Aviation - 03.07.14
Aviation - 03.07.14
Aviation - 03.07.14
Employment
Sector-wise Analysis
Aviation Sector
PGDM (Semester 1)
Indian Economy
After independence economy was
controlled
Opted for Mixed Economy Socialism
overtone with Capitalism were ingredients
Ridiculed as Messed-Up economy
Business operated under License Raj
1991 economy was liberated to some extent
Now economy is open, though controls exist
with
Two
aircraft
to
cost
2010-2018
2019-2028
World
20-Year
Growth
12.2%
6.6%
7.3%
2010-2018
Growth
4.6%
2019-2028 20-Year
4.8%
4.7%
Operation Costs:
Airlines Operators:
Categories
1. Full-Service Carriers ( Air India, Jet Airlines)
Provide many facilities :(a)Allotment of Seats ( Business, Economy)
(b)Refreshments ( Lunch/Dinner, Snacks)
(c)Internet connection
(d)Entertainment ( TV & Music)
&
2. Low Cost Carrier(Indigo, Spice-Jet, Jet-Lite, Go-Air)
(a)NO frills ( No entertainment facilities)
(b)Preference of Seat charged ( Window / Aisle)
(c)Strict baggage weights (Over-charge for extra weight)
(d)Refreshment against payment (Only Water Free)
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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:
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Largest Low Cost Carrier in Asia (Both in Fleet Size & No. of Passengers)
Often Awarded as Best Asian Low Cost Carrier
Air-Asia India Launch Planned for October 2013
India JV Partners Include
Air Asia
Tata Sons
Telstra
Key people in Air Asia India include
only Daughter
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1953
1953
1994
1995
West
2003
2005
2011
2012
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Air India
(2013-14) : (4500)
Indigo Indias Only Profitable Airline USP:
On Time
Air India with accumulated loss 63000 (Cr)
Losses
survives on Government funding &
support
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Aviation in India
Recent Govt. initiatives & Investments:
PPP mode for mega projects & operations viz
Green field airports
Operation of some selected airports
To invest Rs 20000 crores for
New international airports in Bhubaneswar &
Imphal; and
50 low cost domestic airports
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Initiatives of Government
Aviation Ministers (Ashok Pusapati)
Announcements:
(a)Creating Cargo facilities in 19 major airports
(b)To cater agro-based business ( Floriculture)
(c)To de-congest busy airports
(d)Building No-Frills Airports to connect
remote areas
(e) Privatization is NOT the answer for Air India
(f)Will consider ATF taxation ( 28% to 4%)
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THANK YOU
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