Airline industry in india

byNikhil EP

History of Aviation Industry in India• The origin of Indian civil aviation industry can

be traced back to 1912, when the first air flight between Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial Airways.

• It was an extension of London-Karachi flight of the Imperial Airways.

• In 1932, JRD Tata founded Tata Airline, the first Indian airline.

• At the time of independence, nine air transport companies were carrying both air cargo and passengers.

• These were Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition Orient Airways shifted to Pakistan.

Aviation sector in IndiaAviation Industry in India is one of the fastest

growing aviation industries in the world.

India is the 9th largest aviation market in the world

With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation.

Traffic growth in the India market exceeded the growth rate seen in China (9.7%) and Brazil (7.5%) in Sep-2011, and was considerably more robust than the global growth rate of 3.8%. 

India's domestic aviation market expansion has been the strongest in the world, tripling in the past five years, according to IATA

The government's open sky policy has led to many overseas players entering the market and the industry has been growing both in terms of players and number of aircrafts.

From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. Private airlines account for around 75% share of the domestic aviation market.

Earlier air travel was a privilege. only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people.

Players in Aviation Industry The players in aviation industry can be

categorized in three groups: Public players : Indian Airlines

Private players : Jet Airways, Kingfisher Airlines, Spice Jet, Air Deccan

Start up players : Omega Air, Magic Air, Premier Star Air & MDLR Airlines.

Major Players

Air DeccanAir India ExpressAir IndiaAir SaharaGo AirIndian AirlinesIndiGoJet AirwaysJet LiteSpice JetParamount AirwaysKingfisher

Role of aviation industry in India GDPAir traffic has grown enormously and expected

to have a growth which would be above 25% in the travel segment

In the present scenario around 12 domestic airlines and above 60 international airlines are operating in India

With the growth in the economy and stability of the country India has become one of the preferred locations for the trade and commerce activities

Cntd..

The growth of airlines traffic in Aviation Industry in India is almost four times above international average

Aviation Industry in India have placed the biggest order for aircrafts globally

Aviation Industry in India holds around 69% of the total share of the airlines traffic in the region of South Asia

Current Scenario Oil prices increasing. Prices of air tickets are increasing. Merges and acquisitions. Sacking of employees. Cancellation of flights on some routes. Decline in rate of people traveling by air. Many airlines are facing losses.

ChallengesInfrastructure constraints Shortage of airport facilities Parking bays Air traffic control facilities Takeoff and landing slots. Less than 100 airports having more

than one daily service.