3. Different eras through which the industry
has evolved
A)Pre Nationalization
First Indian Airway
was TATA Airlines,
division of TATA Sons
Ltd
4. B) Post Nationalization and Pre liberalization
Government of India changed TATA Airlines to Air India.
two major airlines operating in India, both owned and
controlled by the Government of India were –
Air India
Indian Airlines.
A third government-owned airline Vayudoot,
5. C) Liberalization
•The liberalization in civil aviation industry began in
1986
•with the introduction of Air Taxi system to boost
development of tourism.
6. D) Post Liberalization and Privatization
After the Liberalization process, as a
government of India opened the sky, a
number of private players including
Jet Airways,
Air Sahara,
Modiluft,
Damania Airways,
NEPC airlines and
East West Airlines
commenced domestic operations.
7. E) Entry of Low Cost Carriers (2003)
•A low-cost carrier or low-cost airline
•is an airline that offers generally low fares in exchange for eliminating many
traditional passenger services.
•India's first low-cost airline, Air Deccan started service on August
25, 2003.
•Stiff competition from SpiceJet, GoAir , IndiGo and Paramount Airways
11. • elevated fuel prices over the last three quarters
coupled with intense competition
• unfavorable foreign exchange environment has
again deteriorated the financial performance of
airlines.
• there are two key challenges:
▫ aviation economics is currently not favorable in
India resulting in weak financial performance of
airlines and
▫ Internationally, too airlines are going through
period of stress which could possibly dissuade
their investment plans in newer markets
15. Indian Carriers: The FDI proposal, if
approved, would certainly be an important
milestone in the aviation sector and may provide
much-needed relief to the domestic aviation
industry reeling under the pressure of mounting
losses and rising debt burden
Foreign Carriers: It will not just provide entry
into one of the fastest growing aviation market
globally but also an opportunity to establish India
as their hub for connections between US/Europe
and South-East Asian countries
16.
17.
18. the Government on its part has recently initiated a series of measures
including
(a) proposal to allow foreign carriers to make strategic investments (up to
49% stake) in Indian Carriers
(b) proposal to allow airlines to directly import ATF
(c) lifting the freeze on international expansions of private airlines and
(d) financial assistance to the national carrier.
However, these steps alone may not be adequate to address the
fundamental problems affecting the industry.
