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Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
Indian airways (1)
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Indian airways (1)

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Indian airlines Budget upto 2015

Indian airlines Budget upto 2015

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  • 1. Indian Airlines (Air India and other players) Submitted by: Shubhi Jain (12114064) Shyam Sundar Choudhary (12114065) Submitted to:
  • 2. ● Name of India’s National Carrier ● Fastest Growing Aviation Industry ● Established in 1953 under ACA ● Two Entities : ○ Air India ■ provide international air services ○ Indian Airlines ■ focuses on domestic routes ■ provides routes to some important countries within asia ● Passengers carried by india’s airlines ○ 61.42 million in 2013,58.81 million in 2012(according to DGCA) Directorate General of Civil Aviation, Government of India ○ 4.43 % groth in 2013 Introduction
  • 3. Introduction... ● Continue loses over the years, Human Resources ,ATF prices ,regional connectivity and pilot strikes are the major problems ● IA’s network ○ Air India currently operates a fleet of 113 aircrafts (with 18 more on orders),making it one of the largest airlines (by fleet size) in asia and the world (as of feb 2014) ○ Around 500 airports and 1100 registered aircrafts in india
  • 4. Introduction... ● Destinations : ○ International network
  • 5. Introduction... ● Destinations : ○ Domestic network
  • 6. Introduction... ● Destinations : ○ West Asia network
  • 7. Background ● Air India ○ founded in july 1930 as TATA Airlines by JRD Tata ,headquartered in mumbai ○ commenced operations from 15 october 1932 ○ after world war 2 (in 1946)Tata Airlines renamed as Air India and 49% of airline was acquired by Govt. of India ○ In 1953 Air India International Limited was born as a fruit of ACA and Tata Airlines fully acquired by Govt. of India ○ Entered the jet age in 1960 when it’s first boeing 707-420 named Gauri Shankar,was delivered Tata Air Services Air India during 1940’s to 2007 Air India(current logo)
  • 8. Background... ● Indian Airlines ○ Founded in 1953 as Indian Airlines Limited based in delhi and focused primarily on domestic and several nearby country’s routes ○ Administrated by Ministry of Civil Aviation and Headquartered in Delhi ○ In 1990 Vayudoot(a low capacity and short haul domestic airline with huge long term liabilities) merged into IA ○ Indian Airlines Corporation Inherited a fleet of 99 aircrafts from seven airlines that made it up ○ On Dec. 7 2005 rebranded as Indian ○ In 2007 Govt. of India announced that Indian would be merged into Air India and Air India acquired around 51% of share capital ○ Indian had codeshare agreements with Air India Regional,GMG Airlines,Gulf Air and Uzbekistan Airways ○ On 27 feb. 2011 indian merged into Air India ○ Jet age for IAC began in 1964 with intro of Sud Aviation Caravelle
  • 9. Background... ● After 1990 : Entry of private players ● In 1991 Air Sahara was established ● In 1993 Jet Airways,second largest player in terms of both market share and passengers carried,commenced their operations ● Air Sahara sold to Jet Airways in 2007 as marketing name of JetKonnect ● In 1996 Alliance Air was founded and renamed Air India Regional ● As of 2005 IA was the second largest airline in India after Jet Airways while Air Sahara was third in this list ● In 1993 ModiLuft was established and renamed as SpiceJet in 1996 ● Kingfisher Airlines Founded in 2003 and commenced operations from 2005 ● Kingfisher flights were suspended in oct. 2012 and licence revoked in feb. 2013 by Govt. of India ● In 2006 IndiGo established headquartered in Gurgaon
  • 10. Major Players
  • 11. Major Players ● Public Sector ○ Air India ○ Air India Regional ● Private Sector ○ IndiGo ○ Jet Airways ○ JetKonnect ○ SpiceJet ○ GoAir ● Startup players ○ these are planning to enter the market ○ Omega Air,Magic Air,Premier Star etc.
  • 12. Major Players... ● As of 2013, Air India have showed signs of recovery with its domestic market share increasing to 19.1% as of May 2013 but still lags behind other major carriers IndiGo, Jet Airways and SpiceJet ● IndiGo is low cost carrier and largest airline in india with the market share of 28.6% as of dec 2013 ● IndiGo offers 485 daily flights connecting 36 destinations with fleet of 76 new airbus A320 aircraft and also ordered 100 new aircrafts by 2015-16 ● To keep average fleet age low IndiGo returns it’s old aircrafts to the leasing companies ● Jet Airways operates over 3000 daily flights to 76 worldwide destinations ● GoAir operates domestic passenger services to 21 cities with over 100 daily and approximately 750 weekly flights ● SpiceJet is third largest airline in terms of market share ○ fleet of 58 aircrafts ○ ordered for 70 new aircrafts
  • 13. Budget & Revenue of Indian Aviation Industry ● Revenue of $14.2 billion in 2011 ● Revenue of Air India ○ Total Revenue of Air India increased from Rs.140,620.1 million in 2010-11 to Rs.147,138.1 million during 2011-12 ○ Operating Revenue was (in 2011-12)Rs.146,753.0 million as against previous year(2010-11) revenue of Rs 139,760.3 million ○ Passenger Revenue increased from Rs.104,438.2 million in 2010-11 to Rs.114,236.9 million ○ In 2013-14 National carrier's passenger revenue was up 22 per cent -- at Rs 3,332 crore in July-September as against Rs 2,732 crore in the same period last year,
  • 14. Budget & Revenue... source:www.airindia.com
  • 15. Budget & Revenue... ● Expenditure of Air India ○ The total expenditure incurred during the year 2011-12 was Rs. 234,594.8 million as compared figure of year 2010-11 Rs 213,215.9 million ○ Operating Expenses increased from Rs.180,808.0 miillon to Rs 198.139.9 million due to ■ Increase in fuel price by Rs.23,996.1 million ie. 39.3% ■ Increase in interest on working capital loans by Rs.4533.1 million
  • 16. Budget & Revenue... source:www.airindia.com
  • 17. Challenges Faced After a period of drastic growth, Indian Airlines is now gripped with challenges that are also impacting the industry across the globe. ● high Aviation Turbine Fuel (ATF) prices ○ ATF prices have almost doubled during last years ○ Due to this depreciating rupee coupled with global recession has directly impacted the Indian Airline Industry.The industry reported a $10.4 billion loss in the 2009. ● Human resources ○ rising labor costs ○ shortage of skilled labor
  • 18. ● Pilots strikes ○ 1993- 46 days strike ○ 1994- Nov. faced an evident agitation ○ 1996- demand for high wages ○ 1997- strike for foreign allowance,fixed flying hours,free meal and wage parity ○ 8th May,2012 100 pilots went on medical leave as a mark of protest ○ Due to this strike AI suffered a loss of 500 crores(US$90.5 million) in 45 days Challenges Faced...
  • 19. ● excess capacity ○ Driven by drastically increasing passenger traffic 3-4 years back ○ This resulted in excess capacity of around 15% to 20% ○ Even though the industry grew above 40%, almost half of the growth was primarily stimulated due to low fares. ● Regional Connectivity ○ due to the lack of connectivity of rural areas ● Inability of the Indian airlines to achieve cost parity with their global peers Challenges Faced...
  • 20. ACTIONS TAKEN ● In 2007, the government had merged Air India (AI) and Indian Airlines (IA) to make one of the largest airlines.But 5 years later , it has come not to be. ● Air India has been provided an additional ₹1,000 crore in the revised Budget Estimates for 2013-14 taking the total equity infusion from the Government during the year to ₹6,000 crore. ● In addition, Finance Minister P Chidambaram also provided Air India a budgetary allocation of ₹5,500 crore as equity infusion while ₹22 crore has been earmarked for the Pakyong airport, which is being developed in Sikkim by the Airports Authority of India in the interim Budget 2014-15.
  • 21. After the introduction of Apex scheme in air industries
  • 22. No. of employees decreases by 51% Productivity increases 44% Staff cost decreases by 13%
  • 23. Steps government should take 1. INFRASTRUCTURE ● Airports construction of new airports, expansion and modernization of existing airports ● Connectivity to Airports improvement in connecting infrastructure (road, metro, sea link, etc.) and better airspace management
  • 24. 2. Central planning & control system(cpcs) 3. Planning & sheduling 4. Hub control centre(HCC) 5. Crew Management system 6. Infusion of Additional Equity
  • 25. 7. HR & TRAINING ● Licensing of Pilots, Engineers and other personnel ● Availability of skilled , trained personnel ● Training Infrastructure 8. PASSENGER/USER RELATED ● Stakeholders Grievance Redressal mechanisms ● Facilities for persons with reduced mobility
  • 26. 6. ECONOMIC REGULATION Fares: a) Appropriate and adequate fares to cover operational costs b) Issues related to excessive, predatory and discriminatory pricing c) Issues related to unbundling of services and their pricing behaviour
  • 27. References ● wikipedia.com ● airindia.com ● thehindubusinessline.com
  • 28. THANK YOU

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