1. Welcome
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2. INDIAN AVIATION INDUSTRY
Presentation on
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3. 3

4. Special Thanks to Our Co-ordinator
faculty :
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Prof. N.C. Samal

5. Akriti Tiwari- 1406260006
Ranjita Tanty -1406260076
Presented By :
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6. AGENDA :
Introduction PPP in Airport Infrastructure
Characterstics Green field airport
History Players :
Current Scenerio *Indigo
Market size * JetBlues Airport
Growth rate * SpiceJet
Domestic Airlines *GoAir
Challenges Summation
6
SWOT Analysis
Porter’s 5 model
Industry Analysis
Upgradation

7. INTRODUCTION :
 The Aviation Industry encapsulates the development
,operation and management of aircrafts. While the
common perception about the sector is that it’s only
about pilots and airhostess.
 The Airline Industry provides service to virtually every
corner of the world and has been the integral part of the
creation of the global economy.
 The Airline Industry consist of over 1000 airlines
registered to IATA ( International Air Transport
Association ) and Director General and CEO is
GIOVANNI BISIGNANI , in December 2009.
7

8. CHARACTERSTICS OF AVIATION
INDUSTRY :
 Industry is dominated by a small number of
large firms.
 Huge Potential
 Strategy depends upon the individuals rival
firms behaviour.
 Firms are the price setters.
8

9. History :
 The history of civil aviation in India began in
December 1912.This was with the opening of the
first domestic air route between Karachi and
Delhi by the Indian State Air Service in
collaboration with the imperial Airways , UK ,
though it was a mere extension of London –
Karachi flight of the latter airline.
 Three years later, the first Indian airline, Tata
Sons Ltd ., started a regular airline service
between Karachi and Madras without any
patronage from the government.
9

10. Cont’d…
 At the time of Independence , the number of air
transport companies , which were operating
within and beyond the frontier of the company ,
carrying both air cargo and passengers ,was nine
. It was reduced to eight, with Orient Airways
shifting to Pakistan.
10

11. 11

12.  Market Size :
 The Indian Aviation Industry is one of the
fastest growing industry in the world. The Govt.
has open sky policy has led to many overseas
players entering the market and the industry has
been growing both in terms of players and in
number of aircrafts .
 Today, Private airlines account for around 75 %
share of the domestic aviation market.
12

13. Cont’d…
 India is the Largest Aviation Industry in the
world. According to the Ministry of Civil
Aviation ,around 29.8 million passengers travel
to/from India during 2008,an increase of 30%
on previous year.
 It is predicted that International passenger will
grow around 50 million in 2015.
13

14. 14

15.  Growth Rate In India :
 Railway fares of AC tier and First class are
similar to Airline Fares.
- over 300 million strong middle class present in
India
 FDI in Aviation
-Reduces the debt burden
-Reduces operational costs due to availabilty of
experts in the field of aviation
 Tourism in India
-increase in inbound and outbound tourist and
medical tourism
15

16. 4/17/2015
16

17.  Airline Industry in India( Service Vs Price Graph):
17
PRICE
S
E
R
V
I
C
E

18. 18

19.  Challenges faced are :
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 Congestion
 High airport charges
 Safety and Security
 Land Encroachments

20. 20

21.  Porter’s Five Force Model :
21

22.  Industry Analysis:
 India’s scheduled airlines carried 67.73 million
passengers in 2014 compared with 61.42 million
passengers in 2013, and 58.81 million in 2012,
according to the DGCA.
 The airlines are projected to record a collective
operating profit of Rs 8,100 Crore (US$ 1.29 billion)
in fiscal year 2016, according to CRISIL Ltd.
 Air traffic in India grew between 20 and 40 per
cent for six years starting 2003, when low-fare
airline Air Deccan was launched, making it
possible for more people to travel by air.
22

23. Cont’d…
 The domestic passengers carried by Air India
were 12.42 million while the private carriers
54.95 million passengers.
 The market share of Air India remained at 18.4
per cent while for the private airlines it was 81.6
per cent.
23

24.  Upgrading Airport Infrastructure:
 By 2020, Indian Airport are estimated to handle
:
o 1000 million passengers
o Including 60 million domestic passengers
o Cargo in the range of 3.4 million tones per
annum
24

25.  PPP in Airport Infrastructure:
25

26. First Indian Airport in Private Sector:
 First Indian Airport in Private Sector is under
Construction in Cochin. It is being constructed
by the company named “ Cochin International
Airport Limited. ”
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Proposed Private owned airport:
 Gwalior (MP)
 Durgapur ( W.B)
 Jhajjar ( Haryana )

27. 4/17/2015
27

28. Development of Greenfield Airport-
Proposal received from the Government
are:
 Goa
 Gangtok ( Sikkim )
 Navi Mumbai , Maharastra
 Chakan , Pune , Maharastra
 Kunnur , Kerala
 Kohima - Nagaland
 Halwara – Punjab
 Itanagar – Arunachal Pradesh
28

29.  Government Initiatives:
 Govt. has ably supported the airport sector and
has focused on improving the infrastructure by
planning to develop 100 low cost airports.
 Govt. has also increased liberalisation and
stated the open sky policy to further provide a
boost to this aviation sector.
 It has allowed 100% FDI under automatic route
for Greenfield projects and 49% FDI for foreign
carriers.
29

30. Cont’d…
 By 2020, the sector is expected to be the third
largest aviation market globally with passenger
traffic at Indian airports anticipated to increase
to 450 million from 159.3 million in 2012-13
30

31. T op Players :

32. 32

33. Players in the Industry :
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Indigo
SpiceJet
Jet
Airways
Go AIR

34.  INDIGO AIRLINES :
34

35.  Going Internationals:
First International Service
Indigo’s first international flight to Dubai is
greeted with traditional water cannon salute
35

36.  Company Profile:
 Founded – 2005
 Parent Company – InterGlobe Enterprise
 Category – Indian Domestic Sector
 USP – On Time Performance, Lowest Price
 Target Group – Lower Middle Class/Middle Class
36

37.  Mission :
 “ Indigo is a very quality conscious airline and
passengers safety is paramount to our companies
mission and values,” the Gurgaon based airline
said in a statement.
 “ Indigo is in line with the ‘ Strategic Plan of the
Ministry of Civil Aviation ( MOCA ) for 2010-
2015, which recognises the need for growth.”
37

38.  Vision :
 IndiGo to go ahead with fleet expansion.
 “ We will be adding 12 aircrafts in the current
year. We had a fleet of 48 aircrafts in
December,2011, and we will reach 60 aircrafts in
December,2012,” Aditya Ghosh, President.
 IndiGo is the only profit making airline in the
country, with a market share of 19.8 % in
December,2011 .
38

39.  Competitors :
39

40.  Management Head of IndiGo:
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Aditya Ghosh, President Rahul Bhatia, MD

41.  Tagline/Slogan :
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Go IndiGo

42.  Awards :
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The Best Low-Cost Airline in
Awards :India.
Outstanding start up award

43. Advertisement Strategy :
 Hoardings at Airport
 Magazines
 Multi- Storeyed building and offices
 Social networking medium- Facebook , Twitter,
Youtube
 Sponsoring fashion shows, talent hunts, new
years party etc
43

44.  Internal Environment Analysis:
Resources, Capabilities, and core compentencies are the key
elements of the internal environment
44

45.  CSR Policies :
 IndiGo Reach is the Corporate Social
Responsibility (CSR) program of indigo.
 The main objective of having this policy to
establish coherent and transparent partnership
for CSR project.
 Indigo undertakes various voluntary initiative to
create holistic method achieving “common good”
by developing its employees and resources .
45

46.  JetBlue Airways :
46

47.  Company Profile:
 Incorporated as an air taxi operator on 1st april
1992 . It started commercial operations on 5th may
1993
 In January 1994 a change in the law enabled Jet
airways to apply for scheduled airline status ,which
was granted on 4th January 1995.
4/17/2015
47

48.  Mission
 Our goal is to establish JetBlue as a leading low
fare , low cost passenger airline by offering
customer high quality customer service and
differentiated product .
 We intend to follow a control growth plan
design to take advantage of competitive
strengths.
48

49.  Vision
 Jet airways will be the most preferred domestic
airline in India . It will be the automatic first choice
carrier for travelling public and set standards
,which other competing airlines will seek to match .
 It will be an airline which is going to upgrade the
concept of domestic airline travel – be a world class
domestic airline.
49

50.  Competitors:
50

51.  Management Head:
 Born- Oct 16,1959(55yrs ),
Brazil
 Nationality-Brazilian and
American
 Occupation-CEO
 Known for-Commercial Airline
Entrepreneur
 Religion-Latter-Day Saint
51
David G. Neeleman

52.  Tagline/Slogan:
52
YOU
ABOVE
ALL

53.  Financial – Cost Structure:
53

54.  CSR Policy:
 what JetBlue is doing is important. It is
differentiating itself from companies willing to
make profit at the expense of their customers –
companies that are parasitic to their customers.
It is proving that CSR creates value that firms
can profit from.
 JetBlue’s strategy capitalizes on the
degeneration of air travel and turns its customer
service, fair treatment of customers and
moderately gracious cabin design into a product
on its own that adds value.
54

55.  External Environment Analysis:
 After Sept 2001, air travel decreased sharply
and major airline companies had lost the money.
This makes those airlines companies to increase
the debt by tapping their credit lines.
 It made huge profit during 2001 because they
serve in the market that most major airlines
companies were ignoring.
55

56. Cont’d…
 The oil price has increase in year 2002 and
keep increasing until today because of too
much consumption in U.S and China and war
in Iraq affect as well as the hurricane.
 We estimate that fuel costs absorbed about
19% of total airline revenues in 2004, up from
15% in 2003 and 13.6% in 2002. We also
estimate that fuel costs are likely to rise to
about 24% of total revenues in 2015.
Potential Customers- Low
56

57.  Future of the Company :
 Expected Increase 4-5%
 Expected Operating Capacity
27-29%
 15 new Aircrafts
 22% fuel cost hedged at $1.17 gal
 Expected Operating Margin 7-9%
57

58.  SPICEJET :
58

59.  Company Profile :
 Parent Company – Spice Jet
 Category – Indian Domestic Sector
 USP – lowest Price
 Segment – Cost Consious Passengers
 Target – Low middle class/ middle class
59

60.  Introduction:
 Year Events 1984- The Company was
incorporated on 9th Feb. as a private limited
company in the name and style of Genius
Leasing Finance and Investment Company
Limited.
 The business was commenced on 14th
March.
60

61. A little more :
 It was promoted by S. K. Modi of the Modi Group
of Companies.
 1993- name changed to MG Express Ltd. On 17th
Feb
 1994- In Sept, signed an MOU with Indian Oil
Corporation Ltd . to arrange the imports of
aviation turbine fuel .
 1995- initial stage entered into an “ Agreement
on Technical Support” which was strengthened
with “ Management Agreement” on June 28th,1994
61

62. Cont’d..
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 1997- Mr. D . K. Babbar and Mr. Katik Shankar
Aiyer, Directors retire by rotation and then
reappointment.
 1999- The Company has appointed Millenium
Capital Management (Pvt.)Ltd. and Khandwala
Securities Ltd. as its Management and Financial
consultants.
 2000- Modiluft Ltd has informed BSE that Mr.
Atul Sharma, Mr. Gupta and etc have been elected
as Directors of the company with effect from
December 31,2001.

63.  2005-name changed from Royal Airways Ltd.to
Spicejet Ltd.2006
 2007-Mr. Osman Qureshi as a director of Board
of Company
 2010-order 30 Boeing 737-800 aircafts to take
fleet size to 58 planes
 2011- Mr.S. Sridharan has been appointed as
Whole Time Director
 2012- Mr. Chandan Sand has been appointed as
GM and Company Secretary of the Company.
63

64.  Mission :
 Spice Jet’s mission is to become India’s
preferred low cost airline.
 Delivering the lowest air fares with the highest
consumer value, to price sensitive consumers.
64

65.  Vision:
 It’s vision is to ensure that flying is no longer
confined to CEOs and business travelers, but is
affordable for everyone.
 Spice jet could utilize the opportunity of the
drastic increase of air travelers due to the growth
of the economy and the businesses.
65

66.  Competitors:
66
Company Symbol
Indigo Ltd. IND
Global Vectra Helicorp Ltd. GLOVEC
Jagsons Airlines Ltd. JAGAIR
Jet Airways ( India) Ltd. JETAIR
Kingfisher Airlines Ltd. DECAVI

67.  Management Head :
67
Sanjeev Kapoor, CEO S. Natrajhen, MD

68.  Tagline/Slogan :
68
Flying for Everyone

69.  Board of Members:
 Kalinithi Maran – Chairman
 J. Ravindran
 M. K. Harinarayana
 Nicolas Martin Paul
 R. Ravivenkatesh
69

70.  Compliance Officer:
Chandan Sand( General Manager and Company
Secretary)
 Bankers:
Allahabad Bank
City Union Bank Ltd.
SBI Ltd.
HDFC Bank Ltd.
70

71.  Directors Report:
71
Particulars March 31,2013(Cr) March 31,2012(Cr)
Gross Income 58,051.41 40,191.14
Operating Expenses 48,104.77 37,079.00
Employee benefit
Expenses
5,267.99 4,028.72
Selling Expenses 2,791.45 2,704.20
Other Expenses 1,805.33 1,604.35
Finance Cost 1,157.18 522.57
Depreciation and
Amortisation Expenses
835.45 309.98
Profit/Loss before
taxation
(1,910.76) (6,057.68)
Tax Expenses - -
Prior period items - -
Profit/(Loss) After
Taxation
(1,910.76) (6,057.68)

72.  Market Share:
72
 Spice Jet Limited
BSE: 500285 – 08-Apr-2015
21.95 -0.05(-0.23%)
 NSE: 20-July-1999
5.7 0.00 (0.00%)

73.  Go Air :
73

74.  Company Profile :
 Founded – June 2004
 F.C. Name – Go Airline
 IATA Code – G8
 ICAO – GOW
 Callsign – GOAIR
 Hubs – Chhatrapati Shivaji International Airport
74

75. Cont’d :
 Secondary Hubs – Indira Gandhi Internatioanl
Airport
 Focus Cities – Ahmedabad , Bangalore
 Fleet – 8 ( + 10 order )
 Destinations – 22
 Headquarters – Mumbai
 Parent Company – Wadia Group
75

76.  History :
 It is an Indian Low-cost carrier based in
Mumbai.
 It commenced operations in November 2005.
 GoAir has been recording an average load factor
of 76%.
 In April 2012, the airline moved from sixth and
last place to fifth in terms of market share due to
the financial crisis at Kingfisher Airlines.
76

77.  Mission :
 Its mission is to offer safe , secure and efficient
air travel option.
 It offers flights to prominent business
metropolish ( like Delhi and Mumbai ) and
holiday destinations ( like Goa and Jaipur )
across India.
 Throughout its history, the airline has provided
facilities and services to make travel simple and
fun for passengers.
77

78.  Vision :
 The airline has seen various exits in the last few
years , including its finance head and chief
commercial officer.
 GoAir has also been the biggest beneficiary of
the vaccum left year of beleguered carrier
Kingfisher AirlinesBSE-1.51% expanding its
market share to 8.5% from 7.2%
78

79.  Management Head :
79
Georgio Di Roni,CEO Jehangir Wadia,Founder

80.  Tagline / Slogan :
80
Fly Smart

81.  Market Share -
81

82.  CSR Policies:
 Signing of a Memorandum of Understanding
(MOU) with General Directorate for the
Protection of the Environment and
Wildlife(GDEWP)to corporate on environment
and educational programe.
 Development of a system for measuring in-flight
waste.
 Completion of a waste management survey on
hanger, maintenance bays and workshops.
82

83. Latest Development :
 New Flight from Bangalore to Delhi and return,
and from Bangalore to Mumbai and return,in
June 2009.
 Introduced a new aircrafts in March and April
2009 as well as announced the induction of one
brand new A320 aircraft in June 2009.
 GoAir has introduced a new flight timings for
destinations including Ahmadabad, Delhi
,Mumbai ,and Bangalore.
83

84.  OTP- On Time Performance
84
Consistent High OTP
August 85.5
September 86.7
October 74.9
Month Percentage

85.  Summation :
 Indian Aviation has been seen high growth on
account of sustained Indian Socio- Economic
growth and liberalized Govt. initiatives.
 Airport infrastructure needs to improve
significantly to meet the current and future
demand of Indian aviation sector.
 Authorities have initiated various steps to
implement modernization, reconstruction and
development of airport infrastructure to
implement infrastructure development plan.
85

86.  Reference :
 Times of India
 Aviation Week and Space Technology
 Google.com
 Slideshare
 Wikipedia – the free content encyclopedia
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