AIRLINES:

BELTS TIGHTENED, NOWHERE TO FLY

Presented By:

Ankit Agarwal (01)

Disha Dahiya(06)
Piyush Deora(07)
Madan Parmar (31)
Vinay Pingle (32)
Kamal Purohit (34)
 1953  The Monopoly Era
 1986  Air Taxi Operators
 1994  Opening up of the Aviation Sector
 2003  Emergence of a new Indian Airline

Industry
 Indian Aviation Industry to grow at 20-35% per
year.
 100 million passengers by 2020.
 India’s air traffic expected to rise by 5 million
annually.
 Indian carriers fleet size to reach 236
(domestic) and 428 (international) by 2019.
 Air Cargo to grow at 11.4% p.a. Till the year
2011-12.
 Ground Handling business to grow at 15%
CAGR.
 200 aircrafts in operation, average 12 on
ground due to pilot shortages...
 Indian Aviation Industry accounted for 2% of
global traffic but 17% of global losses in
2008.
 $8 billion cumulative debt of the top 3
airlines of India.
 The total air passenger traffic in April 2009
has shown a YoY decrease of 10.7%
 Formation of Federation of Indian Airlines
(FIA), pilots wanting to form “Labour Unions”
 Indian Airlines reluctant to accept their order of
400 planes made in 2006.
 The stocks prices of airline industries are on a
downward spiral.
 Low cost airlines looking to sell stake, cut jobs
and have put all expansion plans on hold.
 Kingfisher has reported its 10th straight quarterly
loss for April-June 2009 worth $48 million.
 Director of a prominent airline calling his pilots
“Terrorists”.
 Selected countries’ GDP per capita^ and propensity to travel* by air

*Flights per capita (‘000), Aug-2009 ^ GDP at purchasing power parity

(PPP), per capita: 2008
 Oil Price – ATF price
 Infrastructure constraints
 Government Policies
 Poor scheduling of flights
 Low Cost Carriers (LCC)
 Barriers to Entry
 Growth of Indian Railways
 Regionalization.
 High Operational Cost.
 Shortage of skilled man power.
Is there still hope…????
Questions...