Simplify deccan
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This document discusses the evolution of low-cost carriers in India, specifically Air Deccan. It notes that Air Deccan grew from serving 2 destinations in 2003 to 65 destinations in 2007, but was facing operating losses and declining service quality. The Indian aviation market was expected to grow significantly by 2010, driven mainly by leisure travel, but low-cost carriers were estimated to capture a large market share. Infrastructure like airports and training facilities needed further development to support growth. Overall opportunities existed in smaller cities and as a substitute for train travel, but threats included maintenance challenges and high fuel costs.
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Sectoral analysis of aviation industry of india
- The Indian aviation sector is growing rapidly and is projected to become the third largest by 2020. Total passenger traffic in 2016 was 224 million.
- The government aims to increase the number of operational airports to 250 by 2020 and make air travel more affordable through regional connectivity schemes.
- Private sector investment of $10 billion is expected between 2016-2020 to fund increased fleet sizes and new airports through public-private partnerships.
Aviation Industry analysis
A
Project Report
On
Aviation Industry
Submitted By
Name Roll Number
Miss. KiranBendre 05
Mr. KalidasBhandwalkar 06
Mr. SanketBharte 07
Miss. SangitaBhilare 08
Class: - MBA I, VIIT,Baramati
Under The Guidance Of
Dr. RupendraGaikwad
Subject:- Industry Analysis- Desk Research (215)
Index
Chapter No Contents Page No
1 Industry Analysis
Nature of the Industry,
Market share of the company 3
2 Promoters & Management Ethos
Background of promoters
CSR policies
3 External environment
Controlling ministry
4 Financials
Ratio analysis of financial data
5 Recent development
Margers & Acquisition
Indian Aviation Industry
Chapter 1 : Industry Analysis – the Basics
History of the Industry
The first commercial flight in India was made on February 18, 1911, when a French pilot MonsignorPiquet flew airmails from Allahabad to Nain, covering a distance of about 10 km in as many minutes.
Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350.
For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful.
In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth.
Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issui
Aviation industry overview
The aviation industry in India is the 9th largest market globally and is poised to become the 3rd largest by 2020. It carried over 162 million domestic and international passengers in 2017 through over 85 international airlines and 5 Indian carriers connecting over 40 countries. The industry faces challenges like rising fuel costs and congestion but prospects are strong with the emergence of low-cost carriers, modernization of airports, and encouraging private investment in infrastructure.
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The document summarizes the growth of the Indian commercial aviation industry since liberalization in the 1990s. It describes the emergence of low-cost carriers like Air Deccan in 2003 that drove fares lower and increased passenger traffic. This led other carriers to also lower fares. As costs rose and competition increased, airlines began consolidating through acquisitions, like Jet Airways acquiring Sahara and Kingfisher acquiring Air Deccan, to improve efficiency. The competitive landscape and strategies used by different carriers in India are also examined.
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Sectoral analysis of aviation industry of india
- The Indian aviation sector is growing rapidly and is projected to become the third largest by 2020. Total passenger traffic in 2016 was 224 million.
- The government aims to increase the number of operational airports to 250 by 2020 and make air travel more affordable through regional connectivity schemes.
- Private sector investment of $10 billion is expected between 2016-2020 to fund increased fleet sizes and new airports through public-private partnerships.
Aviation Industry analysis
A
Project Report
On
Aviation Industry
Submitted By
Name Roll Number
Miss. KiranBendre 05
Mr. KalidasBhandwalkar 06
Mr. SanketBharte 07
Miss. SangitaBhilare 08
Class: - MBA I, VIIT,Baramati
Under The Guidance Of
Dr. RupendraGaikwad
Subject:- Industry Analysis- Desk Research (215)
Index
Chapter No Contents Page No
1 Industry Analysis
Nature of the Industry,
Market share of the company 3
2 Promoters & Management Ethos
Background of promoters
CSR policies
3 External environment
Controlling ministry
4 Financials
Ratio analysis of financial data
5 Recent development
Margers & Acquisition
Indian Aviation Industry
Chapter 1 : Industry Analysis – the Basics
History of the Industry
The first commercial flight in India was made on February 18, 1911, when a French pilot MonsignorPiquet flew airmails from Allahabad to Nain, covering a distance of about 10 km in as many minutes.
Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350.
For many years in India air travel was perceived to be an elitist activity. This view arose from the “Maharajah” syndrome where, due to the prohibitive cost of air travel, the only people who could afford it were the rich and powerful.
In recent years, however, this image of Civil Aviation has undergone a change and aviation is now viewed in a different light - as an essential link not only for international travel and trade but also for providing connectivity to different parts of the country. Aviation is, by its very nature, a critical part of the infrastructure of the country and has important ramifications for the development of tourism and trade, the opening up of inaccessible areas of the country and for providing stimulus to business activity and economic growth.
Until less than a decade ago, all aspects of aviation were firmly controlled by the Government. In the early fifties, all airlines operating in the country were merged into either Indian Airlines or Air India and, by virtue of the Air Corporations Act, 1953; this monopoly was perpetuated for the next forty years. The Directorate General of Civil Aviation controlled every aspect of flying including granting flying licenses, pilots, certifying aircrafts for flight and issui
Aviation industry overview
The aviation industry in India is the 9th largest market globally and is poised to become the 3rd largest by 2020. It carried over 162 million domestic and international passengers in 2017 through over 85 international airlines and 5 Indian carriers connecting over 40 countries. The industry faces challenges like rising fuel costs and congestion but prospects are strong with the emergence of low-cost carriers, modernization of airports, and encouraging private investment in infrastructure.
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The document summarizes the growth of the Indian commercial aviation industry since liberalization in the 1990s. It describes the emergence of low-cost carriers like Air Deccan in 2003 that drove fares lower and increased passenger traffic. This led other carriers to also lower fares. As costs rose and competition increased, airlines began consolidating through acquisitions, like Jet Airways acquiring Sahara and Kingfisher acquiring Air Deccan, to improve efficiency. The competitive landscape and strategies used by different carriers in India are also examined.
Challenges for aviation industry in india
The presentation discusses the challenges facing the Indian aviation industry. It notes that while the industry grew rapidly over the last decade, it is now facing several issues. These include a large debt burden carried by the major airlines, excess capacity as new aircraft are delivered during an economic slowdown, high fuel costs, lack of adequate infrastructure and airport facilities, environmental and land acquisition clearances slowing expansion, and a shortage of trained technical personnel. Addressing these challenges will be key for the industry to sustain its growth in the future.
Aviation sectorial a division
The document provides an overview of the aviation industry, including key sectors like civil aviation (air transport and general aviation) and military aviation. It discusses major manufacturers, services provided, awards in the sector, key service concepts like service packages and service recovery. It also covers the global scenario of air travel growth, top airlines worldwide, an introduction to the Indian aviation industry and key players. Issues facing the sector like shortage of trained employees and high input costs are examined. Market growth drivers like rising GDP and the expanding middle class are outlined. The document concludes with suggestions to further grow the industry like improving infrastructure, airport development and air connectivity.
Service Blueprint Go Air 111009082743-phpapp02
Go Air is a low-cost airline based in Mumbai that operates domestic flights to 11 Indian cities. It was established in 2004 and launched operations in 2005 with a fleet of 20 Airbus A320 aircraft. Go Air aims to provide affordable air travel and does not offer free meals, but allows passengers to purchase food and drinks on board. It has expanded its fleet and route network over the years and primarily uses Chhatrapati Shivaji International Airport as its main base of operations.
India-ASEAN Aviation Market Potential
This document summarizes a presentation on the aviation boom in India and ASEAN. It notes that Asia has become a major aviation market, with over 1 billion passengers traveling within the region annually. India's domestic passenger traffic has grown at an average annual rate of 13.7% over the past 10 years, faster than any other major market. India is expected to become the third largest aviation market by 2025. Open skies agreements between India and ASEAN countries are fueling more international air travel and tourism between the regions.
Air deccan strategy
- Air Deccan pioneered the low-cost carrier model in India and became the largest domestic airline in less than 4 years through innovative strategies.
- It offered significantly lower fares than full-service airlines while maintaining a low-cost business model through dynamic pricing, outsourcing functions, and utilizing technology.
- However, rapid growth of the industry brought new challenges as more carriers entered the market and full-service airlines consolidated, requiring Air Deccan to continually adapt its strategies over time.
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The Indian aviation industry has grown significantly over the past decade, with passenger traffic growing around 15% annually. However, growth slowed to 0.7% in 2009. The vision is for 280 million passengers by 2020. Private carriers were introduced in the 1990s and led to intense price competition through discounted fares like Apex. Low-cost carriers like Air Deccan further drove down prices. Major carriers have consolidated through mergers and acquisitions, like Jet Airways acquiring Air Sahara and Kingfisher Airlines acquiring a stake in Air Deccan. The industry now faces opportunities for further growth but also threats from economic slowdowns and infrastructure limitations.
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India is the 9th largest aviation market in the world. According to the Ministry of Civil Aviation, around 29.8 million passengers traveled to/from India during 2008, an increase of 30 per cent on previous year. It is predicted that international passengers will grow upto 50 million by 2015. Further, due to enhanced opportunities and international connectivity, 69 foreign airlines from 49 countries are flying into India.
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The document provides information on the global and Indian aviation industry. It discusses key statistics like the number of airlines, aircrafts, passengers carried globally and in India in recent years. It highlights factors driving growth in emerging markets like Asia and the Middle East. For the Indian aviation industry, it mentions growth in passenger traffic and plans for airport expansion and investments. It also discusses opportunities and challenges for the industry through tools like PESTEL, Porter's 5 forces, SWOT and TOWS analyses and provides an overview of IndiGo, the largest airline in India.
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- The airlines in India collectively hiked airfares by 25% over a week during the festive season without any prior notification, which the Air Passengers Association of India argued shows evidence of cartelization.
- The domestic airline industry in India is an oligopoly dominated by a small number of major carriers. Hiking fares in tandem makes it appear the airlines are coordinating pricing as a cartel.
- The Association has filed a petition with the Competition Commission of India to investigate the airlines for alleged cartel behavior in collective fare increases.
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- It offered significantly lower fares than full-service airlines while maintaining a low-cost business model through dynamic pricing, outsourcing functions, and utilizing technology.
- However, rapid growth of the industry brought new challenges as more carriers entered the market and full-service airlines consolidated, requiring Air Deccan to continually adapt its strategies over time.
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Regional Air Connectivity in India is growing rapidly. The government aims to connect smaller cities and regions through a 4-tier model using aircraft of different sizes. Over the past decade, domestic passenger traffic has grown by 14.2% annually and India now has the 9th largest aviation market. However, connectivity and air travel penetration remain low compared to other countries. Expanding regional connectivity through initiatives like non-scheduled permits and smaller aircraft can help develop the civil aviation sector and connect more of India's population. Challenges include high fuel costs and the need for government support of regional routes.
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The Indian airline market has an oligopolistic structure. There are currently 22 airlines operating in India, with the top domestic carriers being Air India, Jet Airways, IndiGo, Spice Jet, and GoAir. The Indian market is characterized by high barriers to entry due to the huge capital investments and limited government permits required to start an airline. It is estimated that India will become the third largest aviation market in the world by 2026 due to its growth potential in the industry.
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India's aviation industry can be divided into military and civil aviation, with Bangalore as the manufacturing hub constituting 65% of production. India is the ninth largest civil aviation market currently and is expected to become the third largest by 2020 and largest by 2030. Domestic air passenger traffic in India grew 23.14% from January to August 2016 and is projected to exceed 100 million passengers by 2017. Major players in the industry include national carriers Air India and Pawan Hans, and listed companies SpiceJet, IndiGo, and Jet Airways along with private operators GoAir, Air Asia, and Vistara. The government has taken steps to promote growth through initiatives like regional air connectivity scheme UDAN and allowing 100
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- The airlines in India collectively hiked airfares by 25% over a week during the festive season without any prior notification, which the Air Passengers Association of India argued shows evidence of cartelization.
- The domestic airline industry in India is an oligopoly dominated by a small number of major carriers. Hiking fares in tandem makes it appear the airlines are coordinating pricing as a cartel.
- The Association has filed a petition with the Competition Commission of India to investigate the airlines for alleged cartel behavior in collective fare increases.
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The document provides an analysis of the Indian aviation industry. It discusses key trends including consolidation in the industry, growing passenger numbers, the focus on low prices, and increasing capacity. It also outlines recent government initiatives to modernize airports and allow greater private investment and foreign ownership. The industry is growing rapidly, with passenger traffic increasing by 19.2% in early 2010 compared to the previous year. However, airlines face challenges from high fuel costs and fluctuations in the value of the rupee. Major players in the industry are discussed including Air India, Indigo, and Jet Airways.
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This document provides details about SpiceJet, an Indian airline, including its founding date, slogan, and ownership. It lists the crew members on a SpiceJet flight from August 23, 2010. It also presents a SWOT analysis of the airline industry, identifying strengths like trained staff, weaknesses like unused seats, opportunities like technology advances, and threats like rising fuel prices. Finally, it discusses a three-step process for promotions opportunity analysis: setting objectives, preparing strategies, and matching tactics to strategies.
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Indian Aviation Industry analysis
The aviation industry in India is highly growing and is expected to become the third largest aviation market by 2020. Key reasons for its growth include the expansion of low-cost carriers, modernization of airports, increases in foreign direct investment and advances in information technology. Currently, Indigo has the largest market share at around 40% and the top 4 airlines (Indigo, Jet Airways, Air India, and SpiceJet) combine for over 80% of the market. The government is taking steps like opening more regional routes and smaller airports to further develop the industry.
Strategic Mistakes That Led To The Failure Of Kingfisher Airlines
Kingfisher Airlines made several strategic mistakes that led to its failure, including unrealistic market analysis, unrelated diversification into the airline industry, an ill-advised merger with Air Deccan, and maintaining a diversified fleet of aircraft with varying capacities. These strategic decisions demonstrated a lack of understanding of the market and industry. Additionally, high operating costs, delays in salary payments, and growing debt from unpaid fuel, airport, and service taxes exacerbated the company's financial troubles and ultimately caused its operations to be shut down in 2012.
Air deccan
This document summarizes the evolution of low-cost carriers in India, focusing on Air Deccan. It discusses that Air Deccan was founded in 2003 and grew rapidly but faced financial issues from overexpansion. Vijay Mallya acquired a controlling stake in 2007 to address these issues. The Indian aviation market was growing rapidly at over 25% annually but faced challenges like lack of airport infrastructure and air traffic controllers. Air Deccan targeted leisure travelers and competed with other low-cost carriers like SpiceJet and IndiGo. By 2007, Air Deccan was facing high employee turnover and technical issues, leading Mallya to consider options like merging it with his airline Kingfisher.
Challenges in aviation industry
The document discusses the aviation industry in India. It provides background on aviation and defines the aviation industry. It then discusses the growth of the aviation industry in India, highlighting that India is among the top 10 civil aviation markets and is projected to be among the top 5 by 2020. It also outlines India's major airlines and the history of aviation development in the country. However, it notes that the industry faces several challenges, including infrastructure constraints at airports, high jet fuel prices, airport congestion, lack of technical manpower, and issues with land acquisition for new projects.
Industry Analysis - Airlines
This document provides an industry analysis of the Indian airline industry. It includes a timeline of major milestones in the industry, lists the major operational airlines in India, and discusses factors like demand, costs, regulations, and key players. It analyzes segments in the industry like low cost carriers versus full service carriers, and domestic versus international travel. Major airlines like Jet Airways, SpiceJet, and Kingfisher are discussed. The future outlook is also addressed.
Jet Airways - Strategy
The document discusses the Indian aviation industry, including its rapid growth, key players, factors influencing costs, and regulatory environment. It notes that the industry has grown significantly since liberalization began in the 1990s, with passenger traffic growing at 16% annually, and various events like the entry of low-cost carriers in 2003 further fueling expansion. However, challenges remain like high taxes on jet fuel, inadequate infrastructure, and financial difficulties faced by many airlines.
Open sky & emerging airlines
This document provides an overview of the aviation sector in India. It discusses the impact of liberalization policies in the 1990s in opening the sector to private players. Key developments include the growth of low-cost carriers, new joint ventures between foreign and domestic airlines like Jet-Etihad and Tata-AirAsia, and plans to improve regional connectivity through new regional airports and regional airlines. The aviation industry is projected to continue strong growth in the coming years driven by rising passenger and cargo traffic.
AVIATION SECTOR IN INDIA
The aviation industry in India has grown rapidly in recent years. It has transitioned from being dominated by two state-owned airlines to having over 12 domestic airlines and 60 international carriers operating in the country. Private airlines now hold around 75% of the domestic market share. Traffic growth in the Indian aviation sector has been around four times the international average. The industry is projected to continue growing quickly due to factors like rising incomes, tourism, and business travel. The government aims to expand airport infrastructure to support handling over 280 million passengers annually by 2020.
Low frill airlines
A low-cost carrier or low-cost airline (occasionally referred to as no-frills, budget or discount carrier) is an airline without most of the traditional services provided in the fare, resulting in lower fares and fewer comforts.
A low-cost carrier or low-cost airline is an airline that generally has lower fares and fewer comforts.
To make up for revenue lost in decreased ticket prices, the airline may charge for extras like food, priority boarding, seat allocating, and baggage etc.
The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors.
Indian Aviation Industry
This slide gives you the information about the top 3 players in aviation and also how Customer Relationship Management works in this industry...
Frankfinn Aviation Assignment 2015
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Indian Aviation Industry
The Indian aviation industry has grown significantly since its establishment in the early 1950s. Major events include the formation of Air India and Indian Airlines after independence, the introduction of jet aircraft in the 1960s, and the opening of the industry to private players in the 1990s. Currently, India has a rapidly growing aviation market and is one of the largest globally, though challenges around infrastructure and costs remain. Key players include Air India, Indigo, SpiceJet and Jet Airways. The future looks promising for further expansion, though continued policy support will be needed.
Airport privatisation in india
The document discusses airport privatization in India. It notes that India has the fastest growing aviation market and outlines the history and current state of airports and aviation authorities in India. The document proposes using public-private partnerships (PPPs) to develop more than 500 operational airports in India over the next 12 years and invest $8.5 billion, as government funding is constrained. PPPs could provide modern facilities but must balance private profits with transparency and affordable costs.
Essential of aviation
The document provides details about the business plan for Diamond Airways, a proposed low-cost airline in Pakistan. It introduces the founding team and outlines plans for fleet, routes, marketing, and financial projections. Key points include operating a fleet of 6 Boeing 737-800 aircraft on domestic and international short-haul routes between major Pakistani cities and destinations in the Middle East. The airline aims to compete with national carrier PIA by offering lower fares and more efficient operations.
DOMESTIC AIRLINES IN INDIA-LEVERAGING PRICE
The document discusses the history and development of the airline industry in India. It describes how Indian Airlines was initially the sole player, but competition increased in the 1990s with the entry of Jet Airways and Air Sahara. All three airlines engaged in price wars in 2002 by cutting fares and introducing various promotional schemes to attract customers. This led to unprecedented growth in air travel accessibility for the Indian population.
Kingfisher Airlines
1) The document discusses the Indian aviation industry and analyzes Kingfisher Airlines using various frameworks like SLEPT analysis, Porter's 5 forces model, and SWOT analysis.
2) It notes that Kingfisher Airlines has faced financial difficulties due to factors like high operational costs, interest costs from aircraft purchases, and declining passenger traffic in the slowing economy.
3) Suggestions to improve Kingfisher's financial position include reducing costs through measures like removing uneconomical routes, focusing on smaller fuel-efficient aircraft, and avoiding aggressive fleet expansion.
Analysis of Financial Statements of Kingfisher
This document provides a timeline of key events in the history of Kingfisher Airlines from its founding in 2003 until it ceased operations in 2012. It outlines the airline's expansion efforts, financial struggles as it reported continuous losses, debt issues, grounding of flights due to non-payment of dues to airports and other authorities, and eventual shutdown as its license was revoked in 2013 after suspending all operations the previous year. The timeline highlights the airline's challenges in maintaining profitability and payments to employees and creditors in a highly competitive industry environment.
Reliance airlines
Reliance Airlines is a new airline joint venture between Reliance Industries and Deutsche Lufthansa that began operations in October 2019 with flights between Delhi and Mumbai. The airline aims to become the top preference of customers and shareholders by offering a seamless flying experience and expanding its fleet and international routes. It seeks to disrupt the aviation market in India through cost-cutting strategies like single aircraft fleets and no free food while pursuing consistent quality.
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The Indian aviation industry has seen significant growth over the past decades and is one of the fastest growing in the world. It began in 1912 with the first domestic air route between Karachi and Delhi. Major changes occurred in the 1990s with deregulation and the introduction of private airlines. Currently, private carriers account for around 75% of the domestic market. Key trends include industry consolidation through mergers and the rise of low-cost carriers. The future outlook is positive with domestic passenger traffic expected to reach 400 million by 2020. Infrastructure constraints remain a challenge for further growth.
Indian aviation industry success and failure
The document provides an overview of the Indian aviation industry, including its history, current state, key figures and factors that have contributed to its success and failures. Some of the major points discussed include:
- The industry has experienced rapid growth with an 18% compound annual growth rate, however some carriers have faced challenges.
- IndiGo has been very successful due to its low-cost model and focus on efficiency, growing its market share to 39.7%.
- Carriers like Jet Airways and Kingfisher Airlines failed due to issues like reckless competition, high costs, debt loads, and mismanagement.
- While the future remains positive if challenges around taxes, costs and regional connectivity are addressed,
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Strategic Mistakes That Led To The Failure Of Kingfisher Airlines
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Simplify deccan
- 2. Evolution of Low Cost Carrier in India • Air Deccan was the largest private low cost sector in India. • June 2007 vijay mallya bought 26% controlling stakes for Rs 5.5 billion. • Launch in 2003 & serving two destination to 65 destination in 2007. • Airline image came down due to unreliable services • Facing competition from new low cost airline • Vision was “Empowering every Indian to fly”. • Operating loss of more than rs 6.5 million in 2005-2007. Indian Aviation Market in 2007: • Confederation of Indian Industry (CII) report in 2000 between 45-70 million passengers were expected to fly domestically by 2010. • Centre for Asia Pacific Aviation (CAPA) estimates 60 million passengers by 2010. • In 2006,delhi-mumbai air route became the 7th busiest air traffic route in the world. • Aviation analyst in India estimated a total loss of more than 20 billion for the airline industy in 2006-2007.
- 3. Demand Pattern • Demand mainly driven by leisure/visiting friends & relatives(VFR). • Between april-dec,2006 was the low cost carriers carried more than 31% of the total passenger traffic. • According to CAPA(centre for asia pacific aviation),low cost carriers were expected to have a market share as high as 70% by 2010. Airport Infrastructure • 2005-2006,airport authority of India(AAI) managed 94 civil airports,65 used actively.40 airports had runways of more than 5000 feet required for landing by large aircrafts. • In 2003 85% of total passenger traffic handled by 10 airports which generates 80% of total revenue for AAI Aviation manpower • increase in air traffic leads to increase in demand for pilots and cabin crews • In 2006 AAI had talks with private sectors to setup a joint venture aviaton centre for training pilots.
- 4. Some threats • Lack of maintenance and repair facilities • High fuel expenses
- 5. Opportunities • Demand in smaller cities • Amble opportunities as and when compared with America • low cost air travel which can be taken as a substitute for train travelling, where prime target market segment was upper class train passengers