Case study on present situation in Indian aviation sector and the challenges being faced. More about why indigo has been successful in recent times

1. 1Pushkar Joshi Indian Aviation Industry

2. 2Pushkar Joshi Indian Aviation Industry

3.  Understanding
Present condition of
Indian Aviation
Industry
 Analyzing what
makes a particular
aviation company
successful.
 Challenges faced by
Indian aviation
industry
Pushkar Joshi Indian Aviation Industry 3

4.  Today, India has the fastest
growing domestic aviation
market in the world, as per the
International Air Transport
Association (IATA).
 Thus, India is all set to become
a part of civil aviation revolution.
 Aviation Industry in India holds
about 69 % of the total air traffic
in the region of South Asia.
Pushkar Joshi Indian Aviation Industry 4

5. Upbeat Future
Fastest Growing
Market
Tough Industry
5Pushkar Joshi Indian Aviation Industry

6. 1. PSU –
2. Listed -
3. Private-
6Pushkar Joshi Indian Aviation Industry

7. 37%
22%
1%
12%
9%
16%
2%1%
Indigo Jet Group
Vistara Spice Jet
Go Air Air India
Air Asia Others
7Pushkar Joshi Indian Aviation Industry

8. Pushkar Joshi Indian Aviation Industry 8

9.  High Operational costs
 Debt Burden
 Infrastructural problems
Pushkar Joshi Indian Aviation Industry 9

10.  Financial Stress affecting passengers safety
 Complex Tax Structure
 High prices of ATF compared to
international market
Pushkar Joshi Indian Aviation Industry 10

11. 11Pushkar Joshi Indian Aviation Industry

12.  Operations :Good coverage of technical
aspects.
 Single Class: Having only economy class
means that they don’t have to spend
much upon privileged passengers.
 Single type of aircraft : Mostly consists of
A-320-232.Thus it provides more
flexibility & all the technical aspects or
hiring charges are minimized
 Operations :Good coverage of technical
aspects.
 Single Class: Having only economy class
means that they don’t have to spend
much upon privileged passengers.
 Single type of aircraft : Mostly consists of
A-320-232.Thus it provides more
flexibility & all the technical aspects or
hiring charges are minimized.
12Pushkar Joshi Indian Aviation Industry

13.  Fuel :Domestic fuel taxes can be as high as
30% along with 8.2% of excise duty. Thus in
order to tackle such situation Indigo has been
using a software in order to plan it’s usage.
 Route Planning : Indigo operates in less
destinations than it’s competitors, but with a
higher frequency.
It has a fleet of about 78 planes for 36
destinations.
Whereas Spice Jet works with a fleet of 58
planes for 46 destinations.
13Pushkar Joshi Indian Aviation Industry

14.  Aviation Sector is one of the challenging sectors
 Government must take a firm stand, rationalize the
tax structure & play a supportive role to strengthen
the competitiveness of private players.
 Attracting foreign investment & alternative ways to
infuse equity should be explored.
 Aviation industry cannot always blame government
for all the problems, the management should also
introspect.
Pushkar Joshi Indian Aviation Industry 14

15. 15Pushkar Joshi Indian Aviation Industry