• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Aviation sector

Aviation sector






Total Views
Views on SlideShare
Embed Views



0 Embeds 0

No embeds



Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

    Aviation sector Aviation sector Presentation Transcript

    • OUTLINES Current Scenario of Indian Aviation industry Market Size Air Traffic Type of market Airport Infrastructure Aviation Policy Effect on Indian Economy Factors influencing growth rate Aviation Sector Outlook
    • Current Scenario of Indian Aviation Industry India completed 100 years in aviation sector on 18 February, 2011 The Indian Aviation Industry is one of the fastest growing aviation industries in the world 454 airports and airstrips; 16 designated international airports With the liberalization of the Indian aviation sector aviation industry has undergone rapid transformation Being primarily a government-owned industry, Indian aviation now dominated by privately owned full-service airlines and low cost carriers Private airlines account for around 75% share of domestic airline aviation market Airline business growing at 27% per annum: Ministry of Civil Aviation
    • Market Size India is currently the ninth largest aviation market in the world Indias domestic air traffic grew at a rate, which is the second highest after Brazil according to global figures for June 2011, compiled by IATA Domestic traffic growth 25-30% annually and international traffic 15% in 2010 :CAPA
    • Domestic Airlines Air India Go Air Airlines Indigo Airlines Jagson Airline Jet Airways JetLite Kingfisher Airline Paramount Airways Spice Jet Airways MDLR Airlines
    • Market share
    • Air Traffic The countrys domestic traffic grew by 14 per Strong domestic passenger growth rate of 22.3 per cent in July 2011 Passenger traffic has grown at 18 per cent year on year (y-o-y) basis and the year 2010 closed at 90 million passengers both domestic and international In July 2011, airlines in India handled 5 million domestic passengers, according to data released by the Directorate General Civil Aviation (DGCA) on 12 September 2011, marking the 11th consecutive month of double-digit growth
    • Passengers carried by scheduled domestic airlines
    • Aircraft Class StatisticsClass Number A AircraftG 61 B BalloonH 300 D Hang GliderA 1169 G GliderU 40 H Helicopter 0 M Motor GliderX 8 U UltralightM 1D 24 X ExperimentalB 20
    • Aviation Sector: Some facts In present scenario around 11 domestic airlines operating in India Growth of airlines traffic in Aviation Industry in India is almost four times above international average Aviation Industry in India holds around 69% of the total share of the airlines traffic in the region of South Asia
    • Type of market In 1953, all airlines merged into Indian Airlines or Air India Monopoly perpetuated for next 40 years Controlled by Directorate General of Civil Aviation On 1 March 1994, Government open the gates for private entrants Sensing a huge opportunity, a large number of players jumped into the fray Now the market is Oligopoly
    • Airport Infrastructure Of the 454 airports and airstrips in India, 16 are designated international airports 97 airports owned and operated by Airport Authority of India (AAI) India’s Civil Aviation Ministry aims 500 operational airports in next 12 years as per report by CAPA Government aims to attract private investment in Aviation Infrastructure Mumbai and Delhi airports already privatized, upgraded at an estimate investment of US$ 4 billion over 2006-1 6
    • Continued… A Greenfield airport already operational at Bangalore and Hyderabad, built by private consortia at total investment of over US$ 800 million A second Greenfield airport planned at Navi Mumbai, developed using public-private partnership mode at an estimated cost of US$ 2.5billion 35 other city airports proposed to be upgraded Over next five years, AAI planned massive investment of US$ 3.7 billion – 43% of which for Kolkata, Chennai and Trivandrum and rest for other non metro airports
    • Aviation PoliciesMany policies supporting the infrastructure are now in place For Greenfield airports, FDI up to 100% permitted through automatic approvals For existing airports, FDI up to 74% permitted through special permission from FIPB Private developers allowed to set up captive airstrips and general airports 150 km away from existing airports 100% tax exemption for airport projects for a period of 10 years
    • Continued… 49% FDI permissible under automatic route, but not by foreign airline companies. 100% equity ownership by non-resident Indians (NRI’s) is permitted 74% FDI permissible in cargo and non- scheduled airlines The “Open Sky” policy of the Government and rapid air traffic growth, resulted in the entry of several new privately owned airlines and increased frequency/flights for international airlines
    • How aviation industry is effectingIndia’s economy?Earlier there were just two airlines, both state owned. In last few years economy has opened up. India experienced growth rate of 8% per yearMain factors which effect the Indian Economy are:1. Increased no. of domestic airlines2. Low cost airlines3. India’s improving economyOther factors:1. Increased in no. of business travelers to different countries2. Increased no. of incoming tourist and business enterprises
    • Known factors Influencing Growth Rate Increase inward and outward tourism Increased competition driven down prices and margins Additional purchasing power due to rapidly rising real income amongst the middle class Increased business trade due to rapidly growing economy and free trade agreements with neighboring countries Favorable Government policies and tax reforms
    • Aviation Sector OutlookAs per the Investment Commission of India, aviation sector is likely to boom further in the coming years, attracting huge investment Passenger traffic is projected to grow at a compound annual growth rate (CAGR) of over 15% in next 5 years The vision 2020 statement announced by Ministry of Civil Aviation, envisages creating infrastructure to handle 280 million passengers by 2020 Investment opportunities of US$ 110 billion envisaged up to 2020, with 80 billion in new aircraft and US$ 30 billion in development of infrastructure Air cargo traffic to grow at over 11.4% p.a. over next 5 years