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Indian aviation
The document provides an overview of the Indian aviation industry, including its evolution, key players, growth drivers, challenges, and investment opportunities. It discusses how the industry has grown from a dormant sector with low competition in 1997-2008 to seeing intensified competition from new entrants today. While certain carriers like Indigo have seen financial growth, the industry overall is facing challenges like the 5/20 rule and high aviation turbine fuel costs. Looking ahead, continued growth in air passenger traffic and declines in crude oil prices are expected to provide positive signs for the Indian aviation industry.
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Indian aviation
- 1. DIVYA LIZ GEORGE14093 MARY MONISHA 14060 DHARA B SHAH 14067 GEORGE JACOB 14095 SHANKAR R 14114 HE INDIAN AIRLINE INDUSTRYA TALE OF WINS AND LOSSES G5
- 2. • Indian Aviation– An Overview • Evolution of Indian Aviation Sector • Key Players • Porters 5 forces analysis • The Growth drivers • FDI Policy • What ails the Indian Aviation Industry? • Indigo being the eager beaver • Indian Aviation – Spreading its wings • Investment Opportunities GEN DAA
- 3. NDIAN AVIATION –AN OVERVIEW 9th largest civil aviation market 3rd largest aviation market by 2020 163 million passenger s in 2013- 14 800 aircraft by 2020 FDI Over US$ 569M Capacity – 220M Passengers 4.63M tonnes Cargo I CAGR 16%
- 4. EVOLUTION OF INDIAN AVIATION 1997-08to 2002- 03 2003-04 to 2006-07 2007-08 2008-09 2009-10 2010-11 2011-122012-132013-142014-15 Dormant sector – Low Competition Competition intensifies Deflating revenue, inflating costs Consolidation Phase Era of LFC’s PLF’s on cloud nine Domestic passenger traffic growing strong Exit of Kingfisher Operating margins suffers Intensified competition – New entrants
- 5. 8% 10% 21% 20% 25% 45% 23% 21% 20% 25% 23% 19% 2%3% 5% -5% -8% 8% 15% 7% 14% 17% 19% 20% Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 LCC v/s FSC Domestic Traffic Growth Rates LFC FSC
- 6. KEY PLAYERS INDIGO 38.9% GOAIR Ason 19th June 2015 Source : CAPA JetLite 3.2% AirAsia India 1.3% Vistara 1.3% Air Costa 0.8% Air Pegasus 0.1%
- 7. MEDIUM HIGH Threat ofNew Entrants LOW Power of Suppliers Power of Buyers Availability of substitutes Competitive Rivalry ORTERS 5 FORCES ANALYSIS OF THE INDUSTRY P
- 8. 5 International Airports, Other Major Projects Emergence of LCC Inmiddle Income Population Focus on Infrastructure Collaborations HE GROWTH DRIVERST
- 9. DI POLICYF 100% 74%49% Greenfield Airport Projects under automatic route Existing Airport Projects under Gov. approval route Helicopter Services Maintenance and repair organizations Existing Airport Projects under automatic route Domestic scheduled passenger airlines under automatic route Ground handling under automatic route Ground handling under Gov. approval route Other Investments
- 10. HAT AILS INDIANAVIATION? The 5/20 Rule ATF Category 2 by FAA W
- 11. INANCIAL PERFORMANCE FY14F 317 -3668 -5000 -1003 5.44 -10,660-12000 -10000 -8000 -6000 -4000 -2000 0 2000 Indigo JetAirways Air India SpiceJet GoAir Vistara
- 12. Other cost cutting factors Low Avg Fleet Size, Fuel Single Class INDIGO NDIGO BEINGTHE EAGER BEAVER I Marketing & Finance Route Planning Single type of aircraft
- 13. NDIAN AVIATION – SPREADINGITS WINGSI Decline in Crude Prices High PLF’s DCF to replace 5/20 Increase in air passenger traffic Positive signs from Tourism Provisions in Union Budget 2014-15
- 14. NVESTMENT OPPORTUNITIES • 300Business jets, 300 small air crafts, 250 helicopters expected in next 5 years • Demand for MRO Facilities • Greenfield Projects under PPP at Navi Mumbai & Goa • Developing Guwahati • USD 1.3B on non metro projects between 2013-17 • SEZ Aerotroplis Model I
- 15. SOURCE : CRISILRESEARCH
- 16.