THE INDIAN AViation INDUSTRY

Presented By:
Akash Aggarwal
Abishek
Faraz Shahid Shivam Rawat
 “Historical Review”
• 1920: Beginning of the aviation sector
in India.
• 1929: JRD Tata, recipient of the ICAO
Edward Warner Award in 1986,
launches the first private airline in
India
• 1948: ‘Air India International Limited’,
formed as joint venture with the
Government of India holding 49%
equity.
•
“NATIONALIZATION OF AIRLINES”

• 1953: Parliament enacts the Air

Corporation Act, 1953 creating
two independent airlines;


 “Air India International Ltd” the

international carrier.
 “Indian Airlines Ltd” a largely domestic
carrier;


Ø Private airlines not allowed to function in

the domestic sector.
Ø Registered foreign international airlines
permitted to enter India.
Ø
Ø
 “I NDIA L IBERALIZES H ER
E CONOMY ”

• 1991: Liberalization of the


aviation sector.
Ø The Air Corporation Act, 1953
repealed paving the way for the
opening up of the domestic sector
and the disinvestment of the two
public sector airlines.
Ø
ØNew privately owned domestic
airlines start functioning.
“THE MAJOR
PLAYERS”
 “AIR INDIA”
S ta te o w n e d
d o m e stic A irlin e
 “INDIAN
AIRLINES”
A irlin e s Lim ite d , o n 7 D e ce m b e r
2 0 0 5 , th e a irlin e w a s re b ra n d e d
a s Indian or इंिडयन
 “INDIAN
AIRLINES”
• In February 2007, the Government
of India approved plans to merge
Indian Airlines with Air India.
• Indian Airlines carries a total of over
7.5 million passengers annually.
• Indian Airlines is presently fully
owned by the Government of
India and has total staff strength
of around 18562 employees
“INDIAN AIRLINES
NETWORK”
“KINGFISHER AIRLINES”

Services started in May 05

“KINGFISHER AIRLINES”

Initially operates only on

domestic routes.
“KINGFISHER AIRLINES”

Owned by United Beverages Group

under the leadership of Vijay
“KINGFISHER AIRLINES”

Barring such an amendment , first international

flights planned to start in 2010
 OLIGOPOLY RULE:THE INDIAN
AViation INDUSTRY


• There is Restriction on the Entry due to

the Heavy Traffic on the Limited
number Airports in India.
– 11 international
– 94 civil and
– 47 civil enclaves at defence airfields.



“ONLY A FEW PLAYERS”
 INTERDEPENDENCE OF
FIRMS
• In India Aviation Firms are
Interdependent a- -Airports are
shared.
 -Flights were clubbed in
Recession.
 -Have to compete with other
modes of Transport.
 -
ü
CARTEL IN INDIAN AVIATION
üThe code-sharing agreement
between Jet Airways and Kingfisher,
the country’s largest private
carriers
üThe Competition Commission of
India, has begun an investigation
into the agreement to check if
there is a “possible cartel- like
behaviour”.