“FUTURE OF DOMESTIC AVIATION SECTOR”
India is one of the fastest growing aviation markets in the
world. The current growth rate in domestic and international
travel exceeds 25% the highest in the world. The Indian
aviation industry has witnessed a remarkable growth in
recent years with key drivers being positive economic
factors, growth in consumer spending and availability of low
fares. It is estimated that by 2010, Indian airports will be
handling between 90 and 100 million passengers per year,
as against the current 34 million passengers. It is also
expected that nearly the low cost carrier segment [LCC] will
drive 80% of this growth. The increase in percentage growth
rate of domestic sector is far more than that of the
international sector. The other factors, which will boost up
the domestic sector in next few years, are as follows:
LCC(low cost carrier): Due to the emergence of the low cost
airlines, every common person can afford to travel which
was a rare scenario in earlier days. Attraction to foreign
shores: jet and Sahara have gone international by starting
operations. After five years of domestic operations, many
domestic airlines too will be entitled to fly overseas.
Rising income levels: though India’s GDP is very low as
compared to the developed country standards, but as India’s
economy is growing even now, the common person can
afford to fly by air .Glamour of the airlines. No other industry
other than film making industry is as glamorous as the
airlines. Airline tycoons have been idolized. Airlines have a
aura of glamour around them, and high net worth individuals
can always have an idea of owing an airline, due to all the
above factors have resulted in a “me too” rush to launch
domestic airlines in India. Apart from this, there are many
reasons for shutting down of this industry such as hike in
fuel rise, low maintenance etc but due to the above-
mentioned factors it will never go down.
ADVANTAGE OF THE CURRENT SCENARIO OF
• The biggest advantage is that its time saving.
• Passenger get more comfort than any others do mode
of transport. Due to the emergency of the LCC (low
cost carriers) even common man can now travel by air
which was a rare scenario in the earlier days.
• Development in economy.
• Improves standard of living.
• More job opportunity.
• Improvement in business sector.
• Improves technology.
• Opportunity to visit different countries.
• The aviation industry is one of the fastest growing
industry in the world
• As earlier it used to take weeks to cross the ocean but
now its just a matter of hours..
• The growth rate of domestic and international sector
has been more than 25% which is highest in he world.
• As the jobs available in this industry are of high risk the
salary paid to the crew is very high as compared to
DISADVANTAGE OF CURRENT SCENARIO
OF AVIATION INDUSTRY
• You can have long duty hours, odd hours duty,
continuous traveling for days together, has to keep, you
are cool in many untoward situations also.
• It utilizes a lot of resources to do its thing fuel, rubber,
metals, etc. hence it is getting too expensive.
• It brings air pollution and increase in air traffic.
• Hijack, bomb threat and emergency landing.
• As there has been a hike in fuel charges, the airlines
have increased their fares
• All big airlines have to merge with other airlines to make
profit due to the soaring prices.
• The air tickets will not be affordable to the common man
and it would be only for high class society people.
• No new aircrafts will be purchased . As a result , US &
European manufacturers will also suffer
In My Opinion
Now, I just got to know about the vast aviation industry. That
they are more opportunities in this industry than the other
industry. To be a part of this industry it is very important to
about this industry and this research has helped me for the
same. As I was doing the research on the above mentioned
topics, I came to various features of this knew this industry is
so large, but as of now, I almost know everything which is
hardly known to the common people as well as the
advantages and disadvantages of this industry. As before, I
never about this industry so it helped me a lot by clearing my
doubts about this industry. According to me, in coming few
years I will be a part of this industry as a cabin crew in a very
My View about Aviation Industry?
Realized the benefits of tourism to their national economies
so they are paying attention to the infrastructure
development and the development of resorts. They are
trying to provide convenient air travel services. Improved air
travel services help in increasing the tourism and as a
consequence, it supports their economy. It helps in the
growth of the airline industry.
More companies are doing their business at an international
level. Nowadays companies are not only targeting the local
citizens but are also targeting the customers’ world wide.
Many companies of the developed countries are now moving
towards the developing countries in search of new markets
for their product. Companies are becoming global in the
terms of investment India is one of the fastest growing
aviation markets in the world. With the liberalization of the
Indian aviation sector, the industry had witnessed a
transformation with the entry of the privately owned full
service airlines and low cost carriers. As of May 2006,
private carriers accounted for around 75% share of the
domestic aviation market. The sector has also seen a
significant increase in number of domestic air travel
passengers. Some of the factors that have resulted in higher
demand for air transport in India include the growing middle
class and its purchasing power, low airfares offered by low
cost carriers, the growth of the tourism industry in India,
increasing outbound travel from India, and the overall
economic growth of India.
Now the airline industry is a large and growing industry. Air
travel plays a very important role in economic growth and
world trade. It is expanding for either of the following
reasons that is for business purpose or leisure travel. It
helps in increasing the international investment as well as
tourism. The airlines have made it more comfortable to travel
from one place to another, and now are offering reasonable
rates. Affordable rates encourage people to travel further to
new places. As a result, people have started traveling to new
exotic destinations. Billions of passengers are traveling
every year by way of the airline industry. The airline industry
is not only growing in developed countries but it is growing in
developing countries also. As the economy of developing
countries is growing, the citizens of the developing countries
are becoming the new tourists. In the future, the citizens of
the developing countries would become the new tourists at
the international level. Government of developing countries
has also realized that tourism is one of the important factors
which help in the growth of economy. Developing countries,
supply, production chain etc. As the companies are
becoming global, business travel has also grown
INDIAN AVIATION SECTOR IN TROUBLE;
DOMESTIC TRAFFIC AT FIVE-YEAR LOW
The Indian aviation sector looks set to shrink amid financial
turmoil, with the nation’s air carriers in schemes to try to ride
out the problems and domestic air traffic at a five year low.
Air traffic has fallen by 19% in September, the fourth month
in a row of negative growth. The news comes as a joint
result of the current financial crisis and high jet fuel prices,
with Indian airlines in debt to the tune of Rs1,800 crore after
surpassing their credit limits with oil companies, who are
themselves making losses due to government controls on
the price of jet fuel.
Kingfisher Red - Originally, known as Air Deccan, India’s first
budget carrier, untill Kingfisher Airlines bought the company
out - suffered the biggest drop in passenger numbers at 20%
of their load factor. Flag carrier Air India is running at 53% of
capacity after a 10% fall, and the average for airlines is now
55% as opposed to 65% this time last year.
Kingfisher Airlines has decided to enter an alliance with Jet
Airlines that will see them collectively control half the Indian
aviation market. Both airlines are in debt over fuel payments
with Jet owing Rs850 crore while Kingfisher refused to
disclose the amount they needed to pay. The money was
owed mainly to the Indian Oil Corporation, with the rest
owed to the Hindustan Petroleum Corporation and the
Bharat Petroleum Corporation. 45% of costs for Indian
carriers is fuel, which is 70% more expensive than abroad
due to multiple taxes.
Kingfishers have cancelled an order for three A340 aircraft
from European Airbus. Airbus executive John Leahy said
that Airbus had discussed the issue with Kingfisher before
the choice was made and that this was the only cancellation
from India. He also maintains that India will be an important
area for Airbus, with the firm predicting Indian aviation
growth will be at 9.7% compared to a global rate of 5.4%.
Airbus predict that 1,000 new aircraft will increase the Indian
fleet five-fold by 2026. Airbus have also welcomed the
partnership between Jet and Kingfisher, saying it will help
consolidate the carriers.
Airlines are cutting capacity to reduce costs, with around
20% gone already. Average flight movements are down to
8,000 a week compared to 10,500 in the period from April to
June. The aviation industry in India is expected to post a
collective loss of US$2 billion.
One executive at Boeing, Dinesh Keskar , predicted the
downfall to be brief. “The current downturn in the sector is
temporary and may not prolong for more than 6 to 9
months,” he said. Airlines, however, feel that the risk is
Jet and Kingfisher are requesting a government bailout
package worth Rs 40.7 billion.
The aviation industry is expected to grow at a compounded
annual growth rate of 25% till 2010. Also, by 2010 Indian
airports will be handling between 90 and 100 million
passengers per year, as against the current 34 million
passengers. It was expected that nearly the low cost carrier
segment (LCC) will drive 80% of this growth. By 2008, the
LCCs would capture 65% of the direct on-line air ticket
market from 61% in 2005 . Indian carriers have 480 aircraft
on order for delivery by 2012, which compares with a fleet
size of 310 aircraft operating in the country today
Where do I fit into the picture?
• Yes, I fit into the picture as a cabin crew because I
have better control over my patience, I have positive
attitude and I can handle any kind of situation.
What is my feature in the aviation sector?
• My future is to be in this industry, this industry is the
one of the fastest growing industry in the world and I
would like to be in this industry as far as I am fit and
Few benefits I gained by doing this
• Before doing, this project I did not had any knowledge
of aviation industry after doing lot of research I got a
sufficient amount of knowledge about this industry.