Aviation includes all non-scheduled civil flying, both private and commercial. General aviation may include business flights, air charter, private aviation, flight training, ballooning, parachuting, gliding, hang gliding, aerial photography, foot-launched powered hang gliders, air ambulance, crop dusting, charter flights, traffic reporting, police air patrols and forest fire fighting.

1. Trends in Aviation Industry

2. Contents :
Introduction.
 Trends in Aviation.
 Innovative Ideas promoting the industry.
 Trends in Indian Aviation Industry.
 Critical Financial Issues & Strategies.
 Why airlines fails to achieve Success ?
 How airline can achieve success ?

3. The aviation industry encapsulates the
development, operation and management of aircrafts. While the
common perception about the sector is that it‟s only about pilots and
airhostesses, there are numerous other, equally significant job
options that the industry cannot function without; from in-flight
trainers and aircraft maintenance engineers to baggage handlers and
reservations agents.
Research indicates the global aviation industry is poised to
grow at a healthy 5.6% CAGR (compound average growth rate)
over the next 15 years. While major conventional mature markets
such as the US and Europe will witness a significant fall in market
share from 61% to 52%, emerging markets, such as India, China
and the Middle East, offer a great growth potential.

4. Trends in Aviation Industry
Compared to other transport modes like road transport, trains or
shipping the traffic increase in civil aviation is a relatively recent
phenomenon. Passenger air transport became relevant around 1940.
Following aspects contribute to the trends in aviation industry.
 The trend in passenger numbers and total flights
 The trend in engine development and efficiency
 The trend in understanding impacts of aviation on atmosphere
and climate

5. 1.The trend in passenger numbers and total flights
Civil aviation for widespread transport of citizens did
not really start before the second world war. Before, aircrafts
were mainly constructed for military purposes. After the
war, many qualified pilots were available and still many planes
suitable for transport of passengers as “left over” from the war
as well. This caused a first boom in civil aviation, at the
beginning in particular in the United States. Soon, it became a
common trend in all industrialized countries in the world.

6. The following pictures give an impression, how
quickly passenger planes with high capacity are
developed in the world.

7. The Boeing 247 was a civil
aircraft produced in the United
States since 1933. Besides from
3 staff members it could
transport 10 passengers.
The Junkers 90 was available in
Germany since 1938. Designed
for 40 passenger it was one of
the largest passenger aircrafts
before the war but never
produced in large numbers.

8. The Douglas C54 Skymaster /
DC-4 has been produced since
1942 in the United States for 30-
40 passengers. It became
together with the Douglas DC-3
famous as “Rosinenbomber”
during the blockade of Berlin
from June 1948 to May 1949.
10 years later: The Douglas
DC 7 (produced 1952 – 1958)
was the biggest propeller
aircraft with space for 100
passengers and the last major
piston engine powered
plane, coming just a few years
before the advent of jet
aircraft.

9. 2. The trend in engine development and efficiency
Most passenger aircrafts use nowadays jet engines
(turbojets and turbofans) which dominate civil aviation since the
1960s. While airlines have been for some decades under the
authority of the respective states, latest with the international
liberation of the markets the consumption of fuel became an
important factor in the competition.
Therefore, not only environmental but also economic
interests drive the permanent improvements of engine
efficiency. However, these improvements never compensated
for the increase in passenger kilometers flown and therefore fuel
demand and carbon dioxide emissions.

10. 3. The trend in understanding impacts of aviation
on atmosphere and climate
In the late 1960s aircraft engineers thought about the
construction of a supersonic aircraft fleet. At this time the
understanding of atmospheric processes was sufficiently advanced in
order to see risks in such plans. Scientists discussed the potential
impact on the ozone layer, which raised strong concerns, before a
wider development of the technology was seriously approached.
Since the supersonic fleet was never developed, also for
technical and economic reasons, attention of science shifted in the
1990 more to ozone development in the upper troposphere
(here, ozone is a strong greenhouse gas) und greenhouse effects in
general. Besides from easier to estimate direct carbon dioxide
emissions, in particular the impacts of condensations trail and
potentially developing cirrus clouds have been of special interest.

11.  In - flight beverages go functional

12. Virgin America Passengers can register
for the US elections
at 35,000ft
 Aeroflot teams up with nutrition
experts to develop in-flight „sports menu‟
for the 2012 London Olympics

13.  American Airlines embarks on ambitious upgrade program
-- Fleet Modernization
-- Long haul fleet upgrades

14.  Tesco trials virtual grocery shopping
at Gatwick Airport
 Airlines „crew-source‟ new on board
duty free products

15. Austrian gives passangers the option to purchase a premium
meal at the airport

16.  Consolidation in aviation sector
 The number of passengers traveling by air is on the rise
 For the traveling public, price is paramount in choosing
a carrier
 Capacity is growing without much constraint
 Cost structures will continue to handicap legacy carriers
as they compete with newer airlines, as well as with
overseas carriers
 Oil prices are not expected to fall
 Outsourcing

17. Critical Financial Issues & Challanges
• Cost Controls • World Economy
• Access to Capital Markets • Irrational Pricing and
• Insurance Predatory Action by Major
• Foreign Currency Exposure Carriers
• Fleet Replacement and Price • Over-Capacity
of New Aircraft • Cash Flow and Ability to
• Industry Losses and Self-Finance
Inconsistent Profitability • Debt/Equity Ratios
• Cost of Funds and Low • Taxation
Yield on Surplus Funds • Ownership Issues
• Productivity and Labor
Reform

18. Why airlines fails to achieve success ?
•Overexpansion
• Undercapitalization
•Lack of flexibility
•“Wrong” leadership
•“Wrong” money
•Unable to obtain sustainable, competitive advantage
•Failure to demonstrate revenue growth and
profitability

19. How airline can achieve success ?
• Solid “airline” business plan
• Flexibility
• Diversity
• Leadership
• Steady and moderate growth strategies
• Effective cost cutting strategies
• Fleet commonality
• Reasonable capital requirements
• Long-term vision

21. Presented By ……
Ajay Joshi
Vigneshwar
Vivek
Vinay