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    Privatisation in Indian Aviation

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    Mohit Bhatt
    The Indian aviation industry is one of the fastest growing, with private airlines accounting for over 75% of the domestic market. It has experienced 18% annual growth and now has 454 airports. Key factors driving growth include rising incomes, tourism, and business travel. However, high fuel costs, airport charges, and competition pose challenges. The future depends on increasing FDI, liberalizing routes, and improving infrastructure efficiency.

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    Privatisation in Indian Aviation

    Uploaded by

    Mohit Bhatt
    441 views14 pages
    The Indian aviation industry is one of the fastest growing, with private airlines accounting for over 75% of the domestic market. It has experienced 18% annual growth and now has 454 airports. Key factors driving growth include rising incomes, tourism, and business travel. However, high fuel costs, airport charges, and competition pose challenges. The future depends on increasing FDI, liberalizing routes, and improving infrastructure efficiency.

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    Privatisation in Indian Aviation Industry

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    The Indian aviation industry is one of the fastest growing, with private airlines accounting for over 75% of the domestic market. It has experienced 18% annual growth and now has 454 airports. Key factors driving growth include rising incomes, tourism, and business travel. However, high fuel costs, airport charges, and competition pose challenges. The future depends on increasing FDI, liberalizing routes, and improving infrastructure efficiency.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    441 views14 pages

    Privatisation in Indian Aviation

    Uploaded by

    Mohit Bhatt
    The Indian aviation industry is one of the fastest growing, with private airlines accounting for over 75% of the domestic market. It has experienced 18% annual growth and now has 454 airports. Key factors driving growth include rising incomes, tourism, and business travel. However, high fuel costs, airport charges, and competition pose challenges. The future depends on increasing FDI, liberalizing routes, and improving infrastructure efficiency.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 14

    PRIVATISATION OF INDIAN AVIATION INDUSTRY

    INTRODUCTION
    The Indian aviation industry is one of the fastest growing aviation industries in the world. Private airlines accounting for more than 75 per cent of the sector of the domestic aviation market. The industry is growing at a compound annual growth rate (CAGR) of 18 per cent. The country has 454 airports and airstrips, of which 16 are designated as international airports. Total Passenger Traffic : 50 million With the growth in the industry, airport retailing has also gained pace in the recent times.

    HISTORY
    Indian Aviation Sector (till 1986) Industry from 1986-2003 Airline industry from 2003 2006 Aviation from 2006 onwards The next big thing- the aviation industry!

    MARKET SIZE

    The rapidly expanding aviation sector in India handles about a staggering 2.5 billion passengers across the world in a year. Also handles 45 million tonnes (MT) of cargo through 920 airlines using 4,200 airports and deploys 27,000 aircraft. Today, 87 foreign airlines fly to and from India and five Indian carriers fly to and fro across 40 countries in the world. Increase to a 10-12 per cent range over the next 12 months is expected. The Private carriers are supposedly estimated to post a combined profit of US$ 350 million US$ 400 million for the financial year ending March 31, 2012.

    MARKET SHARE OF AIRLINES

    THE PLAYERS

    DRIVERS TO GROWTH

    Increase in Consumerism Increasing Tourists Travel Increasing Business Travel Entry of Low Cost Carriers Untapped Market Rising Disposable incomes Rising Middle Class Population Increasing Competition Government Reform Measures

    ISSUE OF THE CONCERN

    Mounting losses of the airlines The new Ground Handling policy High Aviation Turbine Fuel (ATF) prices High airport charges Shortage of qualified pilots and technical manpower Safety and security issues Closure of old airports Congestion at airports High taxation etc.

    MAJOR LOSS RESULTING FACTORS

    Rising Fuel Prices Congestion High Airport (aeronautical) Charges Low share of Non-Aeronautical Revenue Substitutes Availability a) Indian Railways b) Virtual Platform Cut-throat Competition faced by Premium Airlines on their Pricing

    The Indian Aviation Industry has been going through a turbulent phase over past several years facing multiple headwinds high oil prices and limited pricing power etc. In the beginning of 2008-09, the sector was impacted by sharp rise in crude oil prices. decline in passenger traffic growth which led to severe underperformance in 2009-10. High prices of Aviation Turbine Fuel(ATF). Internationally, too airlines are going through period of stress.

    THROUGH TURBULENT TIMES

    FDI IN AVIATION

    WAY FORWARD

    Direct ATF Imports International Routes Financial guarantees to the debt-ridden national carrier in securing funding at competitive rates Increase supervision on pricing policy by certain carriers, to bring relief to the airline sector Enable an open bilateral regime to stimulate competition and traffic growth and make India regional aviation hub

    Operationalize Centralized ATFM system to optimize the capacity vs. demand to ensure regulated flow of traffic to minimize delays and congestion

    CONCLUSION

    Indian Aviation Industry has been one of the fastest-growing aviation industries in the world private airlines accounting for more than 75 % of the sector of the domestic aviation market compound annual growth rate (CAGR) of 18 % and 454 airports and airstrips Aviation in India supports 1.7 million jobs, 0.5% of GDP and 90% of international tourist arrivals. India is a market of about 100 million passengers annually.

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