1. Presentation On
Contemporary
Issues On
INDIAN AVIATION INDUSTRY
Submitted to: Submitted by:
Mrs. Alka swami Suman Joshi

2. Overview
 The aviation industry in India is one of those sectors that saw a
constant pace of growth among the other industries in the world over
the past many years.
 The open sky policy of the government has helped a lot of overseas
players entering the aviation market in India. From then, it has only
been growing in terms of players and the number of aircrafts. At
present, private airlines account for around 75% portion of the
domestic aviation market.

3. History
 Indian Aviation Industry is one of the fastest growing airline
industries in the world.
 The history of Indian Aviation Industry started in December
1912 with its first domestic air route between Karachi and
Delhi.

4.  It was opened by the Indian Air Services in collaboration
with the UK based Imperial Airways as an extension of
London-Karachi flight of the Imperial Airways. Tata Sons
Ltd., the first Indian airline, started a regular airmail
service between Karachi and Madras three years later
without any backing from the Indian government.

5. INTRODUCTION
 In 1990s, aviation industry in India saw some important changes.
The Air Corporations Act was abolished to end the monopoly of
the public sector and private airlines were reintroduced.
 With the liberalization of the Indian aviation sector, the
industry has witnessed a transformation with the entry of
the privately owned full service airlines and low cost
carriers. In 2006, the private carriers accounted for around
75% share of the domestic aviation market.

6. Size of the Industry:
There are about 450 airports and 1091 registered
aircrafts in India Today.
 Geographical distribution:
Mumbai, Kolkata, Hyderabad, Delhi, Pune, Bangalore,
Chennai.
Output per annum:
Growth rate of 18% per annum

7. Increasing liberalization and deregulation has led to an increase
in the number of private players. There are three types of
aviation industry comprise players:
Full cost carriers
Low cost carriers (LCC)
Other start-up airlines

8. Market share
Airlines in India % share in market
Kingfisher Airlines 19
Indigo 18.7
Jet Airways 18
Air India 15.8
Spicejet 13.8
JetLite 8.1
Go Air 6.6

9. Medium Term Growth Forecast :
India GDP : 8.6 % per annum
Domestic air travel : 12 % annually
WTTC Travel & Tourism : 8.8 %
Over next 10 years

10. Players
 Air Deccan
 Air-India Express
 Air India
 Air Sahara/ jet lite
 Go Air
 Indian Airlines
 IndiGo
 Jet Airways
 SpiceJet
 Paramount Airways
 Kingfisher

11. Passenger airlines – The players
Indian Airlines
Indian Airlines was founded in 1953. Today, together with its fully owned
subsidiary Alliance Air, it is one of the largest regional airline systems in Asia
with a fleet of 62 aircraft(4 wide bodied Airbus A300s, 41 fly-by-wire Airbus
A320s, 11 Boeing 737s, 2 Dornier D-228 aircraft and 4 ATR-42).

12. Air Sahara [jetlite]
Now air sahara known as jetlite
Air Sahara has established itself as one of the leading players in the Indian
Aviation industry. Air Sahara is part of the multi-crore Sahara India Pariwar.
Sahara India Pariwar has interests in Public Deposit Mobilization, Media &
Entertainment, Housing & Infrastructure, Tourism, Consumer Products and
Information Technology. Starting on a modest scale and a capital of only
Rs.2000 in 1978, Sahara India Pariwar has traversed a long way to become an
icon in Indian entrepreneurship.

13. Jet Airways
In May 1974, Naresh Goyal founded Jetair (Private) Limited
with the objective of providing Sales and Marketing
representation to foreign airlines in India.

14.  Air Deccan
Come SIMPLIFLY With Us…
Market Share : 21.2 %
Air Deccan is a unit of Deccan Aviation Private Limited,
India's largest private heli-charter company. Formed in 1995,
Deccan Aviation Private Limited has carved a niche for itself
in the Indian aviation scene with its reputation for providing
speedy and reliable heli-services for company charters,
tourism, medical evacuation, off-shore logistics and a host of
other services

15. Kingfisher
Kingfisher A ir lines is an airline
based in Bangalore, India. It is a
major Indian luxury airline
operating an extensive network
to 34 destinations, with plans for
regional and long-haul
international services. Its main
bases are Bangalore
International Airport, Bangalore
Chhatrapati Shivaji International
Airport, Mumbai and Indira
Gandhi International Airport,

16. Best international
airports of india

17. Hyderabad's Rajiv Gandhi International Airport has been
ranked first ranking of the world best airport in the world.
The Hyderabad International Airport - being managed by a
public-private joint venture of the GMR Group.

18. Delhi's Indira Gandhi International Airport the fourth in an
international ranking of the best airports in the world.
Delhi's Indira Gandhi International (IGI) Airport has been
handling the maximum number of flight movements per day.
In September 2008, the airport inaugurated a 4.43
kilometre-long runway. Indira Gandhi International Airport
(IGIA) was conferred the fourth best airport award in the
world (in the 15-25 million category) and 'Best Improved
Airport' in the Asia Pacific Region by Airport Council
International.

19. Current trends

20. Current Trends :
Consolidations All Around
Kingfisher-Air Deccan Deal
o Kingfisher buys out 26 % stake for Rs.550 crore.
o They have combined Market share of 33%
o They are second biggest player after Jet Sahara deal
Jet airways and Air Sahara merger
o Air Sahara name changed to JetLite

21. Some Issues In Industry are…
Security Issue :-
This is biggest issue in modern aviation industry.
e.g.-terrorism and crime during air travel. Plan
hijack etc are very important issue.
 Small town girls can get jobs easily as a air hostess.
 Now days one change is that they reduce facilities. Before some
time they serve food water and so many facility during the travel
now days they don’t provide such facility to customer

22. Jobs in aviation industry
The boom in aviation sector is likely to generated nearly 2.5
lakh jobs by the year 2014.
The study says the civil aviation sector is also set to become a
rs55000 crore industry by the same time.

23. Issue
1 held in fake pilot licence scam
 New Delhi: One more pilot was arrested here for getting a licence
on the basis of forged documents, Delhi Police said on Friday. Saif
Misbah was arrested from Mayapuri area in south Delhi on
Thursday after Directorate General of Civil Aviation (DGCA)
forwarded three new names to police in the scam.
During the interrogation, Misbah admitted that he used forged
marksheets to obtain a commercial pilot licence.
 Delhi Police have so far arrested 12 people in the fake pilot
licence scam. Two pilots have been arrested by Rajasthan Police.
16-4-11

24.  On the basis of strong market fundamentals, it is anticipated that the civil
aviation market will register more than 16 per cent Compound Annual Growth
Rate (CAGR) during 2010-2013.
 India is expected to be the fastest growing civil aviation market in the world by
2020 with about 420 million passengers being handled by the Indian airport
system, according to the Economic Survey 2010-11.
 The number of passengers carried by the domestic airlines during January–
February 2011 was 9.51 million as against 7.95 million in the corresponding
period in 2010, thereby registering a growth of 19.6 per cent, according to the
latest data released by the Directorate General of Civil Aviation (DGCA).

25. Future Trends
 The projection for Indian Aviation for 2020 is estimated at:
 400 million passengers
 Including 180 million domestic passengers
 1,000 aircraft in the civil aviation sector
 More emphasis will be on Arabian and South-East Asian circuits.
 Likely to follow the footholds of International Low Price Carriers
e.g. Air Arabia, Southwest Airlines etc.

26. Business Model of Low Cost Carriers
 A single Passenger class
 A single type of airplane reducing and service cost
 No frills such as free food/drinks, lounges etc.
 Emphasis on direct sale of ticket through Internet
avoiding fee and commission paid to travel agents.
 Employees working in multiple roles
 Unbundling of ancillary charges to make the Headline
fare lower

27. Low Cost Carriers in India
 Air Deccan
 SpiceJet
 IndiGo Airlines
 Go Air
 Jetlite (Formerly known as Air Sahara)

28. Airline Industry in India :
Service Vs Price Graph
S
E
R
V
I
C
E
PRICE

29. Present Scenario
Scheduled Domestic Operator 14
No. of Aircraft Possessed 334
No. of Non-scheduled Operator 65
No. of Aircraft Possessed 201
No. of Import Permit for Aircraft 72
Granted in 2007
No. of Aircraft Set to be Import in Next 496
Five Year

30. Future Trends : Proposed Addition

31. Challenges
Constraints :
 Infrastructure constraints
 Shortage of airport facilities
 Parking bays
 Air traffic control facilities
 Takeoff and landing slots.
 Less than 100 airports having more than one daily service.