�ݺ�ߣ

Submitted by : Shrikant Gupta
FATP Nov 19th Batch
Submitted To: RVM FInishing School & Consultancy www.rvmfinishingschool.com

AGENDA
 Introduction.
 Industry Evolution.
 Major players.
 Factors affecting to industry.
 SWOT analysis.
 Future prospects.

Submitted To: RVM FInishing School &
Consultancy www.rvmfinishingschool.com

INTRODUCTION
 Aviation sector contributes INR 330 billion (0.5%) to
Indian GDP.
 It creates 1.7 million jobs in India, and it acts as a
catalyst for tourism Industry and creates 7.1 million
more jobs.
 Aviation sector pays over INR 87.5 billion in Tax.

Consultancy www.rvmfinishingschool.com Source-DGCA government of india

INDUSTRY EVOLUTION
Year Major milestones

1912 First airline route started by Indian state air service in collaboration
with Imperial airways of UK.
1912 Country’s first air mail service started by Tata Airlines, which later
renamed as Air India.
1953 Nine airline existed Including Indian airline and Air India.

1953 Nationalization of all private airlines through air corporation act.

1986 Private players are permitted to operate as a taxi operator.

1997 4 out of 6 operators shut down with capital loss of approx INR 10
billion. Jet and Sahara airline survive.

INDUSTRY EVOLUTION

Year Major milestones
2001 Aviation turbine fuel (ATF) price decontrolled.

2007 Industry consolidates, Jet acquired Sahara & Kingfisher acquired Air
Deccan.
2012 Government allows direct ATF imports,

2012 Government allowed FDI up to 49%.


Market share of scheduled domestic airlines
Go air, 7.6 Kingfisher, 3.5

IndiGo
IndiGo, 27.2 Jet airway+ jet lite
Spicejet, 18.5 Air india
Spicejet
Jet airway+ jet Go air
Air india , 19.3
lite, 23.8 Kingfisher

Source-DGCA government of india

FACTORS AFFECTING AVIATION INDUSTRY
 Weather.
 ATF prices.
 Manpower.
 Foreign Exchange rate.
 Government policies.


ATF price trend
Delhi, Rs/K liters
price
80000
70000
60000
50000
40000
30000
price
20000
10000
0

Source.-Indian oil corporation

ATF Tax structure
Particulars Tax rates

Excise duty 8%

Average sales tax levied by state 23-24%

Margin of oil marketing companies 15-18%

Source- ICRA

Exchange rate fluctuation
INR/USD
56
55
54
53
52
51
50
49
48 USD
47
46
45
44
Oct-10

Oct-11
Apr-10

Feb-11
Apr-11
Jun-11
Aug-11

Oct-12
Feb-10

Jun-10
Aug-10

Dec-10

Dec-11
Feb-12
Apr-12
Jun-12
Aug-12

Dec-12
SOURCE- RBI,GOVERNMENT OF INDIA

SWOT ANALYSIS
STRENGTHS WEAKNESS

•Fastest transportation service •High maintenance cost.
•Highly trained staff. • 45% of operating costs depends on ATF while
•Ticket pricing is on the hand of players. it is 33% world wide.
•No substitute for international travelers as •Labor intensive industry
efficient as airlines. •Directly dependent on some other industry
•Concentration on customer satisfaction. like tourism and corporate travelers.
•High entry barriers to new player. • High wages paid to the staff.

OPPURTUNITES THREATS

•Percentage of people travelling in airlines is •Raising fuel costs.
increasing gradually. •Exchange rate fluctuations.
•Increase in per capita income will generate •Taxes imposed by the government.
more passengers to airlines. •High competitive industry because of large
•Air lines can be used for cargo . number of players.
•Large Untapped Indian market . To: RVM FInishing School &
Submitted
•FDI’s in Indian airline industry.

FUTURE PROSPECTS & RECOMMENDATIONS

 Aviation industry in India is not profitable space as of
now and need strong reforms in government policies.
 Reduction in Tax and airport fees may help the
industry to break even.
 Entry of foreign players may increase efficiency of
industry.


THANK YOU


�ݺ�ߣ

Indian Aviation Industry

More Related Content

Indian Aviation Industry