Aviation industry overview

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Aviation industry overview

  1. 1. Aviation Industry Analysis Report
  2. 2. Industry Overview • 9th largest market • 121 million domestic & 41 million international passengers • More than 85 international airlines & 5 Indian carriers connect over 40 countries • Foreign direct investment (FDI) worth US$ 456.84 million from April 2000 to July 2013, released by Department of Industrial Policy and Promotion (DIPP) • Indian aviation market is poised to become the third largest across the globe by 2020 Source * www.ibef.com
  3. 3. • As per Airport Authority of India (AAI) statistics, there are 127 airports in India which incorporates 13 international, 80 domestic, 28 civil and 7 custom airports • India has around 1091 registered aircrafts • Growth rate of 18% CAGR • The sector is expected to handle 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion Source * www.ibef.com
  4. 4. Consolidated Market • Few big players controlling the market • Huge capital at diposal • Oligopolistic market
  5. 5. Challenges faced by this Industry • Rising airline turbine fuel prices • Congestion • High airport charges • Emergence of LCC alternatives • Safety and security • Land encroachments • Infrastructural developments
  6. 6. Why international collaborations ? • 49% open for FDI in this industry • Massive potential for growth as only 1.2 million or 2 % of people use air travel • Emergence of new carriers to a growing middle class • Disposable income expected to grow at 8.5% per annum CAGR • Open sky policy and liberalization • Emergence of low cost airlines
  7. 7. Future Prospects • Emergence of low-cost airlines • Modernization and setting up new airports across the country • Encouraging private investments in airlines and airport infrastructure • Providing international airport status to major Tier-I and Tier-II cities
  8. 8. Governments Associations • Airport Authority of India (AAI) • Airport Economic Regulatory Authority of India (AERA) • Civil Aviation Authority • The Federation of Indian Airlines
  9. 9. Other international associations • International Air Transport Association (IATA) • International Civil Aviation Organization (ICAO)

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