2. Industry Overview
Currently India is 9th largest civil aviation market in the world
Scheduled air services available to/from 82 airports
1356 International flights utilizing 3,26,705 seats per week
Boeing predicts that India will require 1320 aircrafts valued at
US$150 billion over the next 20 years
Bilateral with 104 countries
Enhanced national and international connectivity - 72
foreign airlines are operating to/from various destinations
Expected to grow at a rate of 9-10% annually from 55.32 Million
to reach the level of 150 to 180 million passengers by 2020
As per domestic passenger volume India now ranks 4th after US,
China and Japan
14 scheduled airlines operating exclusive of cargo airlines
3. Indian Civil Aviation Industry
• Vision:
Enable people to have access to
safe, secure, sustainable, and affordable air services in
world class civil aviation
• Mission:
To create World Class infrastructural facilities
To establish Regulatory Framework in consonance with
international standards
Connect presently unserved or underserved areas
Develop skilled manpower according to the needs of the
industry
Deploy advanced technologies for the optimal growth of
the sector
5. Market Size
Domestic Air Traffic quadrupled from 13 million to 52
billion in last decade
International Traffic more than tripled to 38 million
87 foreign airlines fly to and from India and 5 Indian
airlines fly to and from 40 countries
45 million tons of cargo through 920 airlines, using
4200 airports and deploying 27000 aircrafts
Projections for traffic during the Eleventh Five Year
Plan, which shows increase in passenger traffic (i.e.
18.8%) as compared to cargo (i.e. 11.4%). The figure is
as follows:
8. Market Players
Air India – Reported a loss of 6,994 crores in FY 2010-11
Jet Airways – Reported a loss of 86 crores in FY 2010-11
Kingfisher – Reported a loss of 1027 crores in FY 2010-11
Indigo – Reported a profit of 650 crores in FY 2010-11, 18%
jump in profit over FY 2009-10
Spice Jet, GoAir and all other LCCs reported a net loss in FY
2010-11
17. Trying to keep itself afloat
All the Airlines reported an increase in revenue of around 20%
Civil Aviation Industry reported a passenger growth rate of 17.7%
All the Airlines except Indigo reported a loss for FY 2010-11
Could anybody of you answer this question?
18. Solution to the problem
Spiraling jet fuel prices and a high interest rate regime in 2011
threatened the survival of some domestic carriers," said
Amber Dubey, director, aviation for global consultancy firm
KPMG. "Our jet fuel prices are 50-60 percent higher than
global average.“
"There is need to expedite big-ticket reforms like allowing
foreign airlines to buy stake in domestic carriers and
rationalisation of federal and state levies on jet fuel," said
Dhiraj Mathur, executive director with
PricewaterhouseCoopers
21. Major policies taken in 11th Five Year Plan
Reduction of high Aviation Turbine Fuel(ATF) cost and
review of its Tax structure
Multi Modal Connectivity by building expressways to
facilitate advantage of air transportation by reducing the
total travel time
foreign equity participation up to 49% and investment by
non-resident Indians (NRIs) up to 100% in the domestic air
transport services
Promotion of Regional Airlines by the way of liberal policy
and provision of better infrastructure facilities
Development of MRO hub
Review of RDG to bring them in line with developments
Merger of AI and Indian Airlines to optimize fleet
acquisition & to leverage the asset base
22. Major policies taken in 11th Five Year Plan
100% FDI is permissible for existing airports;
FIPB approval required for FDI beyond 74%
100% FDI under automatic route is
permissible for greenfield airports
100% tax exemption for airport projects for a
period of 10 years
projected outlay for the Eleventh Plan for
MoCA is Rs 43560 crore at 2006–07 price
23. THANK YOU
AMAN KAUSHAL (11810009)
AMIT MAHAJAN (11810012)
PRIYA ADHIKARY (11810O62)
SAUMYA VERMA (11810073)
