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AVIATION SECTOR IN INDIA

INTRODUCTION
Aviation Industry in India is one of the fastest growing aviation industries in the world From being primarily a government-owned industry, now dominated by privately owned full service airlines Private airlines account for around 75% share of the domestic aviation market. In 1932, JRD Tata founded Tata Airline, the first Indian airline

The first commercial flight in India was made on February 18, 1911.

CLASSIFICATION OF AVIATION SECTOR


1. Scheduled air transport service: Domestic airlines International airlines

2. Non-scheduled air transport service Air cargo services: It is an air transportation of cargo and mail Air Traffic: The Airport Authority of India (AAI) manages total 122 Airports in the country.

PROCEDURE FOR STARTING SCHEDULED/NON-SCHEDULED AIR TRANSPORT SERVICES


The three-stage clearance procedure laid down for starting Air Transport Services is as under: Issue of NOC for Scheduled/ Non-Scheduled services Import permission for aircraft Issue of permit for Scheduled/Non-Scheduled air services

REGULATIONS FOR STARTING INTERNATIONAL FLIGHTS


Permission granted by the Directorate General of Civil Aviation Eligibility criteria: A valid permit for operation of scheduled air transport services Mandatory five years of domestic operations to become eligible for overseas operations. Companies should have fleet of at least 20 aircraft.

AIRLINES IN INDIA
Kingfisher airlines oKingfisher Red Go Air Jet Airways oJet Lite oJet Konnect Air India Indian Airlines Spice Jet Paramount MDLR

Listed airlines
The rate of the shares of these airlines as on 13th august are: Kingfisher airlines Jet airways Spice jet Rs. 53 Rs. 681 Rs. 64

COMPARISON
Market share

Growth in market share

Domestic passenger load

MERGERS AND ALLIANCES


Air India merges with Indian airlines Air India merged with Indian Airlines. A new company called the National Aviation Company of India Limited (NACIL) was established. Jet-Kingfisher alliance Bring together the two largest players in the market, with overlapping networks. Key elements of alliance. Other benefits for airlines and fliers. Probe by CCI.

FACTORS AFFECTING CONSUMER PERCEPTION

Price most important factor followed by service provided and flight schedules. Indian Airlines has been rated high on most parameters while Jet Airways, although rated low on price, is rated highest in most other factors. Kingfisher is the best service provider among all the airlines with a good cabin crew.

REASONS FOR BOOM IN AVIATION INDUSTRY

Foreign equity allowed Low entry barriers Attraction of foreign shores Rising income levels and demographic profile Untapped potential of India's tourism Glamour of the airlines

PROBLEMS FACED BY THE AVIATION SECTOR


Fallen victim to the slowdown fever. The growth in the domestic aviation sector has dipped sharply. From a record 32% plus growth last calendar year ,it has now fallen to 11.5% Seat factor of almost all domestic carriers has declined.

The market share of Indian, jet airways and jet lite increased to 14.4% , 23.2% and 7.4% in February from 13.9%, 22.7% and 6.8% respectively in January Growth has moderated airfare in terms of increased fuel surcharge has increased and impacted the overall growth of the sector. Fuel surcharge has increased by Rs 700 to Rs1650.

GROWTH IN AVIATION SECTOR


Domestic passenger segment 12% per annum. Anticipated growth for International passenger segment is 7% while the growth for International Cargo is likely to grow at a healthy rate of 12%.

Growth Factor
India to be significant player in the global civil aviation business Upgrade airports across India for Greenfield airports, foreign equity up to 100 per cent is allowed through automatic approvals By 2020, Indian airports are expected to handle more than 100 million passengers

CONTRIBUTION TO ECONOMIC GROWTH OF INDIA


Enhanced the efficiency and reduce costs for productive business activities Eased the transport bottlenecks Reduced the airfares considerably to enable the middle income families and students to save on time by traveling on air Attracted lot of investments in the country with consequential positive impact on income generation.

Very sharp and large increase in employment in the airlines sector The airlines industry growth has also an expansionary positive impact on the growth of both domestic tourism and foreign tourism in India. The courteous behavior imparted to airlines staff has improved the quality of behavior among the people in general.

CONCLUSION
After doing this project we have come to the conclusion that: Has potential but has to overcome hurdles Some airlines are making the best of it On the stock market the performance of airlines dismal only Jet Airways performance is average.

Alina Baretto (3) Nihitha P. Anand (21) Rajesh P. Rao (31) Akshara Shetty (42) Monika Thapar (49)

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