Foreign Direct Investment

Civial Aviation Development in India

Market scenario

Indias civil aviation sector is made up of just six domestic air carriers Tight oligopoly Barriers to market entry KFA and Jet Airways (JA) together carry Rs 19,053 crore of debt Kingfisher have pledged 90 per cent of their shares -

Market scenario

Challenges

Fleet and Equity Requirements Aviation sector are currently plagued by high debt Entire sector has loans worth Rs. 1,10,000crores companies are facing acute shortage of funds ATF prices are among the highest in the world

Challenges

Not be able to recover the cost of operation Route Dispersal Slot Allocation Poor infrastructure Low-cost carriers alike are engaged in fierce competition

Why FDI ?

To infuse capital Operational expertise Boost to the Maintenance Repair and Overhaul (MRO) industry Gain immensely from the experience of the other foreign airlines Generating employment in sluggish growth rate FDI brings in competition, lowers prices and accords choice to consumers

Why FDI ?

The financial health and future of India Need for building the avionics and aviation equipment capabilities of Indian industry Competence and expertise of skilled Indian manpower

Opportunities

AirAsia set to fly with Tatas Jet-Etihad deal scrutiny is good for FDI Spicejet already in talks with Gulf Airlines