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.

1. DIVYA LIZ GEORGE 14093
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
1997-08 to
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
As on 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 of New 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
In middle
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 INDIAN AVIATION?
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 Jet Airways Air India SpiceJet GoAir Vistara

12. Other
cost
cutting
factors
Low Avg
Fleet
Size,
Fuel
Single
Class
INDIGO
NDIGO BEING THE EAGER
BEAVER
I
Marketing
&
Finance
Route
Planning
Single
type of
aircraft

13. NDIAN AVIATION –
SPREADING ITS 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
• 300 Business 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 : CRISIL RESEARCH

16. THANK YOU!