Indian Aviation Industrial Analysis

An Industrial Analysis Report on INDIAN AVIATION INDUSTRY
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, ANANTAPUR
Submitted by
TALARI MANOHAR BABU
Reg no: 22HX1E00C5
Under the guidance of
Mrs. E. PRASHANTHI
Head of the Department
SANSKRITHI SCHOOL OF BUSINESS, PUTTAPARTHI
Department of Business Administration
Affiliated to JNTUA Anantapur

DECLARATION
Iherebythedeclarethatthisprojectreportentitled“INDIANAVIATIONINDUSTRY”,PUTTAPARTHI hasbeen
prepared by me during the period of April to May to be submitted to SANSKRITHI SCHOOL OF BUSINESS in
practical fulfilment for the award of degree MASTER OF BUSINESS ADMINISTRATION prescribed by
JAWAHARLAL NEHRU TECHONOLOGICAL UNIVERSITY, ANANTAPUR. under the guidance of
Mrs. E. PRASHANTHI Head of the department , of M.B.A at Sanskrithi school of Business, Puttaparthi.
I also declare that this project report is the result of my own effort and that is has not been copied from any
of the earlier reports submitted by anybody to “Jawaharlal Nehru Technological University” or any other
university for the award of any degree.
Date:
Place:
Signature of the Student
TALARI MAANOHAR BABU
22HX1E00C5
MBA (BATCH 2022-24)

ACKNOWLEDGEMENT
First of all I am indebted to our institution SANSKRITHI SCHOOL OF BUSINESS of
Management giving all the students an opportunity of a mini project work on industrial
analysis
I am very much thankful to Sri. VIJAY BHASKAR REDDY garu Chairman and Dr.
BalaKoteswari M garu Principal/Dean of SANSKRITHI SCHOOL OF BUSINESS for
giving opportunity to be a part of M.B.A
I express my heart full thanks to Mrs. E. PRASANTHI Madam, Head of the Department,
SANSKRITHI SCHOOL OF BUSINESS for his constant support & Guidance.
I wish to thank my parents, respondents, friends and other who helped me directly or
indirectly to complete this project report.
Thank you,
TALARI MANOHAR BABU

CONTENTS
AN OVERVIEW 1-2
CHAPTER I: INTRODUCTION 4-7
a) Introduction
b) About Industry
c) Objectives of industry
d) Scope of Industry
e) Limitations
CHAPTER II: INDUSTRY PROFILE 9-24
a) History
b) Development of Particular Industry
c) Details of Industry
d) Turning Point
e) Success Point
f) Challenges
g) Departments
h) Competitors
i. Growth Size
ii. Market Size
CHAPTER III: ORGANIZATIONAL DESIGN 26-38
a) Industrial Design
b) Industrial Structure
c) Industrial Change
CHAPTER IV: SWOT ANALYSIS 40
SUMMARY OF FINDINGS 41
SUGGESTIONS 42
CONCLUSION 43
BIBLIOGRAPHY 44

1 | P a g e
SANSKRITHI SCHOOL OF BUSINESS, PUTTAPARTHI (MBA BATCH 2022-24)
INDIAN AVIATION INDUSTRY
India's aviation sector has become the third largest domestic aviation market in the world in terms
of handling domestic traffic
AN OVERVIEW:
The aviation industry in India has come a long way since its inception in 1911, when the first commercial
flight took off from Allahabad. Over the past few decades, the industry has witnessed significant growth
and transformation, driven by factors such as economic liberalization, rising income levels, and increasing
globalization.
Present 2023 June India is the third-largest aviation market in the world, with a rapidly growing number
of domestic and international airlines, a vast network of airports, and a thriving aviation manufacturing and
MRO industry. In this overview, we will delve deeper into the various aspects of the Indian aviation
industry, its challenges, and its potential for growth.
Airline Industry: The airline industry in India has witnessed significant growth over the past few decades,
with several new players entering the market and increasing competition. This has led to lower airfares,
making air travel more accessible to a larger population. As of March 2021, there were 11 operational
scheduled airlines in India, with IndiGo being the largest airline in terms of market share. Other major
players include Air India, SpiceJet, Vistara, and GoAir.
Airports: India has a vast network of airports, including major international hubs like Delhi and Mumbai,
as well as regional and domestic airports across the country. As of March 2021, there were 136 operational
airports in India, with the government planning to increase this number to 190 by 2024. The airports are
managed by the Airports Authority of India (AAI), which is responsible for providing infrastructure, air
traffic management, and other services to ensure the safe and efficient operation of airports.

2 | P a g e
Aircraft Manufacturing: India has a growing aircraft manufacturing industry, with companies like
HindustanAeronautics Limited and TataAdvanced Systems Limited developing and manufacturing aircraft
components and systems. India also has a joint venture with Russia to manufacture the Sukhoi Su-30MKI
fighter aircraft. In addition, foreign aircraft manufacturers like Airbus and Boeing have established
production facilities in India.
Maintenance, Repair, and Overhaul (MRO): India is also emerging as a major destination for MRO
services, with companies like Air India Engineering Services and SpiceJet Technic providing services to
domestic and international clients. The government has taken several steps to encourage the growth of the
MRO industry in India, including the introduction of tax incentives and the establishment of MRO facilities
at major airports.
Air Traffic Control: The AAI is responsible for managing air traffic control services in the country,
ensuring safety and efficiency in air transportation. The air traffic control system in India has undergone
significant modernization in recent years, with the introduction of satellite-based navigation and
surveillance systems, as well as advanced communication technologies.
Aviation Education and Training: India has a growing number of aviation education and training
institutes, providing courses in pilot training, air traffic control, and aircraft maintenance. The government
has taken several steps to improve the quality of aviation education and training in the country, including
the establishment of the Rajiv Gandhi National Aviation University and the introduction of new regulations
for aviation training institutes.
Challenges: Despite the significant growth and potential of the Indian aviation industry, there are several
challenges that need to be addressed. One of the biggest challenges is the high cost of aviation turbine fuel
(ATF), which makes up a significant portion of the operating costs of airlines. The government has taken
some steps to reduce the tax burden on ATF, but more needs to be done to make it more affordable.
Another challenge is the lack of infrastructure, particularly in terms of airport capacity. India's major
airports are already operating at or near capacity, and the government needs to invest in expanding and
upgrading airport infrastructure to meet the growing demand for air travel.

3 | P a g e
CHAPTER I
INTRODUCTION

4 | P a g e
INTRODUCTION
The Indian aviation industry has seen tremendous growth in recent years, and has become one of the fastest-
growing aviation markets in the world. With a population of over 1.3 billion people, India presents a huge
market potential for the aviation industry. The industry has evolved from a regulated and monopolistic
market to a dynamic and competitive one, offering a wide range of services to consumers. India has a
diverse landscape, ranging from major cities to remote areas, and air travel has become an essential mode
of transportation, connecting people across the country. The aviation industry has also contributed
significantly to the Indian economy, generating employment opportunities and providing a boost to tourism
and trade. However, the industry also faces several challenges, such as high fuel costs, infrastructure
constraints, and regulatory hurdles. The Indian government has taken several measures to address these
issues and support the growth of the aviation sector. Overall, the Indian aviation industry is a vibrant and
dynamic sector that is poised for further growth and development in the coming years.
ABOUT INDUSTRY
The aviation industry in India comprises both the civil and military aviation sectors. The civil aviation
sector is the larger of the two, and it has seen significant growth in recent years, driven by a booming
economy and government initiatives aimed at promoting air travel. The industry has witnessed a significant
increase in the number of airlines operating in the country, with more than 20 scheduled airlines offering
services to various domestic and international destinations. The country currently has over 130 airports,
and the government has announced plans to build many more in the coming years.
The growth of the civil aviation industry has also led to a significant increase in employment opportunities
in the country, with the industry currently employing over 4 million people. The government has launched
several initiatives aimed at boosting the growth of the industry, such as the Regional Connectivity Scheme
(UDAN) and the Open Skies Policy, which aim to increase air connectivity, reduce airfares, and promote
tourism in the country.
The military aviation industry in India is primarily led by Hindustan Aeronautics Limited (HAL), a state-
owned aerospace and defence company. HAL is involved in the design, development, and manufacture of
various aircraft and aerospace equipment, including fighter jets, transport planes, helicopters, and
unmanned aerial vehicles.
Apart from HAL, several private companies in India are also involved in the aviation industry, including
Tata Advanced Systems, Mahindra Aerospace, and Bharat Forge. These companies are involved in various
aspects of the industry, such as manufacturing aircraft components, providing MRO services, and
developing unmanned aerial vehicles.

5 | P a g e
• Growth and development: One of the primary objectives of the Indian aviation industry is to foster
growth and development of the sector. This includes increasing the number of airports, expanding
air routes, and promoting airline competition to enhance the quality of services and lower ticket
prices.
• Safety and security: Ensuring the safety and security of passengers, crew, and aircraft is a crucial
objective of the Indian aviation industry. The industry must comply with stringent safety regulations
and implement advanced security measures to minimize the risk of accidents and incidents.
• Operational efficiency: The Indian aviation industry aims to enhance operational efficiency to
improve the profitability of airlines and reduce delays and cancellations. This includes
implementing innovative technologies, optimizing flight schedules, and improving ground handling
processes.
• Environmental sustainability: The Indian aviation industry recognizes the importance of
environmental sustainability and aims to minimize the environmental impact of air travel. This
includes reducing carbon emissions, implementing green technologies, and adopting sustainable
practices in all aspects of operations.
• Employment and economic development: The Indian aviation industry plays a significant role in
creating employment opportunities and contributing to the country's economic growth. The sector
aims to continue generating jobs and contributing to the nation's economy by attracting investments
and promoting tourism.
• Customer satisfaction: The Indian aviation industry seeks to enhance customer satisfaction by
providing high-quality services, comfortable and safe travel experiences, and offering value-for-
money fares. Improving the passenger experience is crucial for attracting more customers and
maintaining customer loyalty.
Growth and
development
Safety and
security
Operational
efficiency
Envirormental
Sustainability
Employment
and Economic
Development
Customer
Satisfaction

6 | P a g e
• Air transport: The Indian aviation industry provides air transport services for both domestic and
international travel. This includes scheduled and non-scheduled passenger and cargo flights, charter
services, and helicopter services.
• Airports and infrastructure: The Indian aviation industry encompasses the development and
management of airports, air traffic control systems, and other related infrastructure such as cargo
terminals, maintenance, repair and overhaul facilities, and ground handling services.
• Aircraft manufacturing and maintenance: The Indian aviation industry also has a scope for
manufacturing of aircraft, aircraft components, and maintenance, repair and overhaul (MRO)
services. With the Government of India's "Make in India" initiative, there is a significant push for
indigenous aircraft manufacturing.
• Aviation training and education: The Indian aviation industry also provides training and
education for pilots, air traffic controllers, cabin crew, and other aviation professionals. India has
several aviation training institutes that provide world-class education and training facilities.
• Tourism: The Indian aviation industry has a significant impact on tourism, promoting domestic and
international tourism, thereby providing a significant boost to the economy.
• Cargo transport: The Indian aviation industry also plays a vital role in cargo transport, including
the transportation of goods, parcels, and postal services.
OBJECTIVES
» To Know about Present position of Aviation Industry in globally.
» To Study the Growth size and Market size of Aviation industry.
» To Find out Major competitors of top airlines in India.
» To Study the financial Positions of major airline companies in India.
» To Identify the service profile and industrial structure of each sector.
Air Transport
Airports and
Infrastructure
Aircraft manufacturing
and maintainance
Aviation training and
education
Tourism
Cargo transport

7 | P a g e
SCOPE
The Scope of the industry lies in getting familiar with the performance of the Indian aviation industry and
focus on sectors and its development and covered topics like overview of the industry, history, growth, key
players, and industrial structure, the steps taken up the government for to growth of the aviation sector, the
challenges faced by the industry and future outlook.
Secondly the report is based upon the annual reports of the industry for the period of five years (2017-18,
2019-20, 2020-21, 2021-22, 2022-23)
DATA COLLECTION
→ Secondary Data: The data collected through the some of the websites.
LIMITATIONS
» The Study is conducted limited it has been prepared within the boundaries analysing the market
size and key players, challenges, financial report and growth.
» The project is taken to complete 25 days of work, sources of data is taken from different kind of
websites.

8 | P a g e
CHAPTER II
INDUSTRY PROFILE

9 | P a g e
HISTORY
The Indian aviation industry has a rich and fascinating history, which dates back more
than a century. Here's a brief overview of the key milestones in the history of the Indian aviation industry:
1911: The first-ever commercial flight in India took off on February 18, 1911, when a French pilot, Henri
Paquet, flew a Humber biplane from Allahabad to Naini, carrying a small package of mail.
1932: J.R.D. Tata founded Tata Airlines, which later became Air India, the flag carrier of India.
1948: The Government of India nationalized the airline industry, forming the Indian Airlines Corporation
(IAC).
1986: The government announced an open-sky policy, allowing private airlines to operate scheduled
services in India.
1990s: Several private airlines, including Jet Airways and Air Sahara, entered the market, challenging the
monopoly of Indian Airlines.
2003: The Indian government allowed foreign airlines to invest up to 49% in domestic airlines, opening up
the industry to foreign investment.
2005: The low-cost carrier, Air Deccan, was launched, making air travel more affordable for millions of
Indians.
2007: The Indian aviation market saw a rapid expansion, with the number of airlines and the number of
passengers growing exponentially.
2012: Kingfisher Airlines, one of India's largest private airlines, went bankrupt, highlighting the challenges
faced by the industry.
2020: The COVID-19 pandemic hit the aviation industry hard, leading to a sharp decline in demand and
revenue.
Despite the challenges faced by the Indian aviation industry, it has continued to grow and evolve, playing
a critical role in the country's economic development and connectivity.
DEVELOPMENT OF PARTICULAR INDUSTRY
The Indian aviation industry has primarily developed in the CIVIL SECTOR INDUSRTY rather than the
MILITARY SECTOR INDUSTRY. While India does have a significant military aviation industry, with companies
such as Hindustan Aeronautics Limited (HAL) producing aircraft and aerospace equipment for the Indian Armed
Forces, the majority of the growth in the Indian aviation industry has been in the civil sector. The growth of the civil
aviation industry in India has been driven by factors such as rising income levels, increasing urbanization, and
government initiatives to boost air connectivity. This has led to a significant increase in passenger traffic, with more
and more people choosing air travel as their preferred mode of transportation. As a result, Indian airlines have been

10 | P a g e
expanding their fleets and opening new routes, leading to increased demand for aircraft and related infrastructure.
Overall, while both civil and military aviation industries are important to India, it is the civil aviation sector that has
seen the most growth and development in recent years.
CIVILAVIATION:
Shri Jyothi Aditya M. Scindia Hon’ble Minister of Civil Aviation and Gen. (Dr.) V.K. Singh (Retd.)
Hon’ble Minister of State for Civil Aviation. The Indian aviation market is currently the third largest in the
world in terms of domestic passenger traffic, with over 300 million passengers traveling by air each year.
The industry has seen a significant increase in the number of airlines operating in the country, with more
than 20 scheduled airlines offering services to various domestic and international destinations. The growth
of the civil aviation industry has also led to a significant increase in employment opportunities in the
country, with the industry currently employing over 4 million people. The government has launched several
initiatives aimed at boosting the growth of the industry, such as the Regional Connectivity Scheme (UDAN)
and the Open Skies Policy, which aim to increase air connectivity, reduce airfares, and promote tourism in
the country the civil aviation industry in India is expected to continue growing at a rapid pace in the coming
years, driven by increasing demand for air travel and government support for the industries like Air India,
IndiGo, SpiceJet, Vistara, GoAir, AirAsia India, Air India Express, Alliance Air, and Star Air.

11 | P a g e
MILITARY AVIATION:
The Government of India is responsible for ensuring the defence of India and every part thereof. The
Supreme Command of the Armed Forces vests in the President. The responsibility for national defence
rests with the Cabinet. This is discharged through the Ministry of Defence, which provides the policy
framework and wherewithal to the Armed Forces to discharge their responsibilities in the context of the
defence of the country. The Raksha Mantri (Defence Minister) is the head of the Ministry of Defence.
DETAILS OF INDUSTRY
The Indian aviation industry is one of the fastest-growing aviation markets in the world. The industry
comprises airlines, airports, air cargo, and ground handling services. India has a rich aviation history that
dates back to 1911 when the first commercial flight took off from Allahabad. Since then, the industry has
seen significant growth and development. India’s aviation industry is expected to witness Rs. 35,000
crores(US$ 4.99 billion) investment in the next four years. The Indian Government is planning to invest
US$ 1.83 billion for the development of airport infrastructure along with aviation navigation services by
2027.
Department
of Military
Affairs
Integrated
Defence Staff
Indian Army Indian Navy
Indian
Air Force

12 | P a g e
AIRLINES are Air India Express, Alliance Air, Air Asia, GoAir, Air India, Spice Jet, Vistara, and Indigo.
AIRPORTS are in India total 137 the Airport Authority of India is the body that manages both the
International Airports in India as well as the domestic. Airports in India Airports Authority of India (AAI)
manages a total of 137 Airports, which includes 103 Domestic Airports, 24 International Airports, and 10
Customs Airports. AAI is responsible for creating, maintaining, upgrading, and managing civil aviation
infrastructure in India and works under the Ministry of Civil Aviation.
International Airports in India
✓ There are 34 operational International Airports in India.
Indira Gandhi International Airport is the largest international airport constructed in 5495 acres. It is also
the busiest airport in India followed by the Chhatrapati Shivaji International Airport.
✓ Cochin International Airport, Kerala is the first international airport in India developed under
PPP- Public-Private Partnership Model.
✓ Calicut International Airport, Kerala is recently added to the list of International Airports in
India.
✓ Juhu Aerodrome, Mumbai is the first and oldest Airport in India founded in 1928
✓ Airport of Trichy is the smallest airport in India.
✓ Kushok Bakula Rimpochee, Ladhak is the 23rd highest commercial airport in the world at
3256 meters.

13 | P a g e
AIR CARGO
Transportation of goods and products by air. It involves the use of cargo planes or the belly space of
passenger aircraft to transport goods and products across different destinations. Air cargo is an essential
component of international trade and plays a vital role in global supply chains. It is used for the
transportation of goods that require fast and reliable delivery, such as perishable goods, high-value items,
and time-sensitive products. The air cargo industry also provides specialized services such as temperature-
controlled transportation for perishable goods, hazardous goods transportation, and oversized cargo
transportation. Air cargo can be transported through various types of aircraft, ranging from small regional
planes to large freighter aircraft. Air cargo is generally more expensive than sea freight or land transport,
but it is faster and more efficient, especially for long-distance and international shipments.

14 | P a g e
TURNING POINT
1948 turning point in the aviation industry when there was a joint venture called Air India International by
the Indian Govt and Air India. Then civil aviation came under the control of the Indian govt in 1953
PRESENT TIME
In 2017 Indira Gandhi International Airport become the first airport in south Asia to handle staggering 60
million passengers. India currently has 22 charters 7 scheduled 5 regional and 2 cargo airlines while taking
the accounts airports 127 and 1091 registered aircraft.
There have been several turning points in the Indian aviation industry that have shaped its growth and
development over the years. Here are some of the key turning points:

15 | P a g e
Liberalization: The Indian aviation industry was heavily regulated by the government until the 1990s. The
liberalization of the sector in the 1990s allowed private airlines to enter the market, leading to increased
competition, better services, and lower fares for passengers.
Low-cost carriers: The launch of low-cost carriers likeAir Deccan, IndiGo, and SpiceJet in the early 2000s
revolutionized the Indian aviation industry, making air travel more affordable for millions of Indians and
contributing to the growth of the industry.
Foreign investment: The Indian government allowed foreign airlines to invest up to 49% in domestic
airlines in 2003, opening up the industry to foreign investment and bringing in much-needed capital and
expertise.
Infrastructure development: The development of new airports, expansion of existing airports, and
modernization of air traffic management systems have improved the infrastructure of the Indian aviation
industry, making it more efficient and capable of handling more traffic.
Technology adoption: The adoption of new technologies like online booking, e-ticketing, and mobile apps
has made it easier and more convenient for passengers to book and manage their travel, improving the
overall passenger experience.
Pandemic: The COVID-19 pandemic has had a major impact on the Indian aviation industry, forcing
airlines to cut costs, restructure their operations, and adapt to the new normal. The pandemic has accelerated
the adoption of digital technologies and contactless processes, leading to a more efficient and resilient
industry.
SUCCESS FACTOR
Economic growth: India's strong economic growth has fuelled demand for air travel, with more people
traveling for business and leisure.
Government support: The Indian government has been supportive of the aviation industry, investing in
infrastructure development, liberalizing regulations, and encouraging foreign investment.
ECONOMIC
GROWTH
GOVERNMENT
SUPPORT
STRATEGIC
LOCATION
INCREASING
MIDDLE CLASS
FAMILY
SKILLED
WORKFORCE

16 | P a g e
Strategic location: India's strategic location between Asia and Europe makes it an important hub for air
traffic, with many airlines using Indian airports as transit points.
Increasing middle class: The growing middle class in India has led to increased demand for air travel,
with more people able to afford airfares.
Skilled workforce: The Indian aviation industry has a highly skilled workforce, including pilots, engineers,
and ground staff, which has contributed to its safety record and operational efficiency.
CHALLENGES
• Rising fuel costs: It is assessed that a proceeding with increment in-stream fuel cost will represent
almost 45% to half of the absolute expenses in 2018. Lately, carriers have taken focal points of fuel
supporting projects to balance rising fuel costs, which bolts what’s to come conveyances of fly fuel
cost and permits aircraft to confine the vulnerability identified with future costs.
• Grounded Aircraft: Airlines likeAir India, SpiceJet, GoAir, and IndiGo face issues with grounded
aircraft due to maintenance, engine replacements, and supply chain challenges, impacting their
financial performance.
• Supply Chain Disruptions: Delays in aircraft deliveries, pilot and cabin crew shortages, and
supply chain issues with original equipment manufacturers (OEMs) hinder the industry’s capacity
to meet growing demand.
• Financial Losses: Indian airlines are projected to record a consolidated loss of $1.6 to 1.8 billion
in FY24, with full-service carriers incurring up to $1.2 billion in losses.
• Insolvency Cases: Go First Airline’s recent insolvency filing due to mounting cashflow woes and
grounded aircraft highlights the financial challenges faced by the industry.
Rising fuel costs Grounded
Aircraft
Supply Chain
Distribution
Financial Losses Insolvency
Cases
Insufficient
Oversight
Crew Shortage Inflated
Projections
Covid-19
Impact
Technology
Advancement

17 | P a g e
• Insufficient Oversight: Regulatory bodies like DGCA have faced criticism for not conducting
thorough financial audits and ensuring safety and operational standards in the industry.
• Crew Shortages: A lack of skilled pilots, engineers, and cabin crew members can lead to
operational disruptions, affecting airlines’ ability to maintain consistent schedules and services.
• Inflated Projections: Airlines sometimes announce ambitious growth plans without adequate
financial security, infrastructure, or personnel, leading to unrealistic expectations and potential
failures.
• COVID-19 Impact: The pandemic has severely affected the aviation industry, causing financial
challenges, reduced demand for air travel, and disruptions in training and safety investments.
• Technology advancement: With the approach of web and mixed media innovation, there was
likewise an apparent danger of business travel being supplanted by video-based meetings calling
and webcast business gatherings. Be that as it may, this has not made any huge impact on business
travel yet as physical contact is as yet considered for working together.
DEPARTMENTS
The Indian aviation industry has various departments that are responsible for its smooth functioning and
operations. Here are some of the key departments in the Indian aviation industry:
Directorate General of Civil Aviation (DGCA): The DGCA is the regulatory body for civil aviation in
India. It is responsible for enforcing regulations, issuing licenses and certificates, and ensuring safety
standards in the industry.
BCAS (Bureau of Civil Aviation)
(IAF) Indian Air Force
(AAI) Airport Authority of
India
(DGCA) Directorate
General of Civil
Aviation

18 | P a g e
Airports Authority of India (AAI): The AAI is responsible for the management and operation of airports
in India. It is also responsible for the development of airport infrastructure and air traffic management
systems.
Bureau of Civil Aviation Security (BCAS): The BCAS is responsible for ensuring aviation security in
India. It formulates security policies and procedures, conducts security audits, and regulates the use of
security equipment and procedures at airports.
Air India: Air India is the national carrier of India and is responsible for providing domestic and
international air transportation services.
Private airlines: Private airlines like IndiGo, SpiceJet, Vistara, and GoAir operate domestic and
international flights in India.
Indian Air Force (IAF): The IAF is responsible for the defense of Indian airspace and provides support to
civil aviation in areas such as air traffic control and search and rescue operations.
Ministry of Civil Aviation (MoCA): The MoCA is the government ministry responsible for the
development and regulation of civil aviation in India. It formulates policies and plans for the industry and
provides support to aviation-related projects and initiatives. Administration Directorate.
Some of the following departments are:
✓ Aerodrome Standards Directorate (AD)
✓ Air Safety Directorate (DAS)
✓ Air Transport Directorate (AT)
✓ Airworthiness Directorate (DAW) (which is also responsible for registering drones in
India)
✓ Flight Standards Directorate (FSD)
✓ Information & Regulation Directorate (DRI)
✓ Aircraft Engineering Directorate (AED)
✓ Directorate Of Flying Training (DFT)
✓ Medical Section
✓ Directorate of Training & Licensing (DTL)
✓ Directorate of Airspace and Air Navigation Services Standards (ANSS)

19 | P a g e
COMPETITORS
The fastest-growing aviation and owning 128 operational airports as of now the history of the Indian
aviation industry incipient back in 1911, where the plane was set as a tool to carry out mail across the
Yamuna River to Naina. When it comes, domination of aviation- IndiGo stands top of the list, along with
SpiceJet, Vistara, Air Asia India and Air India.
IndiGo Airlines
IndiGo Airlines is a low-cost airline based in Gurgaon, India, and is one of the largest airlines in India by
passenger numbers. It was founded in 2006 by Rahul Bhatia of Interglobal Enterprises and Rakesh
Gangwal, a former CEO of US Airways. The airline is known for its punctuality, affordable fares, and
excellent customer service.
Total Market Share: 53.9%
Fleet Size: 308
Total Employees: 26164 (2023)
Passenger load factor: 73.6%
Cancellation Rate: 0.15%
Passenger complaints in average: 2.74% (No. of complaints/10000 approx)
SpiceJet
SpiceJet is India’s most preferred low-cost airline, connecting the remotest corners of the country. We
operate the maximum number of UDAN flights in India, addressing our vision to make flying
affordable and approachable for Indians. In fact, we have single handily changed the air travel industry

20 | P a g e
in India and there is no stopping at that. We are constantly adding new destinations, expanding our
fleet, and enhancing our services to reach out to millions of flyers in India and across the world.
Fleet Size: 71
Total Employees: 14,578 (2021)
Air India
Air India is the flag carrier airline of India, and one of the oldest airlines in the world. It was founded in
1932 as Tata Airlines and was later renamed Air India in 1946 after being nationalized by the Indian
government. Air India operates both domestic and international flights, serving over 40 destinations in India
and around the world.
Fleet Size: 117
Air Asia India
AirAsia India is a low-cost carrier airline based in Bengaluru, India. It is a joint venture between AirAsia
Group and Tata Sons, with AirAsia Group holding a 49% stake and Tata Sons holding the remaining 51%.
The airline began operations in June 2014 and currently operates flights to various destinations within
India.
Fleet Size: 23
Passenger load factor: 74%
VISTARAAIRLINES
Vistara is an Indian full-service airline that was founded in 2013 as a joint venture between Tata Sons and
Singapore Airlines. The airline operates both domestic and international flights, with a focus on providing
a premium travel experience to its passengers.

21 | P a g e
Fleet Size: 55
Passenger load factor: 56%
GROWTH SIZE
In India, remarkable growth has been noticed in the sphere of civil aviation. The speed and carrying
capacity of modern aircraft are providing commendable and far beyond what we used to experience decades
ago. India is already among the top 10 aviation markets, serving over 83 million domestic passengers
annually, and the volume of air traffic, both in terms of passengers and goods, is growing at a good pace.
During April-September 2022, domestic freight traffic increased by 19.9% as compared to the same period
of last year.
Here are some of the key facts explaining the growth of Indian aviation:
* During the month of September 2022:
• A total of 197.25 thousand aircraft movements (domestic & international) were reported,
registering a growth of 34.3% from the previous year
• Passenger traffic was registered at 24.94 thousand, an increase of 61.6% from the previous year
* India's airport capacity is expected to handle 1 billion trips annually by 2023.
* India's domestic traffic makes up 69% of the total airline traffic in South Asia. Total passenger traffic
across the country during April- September 2022 was 150 million.
* There has been a growth of over 33% in the number of passengers carried by Indian domestic carriers in
2021 as compared to 2020. (838.14 lakh passengers in 2021 while 630.11 lakh passengers in 2020).
* The country now has about 140 airports, up from 74 in 2013-2014 (including Heliports and water domes).
By 2024-2025, the number is expected to reach 220.
* In 2013-14, there were 400 aircraft in the nation and currently, there are 710 aircraft with more than 100
planes expected to join each year.
* The Ministry of Civil Aviation (MOCA) stated that it is likely to employ 1 lakh more people by 2024,
which shows an increase in direct employment from 2.5 lakhs to 3.5 lakhs.
These are the key factors for the growth of aviation sector:
1) Higher Household income
2) Entry of Low-Carriers (LCC)
3) Increased FDI inflows
4) Increased Tourist Inflows
5) Development of Modern Airports with New Technology

22 | P a g e
6) Supporting Government Policies
The Air transport Market in India under the “current trend” points to grow by 262% in the coming 20 years
(2017-37), which would result in an additional 370.3 million passenger journeys by 2037. This increased
demand would support approximately US$ 126.7 billion of India’s GDP and 9.1 million jobs.
Breakup of Air Traffic
Metro airports such as Delhi, Mumbai, Kolkata, Chennai, Hyderabad, and Bangalore historically had a
majority of the aviation market share in India, accounting for 62% of the country's total aviation market.
Future expansion is anticipated to be co-driven by other airports in smaller towns and cities due to improved
connectivity with smaller cities.
Metro
airports
62%
Non-
Metro
tier 1
Airports
15%
Tier 2
airports
12%
Tier
Airport categeory 2020: Total
Traffic 341 million pax
Metro
airports
58%
Non-
Metro
tier 1
Airports
15%
Tier 2
airports
13%
Tier 3
Airport categeory 2033: Total
Traffic 959 million pax

23 | P a g e
MARKET SIZE
The Indian aviation industry is currently the third-largest domestic aviation market in the world, after the
Us and China. It is expected to become the largest domestic market by 2030, with an estimated 400 million
passengers per year. The sector has been growing at an average annual rate of around 18% over the last
decade.
Indian Aviation Sector in FY22
Scheduled Airlines: Distance Flown million km: 969.63
Non-Scheduled airlines in operation: 94 (FY22 as of December 2021)
Air Passenger’s traffic (million): 188.89
Freight Handled (MMT): 3.14 (FY22)
Number of Operational Airports: 131
Number of Aircrafts: 712
• ▪ India is the 3rd
largest civil aviation market in the world FY22, airports in India pegged the
domestic passenger traffic to be 84.2 million, a 57.9% YoY growth, and international passenger
traffic to be 21.2 million, an 141% YoY growth, over the fiscal year ended March 31, 2021.
• ▪ In October 2021, Tata Sons won the bid to acquire state-run Air India by offering Rs. 18,000 crores
(US$ 2.4 billion) to acquire 100% of shares.
• The Government has set a target to operationalize 1,000 UDAN routes and to revive/develop 100
unserved & underserved airports/heliports/water aerodromes (including 68 aerodromes) by 2028.

24 | P a g e
India Aviation Market Analysis
The India Aviation Market is projected to register a CAGR of 14.67%
Commercial Aviation is the Largest Aircraft Type: Increasing air passenger traffic and its recovery to
pre-pandemic levels, coupled with replacing existing aircraft with
advanced sustainable aircraft, is driving the commercial aviation
market.
Passenger Aircraft is the Largest Sub Aircraft Type: Strong
economic growth and the increasing middle-class population are
fuelling air passenger traffic growth and generating demand for
passenger aircraft.
Narrowbody Aircraft is the Largest Body Type: A fleet of
narrowbody aircraft adds flexibility in terms of fleet management.
It helps to reduce the airlines' operating costs, thereby resulting in
the rapid adoption of this aircraft.

25 | P a g e
CHAPTER III
ORGANIZATIONAL DESIGN

26 | P a g e
INDUSTRIAL DESIGN
The organizational design of the Indian aviation industry can be broadly categorized into two
sectors - Civil and Military Aviation.
Civil Aviation: In the civil aviation sector, the regulatory body responsible for overseeing the industry
is the Directorate General of Civil Aviation (DGCA). The DGCA is responsible for issuing licenses to
airlines, regulating air safety standards, and ensuring compliance with international regulations and
guidelines. Apart from the DGCA and AAI, other regulatory bodies involved in the civil aviation industry
include the Bureau of Civil Aviation Security (BCAS) and the Ministry of Civil Aviation (MoCA). The
BCAS is responsible for ensuring security in civil aviation and regulating security measures at airports and
airlines. The MoCA is the nodal agency responsible for formulating policies and regulations related to civil
aviation in India. The Airports Authority of India (AAI) is the government agency responsible for managing
and developing airports in India. AAI is responsible for developing, operating, maintaining, and managing
civil aviation infrastructure in the country, including airports, air traffic management, and communication
systems.
In addition to regulatory bodies, there are several airlines operating in India, including both full-service
carriers and low-cost carriers. The organizational structures of these airlines may vary, but they typically
consist of departments such as marketing, finance, operations, and human resources. various stakeholders
in the civil aviation industry, including ground handling companies, maintenance, repair, and overhaul
(MRO) service providers, and travel agents.
Military Aviation: In the military aviation sector, the primary organization responsible for overseeing
the industry is the Indian Air Force (IAF). The IAF is responsible for conducting aerial warfare and
safeguarding Indian airspace. It operates a variety of combat and transport aircraft, including fighter jets,
transport planes, helicopters, and unmanned aerial vehicles. Apart from the IAF and HAL, other
organizations involved in the military aviation industry include the Defence Research and Development
Organisation (DRDO) and the Indian Navy and Army's aviation wings. The DRDO is responsible for
developing and designing defense technologies, including aircraft and missiles.
The Indian military aviation industry is primarily led by Hindustan Aeronautics Limited (HAL), a state-
owned aerospace and defense company. HAL is involved in the design, development, and manufacture of
various aircraft and aerospace equipment, including fighter jets like the Sukhoi Su-30MKI and Light
Combat Aircraft (LCA) Tejas, transport planes like the C-130J Hercules and the Dornier 228, and
helicopters like the HAL Dhruv and HAL Rudra.

27 | P a g e
INDUSTRIAL STRUCTURE
CIVIL AVIATION: In the civil aviation sector, the Indian aviation industry has witnessed significant
growth in recent years, driven by a surge in demand for air travel, favorable government policies, and the
emergence of low-cost carriers. The industry includes both full-service carriers and low-cost carriers,
offering a range of domestic and international flights.
The major players in the Indian civil aviation industry include IndiGo, SpiceJet, GoAir, Air India, Vistara,
and AirAsia India. These airlines operate a fleet of aircraft manufactured by leading aerospace companies
such as Airbus, Boeing, and Bombardier.Apart from airlines, the Indian civil aviation industry also includes
airports, ground handling companies, and MRO service providers.
DGCA:
Directorate General of Civil Aviation, which is the regulatory body responsible for regulating civil aviation
activities in India. It is an autonomous body under the Ministry of Civil Aviation and was established in
1951.
The DGCA is responsible for overseeing and regulating the safety standards and procedures for civil
aviation activities in India, including airworthiness standards for aircraft, licensing of pilots, air traffic
controllers, and other aviation professionals, regulation of air transport services, and the development of
air navigation systems.
CIVIL AVIATION
Directorate General of
Civil Aviation (DGCA)
Airports Authority of
India (AAI)
Bureau of Civil
Aviation Security
(BCAS)
Ministry of Civil
Aviation (MoCA)
Authority on
•Airlines
•Airports

28 | P a g e
The DGCA plays a crucial role in maintaining safety in the Indian aviation industry. It regularly conducts
safety audits and inspections of airlines, airports, and other aviation-related organizations to ensure
compliance with safety regulations and standards. The DGCA also investigates accidents and incidents
involving aircraft to determine their causes and take necessary steps to prevent similar incidents from
occurring in the future.
AAI:
Airports Authority of India, which is a statutory body established under the Airports Authority of India Act,
1994. The AAI is responsible for managing and operating airports in India and providing air traffic
management services over the Indian airspace. The AAI is responsible for the construction, modification,
and management of airports in India. It also provides air traffic control services to all airports in the country
and manages communication, navigation, and surveillance systems at these airports. Additionally, the AAI
is responsible for providing passenger amenities and commercial services at airports, including retail shops,
restaurants, and parking facilities.

29 | P a g e
BCAS:
Bureau of Civil Aviation Security, which is a regulatory body responsible for ensuring security measures
and procedures in the civil aviation sector in India. It was established in 1978 as a nodal agency under the
Ministry of Civil Aviation.
The primary responsibility of BCAS is to develop security policies, regulations, and procedures for the
civil aviation sector. It also conducts security audits and inspections of airports and airlines to ensure that
they comply with the security regulations and standards set by BCAS. The bureau also oversees the training
of security personnel and ensures that they are adequately trained to handle security threats.
BCAS works closely with other security agencies, such as the Central Industrial Security Force (CISF),
local law enforcement agencies, and intelligence agencies, to ensure that the aviation industry remains
secure. It also works to improve the security infrastructure at airports, including the installation of new
security technologies and equipment.

30 | P a g e
MOCA:
Ministry of Civil Aviation, which is the nodal ministry of the Government of India responsible for the
formulation and implementation of national policies and programmes for the development and regulation
of civil aviation in the country.
The Ministry of Civil Aviation is responsible for the development and regulation of the aviation industry
in India, which includes air transport services, airport infrastructure development, and aviation safety and
security. The ministry formulates policies and regulations for the industry, and it also oversees the
implementation of these policies and regulations.
The MOCA works in close coordination with other regulatory bodies in the aviation industry, such as the
Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI), and Bureau of Civil
Aviation Security (BCAS). It also works with the industry stakeholders, such as airlines, airport operators,
and other aviation-related organizations, to ensure the growth and development of the industry.
The ministry is responsible for the development of civil aviation infrastructure in the country, including the
construction and modernization of airports, as well as the development of regional connectivity through
initiatives such as the UDAN scheme.

31 | P a g e
MILITARY AVIATION: The Indian military aviation industry has a long history, dating back to the
establishment of the Indian Air Force in 1932. The industry is primarily led by HAL, which is responsible
for designing, developing, and manufacturing aircraft and aerospace equipment for the Indian armed forces.
HAL's product portfolio includes fighter jets, transport planes, helicopters, and unmanned aerial vehicles.
The company also provides MRO services for military aircraft and is involved in the development of
various defense technologies. In addition to HAL, the Indian military aviation industry also includes other
aerospace and defense companies involved in the manufacturing of defense equipment, such as Bharat
Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and the DRDO.
In the military aviation sector, the primary organization responsible for overseeing the industry is the Indian
Air Force (IAF). The IAF is responsible for conducting aerial warfare and safeguarding Indian airspace. It
operates a variety of combat and transport aircraft, including fighter jets, transport planes, helicopters, and

32 | P a g e
HAL:
(Hindustan Aeronautics Limited) is a state-owned aerospace and defence company in India that is
headquartered in Bangalore. It was established in 1940 and has since become a leading player in the Indian
aviation industry.
HAL is primarily involved in the design, development, manufacture, repair, overhaul, and upgrade of
aircraft, helicopters, and their engines and related systems. The company is also involved in the production
of materials, avionics, and accessories for aircraft and helicopters. Some of the major products developed
by HAL include the HAL Tejas fighter jet, HAL Dhruv helicopter, and the HAL Kiran trainer aircraft.
Military Aviation
Hindustan Aeronautics
Limited (HAL)
Indian Air Force (IAF)
Defence Research and
Development
Organisation (DRDO)
Light Combat Aircraft
(LCA)

33 | P a g e
IAF:
(Indian Air Force) is the air arm of the Indian armed forces. It was officially established in 1932, and since
then, it has become one of the most respected and powerful air forces in the world. The primary mission of
the IAF is to secure Indian airspace and conduct aerial warfare during a conflict.
The IAF operates a wide range of aircraft, including fighter jets, transport aircraft, helicopters, and
unmanned aerial vehicles (UAVs). Some of the notable fighter jets operated by the IAF include Sukhoi Su-
30MKI, Dassault Mirage 2000, and Mikoyan MiG-29. The transport aircraft operated by the IAF include
Lockheed Martin C-130J, Boeing C-17 Globemaster III, and Antonov An-32. The helicopter fleet of the
IAF includes the HAL Dhruv, Mil Mi-17, and the Boeing CH-47 Chinook. The IAF is responsible for the
aerial defence of India and its territories. It also plays a crucial role in disaster relief and humanitarian aid
operations in times of natural calamities and emergencies. The IAF has been involved in several conflicts,
including the Kargil War in 1999, and has displayed exceptional bravery and skill during those times.
DRDO:
(Defence Research and Development Organisation) is an agency of the Indian government responsible for
the development of technology for defence and security purposes. It was established in 1958 and has since
become a leading organisation in the field of defence research and development in India.
The primary objective of DRDO is to provide the Indian armed forces with advanced technology and
weaponry to ensure the country's national security. The organisation works in various fields, including
aeronautics, missile technology, naval systems, land systems, electronic warfare, and cybersecurity. Some
of the notable projects of DRDO include the Agni series of ballistic missiles, BrahMos cruise missile, Tejas
fighter jet, and the Astra air-to-air missile.
DRDO has a vast network of research centres and laboratories located across the country. The organisation
also collaborates with various academic institutions, research organisations, and industry partners to
develop cutting-edge technology for defence and security purposes. Apart from its primary mission of
developing technology for the defence sector, DRDO also plays an essential role in promoting indigenous
research and development in India.
CHIEF OF AIR
STAFF
Vice Cheif of the Air
Staff (VCAS)
Deputy Cheif of the
Air Staff (DCAS)
Air Officer Incharge
Personnel (AOP)
Administration
(AOM)
Administration
(AOA)
Director General
Inspection & Safety
(DG I&S)

34 | P a g e
It provides training and support to young scientists and researchers, promotes innovation and
entrepreneurship in the field of defence technology, and contributes to the overall growth of the country's
research and development ecosystem.
LCA:
(Light Combat Aircraft) is a fighter aircraft designed and developed by India's HAL (Hindustan Aeronautics Limited)
under the guidance of DRDO (Defence Research and Development Organisation). The project was initiated in the
1980s to replace the ageing MiG-21 fighter jets of the Indian Air Force (IAF).
The LCA program has been a significant milestone in the development of indigenous aerospace technology
in India. It involved the collaboration of various organisations, including DRDO, HAL, Aeronautical
Development Agency (ADA), and the Indian Air Force.
The LCA Mark-I, also known as Tejas, is a single-engine, lightweight, multirole fighter aircraft. It is
equipped with state-of-the-art avionics, weapons systems, and electronic warfare suites. The aircraft has
undergone extensive flight testing and has demonstrated its capabilities in various air shows and military
exercises.
The LCA program has faced many challenges and delays, primarily due to the complexity of the project
and the need to develop critical technologies indigenously. However, the successful development and
deployment of the LCA Mark-I have established India's capability in developing advanced fighter aircraft.
The LCA program has now entered the next phase of development, which involves the production of the
LCA Mark-II, which is a more advanced version of the aircraft. The LCA Mark-II is expected to have
advanced avionics, weapons systems, and a more powerful engine.

35 | P a g e
INDUSTRIAL CULTURE
The industrial culture of the Indian aviation industry is shaped by various factors such as government
policies, competition, customer expectations, safety regulations, and technological advancements.
1. Safety Culture: Safety is of paramount importance in the aviation industry, and Indian airlines and
airports have put in place stringent safety measures to ensure the safety of passengers and crew. The
Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS)
oversee the safety and security aspects of the industry, and airlines and airports are required to
comply with their regulations.
2. Customer Service: Indian airlines have placed a strong emphasis on customer service in recent
years, with several airlines adopting a customer-centric approach to attract and retain passengers.
Airlines have introduced various initiatives such as loyalty programs, on-board entertainment, and
enhanced in-flight services to differentiate themselves from their competitors.
3. Workforce Diversity: The Indian aviation industry has a diverse workforce, with employees from
different backgrounds, cultures, and regions working together. The industry provides employment
opportunities to people from various segments of society, including pilots, cabin crew, ground staff,
and engineers.
4. Technological Advancements: The Indian aviation industry has embraced technological
advancements to enhance its operations and improve the passenger experience. Airlines have
introduced mobile apps, self-check-in kiosks, and in-flight Wi-Fi to make travel more convenient
and seamless. The industry is also exploring the use of
emerging technologies such as artificial intelligence (AI), blockchain, and big data analytics to
enhance its operations and improve efficiency.
Ministry of Defence
(MoD)
Aeronautical
Development
Agency (ADA)
Hindustan
Aeronautics
Limited (HAL)
General Body &
Governing Body
Principal
Contractor for
LCA Project
Review Progress of
LCA Project
Design,
Development, &
Manufacturing of
LCA

36 | P a g e
5. Industry Associations: The Indian aviation industry has several industry associations such as the
Federation of Indian Airlines (FIA), the Airports Council International (ACI), and the
Confederation of Indian Industry (CII) that represent the interests of different stakeholders in the
industry. These associations provide a platform for stakeholders to interact, share knowledge, and
collaborate on initiatives that benefit the industry as a whole.
6. Employee Training: The Indian aviation industry places a strong emphasis on employee training
and development. Airlines and airports offer regular training programs for their employees to ensure
that they have the necessary skills and knowledge to perform their jobs effectively. The training
programs cover various aspects such as safety procedures, customer service, technical skills, and
leadership development.
7. Cost Control: The Indian aviation industry is highly competitive, and airlines are constantly
looking for ways to reduce costs and improve efficiency. Airlines have adopted various cost-cutting
measures such as fuel-efficient aircraft, optimized route planning, and lean operations to stay
competitive.
8. Innovation: The Indian aviation industry has a strong culture of innovation, with airlines and
airports constantly exploring new ways to improve their operations and enhance the passenger
experience. For instance, some airlines have introduced biometric boarding systems, while airports
are experimenting with facial recognition technology to streamline the check-in process.
9. Collaboration with Government: The Indian aviation industry works closely with the government
to develop policies and regulations that support its growth and development. The industry has
collaborated with the government on initiatives such as the UDAN scheme to improve regional
connectivity, the Make in India initiative to promote aerospace manufacturing, and the NABH
Nirman program to upgrade airport infrastructure.
10. Environmental Sustainability: The Indian aviation industry is increasingly focused on
environmental sustainability, and airlines and airports have taken several measures to reduce their
carbon footprint. Airlines have introduced fuel-efficient aircraft and adopted sustainable practices
such as recycling and waste reduction. Airports are also adopting green initiatives such as the use
of renewable energy and rainwater harvesting to reduce their environmental impact.

37 | P a g e
INDUSTRIAL CHANGE
The Indian aviation industry has undergone several industrial changes over the years. Here are some of the
significant changes:
Liberalization: In the 1990s, the Indian government opened up the aviation sector to private players,
ending the monopoly of state-owned airlines. This liberalization led to the entry of several private airlines,
which brought in competition and led to a significant increase in the number of passengers.
• Consolidation: The Indian aviation industry has undergone significant consolidation in recent
years, with several airlines merging or going bankrupt. This consolidation has led to a reduction in
competition and has led to some degree of concentration in the market.
• Technological Advancements: The Indian aviation industry has seen significant technological
advancements in recent years, which have led to improvements in safety, efficiency, and customer
experience. For example, the introduction of computerized reservation systems, mobile apps, and
self-check-in kiosks has made air travel more convenient and accessible.
• Emergence of New Business Models: The Indian aviation industry has seen the emergence of new
business models, such as hybrid carriers that combine elements of full-service and low-cost airlines.
These models offer greater flexibility and choice to customers and have contributed to the growth
of the industry.
Regional Connectivity: The Indian government has launched several initiatives to improve regional
connectivity, such as the UDAN scheme. This scheme aims to connect tier-2 and tier-3 cities with major
cities by providing subsidies to airlines to operate on these routes. This has led to the growth of regional
airlines and has increased connectivity in remote parts of the country.
Liberlization
Regional
Connectivity
Sustainbility
•Consolidation
•Technology Advancement
•New Business Models
•Low-Cost Carriers
•Digitilization
•Infrastructure Development
•Evolving Cutomer Expectations

38 | P a g e
• Shift towards Low-Cost Carriers: The Indian aviation industry has seen a significant shift
towards low-cost carriers (LCCs) in recent years. LCCs have disrupted the market by offering
cheaper fares and more flexible pricing models, which have attracted a new segment of passengers.
Sustainability: The Indian aviation industry is increasingly focused on sustainability and has taken
several measures to reduce its carbon footprint. Airlines and airports have adopted sustainable practices
such as the use of biofuels, energy-efficient operations, and waste reduction.
• Emphasis on Digitalization: The Indian aviation industry is increasingly focusing on
digitalization, which is transforming the way airlines and airports operate. For example, airlines are
using data analytics and artificial intelligence to optimize their operations and improve the customer
experience. Airports are also adopting digital technologies such as biometric authentication,
automated baggage handling, and smart infrastructure to improve efficiency and reduce wait times.
• Infrastructure Development: The Indian aviation industry has seen significant infrastructure
development in recent years, with several airports undergoing modernization and expansion. This
has improved connectivity and capacity and has contributed to the growth of the industry.
• Evolving Customer Expectations: The Indian aviation industry is evolving to meet changing
customer expectations, with a greater focus on personalized services and a seamless travel
experience. Airlines and airports are investing in new technologies and services to meet these
expectations, such as in-flight entertainment, Wi-Fi connectivity, and lounge access.
Pandemic attack: The COVID-19 pandemic has had a significant impact on the Indian aviation
industry, leading to a sharp decline in passenger traffic and revenue. The industry has had to adapt to the
changing environment by implementing new safety protocols, reducing capacity, and cutting costs. The
pandemic has also accelerated digital transformation and sustainability initiatives in the industry.

39 | P a g e
CHAPTER IV
SWOT ANALYSIS
S
O
W
T

40 | P a g e
SWOT ANALYSIS OF THE INDIAN AVIATION INDUSTRY
SWOT means the Strengths, Weakness, Opportunities and Threats. This is one of the essential
requirements of any organization and the foundation for understanding the industry of that particular
organization. The continuous volatile environment of the aviation industry has been analysed with the
respect the extended marketing mix (product, price, place, promotion, process, people and physical
evidence). While individual airlines each analyze and make decisions based on their own situations, there
are overall industry similarities that all airlines face, with each endeavouring to maximum strengths and
opportunities while minimizing weakness and threats.
Aviation industry means the entire aviation in India. Here, the industry can be divided into two major parts-
civil aviation and military aviation. Among lots of other industries, the aviation industry is the fastest
growing industry in India. The aviation manufacturing hub in India is located at Bangalore, and it
constitutes around 65% share of manufacturing.
As the number of people, traveling by air, is increasing a lot, the prospect of the aviation industry is getting
hiked. The amount of tax, paid by the Indian aviation sector, is more than INR 87.5 billion. The huge range
of services, offered by the aviation industry in India includes cargo airlines, airport management, private
jets and helicopters, maintenance, repair and overhaul, in-flight catering, ground handling and lots more.
• Economic Downturn
• The threat of Terrorist
Attack
• Increasing Cost of Fuel
• Shortage of Skilled
Manpower
• Improvement in
Investment
• Technological
Advancement
• Increased Revenue
• Personal importance
Gets more
Importance
• Lack of Infrastructure
• Fixed Revenue
• Still Quite Expensive
• Low-cost service
• Highly Trained Staff
• Strength of the
Product
• Changing lifestyle of
people
S W
T
O

41 | P a g e
SUMMARY OF FINDINGS
• The Indian aviation industry is one of the fastest-growing aviation markets in the world. The
industry comprises airlines, airports, air cargo, and ground handling services. India has a rich
aviation history that dates back to 1911 when the first commercial flight took off from Allahabad.
Airlines are Air India Express, Alliance Air, Air Asia, GoAir, Air India, Spice Jet, Vistara, and
Indigo.
• The speed and carrying capacity of modern aircraft are providing commendable and far beyond
what we used to experience decades ago. India is already among the top 10 aviation markets, serving
over 83 million domestic passengers annually, and the volume of air traffic, both in terms of
passengers and goods, is growing at a good pace.
• In the civil aviation sector, the regulatory body responsible for overseeing the industry is the
Directorate General of Civil Aviation (DGCA), Ministry of Civil Aviation (MoCA), Bureau of Civil
Aviation Security (BCAS) and Indian Air Force (IAF).
• India’s aviation industry is expected to witness Rs. 35,000 crores(US$ 4.99 billion) investment in
the next four years.
• The IAF is responsible for conducting aerial warfare and safeguarding Indian airspace. It operates
a variety of combat and transport aircraft, including fighter jets, transport planes, helicopters, and
• The Indian Military aviation industry has a long history, dating back to the establishment of the
Indian Air Force in 1932. The industry is primarily led by HAL, which is responsible for designing,
developing, and manufacturing aircraft and aerospace equipment for the Indian armed forces,
Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and the DRDO. Hindustan
Aeronautics Limited (HAL), a state-owned aerospace and defense company.
• The DRDO is responsible for developing and designing defense technologies, including aircraft and
missiles.
• COVID-19 pandemic changes the industry has had to adapt to the changing environment by
implementing new safety protocols, reducing capacity, and cutting costs. The pandemic has also
accelerated digital transformation and sustainability initiatives in the industry.
• The Indian aviation industry is increasingly focused on sustainability and has taken several
measures to reduce its carbon footprint. Airlines and airports have adopted sustainable practices
such as the use of biofuels, energy-efficient operations, and waste reduction.
• The Indian aviation industry also provides training and education for pilots, air traffic controllers,
cabin crew, and other aviation professionals. India has several aviation training institutes that
provide world-class education and training facilities.

42 | P a g e
SUGGESTIONS
➢ The government should provide financial support to the industry to help it address the challenges it
faces.
➢ The government should work with industry stakeholders to develop a long-term plan for the
development of the industry.
➢ The industry should invest in research and development to develop new technologies that can help
it reduce costs and improve efficiency.
➢ The industry should work to improve customer service and make flying more convenient for
passengers.
➢ The industry should focus on developing regional connectivity. This would help to connect smaller
cities and towns to the national aviation network.
➢ The industry should work to improve air safety. This could be done by investing in new safety
technologies and by training pilots and crew members to the highest standards.
➢ The industry should work to reduce environmental impact. This could be done by using more fuel-
efficient aircraft and by investing in renewable energy sources.
➢ The industry should work to promote gender equality. This could be done by recruiting and
promoting more women in the aviation sector.

43 | P a g e
CONCLUSION
The future of the Indian aviation industry looks bright, with the right policies and investments in place, the
industry can continue to grow and contribute to the economic development of India. India is fortunate and
strong enough to have a network of modern airports and airways, including top aerospace companies. The
aviation industry has contributed to fulfilling the dreams of the population by providing low-cost flights,
especially for middle-class people, and the support it has provided to the population in terms of service and
comfort is commendable. The sustainable growth and support provided by this industry explain the growth
potential it has in the future. With the help of private and foreign investors, a liberalized aviation sector,
and constant government initiatives, India will soon emerge as one of the most important markets for
aviation in the world.
The industry contributes to the economy in a number of ways, including:
→ Creating jobs
→ Generating revenue
→ Stimulating investment
→ Promoting tourism
→ Facilitating trade
→ Providing financial support to the industry
→ Working with industry stakeholders to develop a long-term plan for the development of the
industry
→ Investing in research and development to develop new technologies that can help the industry
reduce costs and improve efficiency
→ Working to improve customer service and make flying more convenient for passengers
The Indian aviation industry is a key driver of economic growth in India. The industry is expected to
continue to grow in the coming years, and it is important for stakeholders to address the challenges that it
faces in order to ensure its long-term success.

44 | P a g e
BIBLIOGRAPHY
WEBSITES:
 Rise of the Indian Aviation Market | IBEF
 Ministry of Civil Aviation (India) - Wikipedia
 Indian Aviation Industry, Aviation Companies in India - IBEF
 Indian Aviation Market.cdr (ibef.org)
 Aviation in India - Wikipedia
 Civil aviation in India - Wikipedia
 Home | Ministry of Civil Aviation | GoI
 Home - Indian Air Force: Touch the Sky with Glory
 Indian aviation sector in 2021: A stormy flight ahead (indiatoday.in)
 Home | Directorate General of Civil Aviation | Government of India (dgca.gov.in)
 Indian Aviation News Net
 Aviation Market Size & Share Analysis - Industry Research Reports - Growth Trends
(mordorintelligence.com)
 Organization Structure | AIRPORTS AUTHORITY OF INDIA (aai.aero)
 Bureau of Civil Aviation Security (bcasindia.gov.in)
 Book Domestic & International Flights at Lowest Airfare - IndiGo (goindigo.in)
 Defence Research and Development Organisation - DRDO, Ministry of Defence,
Government of India
 SWOT analysis of Aviation Industry in India - Aviation in India SWOT (marketing91.com)
 Welcome to Hindustan Aeronautics Limited | India (hal-india.co.in)
 Indian Aviation sector analysis (slideshare.net)
 Aviation Overview. (openai.com)
 Share and Discover Knowledge on SlideShare
 Bard (google.com)
 A Comprehensive Project on Indian Civil Aviation (slideshare.net)

Indian Aviation Industrial Analysis

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Indian Aviation Industrial Analysis

Similar to Indian Aviation Industrial Analysis (20)

Recently uploaded

Recently uploaded (20)

Indian Aviation Industrial Analysis