AIR LINE INDUSTRY- IN INDIA

1. Presented By:-
SURENDRA PATIL 51
SHREESHTI KHAPARDE 47
SUJATA RAVKHANDE 42
REKHA NAIR 28
RAHUL VALU 40
GEETA KUMARI 20

2. Name of industry
 AIRLINE INDUSTRY

3. Player in industry
IndiGo
Jet Airway
Air India (Dom)
Spice Jet
GoAir
JetLite
Vistara Airline
Air Costa
TruJet
AirAsia India

4. Competitive Environment of the Airline
Industry
A. Dominant Economic Traits
 Market size
 Scope of Competitive Rivalry – Seller rivalry is primarily national, but competition
does occur regionally and internationally as well.
 Rivals – There exists about 10 major airlines in the India. There also exists a number
of smaller national and regional airlines that compete on a smaller scale.
 Customers – Customers include mostly individual traveles and organizations.
 Vertical Integration – No real significant backward or forward integration
 Ease of Entry – Fairly strong barriers to entry exist in the form of capital requirements
for investing in equipment and regulations. Also, there exists some market saturation
in certain markets that discourage entry.

5.  Technology and Innovation – Service technology is somewhat slow to
technological change; use of new technology has changed distribution (e-tickets).
 Product Differentiation – The actual service of transporting passengers from one
location to another is fairly standardized. Differentiation exists in customer service
and the locations in which an airline flies.
 Scale of Economies – Moderate to High; On account of this, airlines are trying to
lessen their planes’ ground times to get more RPM (Revenue Passenger
Miles). The less time a plane in idle on the ground and the more time its active in
the air, generally results in more flights and more revenue from passengers.
 Industry Profitability – Somewhat low; there is limited market capacity within each
city’s airports. Also, rising security costs and depressed fares are preventing
profitability. Added to this is the unpredictable nature of fluctuating oil prices.

6. Market Shares

7. InterGlobe Aviation Ltd.-promoted low-cost airline IndiGo began the new year with yet
another month of superior market share in the domestic aviation industry.
IndiGo's market share in January 2017 stood at 39.8 percent, slightly lower than the revised
40.3 percent share it had captured in December 2016, according to data released by the
regulatory body Directorate General of Civil Aviation (DGCA).
Jet Airways Ltd. saw its market share improve 50 basis points to 15.5 percent
Other Performance Indicators
Overall, the Indian aviation industry had a cancellation rate of 1.1 percent in January. With a
cancellation rate of 0.63 percent, Jet Airways had the fewest cancelled flights, followed by
SpiceJet at 0.77 percent and IndiGo at 0.98 percent. Government-operated Air India was the
second worst with 1.97 percent of its flights being cancelled.
Youngest entrant Air Vistara had the highest customer satisfaction with just 0.1 complaints
for every 10,000 passengers carried. IndiGo followed closely with 0.3 complaints per
10,000 passengers. Air India was the worst with 2.5 complaints for 10,000 passengers.
In terms of on-time performance of flights, SpiceJet and IndiGo led the pack with 71.6
percent and 71.2 percent flights on schedule respectively. Vistara underperformed with only
53 percent of its flights running on time.
The performance was computed for Bangalore, Delhi, Hyderabad and Mumbai airports.

8. Leaders
• Rakesh Gangwal
• Founder
• NARESH GOYAL
• FOUNDER

9. • ASHWANI LOHANI
• CHAIRMAN and MD
• AJAY SINGH
• MD
• JEHANGIR WADIA
• FOUNDER AND MD

10. • NARESH GOYAL
• OWNER
• BHASKAR BHAT
• CHAIRMAN
• TONY FERNANDES
• FOUNDER

11. • RAMESH LINGAMANENI
• CHAIRMAN
•VANKAYALAPATIL
UMESH
•MANAGING
DIRECTOR

12. Challengers

13. Indigo Jet
Airways
Spicejet GoAir JetLite AirCosta
Fleet Size 126 114 45 24 12 10
Passenger
travel in
2016
133
Million
19.4
Million
15
Million
10
Million
5
Million
2
Million
Comparison of assets and passenger
travel

14. Comparison of Fares
(two weeks advance booking)
Airline Delhi to Mumbai Mumbai to Bangaluru
Indigo 3841 ₹ 3415 ₹
Go Air 3842 ₹ 3096 ₹
Spicejet 3491 ₹ 3415 ₹
Jet Airways 4052 ₹ 3521 ₹
Air India 4076 ₹ 3544 ₹
vistara 4388 ₹ 3857 ₹

15. Strategies of leading player
Indigo success can be attributed to certain things which has
don differently as compare to others.
 Single type of aircraft is used to reduce training and service cost
 On time performance
 High passenger load factor
 One of the lowest cancellation rate in the industry
 Lean workforce
 No frills such as free food/drink

16. Branding Strategies
Of Airlines
 Segmentation, targeting, positioning in the Marketing.
 About Indian Aviation Industry
 Market size, Market share, structure, Growth and competition
 Transaction mode
The response by airlines to customers’ demands for lower and lower fares has
been to do exactly that, lower seat costs, but at the same time to strip more and
more of what is included in the fare out of the price.

17.  Merge between AirLines:-
For the better performance and customer satisfaction airlines get merge and try to
provide better service to the customer
 Deafferentation in logo
Different airlines have different logo and different aircraft design to
differentiate there brand

18. Aviation Industry in India
 1932 JRD Tata launched TATA Airline
 1948 Air India International come in being
between Indian gov. and Air India (TATA Airline)
 1986 private sector players permitted as Air taxi
operator like jet Air sahara etc.
 1994 private carrier permitted to operate
scheduled services.
 2003 entry of low cost carriers

19. Geographically spread of facility
Indigo
• Hub:- Delhi, Bangalore, Mumbai, Chennai, Hyderabad, Kolkata
• Service:- mostly all over the India, Nepal, Oman, Singapore, Thailand,
United Arad Emirates
Jet
Airways
• Hub:- Delhi, Bangalore, Mumbai, Chennai, Kolkata, The Netherlands
• Service:- mostly all over the India, Italy, Kuwait, Malaysia, Nepal,
Oman, Qatar, Saudi Arabia, Singapore, South Africa, Sri Lanka,
Thailand, United Arab Emirates, United Kingdom, United State
SpiceJet
• Hub:- Dhaka, Delhi, Surat, Mumbai, Chennai, Hyderabad,
• Service:-most of the part of India, Maldives, Oman, Sri Lanka,
Thailand, United Arab Emirates

20. Demand and supply
 There is always balance in demand and supply of aviation
industry
The Federal Aviation Authority in the US forecasts a
rising demand for more aircraft and they report that
passenger levels are returning to pre-9/11 levels, possibly
exceeding 1 billion annually by 2015. US airlines increased
passenger numbers from 642 million in 2003 to 690 million in
2004. Airbus predicts worldwide passenger traffic to grow at
an average of 5.3% per year over the next 20 years.
 As there is traffic grow at the rate of 5.3% every aviation
industry is expanding there business and increasing there
assets.

21. Factor affecting demand
1. Rise in Price
2. Fall in price
3. Natural calamities
4. Emergency condition
5. Rise in economy
6. Development

22. Professional Trade Body Of Industry

24. Online business INDI
GO
SPICE
JET
https://www.goindigo.in
www.jetairways.com
www.airindia.in
www.spicejet.com
https://www.airvistara.com/
www.jetairways.com

26. Promoters of Top 3 Airlines
Indigo Airline
Mr. Rakesh Gangwal, a citizen of the United States of
America is the Promoter and Non-Executive Director of
the Company. He holds a bachelor’s degree in
mechanical engineering from the Indian Institute of
Technology, Kanpur. He also holds a master’s degree in
business administration from the Wharton School,
University of Pennsylvania, with a major in finance. He
has more than 30 years of experience in the aviation
industry. Mr Gangwal worked with Worldspan
Technologies, Inc. from June 2003 to August 2007 as
the Chairman, President and Chief Executive Officer.
He is co-founder of Indigo airline.
Mr. Rahul Bhatia is the Promoter and MD of the
Company. Mr. Bhatia holds a degree in electrical
engineering from the University of Waterloo in
Ontario, Canada. Mr. Bhatia was instrumental in
the formation of InterGlobe Enterprises in 1989
with its flagship business of air transport
management. Mr. Bhatia has more than 25 years
of experience in the travel industry. Mr. Bhatia
has led the development of many new business
initiatives of our Company, including the travel
and aviation business.
Mr. Rahul Bhatia
Mr. Rakesh Gangwal

27. Jet Airways
Chairman
Mr. Naresh Goyal, the founder Chairman of Jet Airways, India’s
premier airline, has over 40 years of experience in the Civil
Aviation industry. He started operating Jet Airways in 1993.
Goyal holds a Bachelors of Commerce degree from Govt.
Bikram College of Commerce, Patiala.
With his vast experience in the field of aviation, Mr. Goyal is the
recipient of several national and international awards. Mr. Goyal
currently serves on the prestigious International Air Transport
Association (IATA) Board of Governors.
Mr. Naresh Goyal

28. Spice Jet airlines
Ajay Singh is an Indian entrepreneur, co-founder , MD and present
owner of Indian low cost airline SpiceJet. After completing
engineering from IIT, Delhi, Singh went to Cornell University
where he did an MBA in finance. Mr. Singh served as a Director of
SpiceJet Ltd until August 27, 2010 after which he transferred the
ownership of the company to Sun Group's chairman and managing
director Kalanithi Maran. On 15 January 2015, he again re-acquired the
ownership of SpiceJet from Kalanithi Maran.
He is also actively involved with Bhartiya Janata Party. He
coined the slogan "Abki baar Modi Sarkar"
 Ajay singh

29. Promoters of Bottom 3 Airlines
Air Asia
Tony Fernandes
Tony" Fernandes, CBE (born 30 April 1964) is
a Malaysian entrepreneur. He matriculated to the London
School of Economics and graduated with a degree in
accounting. In September 2001, Fernandes purchased
AirAsia and became its chief executive. . He is the founder
of Tune Air Sdn. BA native of Mumbai, India, Karnik
graduated from the Birla Institute of Technology and
Science and the University of Michigan Ross School of
Business, who introduced the first budget no-frills airline,
AirAsia, to Malaysians with the tagline "Now everyone can
fly". Fernandes managed to turn AirAsia, a failing
government-linked commercial airline, into a highly
successful budget airline public-listed company

30. Air Costa Airlines
Ramesh Lingamaneni
when the 42-year-old launched Air Costa to connect towns
in the south to Chennai and Hyderabad last July, it took
even his closest friends by surprise. After all, airlines is a
ruthless industry where even those with very deep
pockets struggle.
Lingamaneni, however, said his decision to enter the
industry is based as much on sound business logic as it is
on his fascination for the flying objects.
Ramesh Lingamaneni

31. Vistara airlines
Bhaskar Bhat
 New Delhi, January 14, 2016: Mr. Bhaskar Bhat, Managing Director of Titan
Company Limited, has taken over as Chairman of Tata SIA Airlines Limited,
succeeding Mr. Prasad Menon who retired from the airline on January 13,
2016.
 Mr. Bhat has joined the Board of the company with effect from January 14,
2016.As the M.D. of the Titan Companny Limited since 2002 and founding
member of Titan Industries, Mr. Bhat has led it to become the largest
watch manufacturer in India and the fifth largest in the world.
 On assuming the role of the airlines’ Chairman, Mr. Bhat said, “I am
honoured to succeed Mr. Menon, and deeply appreciate how Vistara has
established its firm presence in India. Vistara is founded on common values
of the Tata group and Singapore International Airlines (SIA). My focus will
be on ensuring that Vistara continues to deliver the legendaryservice
excellence and hospitality that the Tata group and SIA are known for.”
Bhaskar Bhat

32. Ethos & philosophy
Indigo
1.)Sustainability
2.)Innovation
3.)Expertise
4.)Partnerships

33. Jet airways
As an entrepreneur, one of your primary relationships is with your business. Like most
relationships, it’s easy to start out with a lot of passion and enthusiasm, but often in
the humdrum of daily work life, the founding passion and love for the business is lost.
The ideal business is one that is inspiring, lucrative and fun. When you love your work,
it becomes easier and much more enjoyable to reach your goals.
 Streamline your business
 step back & look at the bigger picture
 Practice gratitude
 Join a stimulating professional network
 Grow your business
 Align your heart with what matters most

34. Spicejet
 1. Clear Communication Is Crucial
 Reliability Solidifies Trust
 Focus On Process Gets Better Results Than Focus On Outcome
 Never Give Up
 Make Everyone Feel A Part Of The Team

35. Air asia
 The founding principle of AirAsia is to be aware at all times that we are engaged in a business where the
responsibility of peoples’ lives is in our hands. We safeguard that responsibility through the safety and quality of our
operations. We operate with the highest level of integrity, striving to exceed industry standards in a proactive
manner while doing so with respect to others and the environment.
 Safety Values of AirAsia
 The safety values of AirAsia are:
Provide a product with safety and quality as our first goals.
 Do our job with the highest level of integrity.
 Prepare our employees through first-class training.
 Provide equipment that is well maintained.
 Select contractors, vendors and suppliers who meet our values.
 Value oversight from regulators and other organizations that enhance our system through checks and balances.
 Embed an ethical culture by maintaining openness with regard to safety and quality.
 Embed a continuous improvement ethos by learning from aviation industry experiences.
 Maintain a high level of environmental consideration in all of our activities.

36. CEO & MDs of Top 3 Airlines
Indigo
Mr. Aditya Ghosh - President
Mr. Aditya Ghosh is the President and whole-time Director of
the Company. Mr. Ghosh heads all operations and management
of our Company. Mr. Ghosh took on the role as its President in
August 2008. He also serves on the Executive Committee of
InterGlobe Enterprises, which is responsible for the
management of the IGE’s various businesses.Mr. Ghosh holds a
Bachelor of Arts degree and a Bachelor of Law degree, both
from the University of Delhi. Prior to joining our Company in
2008, Mr. Ghosh was the General Counsel for InterGlobe
Enterprises from 2004 to August 2008.
Mr. Aditya Ghosh

37. Jet airways
Mr. Gaurang shetty, an indian national, is a bachelor
in science with over 32 years’ experience in the
aviation industry. He joined the company in 1996 as
general manager. On 24 may 2012, he was appointed
on the board of directors of the company as director
and manager and was re-designated as whole-time
director on 25 may 2015. In his present role, he is
responsible for the management of the affairs of the
company subject to superintendence, control and
directions of the board of directors of the company.
Subodh Karnik was the President and Chief Executive
Officer of now defunct ATA Airlines (American Trans
Air – was an American low-cost scheduled service and
charter airline based in Indianapolis, Indiana). A
native of Mumbai, India, Karnik graduated from the
Birla Institute of Technology and Science and the
University of Michigan Ross School of Business.
Separately, he was the President and Chief Executive
Officer of Global Aero Logistics, Inc. On January 1,
2007, Karnik replaced the previous CEO, John G.
Denison, who stepped down but is continuing on as
ATA's Chairman of the Board of Directors. Subodh
Karnik has been an officer of Global Aero Logistics,
Inc. since June 2, 2005.
Mr. Gaurang Shetty - CEO Subodh Karnik - COO

38. MD
Ms. Rajshree Pathy
 Director Ms. Rajshree Pathy is the Chairman and Managing Director of
Rajshree Sugars and Chemicals Limited. She is a Graduate in Commerce,
has completed the Owner President Management Program (OPM), Harvard
Business School, Harvard University, U.S.A. as well as the program on
Strategic Alliances & Corporate Ethics, INSEAD, Fontainebleau, France.
The Government of India conferred Ms. Rajshree Pathy the prestigious
Padma Shree award in the field of Trade and Industry in 2013. She has
also been awarded several distinctions at National and Global platforms
Ms. Rajshree Pathy

39. CEO & MDs of Bottom3 Airlines
Air asia
 Aireen Omar
Executive Director and CEO
 Aireen Omar, Malaysian, aged 40, was appointed as Chief Executive
Officer and Executive Director of AirAsia Berhad effective from 1 July
2012. Prior to this, she was Regional Head of Corporate Finance, Treasury
and Investor Relations at AirAsia. She is a member of the Safety Review
Board. She joined AirAsia in January 2006 as Director of Corporate
Finance whereupon her portfolio quickly expanded to include Treasury,
Fuel Procurement and Investor Relations functions
 Before joining AirAsia, she worked for nine years in the financial industry
. Aireen holds an Economics degree from the London School of Economics
and Political Science and MA in Economics from New York University.
Aireen Omar

40. Air costa
As a visionary and acclaimed MBA entrepreneur,
and with over 15 years of experience in the
construction and retail sector, he has been at the
forefront of initiating and implementing the
creation of retail and multiplex developments in
Tier – II and III cities. Rajasekhar has been
instrumental in bringing multinational retail
brands to cities such as Vijayawada, Rajahmundry
and , Guntur. Understanding derived from his
extensive overseas travel experiences has enabled
him to be successful in collaborations with
international investors for the joint developments
of commercial projects in Andhra Pradesh.
 Vivek has a B.Tech Degree in Computer Science from
Jawaharlal Nehru Technological University, and a
PGDM in Finance and marketing from the Indian
Institute of Management, Kozhikode. Vivek played a
pivotal role in the setup and planning of Air Costa,
from the days when it was just an idea and has lived
through the ups and downs of aviation industry since
then. He and his team studied the airline market and
made strong attempts to avoid the mistakes of other
airlines. In April 2010, Vivek joined LELP group as VP-
Corporate finance and later he served Air Costa for a
while as the CFO and Deputy CEO.
Mr. L.V.S.Rajasekhar,
Managing Director, LEPL
Vivek Choudhary
CEO

41. Mr. L Ramesh
dynamic and enthusiastic leader with a great business
acumen as well as experience in executing projects with
overseas investors and corporations. Ramesh is also an able
marketing professional. His visionary efforts and dynamism
were crowned with success through the development of the
first international class township in coastal Andhra Pradesh
by successfully forging a Joint Venture with one of the
world's largest infrastructure construction companies M/s.
IJM Corporation Berhad, Malaysia. He has also successfully
collaborated with Momentum Melbourne Pty Ltd. for a
multi storey residential project in Australia under the
banner of Lingamaneni Momentum Melbourne Pty Ltd,
Melbourne, Australia.
Mr. L Ramesh
MD, LEPL Group A

42. Vistara
Phee Teik Yeoh, - ceo
As chief executive officer of Tata SIA Airlines Ltd, Yeoh
was instrumental in setting up Vistara. In a career with
Singapore Airlines Ltd spanning over two decades, Yeoh
rose up the ranks and held progressively responsible
management roles and headed various departments of
the airline in different capacities across different
markets. He has also been an Asean Scholar and a
Singapore Airlines Scholar. Yeoh’s academic qualifications
include a Bachelor of Science degree with First Class
Honours in Chemistry from the National University of
Singapore
Phee Teik Yeoh

43. CSR of Indigo
 Eradicating hunger, poverty and malnutrition, promoting health care including preventive
health care and sanitation including contribution to the Swach Bharat Kosh set-up by the
Central Government for the promotion of sanitation and making available safe drinking
water;
 Promoting education, including special education and employment enhancing vocation skills
especially among children, women, elderly, and the differently abled and livelihood
enhancement projects;
 Promoting gender equality, empowering women, setting up homes and hostels for women
and orphans; setting up old age homes, day care centres and such other facilities for senior
citizens and measures for reducing inequalities faced by socially and economically backward
groups;
 Ensuring environmental sustainability, ecological balance, protection of flora and fauna,
animal welfare, agroforestry, conservation of natural resources and maintaining quality of
soil, air and water including contribution to the Clean Ganga Fund setup by the
Central Government for rejuvenation of riverGanga;

44. • Protection of national heritage, art and culture including restoration of
buildings and sites of historical importance and works of art; setting up public
libraries; promotion and development of traditional arts and handicrafts
• Measures for the benefit of armed forces veterans, war widows and their
dependents
• Training to promote rural sports, nationally recognised sports, paralympic
sports and Olympic sports
• Contribution to the Prime Minister's National Relief Fund or any other fund set
up by the Central Government for socio-economic development and relief
and welfare of the Scheduled Castes, the Scheduled Tribes, other backward
classes, minorities and women
• Contributions or funds provided to technology incubators located within
academic institutions which are approved by the Central Government
• rural development projects
• slum area development

45. CSR of Jet airways
 As an Indian Corporate Body, Jet Airways recognises its responsibility to Society and the Nation.
Corporate Social Responsibility hence forms an inherent part of our business at Jet Airways
aiming at engaging employees and patrons alike in sustainable community service and sensitizing
them to the alternative realities of society.
 In 1998 Jet Airways launched its Yellow Rose campaign. At Jet Airways we believe our guests are
like roses, and just like the flower, our guests require nurturing friendship, warmth and care. Jet
Airways has thus striven not only to extend these qualities to its passengers, but also to the
country in times of crises and calamities.
 Our involvement in several projects at grass-root level are designed to add value to the lives of
the under privileged and the programs give them access to basic resources for health, education
and a life of dignity.
 Magic Box –Jet Airways’ In-flight Fund Collection Programmes.
 Jet Airways raises substantial funds every year and these proceeds are utilised for relief work
involving natural calamities such as earthquakes as well as education and healthcare for the
underprivileged children and women empowerment. It also contributes significantly in the fight
against trafficking of women and children.
 Save the Children India also plays a pivotal role in supporting pregnant women, especially those
who are HIV positive with a view to reduce infant mortality rate in the country.

46. • Running for Charity - Every year, Jet Airways employees participate in a number of marathons across the country to
raise funds for children belonging to various NGO’s dedicated to working for women and children.
• Floods in Chennai regions, Tamil Nadu – (2015)
Jet Airways India Ltd partnered with ActionAid India, Uday Foundation and Max Hospitals to provide immediate
relief in Tamil Nadu to those affected by the devastating floods. Relief material was transported from all
metros on a FOC basis for a period of 30 days.
• Women Empowerment
Every year Jet Airways celebrates International Women’s Day commencing March 08th, to salute independent
woman and her continuous struggle for an equitable social milieu to live and work in.
• Buckingham Palace Declaration - Jet Airways, signed the ‘Buckingham Palace Declaration’ and affirmed its support to
the global fight against illegal wildlife trafficking.

47. CSR of Spicejet
 Gurgaon: India’s favourite budget airline has facilitated the travel of 20 female
students and two teachers of Mawar Valley J & K organised by the Indian Army for
Operation Sadbhavna. The annual educational tour saw the kids visiting various
important places in Delhi NCR, Chandigarh, Dehradun and Amritsar involving all
modes of transport many of them for the first time be it Volvo Buses, trains, Delhi
Metro and completing the journey on a SpiceJet Boeing from Amritsar to Srinagar.
 Its aims to exposes young girls to the country’s diverse culture, religion, scientific
and technological advancements thereby incorporating the feeling of oneness and
belongingness in them. It is also programmed with the aim to expose young
children to the numerous career options available so as to broaden their horizon
for a better future to be amongst the cream and main stream of the country.
 Sadbhavna is an eventful agenda for the Indian Army driving a noble intent of
educating and motivating ‘young India’ and preparing them for a better tomorrow

48. CSR of Air Asia
 The Company sees the importance of being a part to create happiness, smiles,
and cooperation, and a driving force for a better Thai society, therefore, the
Company has established the Corporate Social Responsibility (CSR) policy
which covers the following areas:
 . Responsibility toward Consumer
 Environmental Responsibility
 Society and Community Development
 Innovation and Publizing Innovation
 Responsibility toward Employees
 Anti-Corruption Policy

49. CSR of Air Costa
 Balancing the benefits to our clients, employees, local communities and
environment our responsible tourism policy aims to continually improve the
way we run our business to the benefit of all involved. we divide this policy
into four fundamental components:
 carbon neutrality
 naturekids foundation
 biodiesel
 corporate sustainability efforts and alliances

50. CSR of Vistara
 Vistara kick-started its CSR journey on October 16, 2014 by joining hands
with the Salaam Baalak Trust. Vistara organised a visit for 70 children (from
SBT) to the Indian Air Force museum. The Salaam Baalak Trust founded by
Mira Nair takes under its wing vulnerable, homeless children and gives them
an opportunity to be educated and pursue their dreams.
 For the children – aged between 7 and 16 years – it was an excellent
opportunity to learn about the glorious history of the Indian Air Force along
with a rare chance to peek into various aircraft used in the wars fought by
India after Independence. They were delighted to be taken on a guided tour
and learn about the collection of aeroplanes and armoury.

51. Corporate governance of Indigo
 Indigo Energy Group aims to generate profits for the company and the
investors. However alongside this, the Group operates with a clear social
conscience and is determined to leave tangible benefits to the
environment and to the people. That’s why Indigo Energy Group intends
to support and sponsor social projects and cultural events in the areas
and regions in which its power plants are located.

52. Corporate Governance of Spicejet
 Corporate governance is an ethically driven business process that is
committed to values and conduct aimed at enhancing an organization’s
wealth generating capacity. This is ensured by taking ethical business
decisions and conducting the business with a firm commitment to values,
while meeting stakeholders’ expectations. Good governance practices stem
from the culture and mindset of the organisation and at SpiceJet we are
committed to meet the aspirations of all our stakeholders and believes in
adopting best corporate practices for ethical conduct of business. It is well
recognized that an effective Board of Directors is a pre-requisite for strong
and effective corporate governance. Our Board and Committees thereof are
formed as per requirement of Companies Act, 1956 read with listing
agreement which oversees how the Management serves and protects the long-
term interests of all our stakeholders.

53. Corporate governance of Jet airways
 we are committed to meet the aspirations of all our stakeholders and believes
in adopting best corporate practices for ethical conduct of business. It is well
recognized that an effective Board of Directors is a pre-requisite for strong
and effective corporate governance. Our Board and Committees thereof are
formed as per requirement of Companies Act, 1956

54. Corporate governance of Air Asia
 AirAsia defended its position as Malaysia’s best in corporate governance by being
the recipient of three coveted excellence awards in Investor Relations (IR) by
Corporate Governance Asia for four consecutive years.
 The airline was presented with the awards of ‘Best Investor Relations Company for
Malaysia’, ‘Best CEO (Investor Relations) for Malaysia’ and ‘Best Investor Relations
Officer for Malaysia’, at the 4th Asian Excellence Recognition Awards 2014
ceremony held in Hong Kong.
 “We always implement transparent communication with our investors pertaining
to our forward plans and also the difficulties that we faced in achieving our goals.
This is important to reinforce the trust of all our investors, for us to move strongly
forward and accomplish all our objectives for this years.
 For AirAsia, it is the airline’s fourth ‘Best Investor Relations Company for Malaysia’
award r since the honour was introduced in 2011, a testament of its commitment
in constantly ensuring greater transparency and improved engagement with the
investment community.

55. Corporate governance of Air Costa
 Good corporate governance is about maximizing shareholder value on a
sustainable basis while ensuring fairness to all stakeholders: customers,
vendor-partners, investors, employees, government and society.
 We are committed to defining, following and practising the highest level of
corporate governance across all our business functions. Our corporate
governance is a reflection of our value system encompassing our culture,
policies, and relationships with our stakeholders. Integrity and transparency
are key to our corporate governance practices and performance and ensure
that we retain and gain the trust of our stakeholders at all times.

56. Corporate governance of Vistara
 The Board and Management are committed to continually enhancing
shareholder value by maintaining high standards of corporate governance,
professionalism, integrity and commitment at all levels, underpinned by
strong internal controls and risk management systems.
 The Board’s principal functions include charting the Group’s strategic
direction, reviewing and approving annual budgets, financial plans and
monitoring the Group’s performance; approving major acquisitions and fund-
raising exercises; and ensuring the Group’s compliance with all laws and
regulations as may be relevant to the business.

58. CONTROLLING MINISTRY
Ministry of Civil Aviation

59. Regulatory Action Against the Companies
 The Competition Commission of India (CCI) imposed a
penalty of Rs.151.69 crore on Jet Airways, Rs.63.74
crore on IndiGo and Rs.42.48 crore on SpiceJet for
cartelization(fixing of fuel surcharges in cargo
transport). The fine corresponds to 1% of the annual
turnover of the companies in Dec 2015.
 IndiGo, Tata Motors locked in court battle over
trademark in Aug 2015.
 Government’s ambitious plan of cross subsidising air
travel for India’s unchartered smaller towns by levying
a tax on prime routes runs into rough weather as major
airlines threaten legal action over this on October
2016.

60. SAFETY VIOLATIONS

61. 3 Biggest Challenges Facing The
Global Aviation Industry
 Safety
 Convenience
 Environmental & Financial Sustainability

62. Government Initiatives
 Use of advanced Air Navigation Technology
(Project GAGAN)
 Plan to develop 100 Low Cost Airports in Tier II
&Tier III cities
 Launching of Regional Connectivity Scheme also
known as UDAN is one of the big step proposal of
NCAP- October 2015.
 100% FDI for Greenfield as well as for Existing
airports with an approval through FIPB and 74%
in Brownfield area.
 49% FDI in aviation for Foreign Carriers
 Increased traffic rights by Open Sky Policy and
reduction of VAT on Aviation Turbine Fuel.
 Revised Draft National Civil Aviation Policy
is released by MOCA on October 30th,
2015.

63.  MOCA has invited the suggestions for modification
in 5/20 rule, introduced in 2004.
 Planning to make INDIA an MRO hub to lower the
operating and maintenance costs for airlines and
save foreign exchange.
 Addition of more routes for category-1 airports
with transparent criteria by Route Dispersal
Guidelines.
 AAI launches e-billing solution for their global
clients on Feb 21,2017 with a view to overcome
revenue leakage, reducing reduncies,reduction in
disputes,easy integration with all external system
and curtaining the debt collection period to
minimum.

64.  The Ministry of Civil Aviation has finalised and put forward for approval
to the Union Cabinet, the new aviation policy, which includes proposals
such as allowing new airlines to fly abroad, introduction of more regional
flights and a new formula for granting bilateral flying rights.
 The Indian Space Research Organisation (ISRO) has signed a memorandum
of understanding (MoU) with the Airports Authority of India (AAI), aimed
at providing space technology for construction of airports.
 The Government of India is planning to boost regional connectivity by
setting up 50 new airports over the next three years, out of which at
least 10 would be operational by 2017.
 Airports Authority of India (AAI) plans to develop city-side infrastructure
at 13 regional airports across India, with help from private players for
building of hotels, carparks and other facilities, and thereby boost its
non-aeronautical revenues.
 Directorate General of Civil Aviation (DGCA), India's aviation
regulator, has signed an agreement with United States Technical
Development Agency (USTDA) for India Aviation Safety Technical
Assistance Phase II, aimed at bringing in systemic improvements in
the area of operation, airworthiness and licensing.

65.  The Government of India has given site clearance to Delhi Mumbai
Industrial Corridor and Development Corporation (DMICDC) for
setting up of a Greenfield Airport for public use near Bhiwadi in
Alwar district of Rajasthan and has granted 'in-principle' approval
to 13 other greenfield airport projects.
 The Airports Authority of India (AAI) plans to revive and
operationalise around 50 airports in India over the next 10 years to
improve regional and remote air connectivity.
 Gujarat is expected to get a second international airport at
Dholera. The state government has formed Dholera International
Airport Co. Ltd. and is obtaining approvals from the union
government.
 The Government of India has decided to award airports in Kolkata,
Chennai, Jaipur and Ahmedabad on management contract. AAI has
issued the ‘Request for Qualification’ document for these four
airports.

66. Environmental impact of aviation
The environmental impact of aviation occurs
because aircraft engines emit heat, noise, particulates
and gases which contribute to climate change
and global dimming. Among others airplanes emit
particles and gases such as carbon dioxide (CO2), water
vapor, hydrocarbons, carbon
monoxide, nitrogenoxides, sulfuroxides and black
carbon which interact among themselves and with the
atmosphere.
Climate change: Like all human activities
involving combustion, most forms
of aviation release carbon dioxide (CO2) and other
greenhouse gases into the Earth's atmosphere,
contributing to the acceleration of global warming and
(in the case of CO2) ocean acidification

67.  In attempting to aggregate and quantify the total climate
impact of aircraft emissions the Intergovernmental Panel
on Climate Change (IPCC) has estimated that aviation's
total climate impact is some 2-4 times that of its direct
CO2 emissions alone (excluding the potential impact of
cirrus cloud enhancement)
 The IPCC has estimated that aviation is responsible for
around 3.5% of anthropogenic climate change, a figure
which includes both CO2 and non-CO2 induced effects.
The IPCC has produced scenarios estimating what this
figure could be in 2050. The central case estimate is that
aviation's contribution could grow to 5% of the total
contribution by 2050 if action is not taken to tackle these
emissions, though the highest scenario is 15%.

71. REVENUE OF BOTTOM 3
COMPANIS ( Rs. IN CR)
YEAR AIR ASIA AIR COSTA VISTARA
2014 5416 N.A N.A
2015 6298 N.A N.A
2016 3626 N.A N.A

72. Profitability of Bottom 3 companies (
In Cr. )
YEAR AIR ASIA Ind. AIR COSTA VISTARA
2014 83 N.A N.A
2015 541 N.A N.A
2016 256 N.A N.A

73. Key factors contributing to cost

74. REVENUE OF TOP 3 COMPANIS (
Rs. In Cr. )
YEAR SPICE JET INDIGO JET AIR WAY
2014 64371 101020 50729
2015 54629 143199 55834
2016 52961 166013 56865

75. Revenues
101020
143199
166013
50729 55834 56865
64371
54629 52961
2014 2015 2016
Indigo Jet Air Ways Spice Jet

76. Profitability of top 3 companies ( In Cr. )
YEARS SPICE JET INDIGO JET AIR
WAYS
2014 10032 7268 24979
2015 6871 19897 18033
2016 4071 13041 11733
0
5000
10000
15000
20000
25000
30000
2014 2015 2016
Indigo
Jet Air Way
Spice Jet

77. Profitability
7268
19897
13041
24979
18033
11733
10032
6871
4071
2014 2015 2016
Indigo Jet Air Way Spice Jet

78. Gross Profit Ratio
Top 3
YEAR SPICE JET INDIGO GET AIR WAYS
2014 15.85 2.45 13.48
2015 15.08 11.25 4.48
2016 6.18 15.5 5.75

79. Debtor Turnover Ratio
Top 3
YEAR SPICE JET INDIGO JET AIRWAY
2014 48.35 141.3 14.46
2015 37.50 143.8 15.15
2016 61.65 123.36 14.11

80. Current Ratio
Top 3
YEARS SPICE JET INDIGO JET AIR WAY
2014 0.39 0.69 0.7
2015 0.32 0.80 0.37
2016 0.45 0.89 0.53

81. RECENT DEVELOPMENTS

82. Impact of FDI in Aviation Sector
The Government has released the National Civil Aviation Policy (NCAP) 2016 on
15.06.2016. The NCAP 2016 covers the broad policy areas, such as Regional
connectivity, Safety, Air Transport Operations, 5/20 Requirement for
International Operations, Bilateral traffic rights, Fiscal Support, Maintenance,
Repair and Overhaul, Air-cargo, Aeronautical 'Make in India'. The broad key
features of the NCAP are as under:
i) VGF for operation under Regional Connectivity Scheme (RCS).
ii) Revival of un-served or under-served routes under RCS.
iii) Introduction of a new Category 'Schedule Commuter Operator' under
Commercial Air Transport Operations.
iv) Rationalization of Category-I routes under Route Dispersal Guidelines (RDGs)
on the basis of criteria given in NCAP 2016.
v) The requirement of 5 years and 20 aircrafts for international operation has
been modified to 0 years and 20 aircrafts or 20% of the total capacity (in terms
of average number of seats on all departure put together) whichever is higher
for domestic operations.
vi) Liberalization of domestic code share points in India within the framework of
ASA.

83. The National Civil Aviation Policy, 2016 has been formulated after extensive
consultation with all the stakeholders. With a view to aid in modernization of the
existing airports to establish a high standard and help ease the pressure on the
existing airports, 100% FDI under automatic route has now been allowed in
Brownfield Airport projects. This move would also serve in further developing the
domestic aviation infrastructure. Further, FDI limit for Scheduled Air Transport
Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service
has been raised from 49% to 100%, with FDI up to 49% permitted under automatic
route and FDI beyond 49% through Government approval. For Non-Resident Indians
(NRI's), 100% FDI will continue to be allowed under automatic route. However,
foreign airlines would continue to be allowed to invest in capital of Indian companies
operating scheduled and non-scheduled air transport services up to the limit of 49%
of their paid up capital and subject to the laid down conditions in the existing policy.
Increasing the FDI limit for these aviation services shall not only encourage
competition by lowering prices but shall also accord choice to consumers. Moreover,
FDI policy as contained in the 'Consolidated FDI Policy Circular of 2016', as amended
from time to time, is subject to the conditions of the extant of the policy on specified
sectors and applicable laws/ regulations; security and other conditionalities.
Accordingly FDI policy on Civil Aviation sector is also subject to sectoral and security
conditions.
This information was given by Minister of State for Civil Aviation, Shri Jayant Sinha in
a written reply to a question in the Lok Sabha today.

84. High growth, maiden policy -2016
 NEW DELHI/MUMBAI: A maiden integrated policy and over 20 per cent month-
on-month traffic growth gave wings to the country's civil aviation sector in
2016.
The sector reaped benefits out of a rise in domestic disposable income, lower
jet fuel prices and enhanced services to the non-metro cities, which
accelerated India's passenger traffic growth in 2016.
According to the latest data from the Directorate General of Civil Aviation
(DGCA), passenger traffic during Jan .. during January-November 2016
zoomed by 23.10 per cent to 90.36 million.

85. Key alliances in the last five years & their
performance & impact on their players in the
industry
Indigo
 One World Alliance may soon have IndiGo
under its wing. If this happens, IndiGo will be
the second Indian airline, after Air India, to
join a global alliance.
 We are actually a lead alliance in terms of
revenue from the Indian market because of
British Airways, Qatar Airways, Cathay Pacific
and Sri Lankan Airways as our members.
People do ask me, ‘are you going to add
Indian airlines’ and my answer is ‘maybe’,”
Bruce Ashby, CEO of One World Alliance,
told Business Line, without naming IndiGo.
-
BruceAshby

86.  The alliance has as members 15 airlines, which
together carry 500 million passengers a year to
around 250 destinations.
 One World and Star are the two key alliances
globally. Being part of an alliance helps airlines
provide a number of added facilities.
 Passengers travelling on one member-airline
can access the lounges of all other member-
airlines. And they can earn and use loyalty
points while travelling on any member-airline.

87. Spicejet Airlines
 New orders
 SpiceJet placed its first firm order for 20 Next-Generation Boeing 737-800s in
March 2005, with deliveries scheduled up to 2010.[4] In November 2010, in the
presence of US president Barack Obama, the airline ordered 30 Boeing 737-
800s. On 9 December 2010, Bombardier Aerospace announced that SpiceJet
had placed a firm order for fifteen Q400 NextGen turboprop airliners
with options for another fifteen. SpiceJet used its fleet of Q400s for short-
haul operations.
 In March 2014, the airline signed a US$4.4 billion deal with Boeing for the
procurement of 42 737 MAX 8 aircraft. In 2015, SpiceJet was in talks with
both Boeing and Airbus for a possible order of more than 100 single aisle
aircraft, either Airbus A320neo or the Boeing 737 MAX with the same being
confirmed by Managing Director , Ajay Singh, in a conference in Dubai.

88.  In January 2017, the airline placed a firm order for
100 737 MAX 8 aircraft, and revealed itself as the
airline behind the 13 MAX 8 aircraft previously
attributed to an unidentified customer, taking its
total order to 155 MAX 8 aircraft with purchase rights
for 50 additional MAX 8 and wide-body aircraft. The
carrier and Boeing have also discussed proposals for
the stretched version of the MAX 9, dubbed the 10X,
which would seat 230 passengers and be available
from 2020.

89. Key alliance of bottom three industry
 AirAsia
 AirAsia is the first foreign airline to set up a
subsidiary in India and the company marked Tata's
return to the aviation industry after 60 years,
having ceded Air India in 1946. As of February
2016, AirAsia India is the fourth largest low cost
carrier in India,
after IndiGo, GoAir and SpiceJet with a market
share of 2.2%.

90.  Fleet
 AirAsia India operates a fleet of Airbus A320 aircraft
 The airline's first Airbus A320-200 was delivered
to Chennai International Airport on 22 March 2014.
The airline has received in-principle approval to
import ten A320-200 aircraft. On 21 March 2015,
AirAsia India unveiled its fourth aircraft with a livery
dedicated to aviation pioneer JRD Tata and the
aircraft was christened as The Pioneer. The sixth
aircraft in the fleet joined in November and was
registered as VT-APJ in honour of APJ Abdul Kalam,
former President of India. As of December 2016,
AirAsia India operates the following aircraft:

91. India's Air Costa suspends operations
Air coasta (LB vijyawada)has announced it has temporarily suspended all flight operations
effective immediately.
In a statement issued to the Indian press on Tuesday, February 28, a spokesman said the
airline had failed to resolve unspecified “financial issues” with GECAS from which it leases
four EMB-190s.
“We are trying to resolve the issue," he was quoted by the PTI News agency. "We are also in
advanced stage of talks for fund infusion in the airline."
Services are expected to remain suspended until Wednesday, March 1, at the earliest.
The Indian regional carrier experienced a similar suspension of operations between August 4
and 5 of last year, again over an issue with GECAS.
Using its fleet of Embraer Regional Jets, Air Costa connects Ahmedabad, Bangalore
Int'l, Chennai, Hyderabad Int'l, Tirupati, Jaipur, Vijayawada, and Vishakhapatnam.

92. Air Costa orders 50 Embraer E-Jets E2s
Air Costa (Vijayawada) has signed a definitive agreement
with Embraer for a firm order for 50 E-Jets E2s with an
additional 50 purchase rights. The acquisition is a mix of
25 E190-E2s and 25 E195-E2s and has an estimated value
of $2.94 billion based on 2014 list prices. The purchase
rights are for an additional 25 E190-E2s and 25 E195-E2s,
bringing the total potential order to up to 100 aircraft and
can reach $5.88 billion if all are exercised. This
transaction raises the total E-Jets E2 orders to 200 firm
and 200 options/purchase rights since the launch of the E2
program, in June 2013.

93.  Air Costa has become the first customer of E-Jet E2s in the Indian
market and will take delivery of the E190-E2 in 2018. The E195-E2
is scheduled to enter service in 2019. Today, the airline flies four
E-Jets: two E170s and two E190s.
 Air Costa is currently connecting cities in southern India such
as Bangalore, Chennai, Hyderabad and Vijayawada, as well as key
secondary cities in the North and Northwest of the country. The
airline plans to link underserved markets with more direct flights,
increasing frequencies and routes, thus serving growing
metropolitan areas, as well as key secondary and tertiary
business centers.

94.  Air Costa’s E2s will feature new-design cabins with an even higher standard of
comfort and more personal space. The E190-E2 will be configured with 98
seats in dual class layout, with six seats in first class, and the E195-E2 with
118 seats, with 12 seats in the first class.

95. India continues to emerge as aviation’s
next major player
 Huge aircraft orders, the removal of dated regulations
and a growing middle class who are eager to travel are
all helping to bring India to the forefront of the
aviation market. Passenger numbers are growing at a
faster rate than the rest of the world, as India is on
course to become the largest market by 2030.
 It has been predicted that India will need over 1,600
new passenger and freighter aircraft between 2015 and
2034 to help meet growing demand. The first steps
have been taken to cope with increasing passenger
numbers and demand, as 250 firm orders were placed
with Airbus for A320neo in 2015. Traffic serving the
Indian market is set to grow by 8.4 percent per year
over the next 20 years: significantly higher than the
world average of 4.6 percent.

96. Indigo as emerging entrepreneur
 Mr. Rahul Bhatia is the Promoter and MD of the
Company. Mr. Bhatia holds a degree in electrical
engineering from the University of Waterloo in
Ontario, Canada. Mr. Bhatia was instrumental in
the formation of InterGlobe Enterprises in 1989
with its flagship business of air transport
management. Mr. Bhatia has more than 25 years
of experience in the travel industry. Mr. Bhatia
has led the development of many new business
initiatives of our Company, including the travel
and aviation business

97. Mr. Rakesh Gangwal, a citizen of the
United States of America is the Promoter
and Non-Executive Director of the
Company. He holds a bachelor’s degree in
mechanical engineering from the Indian
Institute of Technology, Kanpur. He also
holds a master’s degree in business
administration from the Wharton School,
University of Pennsylvania, with a major
in finance. He has more than 30 years of
experience in the aviation industry. Mr
Gangwal worked with Worldspan
Technologies, Inc. from June 2003 to
August 2007 as the Chairman, President
and Chief Executive Officer. He is co-
founder of Indigo airline.

98. Vistara, Air Asia India to commence
operations to and from Kolkata
 The Tatas, who famously exited the Singur automobile factory in
October 2008, are set to fly to Kolkata. The much-discussed
TATA-SIA joint venture, Vistara, is all set to touch down at
Kolkata airport with its Airbus A-320 aircraft before the Pujas.
 Vistara is coming to Kolkata and another airline Air Asia India will
also come, and start operating flights out of the city,” Saugata
Roy, chairman, airport advisory committee (AAC) of Kolkata
airport and Trinamool Congress MP from Dum Dum said after
holding the AAC meeting on Friday. Incidentally, Tatas also have
30% share in Air Asia India.
 According to Roy, the deal is sealed under which both the airlines
are coming to Kolkata but the dates of commencement of
operations and destinations are being finalised.

99. Jet Airways acquires Air Sahara for $500 m
 Sahara confirms that workers will not lose their jobs and cadres
 NEW DELHI: The biggest deal in the Indian civil aviation history
was announced on Thursday with Jet Airways taking over Air
Sahara for nearly $500 million (about Rs. 2,300 crore) in an-all
cash deal, executed on late Wednesday night.
 Announcing the deal through a joint statement, Jet Airways
Chairman Naresh Goyal and Sahara group Chairman and Managing
Worker Subrata Roy said they were "pleased to announce the
execution of a share purchase agreement for acquisition by Jet
Airways India Limited of the entire capital of Sahara Airlines
Limited subject to regulatory approvals.''

100. SpiceJet looks to acquire rival airline
 Industry: Aviation April, 2016 Low-cost airline SpiceJet, which attracted
$80-million investment from US billionaire Wilbur Ross last year, is looking to
acquire a
 rival budget airline, and start international and regional operations, said its
chief executive.
 “We are looking at inorganic growth,” said SpiceJet chief executive Sanjay
Aggarwal, adding that a low-cost airline will be his preferred choice for
acquisition.
 He expects a deal to materialise over the next 8-10 months, but declined to
confirm if the Gurgaon-based airline was currently in talks with any rival for a
possible acquisition.
 There have been speculations in the past about SpiceJet holding talks with
rival low-cost carriers, GoAir and IndiGo, to acquire them.

101. Labour unrest brews at Jet Airways
 As its promoters finalise a stake sale deal with Gulf carrier Etihad, labour unrest seems to
be brewing in Jet Airways, with its engineers wearing black bands to protest an alleged
move to freeze salary hikes and pilots deciding to meet on the issue shortly.
 A section of Jet technicians started a “symbolic” protest by wearing black bands last
Friday against the "management's proposed move to freeze wage hike over the next two-
three years,” sources among the agitators said here.
 "Though we have signed the salary contract, the final date of payment has not been
committed by the management. We have called a meeting of pilots in Delhi on February
1 to discuss the issue," a source said, adding this would be followed up by one in Mumbai
a few days later.
 When contacted, a Jet Airways spokesperson said the airline "has always adopted a
conciliatory open-door policy with all its staff, including technicians.
 "In addition, a management team is in constant dialogue and discussions with the
technicians, explaining to them the commercial and other challenges given the present
economic state of the global aviation industry at large and the airline in particular. This
is expected to address the issues under discussion and would also help resolve all future
issues."

102. Price war in Indian skies: Jet
Airways, SpiceJet, AirAsia cut fares
 A price war has broken out in Indian skies with full-
service carrier Jet Airways announcing special offers
that include base fares starting as low as Rs 396
(excluding taxes and fuel surcharge) on select domestic
routes while rival low-cost airline Spicejet has come
out with discounted fares for both domestic and
international routes.
 The offers come close on the heels of AirAsia's
discounted fares announced on Monday.

103.  Jet Airways said tickets for the special fare offer can be
booked between October 4 and October 7 for the travel
period from November 8, 2016 onwards on select
domestic routes.
 The offer is valid only on Jet Airways direct flights
within India and available on firstcome-first serve basis,
it said. The base fare excludes fuel surcharge, statutory
taxes and fees.
 ``This exciting limited-period offer is our way of joining
the festive celebrations, together with our guests, their
families and loved ones,'' Jet Airways Chief Commercial
Officer Jayaraj Shanmugam said.
 Gurgaon-based SpiceJet has announced airfares as low
as Rs 888 for its domestic flights and Rs 3,699 for
overseas flights under its festival sale offer.