Introduction:- One of the fastest growing markets in the world. The Airport Authority of India (AAI) manages a total of 127 airports in the country, which include 13 international airports, 7 custom airports, 80 domestic airports and 28 civil enclaves . On December 1912 when the first domestic air route between Karachi and Delhi became operational. The Directorate General of Civil Aviation(DGCA) controlled every aspect of aviation.
Indian Airlines Fleet Passengers Aircraft In Service Notes J Y Total 2 14 106 120 Airbus A319 19 8 114 122 5 dry leased 3 0 144 144 Airbus A320-200 28 20 126 146 5 dry leased Airbus A321-200 20 20 152 172 Total 72
History• first commercial flight airmails from allahabad to nani (10 km)3 The aviation department of tata sons ltd . Established5 Tata airlines (successor to aviation sivision of tata son )1946 Tata Air Lines converted into a public Company and renamed Air India Limited10 Air India International incorporated1953 Nationalization of Aircraft Industry:- Air India ,Indian Airlines, Deccan Airways, Airways India, Bharat airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Services of India
Classification Of Indian Aviation Sector Scheduled air transport service:- Domestic airlines International airlines Non-scheduled air transport service. Air cargo service.
Players in AviationIndustry The players in aviation industry can be categorized in three groups: Public players : Indian Airlines Now Air-India Private players : Jet Airways, Kingfisher Airlines, Spice Jet, Air Deccan Start up players : Omega Air, Magic Air, Premier Star Air & MDLR Airlines.
Kingfisher Dr. Vijay Mallya is the Chairman and CEO ofKingfisher Airlines. launched its airline services in May 2005. The first carrier in the country to offer livein-flight entertainment. Kingfisher Airlines Ltd & Dish TV have joinedhands to provide live in-flight entertainment onKingfisher aircraft . 100 percent E ticket airline
PROBLEMS FACED :- Kingfisher Airlines to sell property to fly out of debt crisis:- The board of Kingfisher Airlines (KFA) has decided to consider a proposal to cut debt by more than half by selling property, converting loans from its parent company into equity, and changing the terms under which it leases aircraft. Recession In 2008, due to the prevalent economic downturn, the civil aviation industry faced the worst period in its history.
Founded in 1993, Chairman - Mr.Naresh GoyalHQ:- in Mumbai Largest domestic airline - 31%Primary base - Mumbais Chaatrapathi ShivajiAirportSecondary hubs - Bangalore, Brussels, Chennai,Delhi,Hyderabad, Kolkata and Pune.April,2007 - Acquired Air Sahara – JetLiteNow Jet Lite integrated into Jet Airways It earns yearly revenue of Rs 2502.89 and total income ofapprox ` 117868.8 Million
Some salient issues :-- Employees were FIRED with no PRIOR NOTICE The entire force of unconfirmed staff was being laid off on a 30- day compensation package Company took action only against lower staffs. November 2008, Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staffs. Oct 16, 2008, Jet announced that it would lay off nearly 1,100 of its staffs to streamline operation.
Air India Air India is state-owned, and administered as part of the National Aviation Company of India Limited It was created in 2007 to facilitate Air Indias merger with Indian Airlines. Air India is the 16th largest airline in Asia, serving 25 destinations worldwide, and, with its affiliated carriers, serves over 100 cities.
Financial Crisis Around 2006-07, the airlines began showing signs of financial distress. The combined losses for Air India and Indian ‘ Airlines in 2006-07 was R.s 771 crores. After the merger of the airlines, this went up to Rs 7200 crores by March 2009. Under debt of Rs.8000 CroreNumber of AI cabin crew on strike rises to 269 due to nopay on time .
Indigo Low-price domestic airline which offersfeasible flying alternatives for millions. It was facilitated by the Air PassengersAssociation of India (APAI) as the “Best Low-Fare Carrier in India for the year 2007”. Has 120 daily departures and a fleet of 19Airbus A320. The airline covers 17destinations namely, Agartala, Bangalore,Bhubaneshwar, Ahmedabad, Delhi, Chennai,Guwahati, Hyderabad, Goa, Imphal, Kolkata,Mumbai, Vadodara, etc.
analysis of indigo airlines :- Strength 1. Strong backing Promoters 2. Only LCC to make consistent profits Weakness 1.Not on too many routes Opportunity 1. Opening up of International Skies 2. Largest Market share among LCCs in Indian Market 3. Middle Class taking to the skies Threats 1. Plenty of new LCCs to compete with others. 2. Rising Labour costs 3. Rising Fuel Costs
SWOT Analysis:- Strengths:1. Growing tourism: Due to growth intourism, there has been an increase innumber of the international and domesticpassengers.2. Rising income levels: Due to the risein income levels, the disposable income isalso higher.
Weaknesses: Under penetrated Market Untapped Air Cargo Market Infrastructural constraints Low profitability and utilization of capacity.Opportunities:- Expecting investments: investment of about US $30 billion will be made Expected Market Size. India airline industry is growing faster and will continue to grow as the GDP increases. Worldwide deregulations make the skies more accessible.
Complementary industry like tourism will increase demand for airline service. Customers are getting wealthier Best time for introducing LCC’s Threats :- Shortage of trained Pilots. Shortage of Airports. High prices. The Indian Railway Ministry is attracting passengers away from air service, with prices almost at par with the low cost carriers.
CURRENT SITUATION OF INDIAN AIRLINESINDUSTRY Sharp US economic down turn tightening credit crunch Passengers and especially business class reduce considerably Aviation in Asia still attracting passengers mainly China, and India Fuel bill to reach US147$, up 14% India, Budget airlines forced to step the accelerator Phenomenon hurting the global economy- Slowdown Skyrocketing fuel prices .
Future of Indian Aviation Industry:-US$120 billion of investment by 2020.close the gap between the demand for aviationservices and the ability of our aviation system to meet that demand. Maintaining safety, security and the environment. India must develop a roadmap for infrastructure development beyond2010. Passenger traffic is estimated to grow at a CAGR of over 15% in thecoming few years.The Ministry of Civil Aviation would handle around 280 millionpassengers by 2020.