India is one of the fastest growing aviation markets in the world. After liberalization of the Indian aviation sector, the industry had witnessed entry of the privately owned full service airlines and low cost carriers. However, the growth in the sector has slowed with the rise in fuel prices and decline in passenger traffic. The increasing losses of domestic carriers are expected to lead to some consolidation and regulatory changes in coming years.
The report is a databank providing financial and operational data of each domestic airline in India. It begins with an overview of the regulatory changes in Indian aviation space highlighting changes in FDI policy, taxes and duties and airport infrastructure. The report provides a snapshot of leading domestic carriers in India including their financial performance, revenue breakdown and domestic operations. The reports also provide historical traffic and operational statistics of each carrier. Traffic statistics includes parameters such as fleet size, number of flights operated per day, average passenger load factor etc. Operational performance includes parameters such as number of employees per aircraft, operating revenue per employee, operating expense per employee etc.
2. Backdrop of Regulatory Change
Changes in FDI Policy
• x % FDI under automatic route is permissible for Greenfield airports
• For existing airports, FDI up to x % is permitted through automatic approval and upto y %
through special permission
• FDI level in domestic airlines under the automatic route increased from x% to y%, but not by
foreign airline companies
E
• FDI limit in the air cargo segment increased from x % to y %
PL
M
Airport Infrastructure Changes in Taxes and Duties
A
• Mumbai and Delhi airports have been privatized and • x % tax exemption for airport projects for a period of
S
are being upgraded 10 years
• Greenfield airports are operational at Bangalore and • Foreign Travel Tax (FTT) and x% inland air travel tax
Hyderabad (IATT) charged on Basic airfare abolished by the
• Greenfield airport planned at Navi Mumbai using government wef from January 9,2004 to reduce fares
public-private partnership (PPP) mode • With effect January 9,2004, the excise duty on ATF
• X other city airports proposed to be upgraded reduced from x to y %
• Over the next 5 years AAI has planned a massive • Landing charges for aircrafts with less than 80 seats
investment of INR X bn abolished and landing charges for larger aircraft
x% of will be for three metro airports in Kolkata, Chennai reduced by x% with effect from February 11,2004
and Trivandrum, and the rest will go into upgrading other
non-metro airports and modernizing the existing
aeronautical facilities
Source: Ibef “Aviation” April 2009; “A short history of Indian Aviation preface to a long and fruitful future? “ June 2007 ; Domain b.com “Aviation Outlook India 2008:
Massive growth gradient for India, says CAPA chief news “ June 2008; Indiabusiness.nic.in “Civil Aviation”
AIRLINE DATABANK – INDIA.PPT 2
6. Company Snapshot : Jet Airways
Corporate Information Financial Performance
Headquarters Mumbai Revenue Revenue Profit
INR mn INR mn
Founded May 5, 1993 Profit
120,000 10,000
Employees -- v
Parent Tail Winds Limited
E
80,000 u 5,000
z
Subsidiaries
Key People
Jetlite and Jet Cargo
PL
• Naresh Goyal (Founder and Chairman)
• Carl Saldanha (CFO)
40,000 x
y
0 0
• Wolfgang Prock-Schauer ( CEO)
Domestic Operations (2008)
Fleet Size --
SAM 0
2004
Revenue breakdown*
2005 2006 2007 2008
-5,000
Destinations -- A B C D E
Others
y% z% y% z% Y% z% y% z% y% z%
Hubs • Primary : Mumbai Cargo
• Secondary: Delhi, Kolkata, Chennai, Pune, Passenger
Bangalore x% x% x% x% x%
Service class Business & Economy
Market Share Passenger: x% (as of Jan-Feb 2009)
Cargo: y% (as of Jan-Feb 2009) 2004 2005 2006 2007 2008
* Revenue from Scheduled Services only.
Note: Air Sahara has been acquired by Jet Airways in April 2007 and re-branded as Jet Lite
Source: DGCA
AIRLINE DATABANK – INDIA.PPT 6
7. Operational Performance
Traffic Statistics 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Fleet Size -- -- -- -- -- -- --
No. of flights operated per day -- -- -- -- -- -- --
No. of passengers carried per day -- -- -- -- -- -- --
Average Passenger Load Factor -- -- -- -- -- -- --
Cargo carried per day (Tonnes)
Average Weight Load Factor
PLE --
--
--
--
--
--
--
--
--
--
--
--
--
--
Operational Performance
No. of Employees per aircraft
Operating Revenue per Employee ( INR mn)
SAM 2001-02
--
--
2002-03
--
--
2003-04
--
--
2004-05
--
--
2005-06
--
--
2006-07
--
--
2007-08
--
--
Operating Expenses per Employee ( INR mn) -- -- -- -- -- -- --
Operating Revenue per Passenger carried (INR) -- -- -- -- -- -- --
Operating Expenses per Passenger carried (INR) -- -- -- -- -- -- --
Operating Revenue per RPKM (INR) -- -- -- -- -- -- --
Operating Expenses per RPKM ( INR) -- -- -- -- -- -- --
Definitions:
1. Avg. Passenger Load Factor: Percentage of available seats that are filled with paying passengers
2. Avg. Weight Load Factor :Tonne-kilometres performed expressed as a percentage of tonne-kilometres available
3. RPKM (Revenue Passenger Kilometres): Measure of sales volume of passenger traffic
AIRLINE DATABANK – INDIA.PPT 7
8. Thank you for the attention
The Airlines Databank report is a part of Research on India’s Aviation Industry Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Gaurav Kumar
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