1152492_634492641819221250

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http://slidepdf.com/reader/full/1152492634492641819221250 1/24

DOMESTIC AVIATIONDOMESTIC AVIATION

INDUSTRYINDUSTRY

GroupGroup -- IVIV

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PRESENTED BY PRESENTED BY

Rupali M04 Rupali M04

Milind Sarode M Milind Sarode M

Amarpreet Singh Ghura M02 Amarpreet Singh Ghura M02

Gurpreet Kour Lote M07 Gurpreet Kour Lote M07

Vijeta Wagle M24 Vijeta Wagle M24

Santosh Singh Santosh Singh M M Sharif M10 Sharif M10

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Aviation Industry in IndiaAviation Industry in India

³Once you get hooked on the airline ³Once you get hooked on the airline business, it's worse than dope.´ business, it's worse than dope.´

³This is a nasty, rotten business.´ ³This is a nasty, rotten business.´

³Air transport is just a glorified bus ³Air transport is just a glorified busoperation.´ operation.´

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History :History :

Before IndependenceBefore Independence

Public SectorPublic SectorPrivatization Privatization

Open Sky PolicyOpen Sky Policy

Bilateral TreatiesBilateral Treaties

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PlayersPlayers

Air Deccan

Air-India Express

Air India

Air Sahara

Go Air

Indian Airlines

IndiGo

Jet Airways

Jet Lite SpiceJet

Paramount Airways

Kingfisher

The Domestic Aviation Market Share

34%

20%

21%

8%8%

6%

2%

1%

Jet airways

Indian

Air Deccan

Air Sahara

Kingfisher

Spicejet

Goair

Others

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CharacteristicsCharacteristics ::

Huge PotentialHuge Potential

Under penetrated marketUnder penetrated marketooTotal Passenger Traffic : 50 millionTotal Passenger Traffic : 50 million

ooPassenger trips per annum :Passenger trips per annum :India : 0.05India : 0.05

United states : 2.02United states : 2.02

Untapped air cargo marketUntapped air cargo market

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Medium Term Growth Forecast :

India GDP : 8.6 % per annum

WTTC Travel & Tourism : 8.8 %

Over next 10 years

Domestic air travel : 12 % annually

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Macro Environment AnalysisMacro Environment Analysis

Main FactorsMain Factors

PP

oliticalolitical ::Open Sky PolicyOpen Sky Policy

Deregulations in diff erent spheresDeregulations in diff erent spheres

Low entry barriersLow entry barriers

FDI limits :FDI limits : 49 % for airlines49 % for airlines100% for airports100% for airports

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SSocioocio--culturalcultural ::

Growing middle class :1993-1999 : 39.5 m to 56.7 m

households

2005 : 300 m2010 : 400 m (Estimated)

Increase in leisure travel by tourists by 15 %in 2005

Foreign tourists in 2006 : 3.2 million Status symbol to travel in plane

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EEconomicalconomical :: Growing middle class incomeGrowing middle class income

Consistent GDP growth of more than Consistent GDP growth of more than 8% and projected rate in two digits8% and projected rate in two digits

Hike in average salary 14%(highest) Hike in average salary 14%(highest) in the worldin the world

Tourism industry growth :8.8 %in Tourism industry growth :8.8 %in 20052005

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Technologicalechnological :: Modernization & Privatization of AirportsModernization & Privatization of Airports

Modern Technology for efficient handlingModern Technology for efficient handling

of aircraf t, passenger and cargo.of aircraf t, passenger and cargo.Example : ILS, CATExample : ILS, CAT--33

Developing Greenfield Airports withDeveloping Greenfield Airports withPrivate SectorPrivate Sector

Example : Bangalore Airport Corporation Example : Bangalore Airport Corporation Ltd.Ltd.

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Other FactorsOther Factors ::Demographic and Natural Environment Demographic and Natural Environment

Changing pattern of consumersChanging pattern of consumers Highest percentage people of age groupHighest percentage people of age group

2020--2525

Educational environmentEducational environment Shif t towards family conceptShif t towards family concept High energy costHigh energy cost

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Low Cost CarriersLow Cost Carriers

In the past five years, low-cost airlines have

been growing at more than 40 % a year globally

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Business Model of Low CostBusiness Model of Low Cost

Carriers

Carriers

A single Passenger class A single type of airplane reducing training

and service cost

No frills such as free food/drinks, loungesetc. Emphasis on direct sale of ticket through

Internet avoiding f ee and commission paid to travel agents.

Employees working in multiple roles Unbundling of ancillary charges to make the Headline fare lower

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Low Cost Carriers in IndiaLow Cost Carriers in India

Air DeccanAir Deccan

SpiceJetSpiceJet

IndiGo AirlinesIndiGo Airlines Go AirGo Air

Jetlite (Formerly known as AirJetlite (Formerly known as Air

Sahara)Sahara)

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Airline Industry in India : Airline Industry in India :

Service Vs Price GraphService Vs Price Graph

P R IC

E

SERVIC

E

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Current Trends :Current Trends :

Consolidations All Around

Consolidations All Around

KingfisherKingfisher--Air Deccan DealAir Deccan Deal

oo Kingfisher buys out 26 % stake for Rs.550Kingfisher buys out 26 % stake for Rs.550crore.crore.

oo They have combined Market share of 33%They have combined Market share of 33%oo They are second biggest player af ter Jet They are second biggest player af ter Jet

Sahara dealSahara deal

Jet airways and Air Sahara mergerJet airways and Air Sahara mergeroo Air Sahara name changed to JetLiteAir Sahara name changed to JetLite

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Present ScenarioPresent Scenario

Scheduled Domestic OperatorScheduled Domestic Operator 1414

No. of Aircraf t Possessed No. of Aircraf t Possessed 334334

No. of NonNo. of Non--scheduled Operatorscheduled Operator 6565

No. of Aircraf t Possessed No. of Aircraf t Possessed 201201

No. of Import Permit forNo. of Import Permit forAircraf t Granted in 2007Aircraf t Granted in 2007 7272

No. of Aircraf t Set to be No. of Aircraf t Set to be Import in Next Five YearImport in Next Five Year

496496

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Future Trends : Passenger Future Trends : Passenger

ForecastF

orecast

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Future TrendsFuture Trends

The projection for Indian Aviation forThe projection for Indian Aviation for2020 is estimated at:2020 is estimated at:

oo 400 million passengers400 million passengers

oo Including 180 million domestic Including 180 million domestic passengerspassengersoo 1,000 aircraf t in the civil aviation sector1,000 aircraf t in the civil aviation sector

Likely to follow the footholds of Likely to follow the footholds of International Low Price Carriers e.g. AirInternational Low Price Carriers e.g. Air

Arabia, Southwest Airlines etc. Arabia, Southwest Airlines etc. More emphasis will be on Arabian and More emphasis will be on Arabian and

SouthSouth--East Asian circuits.East Asian circuits.

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Future Trends : Proposed AdditionFuture Trends : Proposed Addition

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ChallengesChallenges

Constraints :

Infrastructure constraints

Shortage of airport facilities Parking bays

Air traffic control facilities

Takeoff and landing slots.

Less than 100 airports having more than one daily service.

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References/AcknowledgementsReferences/Acknowledgements Article of Mr. S Sharma, Oct 2007Article of Mr. S Sharma, Oct 2007

The Civil Aviation Act, 2000 (Draf t)The Civil Aviation Act, 2000 (Draf t)

Business News from Hindustan Times DailyBusiness News from Hindustan Times Daily

Report on µStudy of the Indian Aviation Industry¶ onReport on µStudy of the Indian Aviation Industry¶ onwww.foolonahill.comwww.foolonahill.com

www.findarticles.comwww.findarticles.com

Wikipedia, the free content encyclopediaWikipedia, the free content encyclopedia

Economic servey, 2008Economic servey, 2008

All site of domestic aviation PlayerAll site of domestic aviation Player

Remote Access Aviation SystemRemote Access Aviation System ±± RAASRAAS

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Thank YouThank You

1152492_634492641819221250

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