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aviation industry

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  1. 1. Submitted By:-Submitted To:- Ram pal Ms. Anshu Singh Manpreet Singh Sahil Garg Jaspinder Singh Gautam Dhanda
  2. 2. 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.
  3. 3. 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
  4. 4. 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
  5. 5. Classification Of Indian Aviation Sector Scheduled air transport service:- Domestic airlines International airlines Non-scheduled air transport service. Air cargo service.
  6. 6. 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.
  7. 7. 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
  8. 8. 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.
  9. 9. 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
  10. 10. 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.
  11. 11. 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.
  12. 12. 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 CroreNumber of AI cabin crew on strike rises to 269 due to nopay on time .
  13. 13. 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.
  14. 14. 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
  15. 15. 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.
  16. 16. Weaknesses: Under penetrated Market Untapped Air Cargo Market Infrastructural constraints Low profitability and utilization of capacity.Opportunities:- Expecting investments: investment of about US $30 billion will be made Expected Market Size. India airline industry is growing faster and will continue to grow as the GDP increases. Worldwide deregulations make the skies more accessible.
  17. 17.  Complementary industry like tourism will increase demand for airline service. Customers are getting wealthier Best time for introducing LCC’s Threats :-  Shortage of trained Pilots.  Shortage of Airports.  High prices.  The Indian Railway Ministry is attracting passengers away from air service, with prices almost at par with the low cost carriers.
  18. 18. CURRENT SITUATION OF INDIAN AIRLINESINDUSTRY  Sharp US economic down turn tightening credit crunch  Passengers and especially business class reduce considerably  Aviation in Asia still attracting passengers mainly China, and India Fuel bill to reach US147$, up 14% India, Budget airlines forced to step the accelerator  Phenomenon hurting the global economy- Slowdown  Skyrocketing fuel prices .
  20. 20. 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.