Presentation On Contemporary Issues On INDIAN AVIATION INDUSTRYSubmitted to: Submitted by:Mrs. Alka swami Suman Joshi
Overview The aviation industry in India is one of those sectors that saw a constant pace of growth among the other industries in the world over the past many years. The open sky policy of the government has helped a lot of overseas players entering the aviation market in India. From then, it has only been growing in terms of players and the number of aircrafts. At present, private airlines account for around 75% portion of the domestic aviation market.
History Indian Aviation Industry is one of the fastest growing airline industries in the world. The history of Indian Aviation Industry started in December 1912 with its first domestic air route between Karachi and Delhi.
It was opened by the Indian Air Services in collaboration with the UK based Imperial Airways as an extension of London-Karachi flight of the Imperial Airways. Tata Sons Ltd., the first Indian airline, started a regular airmail service between Karachi and Madras three years later without any backing from the Indian government.
INTRODUCTION In 1990s, aviation industry in India saw some important changes. The Air Corporations Act was abolished to end the monopoly of the public sector and private airlines were reintroduced. With the liberalization of the Indian aviation sector, the industry has witnessed a transformation with the entry of the privately owned full service airlines and low cost carriers. In 2006, the private carriers accounted for around 75% share of the domestic aviation market.
Size of the Industry: There are about 450 airports and 1091 registered aircrafts in India Today. Geographical distribution: Mumbai, Kolkata, Hyderabad, Delhi, Pune, Bangalore, Chennai.Output per annum: Growth rate of 18% per annum
Increasing liberalization and deregulation has led to an increase in the number of private players. There are three types of aviation industry comprise players:Full cost carriersLow cost carriers (LCC)Other start-up airlines
Market shareAirlines in India % share in marketKingfisher Airlines 19 Indigo 18.7Jet Airways 18Air India 15.8Spicejet 13.8JetLite 8.1Go Air 6.6
Medium Term Growth Forecast : India GDP : 8.6 % per annum Domestic air travel : 12 % annually WTTC Travel & Tourism : 8.8 % Over next 10 years
Players Air Deccan Air-India Express Air India Air Sahara/ jet lite Go Air Indian Airlines IndiGo Jet Airways SpiceJet Paramount Airways Kingfisher
Passenger airlines – The players Indian Airlines Indian Airlines was founded in 1953. Today, together with its fully owned subsidiary Alliance Air, it is one of the largest regional airline systems in Asia with a fleet of 62 aircraft(4 wide bodied Airbus A300s, 41 fly-by-wire Airbus A320s, 11 Boeing 737s, 2 Dornier D-228 aircraft and 4 ATR-42).
Air Sahara [jetlite] Now air sahara known as jetliteAir Sahara has established itself as one of the leading players in the IndianAviation industry. Air Sahara is part of the multi-crore Sahara India Pariwar.Sahara India Pariwar has interests in Public Deposit Mobilization, Media &Entertainment, Housing & Infrastructure, Tourism, Consumer Products andInformation Technology. Starting on a modest scale and a capital of onlyRs.2000 in 1978, Sahara India Pariwar has traversed a long way to become anicon in Indian entrepreneurship.
Jet AirwaysIn May 1974, Naresh Goyal founded Jetair (Private) Limitedwith the objective of providing Sales and Marketingrepresentation to foreign airlines in India.
Air Deccan Come SIMPLIFLY With Us… Market Share : 21.2 % Air Deccan is a unit of Deccan Aviation Private Limited, Indias largest private heli-charter company. Formed in 1995, Deccan Aviation Private Limited has carved a niche for itself in the Indian aviation scene with its reputation for providing speedy and reliable heli-services for company charters, tourism, medical evacuation, off-shore logistics and a host of other services
KingfisherKingfisher A ir lines is an airlinebased in Bangalore, India. It is amajor Indian luxury airlineoperating an extensive networkto 34 destinations, with plans forregional and long-haulinternational services. Its mainbases are BangaloreInternational Airport, BangaloreChhatrapati Shivaji InternationalAirport, Mumbai and IndiraGandhi International Airport,
Hyderabads Rajiv Gandhi International Airport has been ranked first ranking of the world best airport in the world. The Hyderabad International Airport - being managed by a public-private joint venture of the GMR Group.
Delhis Indira Gandhi International Airport the fourth in an international ranking of the best airports in the world. Delhis Indira Gandhi International (IGI) Airport has been handling the maximum number of flight movements per day. In September 2008, the airport inaugurated a 4.43 kilometre-long runway. Indira Gandhi International Airport (IGIA) was conferred the fourth best airport award in the world (in the 15-25 million category) and Best Improved Airport in the Asia Pacific Region by Airport Council International.
Current Trends : Consolidations All AroundKingfisher-Air Deccan Deal o Kingfisher buys out 26 % stake for Rs.550 crore. o They have combined Market share of 33% o They are second biggest player after Jet Sahara dealJet airways and Air Sahara merger o Air Sahara name changed to JetLite
Some Issues In Industry are… Security Issue :- This is biggest issue in modern aviation industry. e.g.-terrorism and crime during air travel. Plan hijack etc are very important issue. Small town girls can get jobs easily as a air hostess. Now days one change is that they reduce facilities. Before some time they serve food water and so many facility during the travel now days they don’t provide such facility to customer
Jobs in aviation industryThe boom in aviation sector is likely to generated nearly 2.5 lakh jobs by the year 2014.The study says the civil aviation sector is also set to become a rs55000 crore industry by the same time.
Issue1 held in fake pilot licence scam New Delhi: One more pilot was arrested here for getting a licence on the basis of forged documents, Delhi Police said on Friday. Saif Misbah was arrested from Mayapuri area in south Delhi on Thursday after Directorate General of Civil Aviation (DGCA) forwarded three new names to police in the scam. During the interrogation, Misbah admitted that he used forged marksheets to obtain a commercial pilot licence. Delhi Police have so far arrested 12 people in the fake pilot licence scam. Two pilots have been arrested by Rajasthan Police. 16-4-11
On the basis of strong market fundamentals, it is anticipated that the civil aviation market will register more than 16 per cent Compound Annual Growth Rate (CAGR) during 2010-2013. India is expected to be the fastest growing civil aviation market in the world by 2020 with about 420 million passengers being handled by the Indian airport system, according to the Economic Survey 2010-11. The number of passengers carried by the domestic airlines during January– February 2011 was 9.51 million as against 7.95 million in the corresponding period in 2010, thereby registering a growth of 19.6 per cent, according to the latest data released by the Directorate General of Civil Aviation (DGCA).
Future Trends The projection for Indian Aviation for 2020 is estimated at: 400 million passengers Including 180 million domestic passengers 1,000 aircraft in the civil aviation sector More emphasis will be on Arabian and South-East Asian circuits. Likely to follow the footholds of International Low Price Carriers e.g. Air Arabia, Southwest Airlines etc.
Business Model of Low Cost Carriers A single Passenger class A single type of airplane reducing and service cost No frills such as free food/drinks, lounges etc. Emphasis on direct sale of ticket through Internet avoiding fee and commission paid to travel agents. Employees working in multiple roles Unbundling of ancillary charges to make the Headline fare lower
Low Cost Carriers in India Air Deccan SpiceJet IndiGo Airlines Go Air Jetlite (Formerly known as Air Sahara)
Airline Industry in India : Service Vs Price GraphSERVICE PRICE
Present ScenarioScheduled Domestic Operator 14No. of Aircraft Possessed 334No. of Non-scheduled Operator 65No. of Aircraft Possessed 201No. of Import Permit for Aircraft 72Granted in 2007No. of Aircraft Set to be Import in Next 496Five Year
ChallengesConstraints : Infrastructure constraints Shortage of airport facilities Parking bays Air traffic control facilities Takeoff and landing slots. Less than 100 airports having more than one daily service.