Paper 12: Aviation Industry, Ticketing and Frontier Formalities

Module 08: Indian Aviation Industry Present and Future Prospects

THE DEVELOPMENT TEAM

Principal Investigator Prof. S. P. Bansal,

Vice Chancellor, Indira Gandhi University, Rewari

Co-Principal Investigator Dr. Prashant K. Gautam,

Director, UIHTM, Panjab University, Chandigarh

Paper Coordinator Dr. Sandeep Walia,

Head of Department, UITHM, Chandigarh University

Paper Co-Coordinator Dr. Jaswinder Sharma,

Assistant Professor UIHTM, Panjab University Chandigarh

Content Writer Dr. Sandeep Walia,

Head of Department, UITHM, Chandigarh University

Content Reviewer Prof. C. M. Parsheera,

Director, IVS, MTA, Himachal Pradesh University, Shimla
ITEMS DESCRIPTION OF MODULE
Subject Name Tourism and Hospitality
Paper Name Aviation Industry, Ticketing and Frontier Formalities
Module Title Indian Aviation Industry Present And Future Prospects
Module Id Module No-08
Pre- Requisites Present and Future Prospects of Indian Aviation, Concept of Military
Aviation and Civil Aviation, Present Structure and Future Developments and
Policies and Approach and Indian Airports and Airlines in Present Scenario
Objectives Knowledge of Indian Aviation Industry Present and Future Prospects, Key
Aspects of Aviation, Achievements of Military and Civil Aviation, Aircrafts
Used, Busiest Indian and International Airlines in India and Future
Prospects
Keywords Aviation Industry , Present Future Aspects, Military Aviation, Civil
Aviation, Air India, Airlines, Indian Aviation, Aviation Policy

TABLE OF CONTENTS
1. Learning Outcome
2. Introduction
3. Military Aviation and Achievements
3.1 Meghdoot Operation in Siachen Glacier
3.2 AFNet (Air Force Network)
3.3 IAF World Record
3.4 North Indian Flood, 2013
4. Civil Aviation
4.1 Indian Aviation at Present Scenario
4.2 Aircraft Used
4.3 Domestic Airlines in India
4.3.1 Indigo
4.3.2 Jet Airways
4.3.3 Air India
 4.3.4 Spice Jet
4.3.5 Go Air
4.3.6 Vistara
4.3.7 Air Asia India
4.4 Cargo
4.5 Private Jet Charters
5. India’s Domestic Aviation Market
6. Airports and Airlines in India
6.1 Infrastructure of Airport
7. Future Prospective of Aviation Industry
7.1 Facilities
7.2 Other Prospects of Indian Aviation Industry
7.2.1 Jobs and Skill Building
7.2.2 Nation Civil Aviation Policy 2016
7.2.3 Investment
8. Summary

INDIAN AVIATION INDUSTRY PRESENT AND FUTURE PROSPECTS

1. Learning outcomes

After completing this module, students you will be able to:

 Understand the Present and Future Prospects of Indian Aviation

 Get to know about types of Aviation Industry in India i.e. Military Aviation and
Civil Aviation
 Present Developments and Facilities of Aviation Industry
 Know about Airlines and Airports of India
 Understands Future Policies, Approach and Concepts
2. Introduction:

Aviation Sector consists of two types of Aviation i.e. Military Aviation and Civil
Aviation. India has also acquired so many advance aircrafts, ammunition aircraft carriers
and now drones to its fleet. India is now also capable of producing aircraft carriers, which
can launch satellites from India. Bengaluru is the biggest manufacturing hub for Indian
aviation with 65% of stake. Civil aviation sector in India domestically as well as
internationally is also growing at rapid pace. Presently more than 100 million domestic
passengers are flying through air in India (2016 financial year), which is expected get
doubled by the year 2030. India is ready to handle this massive growth. The main focus
of government is to expand aviation facilities in regional areas and provide best possible
connectivity and services at cheaper rates. With a population of 1.311 billion (Data
Presented by World Bank, 2015) less than one forth people are able to access air travel
today in India. Therefore in order to involve ordinary people in this sector PPP (Public
Private Partnership) model, expansion of LCC (Low Cost Carriers), MRO (Maintenance,
Repair and Overhaul) facilities are introduced and established in India as well. IATA
(International Air Transport Association) estimated that India is expected to become 10th
biggest freight market before the year 2018. Thus, not only present but future of aviation
sector is also going to get huge success as it is expanding continuously.

3. Military Aviation and Achievements:

Military Aviation in India was initially devised on 8th October 1932 during British
regime. However it got its recognition in the year 1945 during second world wars. At
present Indian Air Force is 4th biggest Air Force in the world with a fleet of more than
1720 aircrafts and 33 squadrons. A number of 60 Air Bases which are grouped into
seven main commands are there; among which Western Indian Command is biggest
with 16 air bases. Military Aviation was used by Army, Navy and Air Force (all three
forces) during post-independence wars.
Some of the achievements of Indian Military aviation are as follows: -

3.1 Meghdoot Operation in Siachen Glacier: Aviation helped India to finish

Operation Meghdoot (Capture Siachen Glacier, 1984) successfully by providing
logistics and food supply above the height of 18,000 feet by using advance aircrafts
like Mi Series Helicopters and Ilyushin-76 aircrafts.
3.2 AFNet (Air Force Network): On 14th September 2010, Indian former defense
minister Mr. A.K. Antony inaugurated net-centric network for three defense forces
of the country i.e. Indian Army, Indian Navy and Indian Air Force. During its launch
IAF exhibit the use of gigabyte digital information to operate enemy targets during
conflict.

3.3 IAF World Record: Indian Air Force sets the record after successfully landing
Lockheed Martin C-130J Hercules at Daulat Beg Oldi airstrip in Ladakh at a height
of 16614 feet. IAF became first Air Force of the world to land that much big plane in
such a harsh conditions.

3.4 North Indian Flood, 2013: IAF conducted a rescue operation to evacuate 19,600
people called Operation Rahat which is the biggest civilian rescue operation done by
any Air Force of the world using helicopters.

4. Civil Aviation In India

In India the origin of civil aviation occurs in the year 1911, when first flight from Allahabad
to Naini took off. Air India plays a vital role in Indian aviation as a major carrier, which
connects India to rest of world. Other carriers like Indigo, Jet Airways, Go Air and Spice Jet
also plays a significant role in Indian aviation sector thereby connecting various
destinations. Ministry of Civil Aviation is responsible for Civil Aviation Operations in
India. With the modern aircrafts, introduction of Low Cost Carriers (LCCs), FDI (Foreign
Direct Investment) in domestic airlines, modern technology prospects civil aviation reaches
new heights. Everybody right from aircraft manufacturers, airline companies, individual
travellers, businessmen are focusing on Indian aviation. India aviation market is the fastest
growing aviation market in the world and is about to displace UK by the year 2026.
 4.1 Present Scenario of Indian Aviation:

According to IATA Aviation sector in India is a fastest growing industry, Presently India is
9th biggest civil aviation market in the world and is going to be 3rd largest before the year
2020. India will become the number one civil aviation market of the world before 2030 due
to increasing number of daily air travelers in the country. Indian aviation industry is of
worth $16 billion at present. During Make in India Week 2016 Amol Shivaji Yadav (41 year
old) Jet Airways Pilot from Maharashtra stepped out to develop 20 seated TAC-003
commercial aircraft which will cost less than rupees 2,000 for a airline seat for short
distance travel. SIDBI (Small Industries Development Bank of India) approved his loan and
Maharashtra Government allocated 46 acres of land to his company ‘Thrust Aircraft’. He
assembled his first aircraft on his roof with the help of his friends and family. NAL Saras
was the first indigenous civilian aircraft made by NAL (National Aerospace Laboratories),
which took its first flight on 29th May 2004, unfortunately its official launch never
happened but they resumed to work on this project in February 2017 again.

4.2 Aircrafts Used: For better comfort and safety of passengers large and technically
advanced planes are used by majority of aviation players in India. Airbus A-320
NEO (New Engine Opeion) is the latest fuel-efficient plane, which is demanded by
almost every Indian airline. It can save up to 15% of fuel but Indigo (Inter Globe
Aviation Limited) signed MoU (Memorandum of Understanding) with France based
Airbus to buy more than 200 A-320 Series NEO planes. Airbus has never singed that
much big deal before in their history. As of 2017 there are 492 air planes are there in
Indian aviation market.
Here is the list of some of the aircrafts, which are used for Civil Aviation Operations
by different airline companies in India:
 There are 2 Bombardier CRJ aircrafts
 19 Bombardier Q400 airplanes
 9 Airbus A-330 Airplanes
 247 Airbus A-320 Airplanes
 131 Boeing 737 aircrafts
 25 Boeing 777 aircrafts
  4 Boeing 747 airplanes
 23 Boeing 787 Dream liner planes
 And 32 ATR 72 air planes are there.

Some of the Prominent Business men or firms of the country also uses business jets
for their personal or official use. These business jets are most luxurious and provide
quick air travel access. Some of these are as follows:

 Boeing Business Jet 2 is owned by Mukesh Ambani which cost around $73
Million
 Airbus ACJ 319 is owned by Vijay Mallya costs worth $40 Million
 Gulfstream G550 is owned by Lakshmi Mittal which cost $38 Million
 Bombardier Global Express XRS is owned by Anil Ambani cost worth $38
Million
 Gulfstream IV is owned by Atul Punj which cost $32.5 Million
 Gulfstream IV is also owned by Kushal Pal Singh cost worth $32.5 Million
 Bombardier Challenger 600 is owned by Gautam Singhania which cost $21
Million

4.3 Domestic Airlines in India: There are more than 492 Civil Aircrafts in India that
are used for carrying passengers. Domestically Indigo captured biggest market share.
Air India (including Alliance Air, Air India Express) holds its 3rd positing in Indian
Aviation market. Basically there are few important domestic Indian airlines
operating at present. Indian aviation industry has seen a potential growth of 17.62%
in 2015-2016. A total of 223.6 Million passengers travelled in the year 2016. Indian
aviation now a day is undoubtedly at its peak since its existence but the bitter aspect
is that there are losses as well. The main reason for losses are due to global impact
on economy, taxes, low financial income, and a great expenditure or increasing
competition.
Here are some of the famous domestic Airlines, which are operating in India:

4.3.1 Indigo: It is a low cost airline. As of now Indigo has more than 135 aircrafts and
425 are in order including Airbus A-320 Neo and Airbus A-321Neo (Neo is fuel
 efficient version of A320). Indigo witnessed 33.1 million passengers last year.
Hence it is the largest domestic airlines in India with (39.6%) of travelers per
year.
4.3.2 Jet Airways: It is covertures by two companies Jet and Jet Lite; hence they got
more than 113 aircrafts and ordered 85 more aircrafts for future. In the year 2016
(18.1%) of the domestic passengers travel in Jet Airways, hence it is the second
largest domestic airline in India.
4.3.3 Air India: It is a Govt. enterprise owned by Air India Limited. As of now Air
India has 108+ aircrafts in service and they are planning to add 35 new aircrafts
in their fleet. As of now no major orders have been placed but they are getting 9
more planes by the end of this year. In the year 2016 (13.8%) of the domestic
passengers uses Air India to fly.
4.3.4 Spice Jet: They have 38+ aircrafts and with a 12.94% of domestic passenger
traffic Spice Jet is 4th largest Indian airline. In spite of losses Spice Jet is
expanding its fleet with more than 42 new orders.
4.3.5 Go Air: It is the 3rd largest airlines in India with (8.4%) of annual passenger
traffic. There are 19 aircrafts, which are owned by Go air, and 142 new planes
have been ordered.
4.3.6 Air Vistara: It is one of the latest airlines in started in India, which is able to
capture (3.1%) of passengers traffic. There are more than 11 aircrafts and they
are expected to place 100 new planes for the future.
4.3.7 Air Asia India: It is the 7th biggest domestic airline in India with (2.9%) annual
passenger traffic. There are more than 6 planes in its fleet and 1 in order.

Some other domestic airlines are also operational like Zoom Air, TruJet, and
Blue Dart Aviation. Together they are able to hold (1.2%) of domestic passenger
traffic.

4.4 Cargo: As the passenger traffic is growing day by day the airlines are also making
handsome money from the cargo as well. In the year 2016 different airline carriers
transported a total of 1658.35 tons cargo. The domestic airfreight traffic grew at the rate of
8% CAGR (Compound Annual Growth Rate) during the previous year. Some of the popular
domestic freight airline companies in India, which transports cargo, are Blue Dart Aviation
Ltd. and Quikjet Cargo. Blue Dart uses 6 Boeing 757 aircraft’s where Quikjet airlines use
Boeing 737 aircraft to complete their cargo operations in the country.

4.5 Private Jet Charter Start-ups: Another remarkable growth has been witnessed by
Indian aviation sector is the remarkable growth in the private jet market. Although in India
there are infrastructural challenges for private Jet Customers but besides that of high
operational cost, fuel cost, maintenance cost still these industry booms up. Some of the
familiar private jet charter companies include Jet Set Go, Jet Smart, and Book My Charters,
which give a decent giving number to customers to make choices in private jet market.

5. India’s Domestic Aviation Market: Country’s air passenger demand is

continuously increasing with the increasing flow of tourism and other business
activities. In India domestic passenger market grows faster than that of China and
US. It is expected by Boeing that a demand of 1740 planes will arise in next 20
years. Passenger Traffic and cargo traffic continuously increasing. Jet Airways Ltd.
is the largest airline in passenger carrying, whereas Spice Jet is the largest low fare
airline operating in India.

6. Airports and Airlines in India:

Indira Gandhi International Airport, New Delhi is the busiest airport in India where
57.7 million people traveled in this financial year 2016-2017, AAI is planning to
expand its capacity to 100 million passengers before 2030. Chhatrapati Shivaji
International Airport, Mumbai is the second busiest with 44.68 million-passenger
traffic and third one is Kempegowda International Airport, Bengaluru which handled
22.2 million traffic last year. Apart from these mega cities airports Kushok Bakula
Rimpochee Airport, Leh is the highest airport in India situated at a height of 10,682
feet (3,256 m) above sea level. India is also hub for International Airlines, Some of
the International Airlines operating in India are:

 Air Asia (Malaysia)

 Emirates Air (UAE)
 British Airways (London, England)
 Air France (France)
  Qatar Airways (Qatar)
 Malaysia Airlines (Malaysia)
 KLM Airlines (Netherlands)
 Singapore Airlines (Singapore)
 Thai Airways (Thailand)
 Lufthansa (Germany)
 Turkish Airlines (Turkey)
 Cathay Pacific Airways (Hong Kong)
 Flydubai (Dubai)
 United Airlines

6.1 Infrastructure of Airport:

Airport Authority of India (AAI) is managing airports in India. Functioning of AAI come
under Ministry of Civil Aviation. Delhi, Mumbai, Chennai and Kolkata accounts major
passenger traffic (66%) and generates high revenue. AAI is planning to make functional
more than 200 airports in the country before the year 2020.

7. Future Prospective of Aviation Industry:

Before 2020 Indian aviation sector is expected to double its fleet with 800+ aircrafts.
Indian Air Force is also seeking to expand to 40 squadrons from 33 squadrons. AAI
(Airport Authority of India) is also planning to build around 250 new airports before 2020
and they will spend $3 billion for local airports to provide world-class services and
enhance regional connectivity. They are adapting Aerotropolis model in SEZ (Special
Economic Zone) to provide better services there as well.

Some other main future projections are as follows:

 A MoU (Memorandum of Understanding) has been signed by the ministry of

Civil aviation between Sweden, Kenya, Norway, Denmark, Oman,
Kazakhstan etc. to increase cooperation between these countries and to make
travel process easier by sharing of airline codes etc.
  Joint Venture has signed with American aircraft manufacturing Boeing by
TASL (Tata Advanced System) for manufacturing of aero structures for
Apache Helicopter.
 Lockheed Martin Corporations is planning to make manufacturing base for
V-16 fighter Jets, C-103 J Super Hercules, military transport planes and
helicopters in India.
 Govt. of India is planning to setting up 56 new airports by the end of next
three years.

7.1 Facilities:
 India strictly follows rules and regulations to ensure the safety and security of its
passengers and continuously working in enhancing security reforms in aviation
sector.
 Wi-Fi/Internet service was not present in Civil Aviation earlier but recently
APAI (Air Passengers Association of India) announced they are eager to provide
Wi-Fi service during flight after completing their 25 years in the market.
 Up to 2018 most of the domestic as well as international carriers are going to
provide high speed in-flight Wi-Fi service in India for passengers so that air
travelers can also access real time connectivity worldwide and enjoy on stream
Music, Movies, TV Shows, News, Sports, Video Conferencing, E-mail and
Social Media Services etc. Air India might launch Wi-Fi services to all 66 flights
by August 2017 with the help of BSNL (Bharat Sanchar Nigam Limited).
 Airport Lounges are playing great role in providing a very comfortable and stress
free travel experience to its passenger. Further improvements are done in
providing valuable and time saving services like Food and Beverages Services,
WIFI connectivity, bar, snacks, music, magazines, newspapers, assisted check-in
procedures, easy security check and baggage handling etc.

 Indian Aviation industry is working on certain aspects to provide enjoyable

travel experience for all types of passengers whether economic, VIPs, Disabled
or Unaccompanied Minors. Assisted services and modern equipment’s are also
used for airport operations.
 7.2 Other Prospects of Indian Aviation Industry:

7.2.1 Jobs and Skill Building: With expansion of aviation sector a large number
of jobs will be required before 2025 (3.3 lakh estimated). Today 8,000 pilots are
holding CPL (Commercial Pilot License) and will get an advantage. MoCA
(Ministry of Civil Aviation) is going to introduce a scheme based on type-rating
system for Pilots after evaluating their performance. NSDA (National Skill
Development Agency) also developed NSQF (National Skills Qualifications
Framework) for aviation sector. Not only pilots but technicians, cabin crew, cargo &
ground handling staff, sales staff and engineers are also required in civil aviation
industry. One 1st June 2017 NSDC signed MoU with Bird Academy to train 30,000
youth including tribal youths and a minimum of 5,000 women.
7.2.2 National Civil Aviation Policy 2016: MoCA (Ministry of Civil Aviation) released
NCAP (National Civil Aviation Policy) in 2016, and is the first integrated NCAP
after independence, before that no ministry released any Aviation Policy. The aim is
to maintain steady growth by overcoming the challenges in next 5 years with proper
vision, proper planning and execution. PM Narendra Modi launched UDAN scheme
on April 27th 2017 which is key component of NCAP. UDAN aims to develop
regional airport and connectivity so that a common citizen can access air travel at
much affordable price. MRO (Maintenance, Repair and Overhaul) is approved by
DGCA (Director General of Civil Aviation) after Government introduced various
proposals in Union Budget 2016-2017 like tax exemption for tools used, one time
certification policy.

7.2.3 Investment: This year in 2017 almost 60 million international passengers are
expected to travel across the world through India. Due to low cost services,
increased connectivity, technological and infrastructural improvements, domestic
tourists, corporate, employees are also expected to access air travel more frequently
in future. With the help of Make in India initiative aviation sector has received FDI
(Foreign Direct Investment) investment offers from many foreign companies. India
has reframed its aviation policy and allowed 100% FDI due to which nations like
USA, France, UK, Germany, Singapore shown their keen interest in India and the
 core aviation Companies Boeing, Airbus, Rolls Royce, and Fraport, Singapore
Airlines are investing in Indian Aviation Industry.

8 Summary:

Aviation in India is picking its pace faster than other countries in the world. Not only
military aviation but the civil aviation market is also getting advanced every year. Make
in India initiative is spreading its roots in aviation industry and opening new routes for
investors through FDI in India. Defense budget kept increasing as a result armed forces
are adding hi-tech aircrafts to their fleet. Government aims to expand aviation sector
very quickly to fulfill the demands of future passengers, they are also focusing to turn
the vision of low budget air travel into reality. Not only urban but rural population is
also going to get maximum advantage of aviation industry in the coming days. Air
Cargo in India is expected to grow at 10% CAGR. Aviation authorities like ISRO,
DRDRO and AAI are playing a vital role in making Aviation Industry in India
successful. World class airports, gigabyte digital network, wide scope in drones,
indigenously built Light Combat Helicopter and multirole aircraft Tejas are bringing
new dimensions to Indian aviation industry. Government of India is also taking several
step towards for the development of aviation industry by allocating maximum funds in
Indian budget which leads to development of regional airports, bringing FDI, drafting
policies and schemes to form new regulations to connect maximum number of people
through air travel. Presently India is much superior in aviation operations providing
better services in comparison to other developing countries. In the coming years India
can rule the Aviation Sector if it kept growing with the same pace.