingfisher AirlinesAircraft Lease 5.49% 13.01% 9.37%RentalsDepreciation and 5.7% 0.67% 3.69%AmortisationReason:Jet Airways: •It has a fleet of 102 owned aircraft • It has taken a lease on engines and less number of aircraftsSpiceJet: • It has a fleet of 47 leased aircraft and hence high lease rentals and less depreciation and amortisation expenses
    • Cost Analysis Expenses Jet Airways SpiceJet Kingfisher AirlinesFinance Cost 5.89% 1.13% 13.77%Reasons:•Kingfisher: Has taken loan of Rs.91.33 bn•SpiceJet: Has taken loan of Rs. 9bn
    • Cost Analysis Expenses Jet Airways SpiceJet Kingfisher AirlinesOther Expenses 24.8% 23.14% 29.68%Reasons:•Kingfisher: 11% of the total expenses is due to •Due to premature termination of lease/contracts •Restructuring/idle cost
    • Profitability Analysis Ratio Jet Airways SpiceJet Kingfisher AirlinesDebt Equity 22.86 4.80 7.96Operating Expense 58% 62% 126%Gross Profit 3.03% (3.40%) (110.13%)Net Profit (1.69%) (4.71%) (260.41%)
    • Investment Requirement – New EntrantInvestments required to start a airlines business• Airplane leases• Route structure/Marketing• Stations/ground handling agreements• Maintenance agreements• Accounting, HR and IT set-up• Company manuals, procedures and training for all FAA mandated departments (pilots, flight attendants, dispatchers, mechanics, customer service, ramp, security)• DOT approval - Financial fitness• FAA approval - Operational fitness• Hiring of pilots, flight attendants, dispatchers, mechanics, stations and administration folks• Training of all of the above• Proving runs with the FAAAs per the rules issued by the Director General of Civil Aviation (DGCA),• Applicants for scheduled airline permit must have a minimum paid-up capital of Rs50 crores and a fleet of five large aircraft, with a carrying capacity of over 40,000 kg each to begin operations. These airlines companies will have to put in additional Rs20 crores equity for each additional aircraft beyond the minimum five required to start operations.• Airlines that plan to fly smaller planes should have a minimum fleet of five and a minimum equity of Rs20 crores. They should add Rs10 crores to its equity for each addition of small aircraft.
    • Investment Required – Existing Airline• Investments required to expand a airlines business – Investment in new aircraft lease – Route structure/Marketing – Hiring of new crew member
    • Future Outlook• India will have the second highest growth rate at 13.1 percent CAGR (compounded annual growth rate), adding 49.3 million new passengers," IATA said in its Airline Industry Forecast 2012-2016.• By 2016, the five largest markets for domestic passengers would be the United States (710.2 million), China (415 million), Brazil (118.9 million), India (107.2 million) and Japan (93.2 million).• The compound annual growth rate of the air cargo sector would be the highest for Sri Lanka at 8.7 per cent, followed by Vietnam (7.4 per cent), Brazil (6.3), India (6.0) and Egypt (5.9), the IATA said• India will be the fourth biggest market in terms of value for all new aircraft deliveries after China, the US and the UAE during the next 20 years, according to aircraft maker Airbus
    • THANK YOU
    • Appendix• http://www.thehindubusinessline.com/indust ry-and-economy/logistics/aviation-sector- could-face-less-turbulence-this- year/article4276831.ece?ref=wl_industry-and- economy