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Aviation PPT 11 07 15
Aviation PPT 11 07 15
Aviation
Introduction
Aviation
The word "aviation" was coined by
French writer Gabriel La Landelle in
1873
From the verb "avier - derived from
the Latin word "avis" ("bird")
Legends of human flights
Puspak Rath of Ravan in Ramayan
Icarus in Greek myth
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Aviation : History
Aviation : History
During the 1920s and 1930s
(a) 1919 : Firsttransatlantic flight: Alcock & Brown
(b) 1927: Transatlantic solo flight: Charles
Lindbergh
1950s: First passenger jet Boeing 707
1960s : Concorde, GPS, Satellite communication
2004 : Spaceship One: First private spaceflight
Now : Ethanol, Electricity, Solar energy are more
common to power aircrafts
Aviation
Characteristics
with
Two
aircraft
Types of Airlines
There are mainly TWO types of Passenger Airlines:
1. FSC : Full Service Carrier (AI, JET, Vistara)
2. LCC : Low Cost Carrier (Indigo, Spicejet, GoAir)
Aviation
Cost of Operations
&
Profitability Factors
Cost of Operations
ATF constitutes 45-50% of operation
(ATF Aviation Turbine Fuel a specialized
type of petroleum-based fuel used to power
aircraft, contains additives to reduce the risk
of icing or explosion due to high
temperature, imported in India)
Manpower and administration - 22%
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Profitability Factors in
Aviation
Profitability hinges on (a)
Seat load factor
(b)
Usage of fuel efficient aircrafts
(c)
High turnaround rate
(d)
Other non ticket incomes
(e)
Outsourcing of key services
Note: LCC mainly address to these
factors
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Aviation
Global LCCs
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Even encouraged staff to steal stationary from hostels & banks to save costs!
25 Minutes turn around time, to get maximum aircraft utilisation
Often operate from smaller, less congested airports with lower costs
Often use provocative & Misleading ads that get the attention at a low cost
Enormous charges for small mistakes:
Over 20% revenue from non-ticket sales print boarding pass, in flight
sales, airport baggage check in, etc
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Tony Fernandes;
Group CEO for Air Asia
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Aviation
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Aviation in India
Importance
Service sector constitutes 57% of National Wealth (USD 1.1 Trillion)
Key segments :
1. Banking and Financial Services
2. Organized Retailing
3. Education Sector
4. Health Care Sector
5. Hospitality Sector 6% of Indias GDP
Contribution of the airlines business estimated at USD
$ 6 Billion.
6. Independent Services
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1953
1953
1994
1995
West
2003
2005
2011
2012
:
:
:
:
:
:
:
:
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20
% Market Share
Go Air; 9%
Air India ; 19%
Indigo ; 30%
Profit/Losses of Indian
Airlines
Indigo
(a) Netprofitat Rs 317 crore for 2014.
(The sixth year in continuity)
(b) Revenue to Rs 11,117 crore.
The two listed carriers
1. SpiceJet - Losses Rs 1,003 crore
2. Jet Airways Losses Rs 3,667 crore
. Air India bleeding Losses Rs 5,388
crore
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Aviation
Airlines in India
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Airlines in India
Air India
(a) Founded July 1930 as Tata Airlines
(b) Commenced
operations15October1932
(c) Revenue : US$2.3billion(FY 2013/14)
(d) Net income:US$330million
(e) After a long spell of lossesrecorded a
net profit of Rs 14.6 crore in December
last
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Airlines in India
Indigo
(a)Indias biggest airline
(b) One of the two domestic carriers that
makes a profit, the other being GoAir.
(c)Plans to expand aggressively
(d)Aims to raise Rs 3,200 crore for a 15% stake
(e)Signed an agreement to buy 250 A320neo
planes from Airbus (worth $26 billion)
(f) The largest single order of jets
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Airlines in India
Vistara
(i)
JV between Tata Sons & Singapore Airlines
(ii) Commenced operations in 2015 between Delhi and Mumbai
(iii) Carried a total of 100,000 passenger by 31 March 2015.
(iv) Operates 253 weekly passenger service across 10 domestic
destinations within India
(v) A fleet of 6Airbus A320-232aircraft.
(vi) Vistara is the first airline to introduce premium economy seats on
domestic routes in India.
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Airlines in India
AirAsia India
(a)A joint venture withAir AsiaBerhad holding 49% of the
airline,TataSons holding 30% and Telestra Tradeplace 21%
(b)Mark Tata's return to aviation industry after 60 years.
(c)Air Asia India commenced operations on 12 June 2014.
(e) AirAsia is the first foreign airline to set up a subsidiary in
India.
(f) Will operate with the world's lowest unit cost
of1.25(2.0US)/available seat kilometre
(g) A passenger break-even load factor of 52%.
(h) Willhedge100% of its fuel requirements for the next three
years
(i) Plans to achieve an aircraftturnaround time of 25 minutes.
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Airlines in India
Jet Etihad
(a)Abu Dhabi-based Etihad is the national airlines of the
United Arab Emirates
(b)Operates to over 85 destinations in over 50 countries.
(c)Jet is a leading airline in India operating to over 50
domestic and 20 international destinations.
(d)The deal involves purchase of a 24 per cent stake in
Naresh Goyal-led Jet for about Rs 2,060 crore by Etihad
(e) Clearance last year by CCI & Sebi.
(f) However, the deal has now come under the scanner of
the Competition Commission of Singapore (CCS),
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Aviation in India
Government Policies
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Aviation in India
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Aviation in India
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Aviation in India
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Aviation in India
Recent Investments & Developments
1. Google Inc. has launched flight searches in India. : google.co.in/flights
2.Air Costa plans to add 8 aircrafts by 2016 to its fleet of 4 aircrafts.
3. Boeing is to set up an aircraft manufacturing base in India ('Make in India)
4. Vistara has signed inter-line agreements with Singapore Airlines and SilkAir.
5. Air Works India Engineering has formed a JV with Yaksa Investment to
provide aviation maintenance services to international airlines and domestic
operators.
6.US Federal Aviation Administration (FAA) has approved a product developed
and produced by the firm in India
UTC Aerospace Systems, Bengaluru
To indigenously produce and directly ship an aviation product to aircraft
manufacturers in the US.
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Aviation in India
Government initiatives:
Gujarat may get a second international airport at Dholera.
DGCA has given its approval to Air Indias maintenance,
repair and overhaul (MRO) unit.
GOI has decided to award airports in Kolkata, Chennai,
Jaipur and Ahmedabad on management contract basis
GOI plans to form a committee to turn around and look at
privatising Air India.
The Ministry of Civil Aviation plans to list Airports Authority
of India and Pawan Hans Ltd on the stock exchanges.
GOI has approved the construction of five budget airports
for regional connectivity, work to start from FY15.
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THANK YOU
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