Indian aviation industry is one of the fastest growing markets in the world. It is managed by organizations like the Airport Authority of India and Directorate General of Civil Aviation. Major players include national carriers like Air India and private airlines like Jet Airways, Indigo, and Kingfisher. The industry has faced issues like losses, debt, rising costs and economic downturn. However, the future remains positive with expected investments of $30 billion, a growing middle class, and passenger traffic projected to grow at over 15% annually. The industry will need to address infrastructure constraints to meet increasing demand in the coming years.

1. Submitted By:-
Submitted To:-
Ram pal
Ms. Anshu Singh
Manpreet Singh
Sahil Garg
Jaspinder Singh
Gautam Dhanda

2. Introduction:-
 One of the fastest growing markets in the world.
 The Airport Authority of India (AAI) manages a total of 127
airports in the country,
 which include 13 international airports, 7 custom airports,
80 domestic airports and 28 civil enclaves .
 On December 1912 when the first domestic air route
between Karachi and Delhi became operational.
 The Directorate General of Civil Aviation(DGCA) controlled
every aspect of aviation.

3. Indian Airlines Fleet
Passengers
Aircraft In Service Notes
J Y Total
2 14 106 120
Airbus A319 19 8 114 122 5 dry leased
3 0 144 144
Airbus A320-200 28 20 126 146 5 dry leased
Airbus A321-200 20 20 152 172
Total 72

4. History
• first commercial flight airmails from allahabad to nani (10
km)
3 The aviation department of tata sons ltd . Established
5 Tata airlines (successor to aviation sivision of tata son )
1946 Tata Air Lines converted into a public Company and
renamed Air India Limited
10 Air India International incorporated
1953 Nationalization of Aircraft Industry:-
Air India ,Indian Airlines, Deccan Airways,
Airways India, Bharat airways, Himalayan Aviation, Kalinga
Airlines, Indian National Airways and Air Services of India

5. Classification Of Indian Aviation Sector
 Scheduled air transport service:-
 Domestic airlines
 International airlines
 Non-scheduled air transport service.
 Air cargo service.

6. Players in Aviation
Industry
The players in aviation industry can be categorized
in three groups:
Public players : Indian Airlines Now Air-India
Private players : Jet Airways, Kingfisher Airlines,
Spice Jet, Air Deccan
Start up players : Omega Air, Magic Air, Premier
Star Air & MDLR Airlines.

7. Kingfisher
 Dr. Vijay Mallya is the Chairman and CEO of
Kingfisher Airlines.
 launched its airline services in May 2005.
 The first carrier in the country to offer live
in-flight entertainment.
 Kingfisher Airlines Ltd & Dish TV have joined
hands to provide live in-flight entertainment on
Kingfisher aircraft .
 100 percent E ticket airline

8. PROBLEMS FACED :-
 Kingfisher Airlines to sell property to fly out of debt
crisis:-
The board of Kingfisher Airlines (KFA) has decided to consider a
proposal to cut debt by more than half by selling property,
converting loans from its parent company into equity, and
changing the terms under which it leases aircraft.
 Recession
In 2008, due to the prevalent economic downturn, the
civil aviation industry faced the worst period in its
history.

9. Founded in 1993, Chairman - Mr.Naresh Goyal
HQ:- in Mumbai
Largest domestic airline - 31%
Primary base - Mumbai's Chaatrapathi ShivajiAirport
Secondary hubs - Bangalore, Brussels, Chennai,
Delhi,Hyderabad, Kolkata and Pune.
April,2007 - Acquired Air Sahara – JetLite
Now Jet Lite integrated into Jet Airways
 It earns yearly revenue of Rs 2502.89 and total income of
approx ` 117868.8 Million

10. Some salient issues :--
Employees were FIRED with no PRIOR NOTICE
 The entire force of unconfirmed staff was being laid off on a 30-
day compensation package
 Company took action only against lower staffs.
 November 2008, Jet decided on a 20% cut in the salaries of its
pilots, engineers, and some other staffs.
 Oct 16, 2008, Jet announced that it would lay off nearly 1,100 of
its staffs to streamline operation.

11. Air India
 Air India is state-owned, and
administered as part of the National
Aviation Company of India Limited
 It was created in 2007 to facilitate Air
India's merger with Indian Airlines.
 Air India is the 16th largest airline in
Asia,
 serving 25 destinations worldwide, and,
with its affiliated carriers, serves over
100 cities.

12. Financial Crisis
 Around 2006-07, the airlines began showing signs
of financial distress.
 The combined losses for Air India and Indian ‘
Airlines in 2006-07 was R.s 771 crores.
After the merger of the airlines, this went up to Rs
7200 crores by March 2009.
 Under debt of Rs.8000 Crore
Number of AI cabin crew on strike rises to 269 due to no
pay on time .

13. Indigo
 Low-price domestic airline which offers
feasible flying alternatives for millions.
 It was facilitated by the Air Passengers
Association of India (APAI) as the “Best Low-
Fare Carrier in India for the year 2007”.
 Has 120 daily departures and a fleet of 19
Airbus A320. The airline covers 17
destinations namely, Agartala, Bangalore,
Bhubaneshwar, Ahmedabad, Delhi, Chennai,
Guwahati, Hyderabad, Goa, Imphal, Kolkata,
Mumbai, Vadodara, etc.

14. analysis of indigo airlines :-
 Strength
1. Strong backing Promoters
2. Only LCC to make consistent profits
 Weakness
1.Not on too many routes
 Opportunity
1. Opening up of International Skies
2. Largest Market share among LCCs in Indian Market
3. Middle Class taking to the skies
 Threats
1. Plenty of new LCCs to compete with others.
2. Rising Labour costs
3. Rising Fuel Costs

15. SWOT Analysis:-
Strengths:
1. Growing tourism: Due to growth in
tourism, there has been an increase in
number of the international and domestic
passengers.
2. Rising income levels: Due to the rise
in income levels, the disposable income is
also higher.

16. Weaknesses:
 Under penetrated Market
 Untapped Air Cargo Market
 Infrastructural constraints
 Low profitability and utilization of capacity.
Opportunities:-
 Expecting investments: investment of about US $30
billion will be made
 Expected Market Size.
 India airline industry is growing faster and will
continue to grow as the GDP increases.
 Worldwide deregulations make the skies more
accessible.

17.  Complementary industry like tourism will increase
demand for airline service.
 Customers are getting wealthier
 Best time for introducing LCC’s
Threats :-
 Shortage of trained Pilots.
 Shortage of Airports.
 High prices.
 The Indian Railway Ministry is attracting
passengers away from air service, with prices
almost at par with the low cost carriers.

18. CURRENT SITUATION OF INDIAN AIRLINES
INDUSTRY
 Sharp US economic down turn tightening credit crunch
 Passengers and especially business class reduce considerably
 Aviation in Asia still attracting passengers mainly China, and
India
Fuel bill to reach US147$, up 14%
India, Budget airlines forced to step the accelerator
 Phenomenon hurting the global economy- Slowdown
 Skyrocketing fuel prices .

19. IN SEARCH OF PERFECT WORLD TO FLY :-

20. Future of Indian Aviation Industry:-
US$120 billion of investment by 2020.
close the gap between the demand for aviation
services and the ability of our aviation system to meet that demand.
 Maintaining safety, security and the environment.
 India must develop a roadmap for infrastructure development beyond
2010.
 Passenger traffic is estimated to grow at a CAGR of over 15% in the
coming few years.
The Ministry of Civil Aviation would handle around 280 million
passengers by 2020.