Indian Aviation Industry
Indian Aviation Industry
Indian Aviation Industry
WINGS
Presented By:
Sheetal Kumbhare
Ayush Gupta
Aviation sector…..
The sector deals with the transport of passenger and cargo from one
place to another, using the aerial route.
Size :
About 75 million Passengers
$5.6billion
Growth
Around 15% growth in last 10 years.
Growth in 2009 : 0.7%
Vision 2020 statement predicts handling 280 million customers by
2020
From then to now……….
1953: NATIONALISATION OF AIRCRAFT 1986: Private Sector Players permitted as
INDUSTRY Air taxi operators. Jet, Air Sahara, etc
Assets of 9 existing companies started service.
transferred to two entities in the 1994: Private Carriers permitted to operate
aviation sector controlled by the scheduled services. Six operators granted
Government in license, however only Jet and Air Sahara
Indian Airlines, primarily serving able to service.
domestic sectors 2003: Entry of low cost carriers. Air
Air India, primarily serving the Deccan, Spice Jet, Go Air, Indigo.
international sectors IMPLICATIONS
Aviation is now affordable with check
IMPLICATIONS fares and discount schemes.
Aviation became a preferred mode of Various Operators with different business
transport for elite class model.
Restricted Growth of Aviation Huge growth foreseen in Aviation
Industry
Players in Aviation Industry
The players in aviation industry can be
categorized in three groups:
Public players : Indian Airlines
WEAKNESSESS:
High Ticket prices.
OPPORTUNITIES:
The expanding tourism Industry.
Untapped Air cargo market
Under penetrated Domestic Market
THREATS:
Competitors.
Fuel Price Hike.
Economic Slowdown/Recessions.
MARKETING STRATEGIES
50% of the population is <25 years old. Therefore, the size of the
Demographics economically active segment will continue to grow for a number of
decades (unlike the developed countries and even China).
The government is planning to raise the foreign direct investment (FDI) limit to 74% for non-
scheduled airline operations, helicopter services and regional airlines using small aircraft. The
current FDI ceiling for airline services is 49%.
In 1997 the Government of India published a policy document to open up existing airports to
domestic and foreign private investors in order to meet the significant costs involved in
developing India’s airports to keep pace with the growth in air traffic. In Sep 2003, Govt leased
out Delhi and Mumbai airports to the private sector as part of its extensive modernisation and
growth plan for the sector.
CONTINUED………
Growing Infrastructure developments
Growth is underpinned b
economic expansion, incre
capacity and price stimula
resulting from increased
competition.
OUTLOOK INDIA 2020……
However, we must close the gap between the demand for aviation
services and the ability of our aviation system to meet that demand.
The study says that the civil aviation sector is also set to
become a Rs 55,000-crore industry by the same time.
The industry is expected to add 130 airliners to its current fleet of 270 airliners,
which would, in turn, increase manpower demand