aviation industry

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.