Aviation Indutry in India
Aviation Indutry in India
Aviation Indutry in India
Service Sector Management
| `ivil Aviation
|rof. Ashok Bhise
|
àroup members Roll nos.
Yukti Marwah 46
Namrata Dedhia 13
p
2
2
|layers in Indian aviation industry can be
categorized in three groups:
|
-Air India, Indian Airlines and
Alliance Air.
|
- mhe private players include 2
Airways, Air Sahara,|aramount airways, ào Air
Airlines, Kingfisher Airlines, Spice Jet, Air Deccan
and many more.
?
- mhe start up players are those
which are planning to enter into the markets.
Some of them are Omega Air, Magic Air, |remier
Star Air and MDLR Airlines.
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, which operate
scheduled international air services to and
from India.
V
It is an air transport service other than
the scheduled one and may be on charter
basis and/or non-scheduled basis. mhe
operator is not permitted to publish time
schedule and issue tickets to passengers.
It is an air
transportation of cargo and mail. It may
be on scheduled or non-scheduled basis.
mhese operations are to destinations
within India. For operation outside India,
the operator has to take specific
permission of Directorate àeneral of `ivil
Aviation demonstrating his capacity for
conducting such an operation.
à
?
î
- mhe aviation industry is expected to grow
at a compounded annual growth rate of
25% till 2010.
- Also, by 2010 Indian airports will be
handling between 90 and 100 million
passengers per year, as against the
current 34 million passengers.
- It is expected that nearly 80% of this
growth will be driven by the low cost
carrier segment (L``).
- By 2008, the L``s would capture 65% of
the direct on-line air ticket market from
61% in 2005.
Nowadays, venture capital of
$10 million or less is enough to launch an airline.
|rivate airlines are known to hire foreign pilots, get
expatriates or retired personnel from the Air Force or
|SU airlines in senior management positions. Further,
they outsource such functions as ground handling,
check-in, reservation, aircraft maintenance, catering,
training, revenue accounting, Im infrastructure, loyalty
and programme management. Airlines are known to
take on contract employees such as cabin crew,
ticketing and check-in agents.
9
Jet and Sahara have
gone international by starting operations, first to
SAAR` countries, and then to South-East Asia, the UK,
and the US. After five years of domestic operations,
many domestic airlines too will be entitled to fly
overseas by using unutilised bilateral entitlements to
Indian carriers.
ô
No industry other than
film-making industry is as glamorous as the
airlines. Airline tycoons from the last century, like
J. R. D. mata and Howard Hughes, and Sir Richard
Branson and Dr. Vijaya Mallya today, have been
idolized. Airlines have an aura of glamour around
them, and high net worth individuals can always
toy with the idea of owning an airline. All the
above factors seem to have resulted in a "me too"
rush to launch domestic airlines in India.
"
9
#
d
Airport and air traffic
control (Am`) infrastructure is inadequate to support
growth. While a start has been made to upgrade the
infrastructure, the results will be visible only after 2-3
years.
ô
It is also a matter of concern that
the trunk routes, at present, are not fully exploited.
One of the reasons for inability to realize the full
potential of the trunk routes is the lack of genuine
competition. mhe entry of new players would ensure
that air fares are brought to realistic levels, as it will
lead to better cost and revenue management,
increased productivity and better services. mhis in turn
would stimulate demand and lead to growth.