The document discusses the aviation industry in India. It provides background on aviation and defines the aviation industry. It then discusses the growth of the aviation industry in India, highlighting that India is among the top 10 civil aviation markets and is projected to be among the top 5 by 2020. It also outlines India's major airlines and the history of aviation development in the country. However, it notes that the industry faces several challenges, including infrastructure constraints at airports, high jet fuel prices, airport congestion, lack of technical manpower, and issues with land acquisition for new projects.

1. AVIATION INDUSTRY

2. Aviation
• Aviation is the practical aspect or art of
aeronautics, being the design, development,
production, operation and use of aircraft,
especially heavier than air aircraft.
• The word aviation was coined by French
writer and former naval officer Gabriel La
Landelle in 1863, from the verb avier.

3. Aviation industry
Aviation industry (also aviation sector) refers to the
industries and organizations, engaged in the various
aspects of aviation.
• Airlines manufacturing
• Airlines flying
• Operating
• Maintenance
• Ground-handling
• Training centres
• Airports and regulatory bodies.

4. Aviation Industry in India
• Aviation is one of the greatest wonders of
modern science.
• There has been tremendous growth in the field of
both civil aviation and military aviation sector.
• India is presently among the top 10 civil aviation
markets in the world.
• The airlines industry of India served over 16
million customers in 2013. According to reports,
India is poised to become one of the top 5 civil
aviation markets by 2020.

5. India has a long history in the field of aviation.
The operation of air transport was entrusted to
three Public Undertakings, namely
• Air India for international services,
• Indian Airlines for domestic services and
services to neighbouring countries.
• Vayudoot.

6. Hindustan Aeronautics Limited
• The Hindustan Aircraft (now Hindustan
Aeronautics Limited), was founded in 1940.
• It was started at Bangalore (now Bengaluru) as a
repair, overhauling and assemblage depot, has
now grown into an important manufacturing
plant.
• It has designed and manufactured trainer air-
crafts.
• It belongs to the aerospace and defence industry.
• It is managed by Ministry of Defence.

7. MILE STONES…
• 1932: Tata Airlines (first commercial airlines of India) was founded by J.R.D.
Tata.
• 1946: Tata Airlines became Air India.
• 1953: Indian Airlines Corporation was established and to begin its operation.
• 1981: Vayudoot was founded as a joint venture between Air India and Indian
Airlines.
• 1993: Vayudoot was merged into Indian Airlines in 1993.
• 1996: Alliance Air (now Air India regional) was formed as a subsidiary of
Indian Airlines.
• 2005: Indian Airlines was re-branded as “Indian”.
• 2011: Indian (formerly Indian Airlines) merged with Air India. Post merger,
Alliance Air was renamed as “Air India Regional.”

8. List of Major Airlines in India
• Air India
• Sahara Airlines (now Jetkonnect) became operational in
1993. It was founded in 1991.
• Jet Airways began its operation in 1993.
• GoAir started its operation in 2005.
• SpiceJet became operational in 2005.
• Indigo became operational in 2006.
• Air Costa commenced scheduled operation in 2013.
• Air Asia India commenced its operation in 2014.
• Vistara (joint venture between Tata Sons and Singapore
Airlines), Fly Easy, TruJet, and Air Pegasus became
operational in 2015.

9. Benefits of Aviation
• The expansion of air traffic has made the world look very
small, indeed. It is possible to make a round-the-world trip
in a modern aircraft in the course of less than two days.
• One of the obvious results of the progress in aviation has
been wider and more intimate international intercourse.
• It is now possible for different peoples of the world to
exchange their thought and ideas in diverse spheres more
frequently because of the vastly increased facilities for
contact provided by air communication.
• And the greater such facilities are, the closer will be the
cultural and intellectual understanding among the different
nations of the world.

10. Problems/Challenges
faced by Aviation
Industry

11. Infrastructural woes
• Infrastructure constraints one of the biggest
obstacles to the growth of Indian civil aviation.
• The Indian Civil Aviation Ministry’s Vision 2020
plan stresses a need to develop the country’s
infrastructure, with a particular focus on well-
equipped, user friendly airports to handle as
many as 280 million passengers per year
expected in the country by 2020.

12. • Public-private participation and FDI has
founded the construction of ultra-modern
airports at Bangalore, Hyderabad and Kochi in
South India.
• While New Delhi airport has been given a
boost with the commissioning of Terminal III
in 2010, modernization programmes at
Chennai and Kolkata are far from complete.

13. • Furthermore, the country’s plan to develop and
modernize airports at 35 secondary cities has yet
to pick up momentum, while the construction of
Navi Mumbai Airport, which is meant to relieve
congestion at Mumbai’s main Chhatrapati Shivaji
International Airport, has encountered repeated
delays.

14. • There is non-availability of FBOs (Fixed Base
Operator), terminals.
• The numbers of agencies for ground handling are
extremely restricted, there is non-availability of
MROS (Maintenance, Repair & Overhaul)and
increases cost of maintenance.
• There is no separate parking and the helicopters
are operating out of airports. There are no
heliports and heli- routes in India till date.

15. Rising Airline Turbine Tuel (ATF) prices
• Aviation Turbine Fuel (ATF) prices in India is
higher than the international market.
• The airline industry’s operational cost component
is dominated by the cost of the (ATF).
• The ATF price accounts for nearly 45% of the
operational expenses.
• A 10% increase in fuel price would push up costs
by atleast 4%, thus causing a dampener on the
financial health of an airline business.

16. Congestion
• Presently capacity constraints are reported mainly
at Delhi and Mumbai airports.
• Congestion leads to a huge wastage of fuel. It is
estimated that if a flight hovers in the sky for an
additional half an hour due to delay in allocation
of landing slot, it can consume between 25 to 30
per cent extra fuel thereby increasing the
operational cost of the airline.

17. • Half an hour of hovering costs an airline
anywhere over Rs. 50,000 /-.There are over 40
flights that operate about 80 trips between
Mumbai and Delhi every day.
• If all of them have an average circling time of 30
minutes each, around Rs 40 lakhs of fuel is
wasted in a day.
• The congestion also affects the turn around time
of the aircraft and reduces the average aircraft
utilization.

18. High airport charges
The airports / aeronautical charges include
• Route Navigation Facility Charges (RNFC)
• Landing,Housing and Packing Charges
• User Development Fees ( in case of private
airports)
• Terminal Navigation Landing Charges
• X-ray Baggage Charges.

19. Alternate/secondary airports not
available
• Airline operators elsewhere in the world have
the flexibility of using alternate or secondary
airports where the airport charges are
comparatively low.
• This option is not available in India.

20. Emergence of substitutes
• With the emergence of the Low
Cost Carriers (LCC), the passengers
who would have travelled in III / II
class AC rail considered the option
of LCCs beneficial due to marginal
cost difference as compared to the
rail travel.
• The Railways on its part sensing
competition from LCCs undertook
various measures to consciously
compete with the LCCs and to retain
and improve its existing passenger
base.

21. • Some of the measures included introducing faster
trains between short to medium distances, improving
connectivity, maintaining on-time schedules,
introducing entertainment facilities, structuring the rail
fares intelligently, providing a reliable e-ticketing
facility and in general improving the overall quality of
services offered.
• Given the provision of such improved rail facilities and
with the recent increase in air fares, the price
conscious passengers who would have weighed the
option of traveling in a LCC are again opting for rail
travel.

22. Lack of technical manpower
• The Civil Aviation Sector is facing acute manpower
shortage, especially in the technical cadre.
• As per estimates of the Sub-Group on Human Resource
Development for the Civil Aviation Sector, India would
need 5,400 pilots by the end of the 2012.
• Similarly the demand for Aircraft Maintenance Engineers
and Air Traffic Controllers would rise with the increasing
number of flights and the new airports.
• Pilots and airline pilots in particular, need to be trained
as older ones retire.
• However for training the pilots, there is an acute
shortage of qualified Flying Instructors.

23. Safety and Security
• Given the high intensity serial bombings
witnessed across several parts of the country in
the past few years, there is a need to review and
upgrade the nature of security and safety
measures provided at the country’s airports to
mitigate against any drastic measures planned
against Indian aviation sector by any form of
terrorism.
• There is a need for surveillance, surprise checks,
safety oversight audits, and enhanced accident
prevention activity.

24. Land Encroachment
• Another problem that some airports face is
the proliferation of slums around the airport
boundaries in places like Mumbai.
• This is another security threat.

25. Land acquisition
• Recent government initiatives of building Greenfield,
merchant, cargo and low cost airports and
modernization of existing domestic and international
airports require huge tracts of land.
• Of late, a number of large projects are facing extreme
opposition from landowners and the cumbersomeness
of the land acquisition process has recently come to
significant highlight.
• The coordination between administrative departments
of the state and central government agencies plays a
major role in the land acquisition process.

26. Closure of old airports
• With the commissioning of the new private
airports at (BIAL) Bengaluru and (HIAL)
Hyderabad, the old airports at HAL and
Begumpet respectively had to be
decommissioned.
• There would be a huge wastage of the existing
infrastructure and if the infrastructure is not
utilized for aviation related or ancillary activities,
it would imply a colossal waste of public money.

27. User Development Fee
• The new airports have been charging user
development fee resulting in increase of fares
which are already rather high.

28. Connectivity to new airports
• Locating the airports on the outskirts of the
city has made the commuters to spend more
time for traveling to the airports for the
shorter duration routes.
• This has led to the commuters preferring rail
/roads for the shorter routes.

29. PRESENTED BY,
ATHULYA RAVI
NO-1
MTTM
MAR IVANIOS COLLEGE
TVM