SYNOPSIS

ON
“The Indian Aviation Industry ”

SUBMITTED TO: PREPARED BY:

Dr Anupama Sharma NEETI GAUR

(LECTURER MSI) B.B.A(TTM),3RD SEMESTER

ENROLLMENT:03814905009

MAHARAJA SURAJMAL INSTITUTE

(AFFLIATED TO GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY)
C-4, Janak Puri, Delhi
Delhi- 110058
 CONTENTS

Executive Summary

 Introduction
 Industry Analysis
 Factors Affecting Demand for Air Travel
 Factors Affecting Aviation Services in India
 Challenges Facing the Indian Aviation Sector
 Recent Developments in the Indian Aviation Sector
 Leading Airlines in India
 Regulatory Environment
 Outlook
Executive Summary

The Aviation industry in India encompasses a wide range of services

related to air transport such as passenger and cargo airlines,
unscheduled service operators --- private jets and helicopters, airport
management, and support services like Maintenance, Repairs and
Overhaul (MRO), ground handling, in-flight catering, and training.

The Aviation sector has reaped massive benefit from the entry of private
carriers, especially from those of the low fare ones. The growth of the
airlines sector has caused a sharp upturn in demand for allied services
including MRO, ground handling, and catering services. The booming
aviation industry, along with its tertiary services, has wreaked a major
talent crunch, boosting opportunities for training service providers. The
ever-expanding Indian economy and increased demand for trade has
pushed the need for air cargo services to a new high. Increasing
number of entrants in the sector has forced airports to expand their
cargo handling capacities. 

The aviation sector is still a small part of the travel and transportation
services sector in India. 2006-07 posted annual passenger traffic of
about 96 million, as compared to nearly 6 billion passengers carried by
the railways. The industry has already bumped into several challenges;
inadequate infrastructure being the most crucial. The airlines suffered
losses of around USD 500 million in 2006-07 and the situation is
expected to deteriorate in 2007-08. The high cost of operations, intense
competition, and unsustainably low fares have contributed to these
losses. While initiatives have been taken to remove bottlenecks to
growth, a need for further investments in capacity is felt more than ever.
A recent spate of mergers, however, has come to some relief.

The decelerating profit margin does not entail a slump in revenue

generation. It is the increasing costs that have thrown the aviation
industry into the present plight. India’s aviation sector stands up to the
crisis and races against its fastest growing global competitors.
Improved affordability and connectivity add to the expected
improvement in both passengers and cargo traffic. Large public and
private investments in air travel infrastructure, supported by
government initiatives, are expected to pour in.
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t
h Aviation Industry in India
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u The report provides a snapshot of the Indian Aviation
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i Industry and the dynamics that drive the sector. It covers
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g the size and segments of the market, the existing industry
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scenario, and major trends in the sector. It will also seek to
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highlight the key challenges that are faced by the industry. 
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n The competitive landscape provides an overview of the
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e major participants in the sector including the interplay
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among full service and low cost carriers, the changing
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market share scenario, as well as emerging airport
y operators. The report also provides a brief snapshot of the
a carriers and airport operators. 
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The study further covers the industry regulations, some of
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the key drivers for the sector and an overview of the outlook
u for the industry going forward including government
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l initiatives that are likely to play a role in shaping the future
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e of the industry.
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