INDIAN AVIATION INDUSTRY

TOPICS
TECHNOLOGY ANALYSIS PRODUCT ANALYSIS RAW MATERIAL ENERGY TRANSPORTATION IT BIO TECH PROCESS ANALYSIS

REGULATORY ENVIRONMENT TECHNOLOGICAL SCENARIOS

PRESENT SCENARIO
The Indian aviation industry is the one of the largest industries in the world. Privately owned full service airline and low cost carriers. Private airlines accounts for 75% of total domestic aviation market. Two entities in the aviation sector controlled by the Government in  Indian Airlines, primarily serving domestic sectors  Air India, primarily serving the international sectors

GROWTH DRIVERS
Entry of low cost carriers. Rising middle class population is fueling the growth. The increase in affordability in of Air travel. Domestic Tourism and international business travel has also pulled up the growth in aviation sector. Increasing disposable income.

GROWTH DRIVERS
Increasing mob in Indian railways leads to move people towards airlines for transportation. Increasing competition.

PREDICTOR VARIABLES

GROWTH VARIABLE
Fastest growing aviation industry Over 450 airports and 1091 aircrafts. AAI manages all airport . Entry of the low cost carrier. Several new aircrafts were bought within a short span of time . The industry grew above 40%, almost half of the growth was primarily stimulated due to low fares.

Macro Fundamentals that will drive Aviation Growth

Market Size

India has a population of 1.1 billion with an estimated middle class of 300 million.

Demographics

50% of the population is <25 years old. Therefore, the size of the economically active segment will continue to grow for a number of decades (unlike the developed countries and even China). Average GDP growth of 6% p.a. sustained since 1991 and accelerating thereon. The first quarter of FY06/07 registered 9% growth, and the last Budget has established a target of 10%. India has an increasingly open economy, with strong growth in international trade, healthy foreign exchange reserves and increasing foreign direct investment.

Economic Growth

Trade & Investment

OPERATIONAL AIRLINES
KINGFISHER AIRLINES KINGFISHER RED AIR INDIA INDIGO SPICEJET GO AIR DECAN AIRLINES DECCAN 360 BLUE DART AVIATION JET KONNECT JET AIRWAYS JET LITE TAJ AIR CLUB ONE AIR INVISION AIR JAGSON AIR

MARKET SHARE OF MAJOR PLAYERS

% MARKET SHARE IN THE MONTH OF AUGUST 2011
GoAir 5%

SpiceJet 13%

Jet Airways 26%

Jet Airways Kingfisher IndiGo NACIL SpiceJet

NACIL 18% Kingfisher 19% IndiGo 19%

GoAir