The Indian aviation industry is one of the fastest growing in the world. It has undergone rapid transformation from being primarily government-owned to now being dominated by privately owned airlines. The domestic aviation market is growing at around 25-30% annually. There are currently over 450 airports and airstrips in India. The government has introduced policies to boost aviation infrastructure development and attract private investment. The aviation sector is expected to continue booming, with passenger traffic projected to grow over 15% in the next 5 years, representing huge investment opportunities.

1. AVIATION SECTOR

2. OUTLINES
 Current Scenario of Indian Aviation industry
 Market Size
 Air Traffic
 Type of market
 Airport Infrastructure
 Aviation Policy
 Effect on Indian Economy
 Factors influencing growth rate
 Aviation Sector Outlook

3. Current Scenario of Indian Aviation
Industry
 India completed 100 years in aviation sector on 18 February,
2011
 The Indian Aviation Industry is one of the fastest growing
aviation industries in the world
 454 airports and airstrips; 16 designated international airports
 With the liberalization of the Indian aviation sector aviation
industry has undergone rapid transformation
 Being primarily a government-owned industry, Indian aviation
now dominated by privately owned full-service airlines and low
cost carriers
 Private airlines account for around 75% share of domestic
airline aviation market
 Airline business growing at 27% per annum: Ministry of Civil
Aviation

4. Market Size
 India is currently the ninth largest aviation market in
the world
 India's domestic air traffic grew at a rate, which is the
second highest after Brazil according to global figures
for June 2011, compiled by IATA
 Domestic traffic growth 25-30% annually and
international traffic 15% in 2010 :CAPA

5. Domestic Airlines
 Air India
 Go Air Airlines
 Indigo Airlines
 Jagson Airline
 Jet Airways
 JetLite
 Kingfisher Airline
 Paramount Airways
 Spice Jet Airways
 MDLR Airlines

6. Market share

7. Air Traffic
 The country's domestic traffic grew by 14 per
 Strong domestic passenger growth rate of 22.3 per cent
in July 2011
 Passenger traffic has grown at 18 per cent year on year
(y-o-y) basis and the year 2010 closed at 90 million
passengers both domestic and international
 In July 2011, airlines in India handled 5 million
domestic passengers, according to data released by the
Directorate General Civil Aviation (DGCA) on 12
September 2011, marking the 11th consecutive month
of double-digit growth

8. Passengers carried by scheduled
domestic airlines

9. Aircraft Class Statistics
Class Number
A Aircraft
G 61
B Balloon
H 300
D Hang Glider
A 1169
G Glider
U 40
H Helicopter
0
M Motor Glider
X 8
U Ultralight
M 1
D 24 X Experimental
B 20

10. Aviation Sector: Some facts
 In present scenario around 11 domestic airlines
operating in India
 Growth of airlines traffic in Aviation Industry in
India is almost four times above international
average
 Aviation Industry in India holds around 69% of
the total share of the airlines traffic in the region
of South Asia

11. Type of market
 In 1953, all airlines merged into Indian Airlines or Air
India
 Monopoly perpetuated for next 40 years
 Controlled by Directorate General of Civil Aviation
 On 1 March 1994, Government open the gates for
private entrants
 Sensing a huge opportunity, a large number of players
jumped into the fray
 Now the market is Oligopoly

12. Airport Infrastructure
 Of the 454 airports and airstrips in India, 16 are
designated international airports
 97 airports owned and operated by Airport Authority of
India (AAI)
 India’s Civil Aviation Ministry aims 500 operational
airports in next 12 years as per report by CAPA
 Government aims to attract private investment in Aviation
Infrastructure
 Mumbai and Delhi airports already privatized, upgraded
at an estimate investment of US$ 4 billion over 2006-1 6

13. Continued…
 A Greenfield airport already operational at Bangalore
and Hyderabad, built by private consortia at total
investment of over US$ 800 million
 A second Greenfield airport planned at Navi Mumbai,
developed using public-private partnership mode at an
estimated cost of US$ 2.5billion
 35 other city airports proposed to be upgraded
 Over next five years, AAI planned massive investment of
US$ 3.7 billion – 43% of which for Kolkata, Chennai
and Trivandrum and rest for other non metro airports

14. Aviation Policies
Many policies supporting the infrastructure are now
in place
 For Greenfield airports, FDI up to 100% permitted
through automatic approvals
 For existing airports, FDI up to 74% permitted
through special permission from FIPB
 Private developers allowed to set up captive airstrips
and general airports 150 km away from existing
airports
 100% tax exemption for airport projects for a period of
10 years

15. Continued…
 49% FDI permissible under automatic route, but not
by foreign airline companies. 100% equity ownership
by non-resident Indians (NRI’s) is permitted
 74% FDI permissible in cargo and non- scheduled
airlines
 The “Open Sky” policy of the Government and rapid
air traffic growth, resulted in the entry of several new
privately owned airlines and increased frequency/flights
for international airlines

17. How aviation industry is effecting
India’s economy?
Earlier there were just two airlines, both state owned. In last
few years economy has opened up. India experienced
growth rate of 8% per year
Main factors which effect the Indian Economy are:
1. Increased no. of domestic airlines
2. Low cost airlines
3. India’s improving economy
Other factors:
1. Increased in no. of business travelers to different
countries
2. Increased no. of incoming tourist and business
enterprises

18. Known factors Influencing Growth Rate
 Increase inward and outward tourism
 Increased competition driven down prices and margins
 Additional purchasing power due to rapidly rising real
income amongst the middle class
 Increased business trade due to rapidly growing
economy and free trade agreements with neighboring
countries
 Favorable Government policies and tax reforms

19. Aviation Sector Outlook
As per the Investment Commission of India, aviation sector is likely
to boom further in the coming years, attracting huge investment
 Passenger traffic is projected to grow at a compound annual
growth rate (CAGR) of over 15% in next 5 years
 The vision 2020 statement announced by Ministry of Civil
Aviation, envisages creating infrastructure to handle 280 million
passengers by 2020
 Investment opportunities of US$ 110 billion envisaged up to
2020, with 80 billion in new aircraft and US$ 30 billion in
development of infrastructure
 Air cargo traffic to grow at over 11.4% p.a. over next 5 years