The civil aviation sector in India has great potential for growth given the large middle class. However, most airlines are struggling with losses. Air India has been kept afloat through large government bailouts but continues to operate at a loss due to issues like poor management decisions after its merger with Indian Airlines. The writer argues that long-term trust and stability in Kashmir can only be built through addressing issues on both sides of the border and changing mindsets, not through military or political tactics alone.
A term project submitted in partial fulfillment of the requirements of 1210327 Thai Aviation Business in Global Aviation Industry course,
Mae Fah Luang University,
First semester, 2014
A
Project Report
On
Aviation Industry
Submitted By
Name Roll Number
Miss. KiranBendre 05
Mr. KalidasBhandwalkar 06
Mr. SanketBharte 07
Miss. SangitaBhilare 08
Class: - MBA I, VIIT,Baramati
Under The Guidance Of
Dr. RupendraGaikwad
Subject:- Industry Analysis- Desk Research (215)
Index
Chapter No Contents Page No
1 Industry Analysis
Nature of the Industry,
Market share of the company 3
2 Promoters & Management Ethos
Background of promoters
CSR policies
3 External environment
Controlling ministry
4 Financials
Ratio analysis of financial data
5 Recent development
Margers & Acquisition
Indian Aviation Industry
Chapter 1 : Industry Analysis – the Basics
History of the Industry
The first commercial flight in India was made on February 18, 1911, when a French pilot MonsignorPiquet flew airmails from Allahabad to Nain, covering a distance of about 10 km in as many minutes.
Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350.
For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful.
In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth.
Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issui
A term project submitted in partial fulfillment of the requirements of 1210327 Thai Aviation Business in Global Aviation Industry course,
Mae Fah Luang University,
First semester, 2014
A
Project Report
On
Aviation Industry
Submitted By
Name Roll Number
Miss. KiranBendre 05
Mr. KalidasBhandwalkar 06
Mr. SanketBharte 07
Miss. SangitaBhilare 08
Class: - MBA I, VIIT,Baramati
Under The Guidance Of
Dr. RupendraGaikwad
Subject:- Industry Analysis- Desk Research (215)
Index
Chapter No Contents Page No
1 Industry Analysis
Nature of the Industry,
Market share of the company 3
2 Promoters & Management Ethos
Background of promoters
CSR policies
3 External environment
Controlling ministry
4 Financials
Ratio analysis of financial data
5 Recent development
Margers & Acquisition
Indian Aviation Industry
Chapter 1 : Industry Analysis – the Basics
History of the Industry
The first commercial flight in India was made on February 18, 1911, when a French pilot MonsignorPiquet flew airmails from Allahabad to Nain, covering a distance of about 10 km in as many minutes.
Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350.
For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful.
In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth.
Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issui
A detailed report of the Aviation industry of INDIA with a comprehensive analysis of "Indigo Airline". How India is maturing itself in this industry and what new ways are being taken by government to revive the same.
Civil Aviation industry in India is growing at an accelerating rate and the country is getting the benefits of its improved connectivity. India has become the world’s third largest domestic aviation market in term of the number of tickets sold. The Civil Aviation Industry has come in new era of expansion, driven by factor such as low cost carriers, modern airports, Foreign Direct Investment in domestic airlines, and growing emphasis on regional connectivity.
The Ministry of Civil Aviation is responsible for the administration of the aviation industry in India. It plays a significant role in formulation of national policies and programmes for development and regulation of aviation industry. The following are the principal regulatory authorities functioning under the authority of the Ministry of Civil Aviation:-
• Directorate General of Civil Aviation
• Airport Authority of India
• Airport Economic Regulatory Authority
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
• Analyzing every customer’s aims, objectives and purpose of research
• Using advanced and latest tools and technique of research and analysis
• Coordinating and including their own ideas and knowledge
• Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
A project report on how kingfisher airlines went from being the largest domestic airline to being locked out in the cold. Marketing management, Marketing mix, marketing strategy, productivity and efficiency, current ratio, and it failures
A detailed report of the Aviation industry of INDIA with a comprehensive analysis of "Indigo Airline". How India is maturing itself in this industry and what new ways are being taken by government to revive the same.
Civil Aviation industry in India is growing at an accelerating rate and the country is getting the benefits of its improved connectivity. India has become the world’s third largest domestic aviation market in term of the number of tickets sold. The Civil Aviation Industry has come in new era of expansion, driven by factor such as low cost carriers, modern airports, Foreign Direct Investment in domestic airlines, and growing emphasis on regional connectivity.
The Ministry of Civil Aviation is responsible for the administration of the aviation industry in India. It plays a significant role in formulation of national policies and programmes for development and regulation of aviation industry. The following are the principal regulatory authorities functioning under the authority of the Ministry of Civil Aviation:-
• Directorate General of Civil Aviation
• Airport Authority of India
• Airport Economic Regulatory Authority
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
• Analyzing every customer’s aims, objectives and purpose of research
• Using advanced and latest tools and technique of research and analysis
• Coordinating and including their own ideas and knowledge
• Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
A project report on how kingfisher airlines went from being the largest domestic airline to being locked out in the cold. Marketing management, Marketing mix, marketing strategy, productivity and efficiency, current ratio, and it failures
Infographic: DC vs Marvel – The Battle of Brandsdomain .ME
Generations of comic book fans have argued over which superhero would come out on top in the ultimate superhero battle between DC and Marvel universe. That is one argument that we cannot resolve, but what we offer instead is a look at the battle of the brands, and seeing who is currently winning the everlasting war.
Looking back at the very beginning, DC has dominated the comic book world from the 1930s to 1960s. Slowly but surely Marvel has taken over the lead, currently holding around 47% of the total comic book market, while DC commands around 27%.
Both companies have branched out their brands into movies. With DC again paving the path with its 1966 Batman the Movie. Marvel followed 20 years later with 1986’s Howard the Duck. The new millennium saw a significant increase in interest for superhero movies and Marvel was yet again able to surpass DC, having the 3rd biggest box office hit of all-times with The Avengers franchise, while DC had the 7th biggest with The Dark Knight Rises.
The video gaming world was the next natural step for both franchisees. With yet again DC pioneering the genre with Supermen in 1979 and Marvel following shortly after with Spider-Man in 1982. DC has held the lead in this industry so far with Batman: Arkham Knight selling over 5 million copies in 2015, while Marvel’s last release The Amazing Spider-Man 2 scored only 52/100 on Metacritic.
With the arrival of the digital era, both brands moved their battlefield from newsstands to the digital marketing arena. So far Marvel has been a clear winner, generating 3.9 million in organic keyword search, in comparison to DC’s 1 million. In the social media ring, Marvel still keeps knocking DC out with a Twitter following of over 3 million, while DC was able to generate around 1.5 million followers so far. On Facebook there is no contest, Marvel’s 21 million likes pulverizes DC’s 3 million.
We will definitely keep an eye on this ongoing battle of the brands and its possible future developments. But for now, have a look at our Battle of the Brands infographic and choose for yourself which brand, Marvel or DC, is the safest bet.
1. I
ndian civil aviation is the
fastestgrowingsegmentinthe
world. A large middle class
that is more than the size of
Europe, growing corporate
economyandindustrialinfrastruc-
turegivesthissectoranunbeatable
opportunity to excel. According to
areport,during2011-2014,totalair-
craft movements and passengers
have recorded a compound annu-
al growth rate of 3.3 per cent and
5.6percentrespectively.According
to the Airports Authority of India,
the aviation sector is expected to
growonsimilarlinesinthenextfive
years. Globally, India stands ninth
in the civil aviation market. It
ranks fourth in domestic
passenger volume.
Butmostoftheairlinesarerun-
ning in losses. While Air India is a
classical case of mismanagement,
VijayMallya’sKingfisherAirlinesis
a classic example of unprofession-
al flamboyancy getting ruptured.
Many of its aircraft are lying in the
cornersofairports,fullofdust,get-
tingcorroded.Thisisamassiveloss
of resources. Wiser men, like the
owner of Air Deccan, knew about
the fallacy of selling the lowest fare
ofonerupeeperticketandafterget-
ting the deal for the sale of this air-
line,passingonthebuckofhisair-
linetoothers,leavingthemtobleed.
Forthepastthreedecades,this
writerhasbeenaloyalcustomerof
Air India and has found that it is
one of the best airlines in terms of
passengerstreatmentandservices.
Air India would have been
grounded long back, had the
Government of India not bailed it
out by a whopping package of
C44,000 crore. The airline is still
running in losses, though the loss-
eshavecomedownandoperational
costsarewithinmanageablelimits.
Itsstaffismoreseriousthaneverin
bringing about a turnaround, but
the heavy debt burden is having s
toll on the airline’s profit.
The question is: Where is
this flagship career heading? And
how long, the tax payers’ money
can be used to keep the airlines
floating? There are several reasons
for the poor performance of the
national carrier.
First, the merger of Air India
andIndianAirlinespromisedsyn-
ergy in action, but the way it was
pushedthroughinanadhocman-
ner, backfired, causing resentment
among its employees. This has
also killed the airline.
The top brass was kept happy
with lots of promotions and perks,
but the people at the ground level
are still waiting for their problems
to be solved. This cannot happen
in any other airline in the world,
where for the same job and for fly-
ing the same aircraft, employees
carry their past baggage with them
andarepaidaccordingtotheirpast
affiliation. Humanresourcedevel-
opmentisakeyaspectinanymod-
ernmanagementregime,asitisthis
resourcethatcanalterthefateofany
organisation. This should have
been solved first.
Second, many officers have
occupied top positions in the air-
lines because of a routine bureau-
cratic way of making appoint-
mentsandthroughconnections.It
is an entirely different ball game to
run a Government organisation,
based on a set of water-tight rules,
conventions and procedures.
Moreover,dadagiridoesthejobfor
a bureaucrat in a crunch situation.
Making a loss-making enterprise
into a profitable and viable unit
requires not only experience but
special skills and a vision.
Though the civil services has
many talented officers, and many
havebroughtaturnaroundintheir
respective organisations, unfortu-
nately at the time of the merger of
thetwoairlines,nonepossessedthe
skilltohandlethesituation.Instead,
at the behest of the political mas-
ters of the time, they kept on buy-
ing planes, ignoring issues of net
worth and paid-up capital.
Oneofthemostunimaginative
decisions Air India took was to
grantproductivity-linkedincentive
toitsstaff.Thisconceptmeansthat
productivityisassessedintermsof
returns on investments and
resources.Itmeansthat,ifanyoffice
is getting more revenue per unit of
expenditure, then it is justified to
give incentives.
The way it was devised, it gave
moretothetopbrassthantoaper-
son who actually brought business
atgroundandoperationallevels.It
is worth mentioning that a report
by the Comptroller and Auditor-
General report revealed that a
ChairmanandManagingDirector,
on deputation, pocketed C25 lakh
as productivity-linked incentive
during his five-year tenure.
AnotherCMDtookmorethan
eight lakh rupees for his two-year
tenure,asPLI.AnotherCMDwent
to court to get these undeserving
benefits.ThelastCMDdidnottake
anyPLIandalsoprovedasthebest
CMD of recent times in terms of
lossrecoveries,operationaleffective-
nessandincreatinganenvironment
to provide effective leadership.
Now, a new CMD has joined,
bringingwithhimanexperienceof
turningaroundpublicsectorunits.
Immediateactionisneededtofos-
ter discipline among senior and
middle level functionaries and to
managetheairlineasapurelycom-
mercial business enterprise.
TheoldAirbus320fleetneeds
tobegroundedliketheoldBoeing
737 fleet which was phased out in
2006, to inspire public faith in the
safety. The recent news of engine
failures of two aircraft of Air India
isnotonlyscary,butitcandamage
the reputation of the airline.
TheGovernmentmustensure
thatanewcivilaviationpolicyisin
placesothatthesectorbecomesthe
driving force for the Indian econ-
omy. The Government must pro-
vide better environment for all the
airlines to operate smoothly but
with stringent safety and opera-
tionalnorms.Theinfrastructure is
notcommensuratewiththegrowth
potential and opportunities.
Oneofthebiggestchallengesis
congestion at airports, both from
thepointofviewofeconomyoffly-
ingaswellassafety.Airportcharges,
fuel costs etc should be uniform in
thecountryandshouldnotbemore
thanwhatisavailableinothercoun-
tries.Manyprivateplayersintheair-
portmanagementviolaterulesand
passengershavetopaymoreforthe
facilities they get. The Directorate
General of Civil Aviation must
ensurethatpassengercomfortand
safety is not compromised.
One big irritant is the baggage
allowance of 15 kg in the domestic
sector. It has to be in sync with the
culture of a nation. It should be
minimum 20-22 kg compulsorily.
Indigo’s cargo handling policy is
worth emulating for better utilisa-
tion of the capacity for profit
enhancement.Theircargocharges
are competitive with road and
railway carriages.
There should be no let-up in
connectingthefar-flungareaswith
privateairlines.Theseairlineshave
anationalroletoplayaswell.They
can be provided with some
Government incentives, but they
must come up with reasonably
affordable fares. Moreover, a busi-
ness culture needs to be evolved in
managingallthespheresofcivilavi-
ationindustrytotaptherealpoten-
tialofthesector,whichcanbecome
a driver of the economic growth.
(The writer is former Director
General, Indian Council of Forestry
ResearchandEducation,andformer
Principal Secretary, Agriculture,
Horticulture,AnimalResourcesand
Forest Department, Government
of Tripura)
5
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E^VQYbR_S[QTU
Sir — This refers to the editori-
al, “India-bashing in Nepal”
(October 6). Only at two India-
Nepal border points have there
been protests by ethnic commu-
nities. Why are the trucks being
blocked at other locations where
there are no demonstrations?
Gd
Via web
8Y^Te]_^QbSXi
Sir — This refers to the article,
“From open borders to block-
ades” (October 6) by Atul K
Thakur. The crisis has been cre-
ated in India by those who don’t
want strong India-Nepal ties.
Prime Minister Narendra Modi
has sought to improve ties that
had frayed during the previous
Government, yet Nepal hastily
implemented a Constitution that
is unfavourable to almost half of
its population. This is problem-
atic for India as the country
could face a major refugee crisis
if things get worse.
Also, it seems like most
Indians want a Hindu monarchy
in Nepal. We, the Nepalese peo-
ple, need to reinstate the amiable
Hindu monarchy. The Modi
Government should assist in this
regard. A Hindu monarchy is the
only way out of this mess. It will
free Nepal from communist pres-
sures and Chinese intervention.
Dirgha Raj Prasai
Via web
4_eRUUTWUTcg_bT
Sir — As tensions continue to
brew in the aftermath of the
Dadri killing, the Centre must
examine how communal troubles
are being fuelled through social
media. I wish we still lived in an
era where the responsible print
media had primacy.
Keep in mind that technolo-
gy is a double-edged sword. It can
help in governance, but it can also
become a governance challenge.
Aaraam
Via web
CU^cQdY_^QYcY^W4QTbY
Sir — This refers to the editori-
al, “A communal cauldron”
(October 5). The Dadri murder
must be strongly condemned. No
civilised society should accept
such incidents. The culprits must
be brought to justice.
Unfortunately, a terrible ten-
dency that dominates our polit-
ical class is currently on display
with all its insensitivity and
hypocrisy. Sundry politicians
have jumped into the fray, visit-
ing the suffering family, lending
it an explosive communal colour.
The media is equally guilty of
playing up the incident. No won-
der, the villages have protested
against the media’s role. Sadly, no
attempts were visible to cool pas-
sions and bring back trust.
M Ratan
New Delhi
8Q^TgbYddU^UddUbc
Sir — In the age of computers and
mobiles, handwritten texts have
almost vanished. Most people do
not write anything on paper
except when they have to sign
cheques etc. Yet, handwritten
letters have a personal touch,
though they require more labour
and time. A handwritten letter
shows the writer’s efforts and sin-
cerity. They also reflect the char-
acter of the letter-writer — a
handwriting expert can offer a
detailed analysis.
Mahesh Kumar
Delhi
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