Aviation Industry
Aviation Industry
Aviation Industry
INTRODUCTION
Airline Industry in India is one of the fastest growing aviation
industries in the world. With the liberalization of the Indian aviation
sector, airline industry in India has undergone a rapid transformation.
From being primarily a government-owned industry, the Indian airline
industry is now dominated by privately owned full service airlines and
low cost carriers. Private airlines account for around 75% share of
the domestic aviation market. Earlier air travel was a privilege only a
few could afford, but today air travel has become much cheaper and
can be afforded by a large number of people.
The origin of Indian civil aviation industry can be traced back to 1912,
when the first air flight between Karachi and Delhi was started by the
Indian State Air Services in collaboration with the UK based Imperial
Airways. In 1932, JRD Tata founded Tata Airline, the first Indian
airline.
Growth Rate
Growth
Domestic Passenger
Segment
International Passenger
Segment
International Cargo
Airlines Current Acquisition Investment
Fleet Plans (in US
$billion)
– Liberalisation of skies
• Ownership rules relaxed, EU and US forcing
this through increasing the size of the
market
• Economic
– Decrease in passenger numbers
– Competition from low cost airlines
– Consolidation leads to alliances rather than
mergers where possible
– Increase in cost i.e. Insurance
– Deregulation has exposed airlines, previously
operating at inefficient cost levels
– Many airlines in serious financial trouble e.g. Aer
Lingus, Swiss Air
– Supplies also experiencing sharp downturn, e.g.
Rolls Royce
• Social
• Reluctance to fly
• Need to rebuild confidence in air travel
• Sub losses with knock on social affect
• Technological
• Wage Inequality
• Environmental Emission
• Terrorism
• Monetary and Fiscal Policies
Future of Aviation Industry
• Centre for Asia Pacific Aviation (CAPA) predicts
that domestic traffic will grow at 25 per cent
to 30 per cent a year until 2010 and
international traffic will grow by 15 per cent,
taking the overall market to more than 100m
passengers by the end of the decade. Indian
carriers have 480 aircraft on order for delivery
by 2012, which compares with a fleet size of
310 aircraft operating in the country today.
Conclusion
• Airline industry in India is plagued with several problems.
These include high aviation turbine fuel (ATF) prices, rising
labour costs and shortage of skilled labour, rapid fleet
expansion, and intense price competition among the
players. But one of the major challenges facing Indian
aviation industry is infrastructure constraint. Airport
infrastructure needs to be upgraded rapidly if Indian aviation
industry has to continue its success story. Some steps have
been taken in this direction. Two of India's largest airports-
Mumbai and New Delhi-were privatized recently. Two
Greenfield airports are coming up at Bangalore and
Hyderabad in southern India. Investments are pouring into
almost all aspects of the industry, including aircraft
maintenance, pilot training and air cargo services. The future
prospects of Indian aviation sector look bright.
References
• http://www.wikipedia.com/aviationindustry
• http://www.naukrihub.com/india/aviation
• http://economicstudies.co.cc/monetary-
economics/aviation
• http://www.4ds.com
• http:// www.epinions.com
• http:// www.business.headlinesindia.com
• http:// www.oppapers.com