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AVIATION INDUSTRY

September 12, 2013

Presented by Section C Group 1

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INDUSTRY OVERVIEW
Evolution of the Indian Aviation Industry

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INDUSTRY OVERVIEW
Total Domestic Available Seat Km, Revenue Passenger Km, Passenger Load Factor
100.0 80.0 60.0 64.6 66.9 62.6 70.2 80 64.8 63.1 49.9 60

Total ASKM (Bn Km) 40 20 0 Total RPKM (Bn Km) PLF(%)

40.0
20.0 0.0

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Total International Available Seat Km, Revenue Passenger Km, Passenger Load Factor
80 60 40 40 20 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 20 0 100 68.3 65.9 72.4 75.4 75.9 81.5 80

66.8

60

Total ASKM (Bn Km) Total RPKM (Bn Km) PLF(%)

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INDUSTRY OVERVIEW
Total Domestic Passenger Growth
70.0 60.0 50.0 40.0 5.00 24.01 17.92 14.84 17.95 13.10 30.00 25.00 20.00 15.00 10.00 5.00 0.00 -5.00 10.0 -11.31 0.0 -7.46 -10.00 -15.00 Total Passengers (Mn) Growth Rate (%)

30.0
20.0

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2014-15 2016-2017

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INDUSTRY OVERVIEW
International Air Transport Association

The market currently has 150 million passing through its airports. By 2020 traffic at Indian airports is expected to touch 450 million, making it the thirdlargest aviation market in the world.

Centre for Asia Pacific Aviation

Projected a weak outlook for the Indian aviation industry in FY14.

Indian Brand Equity Foundation

India would become the third largest aviation market by 2020, and would be wellequipped to handle 336 million domestic and 85 million international passengers.

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TECHNOLOGICAL TRENDS
Journey simplified:
Information exchange via mobile and social networking Check-in via web applications

Safe and rapid passage:

Facilitates safety and rapid passage of low risk travelers Biometric identity and document authentication of the products

Improved baggage
Radio frequency identification bag tagging

Working in Partnership
Integrating products and services end-to-end with other airline and airport systems

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MERGERS AND ACQUISITIONS

Air India and Indian Airlines

March 1, 2007 Air India and Indian Airlines merged to improve operational synergy and increase productivity.

Jet Airways and Sahara Airlines

On 20th April, 2007, Jet acquired 100% stake in Air Sahara 15 months after signing the original purchase agreement.

Kingfisher Airlines and Air Deccan

In 2007, Kingfisher Airlines acquired 26% equity stake in Air Deccan. Kingfisher later increased its stake to 46%, and took control of the management of Air Deccan.

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MAJOR AIRLINE PLAYERS

Market Share (as on March 2013)
Air India
8.1 20.4 18.08 5.82 27.4 20.2

Indigo JetLite Jet SpiceJet GoAir

SpiceJet Fleet Operates 52 aircrafts Recently introduced 4 Boeing 737NGs & 8 Bombardier Q400s Bombardier- Tier II & Tier III cities

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INDIGO

Began operations in 2006 Owned by InterGlobe Enterprises Headquarters- New Delhi, India Company Slogan- Go IndiGo Hubs- Delhi, Mumbai, Bangalore, Kolkata Connects 32 destinations in India, with close to 351 daily flights

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MARKET SHARE & FLEET

Market Share in domestic Market
25

10

20

15

Fleet 60 Aircrafts Operates Airbus A-320s Domestic & International flights

10

0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

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JET AIRWAYS
Jet Airways began as an Air Taxi Operator in 1993 Jet Lite- Subsidiary of Jet Airways Headquarters- Mumbai, India International Hub- Brussels, Belgium Acquired 100% of the share capital of Jet Privilege Private Limited Company Slogan- The Joy of Flying

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MARKET SHARE & FLEET

Air India-Domestic Market
25

12

20

15

10

Air India-Fleet Fleet size of 101 aircrafts Carrier's fleet of ATR42/72s and CRJ-700s serve regional domestic destinations Boeing 737s, 747s and 777s fly on international routes Recently added Boeing B787 Dreamliner

0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

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LISTED, UNLISTED & MARKET CAP

Listed Market-cap (Rs Cr) (as on Sep 11, 2013) Yes Yes Kingfisher Airlines Spice Jet Jagson Airlines IndiGo GoAir Air India Yes Yes No No No 1157.63 7.46 22.25 3.7 3205.58 378.48 Current Stock price (BSE) (as on Sep 11, 2013) 371.65 4.65

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Jet Airways

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LATEST FINANCIAL INDICATORS

JET AIRWAYS
Income Statement Net Sales Other Income PBDIT Net Profit Balance Sheet Total Share Capital Net Worth Total Debt Net Block Investments Net Current Assets Total Assets (In Rs Cr) Jun'13 Quarterly Mar'13 Yearly 4005.15 16852.59 59.2 550.58 155.3 1453.51 -355.38 -485.5 Mar'13 (in Rs Cr) 86.33 -342.53 8821.19 10777.04 1646.01 -3944.39 8478.66

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SPICEJET
Income Statement
Net Sales Other Income PBDIT Net Profit Balance Sheet Total Share Capital Net Worth Total Debt Net Block Investments Net Current Assets Total Assets

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(In Rs Cr) Jun'13 Quarterly Mar'13 Yearly 1704.3 5714.56 16.76 77.72 110.14 -4.67 50.56 -191.08
Mar'13 (in Rs Cr) 441.45 -147.23 855.44 850.21 0 -142.07 708.2

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KEY MANAGEMENT PERSONNEL

JET AIRWAYS Naresh Goyal, Founder & Chairman Gary Toomey, Appointee CEO Capt. Hameed Ali, CEO & COO SPICE JET Kalanidhi Maran , Chairman & MD Kavery Kalanidhi , Director

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IMPACT OF GOVT REGULATIONS

Not sufficient tax benefits and other incentives Issues with pricing and taxing of ATF Imposing new direct and indirect taxes Flexible usage of air space reduces fuel useage

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FDI AND INVESTMENT NORMS

49% foreign carriers and 100 % NRIs funding for debt-laden Indian carriers bring global best practices to India Reduction in taxes on ATF (Aviation Turbine Fuel)

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