IT Ppt- Growth in Aviation Industry

8/6/2019 IT Ppt- Growth in Aviation Industry

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Presented by:

Geetika Jain (10609149)

Vidhi Bansal (10609184) Ankit Jain (10609 )

Samarth Goyal (10609 )

Abhishek Singh Tomar(10609131)


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Background on Indian Aviation

Industryy Civil aviation in India is now entering a new phase of

development after two decades during which thesector has witnessed both stagnation andunprecedented growth.

y The industry has experienced some of the naturalgrowing pains of a sunrise sector, but numerouslessons have been learned and are being acted upon.

y Despite the recent growth, less than 2% of Indianstravel by air in any given year, highlighting that wehave barely arrived at the threshold of the growthpotential of Indian aviation


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History of Domestic Aviation

1) Pre-1993

y Aviation was traditionally viewed as an elite activity, and one in whichsocialist governments could not be seen to allocate resources.

y The two government airlines Air India (long haul international) andIndian Airlines (domestic and shorthaul international) were the onlyIndian carriers.

y Both carriers operated with relatively old aircraft and inefficient workpractices, from airports which were functional at best.

y There was no focus on developing traffic and the market grew atuninspiring single digit rates.


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1993-1998

y The first steps in domestic aviation deregulation weretaken allowing private airline entry, first as air taxis andthen as scheduled operators.

y However, the government was still focused on protecting

the state-owned carriers, and a slew of under-capitalisedand underprepared start-ups entered and then mostlyexited the market.

y Only Jet Airways and Air Sahara survived beyond theinitial couple of years.


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1998-2006

y Domestic open skies policy which saw market entry byseveral carriers.

y The arrival of the low cost airline model in India withthe launch of Air Deccan, and subsequently SpiceJet,IndiGo and Go Air.

y Announcement of the airport modernisation plan,including the privatisation of Delhi and Mumbai,upgradation of 35 non-metros and encouragement ofGreenfield development.


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2006-2010yAfter 12 consecutive months of year-onyear declines in

domestic traffic, July 2009 saw a return to positive

territory, which has continued since then.y This is partly due to the impact of a lower base

resulting from last years decline.

y Discussions with the industry indicate a discernible

increase in demand as business and consumerconfidence increases.


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India Monthly Domestic Passenger

Numbers Last 12 Months


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AIRLINESy In 2003 there were just 4 carriers

Air India, Indian Airlines, JetAirways and Air Sahara - alloperating full service models.

y

Private carriers in those days werelimited to operating domestic routesonly.

y Today, there are effectively 7 airlinesoperating 11 different brands.Air India + Air India ExpressJet Airways + Jet Konnect + JetLite

Kingfisher Airlines + KingfisherRedIndiGoSpiceJetGo AirParamount


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Domestic Market Share of Airlines

and Growth in Domestic Market.y On the domestic front, the 3

large airline groups AirIndia, Jet Airways andKingfisher Airlines commanda 65% market share.

y An operating model whichdid not exist in the Indianmarket until 6 years ago,could account for almost 70%of domestic capacity by the

end of this fiscal.y 5 years ago, approximately

80% of air travel in India wasfor business, today that figureis less than half.


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VISION 2020y CAPA estimates that by 2020 domestic traffic will

reach 160-180 million pax per annum and international

traffic will exceed 80 million.y There is likely to be a market for up to 1,000 general

aviation aircraft by 2020, including fleet renewal.

yA total of US$20bn investment will be required in the

airport sector over the next decade.y The airports system may be handling over 400 million

passengers per annum by 2020.


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REFERENCESy CAPA-SITA White paper on Information Technology

in India Aviation.

ywww.capaindia.com

ywww.centerforaviation.com

ywww.airliners.net

ywww.avindia.blogspot.com

ywww.airbus.com


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IT Ppt- Growth in Aviation Industry