The Indian civil aviation industry has an oligopoly market structure with key players like Indigo, Air India, and Vistara. It accounts for 0.7% of India's GDP and employs over 65,000 people, making India the 3rd largest aviation market in 2017. Demand is affected by factors like ticket fares, income, advertising, and government regulations. Supply is influenced by production costs, number of providers, government policies, technology, and climate conditions. The industry generates jobs and contributes to the economy but faces challenges from various external factors.

1. FACTORS
AFFECTING DEMAND
AND SUPPLY OF THE
INDIAN CIVIL
AVAITION INDUSTRY
Presented by:
Group 11
Manvi Bolia
Mohdmahir Shaikh
Nancy Gupta
Nehal Jain
Nishita Arora
Piyush Hirwani

2. Market Structure of the Aviation Industry
• The industry has an Oligopoly market structure.
• Air Charter India, Vistara, Indigo, Air India, Deccan Airways,
SpiceXpress, etc.
• It accounts for 0.7% of India’s GDP.
• Generates employment in the country, as it had employed over
65,000 people.
• India had the world’s 3rd largest Civil Aviation market in 2017.

3. Fasten your seatbelts and prepare for take-off

4. Factors Affecting
Demand

5. 1. Ticket Fares
2. Price of Complementary
Goods
3. Price of Substitute
Goods

6. 5. Disposable Income of
Consumers
6. Seasonal Demand
4. Future Expectations of
Prices

7. 7. Advertising 8. Natural Factors
9. Government Regulations

8. Factors
Affecting Supply

9. 1. Price of Factors of
Production
2. No. of Service
Providers
3. Seasonal Demand

10. 5. Government Policies
4. Natural and
Manmade Factors
6. Import/Export

11. 9. Climatic Conditions
8. State of Technology
7. Availability of Credit

13. Thank You for Flying with Us