1. AVIATION SECTOR
A.MOHAMED USMAN SHARIEF

2. Aviation
Roads
Transportation
Ports
Railways

3. AVIATION INDUSTRY
• One of the fastest growing industries in the world.
• Origin of Indian aviation industry can be traced back to the
year 1912.
• India has the private airlines as its key players
• 75% of the market share is owned by the private sector.
• Problems that the Indian aviation industry is facing and thus
immediate attention is needed.

4. AIR NETWORK IN INDIA

5. Some Facts
• In the present scenario around 12 domestic
airlines and above 60 international airlines are
operating in India
• The growth of airlines traffic in Aviation Industry
in India is almost four times above international
average
• Aviation Industry in India have placed the biggest
order for aircrafts globally
• Aviation Industry in India holds around 69% of
the total share of the airlines traffic in the region
of South Asia

6. Domestic Airlines
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Air India
GoAir Airlines
IndiGo Airlines
Jagson Airline
Jet Airways
Jet Airways Konnect
Kingfisher Airline
Paramount Airways
SpiceJet Airlines
JetLite (Air Sahara)
Kingfisher Red (Air Deccan)
MDLR Airlines

7. Players
Taking Indians To Places
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State owned domestic airlines ((earlier Tata
Airline) )
Formerly known as Indian Airlines
GoI’s plan to merge Air India and Indian into one
giant airline consisting of 130-140 aircraft
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Its hub is Chennai International
Airport.
Mainly targeting business
travellers
The airline started operations in
October 2005
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“Regular” airline offering normal
economy and business class seats.
300 flights, 43 Indian destinations
Does not own its brand. Brand
owned by Jetair Enterprises Ltd. a
separate company substantially
owned by Naresh Goyal
Began on 3 Dec 1993with two
Boeing 737-200 aircrafts as Sahara
Airlines
Initially services concentrated in
northern India
Rebranded as Air Sahara on 2
October 2000.

8. Players
Taking Indians Across India
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Low-cost airline (LCC)
Began in May 2005
Entered with Rs. 99 fares for first 99 days
“Offering low everyday spicy fares”
Aim: Compete with Indian Railways AC
sgment
fleet of 6 Boeing 737-800 with 189 seats.
India's first low-cost carrier
It was started by Captain G. R. Gopinath
Started air operations in 2003
It was known popularly as the common
man's airline
Connects 55 cities within India
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GoAir – The People’s Airline
established in June 2004
LCC promoted by The Wadia Group
GoAir FreeFares
Relatively small player as compared to
other LCCs
Initial flights in southern & western India
with the first nine A320s
Services started in May 05
Initially operates only on domestic routes
but now in overseas also.
Owned by United Beverages Group under
the leadership of Vijay Mallya

9. Growth Rate
24% annual growth

10. Market Share
Jet Airways and Jet Lite (previously
27.7%
Air Sahara)
Kingfisher Airlines and Kingfisher
Red (previously Air Deccan)
20.7%
Air India (previously Indian
Airlines)
18.6%
IndiGo
13.6%
SpiceJet
12.4%
GoAir
5.4%
Paramount Airways
1.5%
Jet Airways
IndiGo
Paramount Airways
Kingfisher Airlines
SpiceJet
Air India
GoAir

11. At Present AAI manages 128 airports which includes:
- 15 International airports
- 8 Custom airports
- 25 Civil Enclaves
- 80 Domestic airports

12. How aviation industry is effecting
India's economy?
10 years back there were just 2 airlines. Both state owned .
In the last 10years the economy has opened up. India has
experienced growth rate of 8% per year.
• The main factors which affect the Indian Economy are:1. Increased no. of domestic airlines
2. Low cost airlines
3. India's improving economy
• the other factors are:1. Increased in no. of business travellers to different
countries
2.Incresed no. of incoming tourist and business enterprises

13. Factors Influencing
Growth Rate
• Increased Inward and outward tourism
• Increased competition has driven down prices
and margins
• Additional purchasing power due to rapidly rising
real incomes amongst the middle class
• Increased business trade due to the rapidly
growing economy and free trade agreements
with neighbouring countries
• Favourable Government policies and tax reforms

14. Global v/s Indian
Scenario
• At the macro-economic level Asia Pacific growth is
impressive. India and China are growing between 8
and 10% each year.
• International passenger traffic grew 7.6% where as Asian airlines were
slower—at 6.3%
• Asian freight traffic grew by 4.2% in comparison to global growth of 3.2%
• Globally airlines lost US$6 billion in 2005 and in Asia it is a mixed picture.
Some carriers are among the most profitable. Others however are
struggling but still the best performance in the world
• India has moved from 2 state-run airlines to a vibrant industry with more
than 10 players. Indian carriers stole the show in Paris with US$12 billion
of orders
• Huge potential still to be tapped in Indian markets. Only 40 million people
travel by air—4% of the population

15. Mumbai and Delhi Airports
• Salient Features of JVCs
 Objectives
 World Class Development and Expansion
 World Class Airport Management
•Equity participation
Delhi 74 % Pvt. Consortium (GMR Group, Fraport AG, MAPL, IDF)
26 % AAI
Mumbai 74% Pvt. Consortium ( GVK, ACSA,BSD)
26% AAI
•Initial Capital
Mumbai Rs. 200 crores
Delhi Rs. 200 crores.
•Estimated Capital Investment for first 7 years
Delhi Rs. 3286 crs. (Funded as equity Rs. 551 crs, internal accrual
Rs. 70 crs. Debt Rs. 2665 crs.)
Mumbai Rs.5676 crs. (Funded as equity Rs. 626 crs. Internal
accural Rs. 804 crs. Debt Rs. 4246 crs.)

16. Greenfield airports
Hyderabad Airport
Bangalore Airport

17. Greenfield airport - Bangalore - AOD April 2008
 Greenfield airport at Devanahalli is on a Build Own Operate and Transfer
(BOOT) basis for 30 years at a revised cost of Rs. 1930 crores (earlier Rs. 1280
crores).
Equity: Karnataka State Industrial Investment Development Corporation
(KSIIDC) 26% and Siemens Germany, Unique Zurich Switzerland and - L&T
India Limited 74%.
Equity – Rs. 315 crores , State Support – Rs. 350 crores, Debt – Rs.1265 crores

18. Global v/s
Indian Scenario
• At the macro-economic level Asia Pacific growth is
impressive. India and China are growing between 8
and 10% each year.
• International passenger traffic grew 7.6% where as Asian airlines were
slower—at 6.3%
• Asian freight traffic grew by 4.2% in comparison to global growth of 3.2%
• Globally airlines lost US$6 billion in 2005 and in Asia it is a mixed picture.
Some carriers are among the most profitable. Others however are
struggling but still the best performance in the world
• India has moved from 2 state-run airlines to a vibrant industry with more
than 10 players. Indian carriers stole the show in Paris with US$12 billion
of orders
• Huge potential still to be tapped in Indian markets. Only 40 million people
travel by air—4% of the population

19. Road Ahead
• The Indian aviation sector is likely to see clear skies ahead in the years to
come.
• Passenger traffic is projected to grow at a CAGR of over 15 per cent in the
next 5 years.
• The Vision 2020 statement announced by the Ministry of Civil
Aviation, envisages creating infrastructure to handle 280 million passengers
by 2020.
• Investment opportunities of US$ 110 billion envisaged up to 2020 with
US$ 80 billion in new aircraft and US$ 30 billion in development of airport
infrastructure.
• Associated areas such as maintenance, repair and overhaul (MRO) and
training offer high investment potential. A report by Ernst & Young says the
MRO category in the aviation sector can absorb up to US$ 120 billion
worth of investments by 2020.
• Aerospace major Boeing forecasts that the Indian market will require 1,000
commercial jets in the next 20 years, which will represent over 3 per cent
of Boeing Commercial Airplanes’ forecasted market worldwide. This
makes India a US$ 100 billion market in 20 years.