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Saga Of Indian Aviation Industry


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Saga Of Indian Aviation Industry

  1. 1. Saga of Indian Aviation IndustryUnfolding …<br />
  2. 2. Welingkar Bangalore Team<br />AnuraagAtal<br />IshaqueMulla<br />Priya Singh<br />Rohan Desai<br />SameerSanghavi<br />
  3. 3. The First bird to land in India!!!<br />
  4. 4. How it started …<br />When  1912<br />Route  Karachi to Delhi<br />Airline  Indian State Air Services <br />+ <br /> Imperial Airways UK<br />
  5. 5. Birth of Indian Aviation<br />When  1932<br />Airline  TATA Airline by JRD Tata<br />First Indian to get “A” license<br />In 1946, Tata Airlines  Air India<br />At the dawn of Independence, India had 9 Air transport companies providing Cargo and Passenger services<br />
  6. 6. Rising of the Titan…<br />Rise of the Monopoly<br />In 1953, Nationalization of all airlines assets<br /> Indian Airlines Corporation  Domestic <br /> Air India International  International<br />38 years of undisputed control over Indian sky <br /> …but only till 1991<br />
  7. 7. The turning point…<br />Open Sky policy<br />Repeal of Air Corporation Act<br />Private players got entry<br />Statistics as on 1996 <br />7- Scheduled Private operators<br />22- Non-scheduled operators<br />34 – Private operators holding NOC<br />
  8. 8. Story continues …<br />2003, Air Deccan introduced concept of <br />“No –Frill Budget Flying” – fares 17 % lower than others<br />Flooding of new players like Spice Jet, Go Airways … and many more<br />
  9. 9. Turbulent sky …<br /><ul><li>Rising competition: Many foreign carriers
  10. 10. Rising cost: Rising ATF prices
  11. 11. Fall in demand: Recession
  12. 12. Cheaper alternatives: Railway, Road transport
  13. 13. Bargaining suppliers: Airbus & Boeing
  14. 14. Bargaining consumers: No loyalty</li></ul>Combined loss - All airlines in 2008-09 Rs.10,000 Cr <br />Source: Economic Times<br />
  15. 15. No ground clearance …<br />Over demanding Staff unions<br />Agitations, Stop work, Mass leaves etc.<br />Stubborn Airport authorities<br />Heavy runway fees<br />Heavy license fees<br />
  16. 16. Finding way through storms…<br />Attract consumers: Value added services<br />Flight route rationalization<br />Newer technologies<br />Pressurized govt. to bring ATF under OGL<br />Employee retrenchment<br />Leasing out Aircrafts<br />Merger & Acquisitions<br />
  17. 17. Current scenario<br />Source: DGCA<br />
  18. 18. Is it Oligopoly ???<br />Kingfisher + Jet<br />Market share of = 49 %<br />Code Sharing Agreement<br />Cartelization<br />Price influencing<br />HHI value – 19.87 %<br />
  19. 19. Future take-offs<br />Very difficult to sustain<br />Need severe cost cutting<br />Expecting Mergers and Acquisitions<br />Started with Monopoly …. Landed into Oligopoly….. May again take-off as a ………………………..….Monopoly<br />
  20. 20. Thank you !!!<br />Hope you enjoyed the flight !!!<br />