Aviation Industry

1. Go IndiGo
Madhushree Raut
Priyanka Gohil
Jayesh Kadam
Praveen JayRam

2.  Tata Airlines (first commercial airlines of India) was founded
by J.R.D. Tata in 1932.
 India is the 9th largest civil aviation market in the world in
2017.
 India’s civil aviation market is set to become world’s 3rd largest
by 2020 and expected to be largest by 2030.
 In the financial year 2017, airports in India witnessed a
domestic passenger traffic of about 205 million people.
 Investments worth US$ 6 billion expected in the country’s
airport sector in next 5years.
 Passenger growth has been in double-digits for the last 40
months.
 India's domestic air passengers grew 16.9% YoY to 10.5m in
November 2017.

3. OPPORTUNITIES
1. Changing Lifestyle of People
2. Highly Trained Staff
3. Dealing with
Advanced Technology
4. Fastest Transportation service
5. No substitute for International
travelers as efficient as airlines
1. Lack of Infrastructure
2. Expensive Wages to Staff
3. High Maintenance Cost
1. Improvement in Investment
2. Technological Advancement
3. Increased Revenue
4. Percentage of people travelling
in airlines is increasing gradually
1. Economic Downturn
2. Increasing Cost of Fuel
3. Shortage of Skilled Manpower
4. Overseas Market Competetion

4. Social
Political
1. Continued liberalisation and
open skies policies
2. Privatisation of state owned
airlines.
3. Reduced government
regulations.
4. Rising terrorism.
1. Recession, a substantial decrease
in air travel across the world.
2. Increased competition from low
fare airlines.
3. Increased oil prices.
4. Difficulty in determining demand
and costs due to recession.
1. Online ticketing
2. Net connectivity and ease of
planning the travel with
multiple options available.
3. Robust changes in engine
technology.
1. People have more airline
choices.
2. Customers have become more
sophisticated and demanding.
3. Increased trend to travel and
work abroad.
4. Fear of air travel due to
terrorism threats.
Technological

5. List Of Top Airlines In
India
1. Indigo
2. Jet Airways
3. Air India
4. Spice Jet
5. Go Air
6. Air Asia
7. Vistara Airlines
8. Air India Express
Market Share
composition

6. IndiGo was founded in 2006 as a private company.
It commenced operations on 4 August 2006 with a service from New
Delhi to Imphal via Guwahati
 In December 2010, IndiGo replaced state-run carrier Air India as the
third largest airline in India, behind Kingfisher Airlines and Jet
Airways with a passenger market share of 17.3%
In January 2011, after completing five years of operations, the airline
got permission to launch international flights.The airline launched
international services in September 2011
On 17 August 2012, IndiGo became the largest airline in India in
terms of market share surpassing Jet Airways, six years after
commencing operations.

7. In January 2013, IndiGo was the second-fastest-growing low-cost
carrier in Asia behind Indonesian airline Lion Air.
In August 2015, IndiGo placed an order of 250 Airbus
A320neo aircraft worth $27 billion, making it the largest single order
ever in Airbus history.[
IndiGo announced a ₹3,200 crore (US$500 million) initial public
offering on 19 October 2015 which opened on 27 October 2015
It is the largest airline in India by passengers carried and fleet size,
with a 39.6% market share as of October 2017.
 It is also the largest individual Asian low-cost carrier in terms of jet
fleet size and passengers carried, and the Seventh largest carrier in
Asia with over 41 million passengers carried in 2016.

8. •Market Share: 39.4%
•Passenger load Traffic : 90.7%
•Share Price: Rs 1210
•IndiGo is not only the most efficient low fare operator
domestically but is also comparable with global low cost
airlines
•9 consecutive years of profitable operations
•Fleet of 155 aircrafts.

9. 1. Only LCC to make
consistent profits
2. Indigo Airlines is one of
the major airlines in India in
terms of market share
3. Indigo Airlines has entered
international markets has
boosted its brand value
1. Indigo airlines has
limited market share
growth internationally
due to intense
competition
2. Still has to establish
itself on international
destinations
1. Opening up of more
International routes can
boost business of Indigo
2. Largest market share
among LCCs in Indian
Market
3. Middle class taking to the
skies can be a opportunity
for Indigo airlines
1. Plenty of new LCCs to
compete with for Indigo
airlines
2. Rising labour costs and
changing Govt policies
3. Rising Fuel Costs can
affect business margins for
Indigo

10. Single type
of aircraft
Low average
fleet age
Efficient
Fuel Usage
Low
Marketing
Sale and
Leaseback
What makes Indigo different from others

11. 1.41
1.97
0
1
2
3
2015-16 2016-17
Current Ratio
1.37
1.94
0
1
2
3
2015-16 2016-17
Quick Ratio
1.17
1.74
0
1
2
2015-16 2016-17
Cash Ratio
1614.
92
4661.
81
0
5000
2015-16 2016-17
Net Working Capital
Ratio

12. 100
150
2015-16 2016-17
127.3
7 113.8
9
Stock Turnover Ratio
0
5
2015-16 2016-17
4.72
3.39
Fixed Asset Turnover Ratio
3.95
9.93
2015-16 2016-17
Working Capital
Turnover Ratio

13. 1.61
0.63
0 1 2
2015-16
2016-17
Debt-Equity Ratio
3.59
1.68
0 2 4
2015-16
2016-17
Capital Gearing Ratio
0.14
0.24
0 0.1 0.2 0.3
2015-16
2016-17
Propreitory Ratio
0.22
0.15
0 0.1 0.2 0.3
2015-16
2016-17
Debt-Total Assests
Ratio

14. 0 20 40
2015-16
2016-17
21.97
7.48
Interest Coverage Ratio
12.4
8.99
0
10
20
2015-16 2016-17
Net Profit Ratio
18.62
11.53
0
10
20
2015-16 2016-17
Operating Profit Ratio

15. 0.15
0.1
0
0.1
0.2
2015-16 2016-17
Return On Asset
108.47
43.9
0
100
200
2015-16 2016-17
Return On Equity
32.8 12.89
0
50
2015-16 2016-17
Return On Capital
Employed

16. 58.17
45.94
2015-16
2016-17
0 50 100
EPS
15
34
0 20 40
2015-16
2016-17
DPS
9.3
11.1
8 9 10 11 12
2015-16
2016-17
Dividend Payout Ratio
5.7
22.9
0 10 20 30
2015-16
2016-17
Retention Ratio

17. 15.84
22.89
0
10
20
30
2015-16 2016-17
P/E Ratio
36.93
-54.06
-100
-50
0
50
2015-16
EPS Growth rate
0.42
-0.42
-0.5
0
0.5
2015-16
PEG Ratio
2016-17
2016-17

18. Ratio Previous Year
(2015-16)
Current Year
(2016-17)
Indication
Current Ratio 1.41 1.97
Quick Ratio 1.37 1.94
Interest
Coverage Ratio
7.48 21.97
Operating Profit
Ratio
18.62 11.53
Fixed Asset
Turnover Ratio
4.72 3.39
Net Profit Ratio 12.4 8.9
ROA 0.15 0.10
ROE 108.47 43.9
ROCE 32.8 12.89
EPS 58.17 45.94
EPS Growth rate 36.93 (54.06)
P/E Ratio 15.84 22.89
PEG Ratio 0.42 (0.42)

19. Since Indigo has not performed well in financial results in
current year comparing to previous year.
But it is the first largest airlines in India in terms of Market
capitalization.
It is consistently making profits comparing to its peers.