DIVYA LIZ GEORGE

14093

MARY MONISHA

14060

DHARA B SHAH

14067

GEORGE JACOB

14095

SHANKAR R

14114

HE INDIAN AIRLINE INDUSTRYA TALE OF WINS AND

LOSSES

G5

• Indian Aviation – An Overview

• Evolution of Indian Aviation Sector

• Key Players

• Porters 5 forces analysis

• The Growth drivers

• FDI Policy

• What ails the Indian Aviation Industry?

• Indigo being the eager beaver

• Indian Aviation – Spreading its wings

• Investment Opportunities

GENDAA

NDIAN AVIATION – AN OVERVIEW

9th largest

civil aviation market

3rd largest aviation market by 2020

163 million

passengers in

2013-14

800 aircraft by 2020

FDI Over US$

569M

Capacity – 220M

Passengers

4.63M tonnes Cargo

I

CAGR 16%

EVOLUTION OF INDIAN AVIATION

1997-08 to 2002-

03

2003-04 to 2006-

072007-08 2008-09 2009-10 2010-11

2011-122012-132013-142014-15

Dormant sector – Low Competition

Competition intensifies

Deflating revenue,

inflating costs

Consolidation Phase

Era of LFC’s

PLF’s on cloud nine

Domestic passenger traffic growing

strong

Exit of Kingfisher

Operating margins suffers

Intensified competition – New

entrants

Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15

8%10%

21% 20%

25%

45%

23%21% 20%

25%23%

19%

2% 3%5%

-5%-8%

8%

15%

7%

14%17%

19% 20%

LCC v/s FSC Domestic Traffic Growth Rates

KEY PLAYERSINDIGO

JET AIR

WAY

S

38.9%

18.3

%

AIR IN

DIA

15.8

%SPICEJET

11.7%

GOAIR

8.6%NEW

EN

TRANTS

6.7%

As on 19th June 2015Source : CAPA

JetLite3.2%

AirAsia India1.3%

Vistara1.3%

Air Costa0.8%

Air Pegasus0.1%

MEDIUM HIGH

Threat of New Entrants

LOW

Power of Suppliers

Power of Buyers

Availability of substitutes

Competitive Rivalry

ORTERS 5 FORCES ANALYSIS OF THE INDUSTRYP

5 International Airports, Other Major

Projects

Emergence of LCC

In middle Income

Population

Focus on Infrastructur

e

Collaborations

HE GROWTH DRIVERST

DI POLICYF100% 74% 49%

Greenfield Airport Projects under

automatic route

Existing Airport Projects under Gov. approval

route

Helicopter Services

Maintenance and repair organizations

Existing Airport Projects under automatic route

Domestic scheduled passenger airlines under

automatic route

Ground handling under automatic route

Ground handling under Gov. approval route

Other Investments

HAT AILS INDIAN AVIATION?

The 5/20 Rule

ATF

Category 2 by FAA

W

INANCIAL PERFORMANCE FY14F

Indigo Jet Airways Air India SpiceJet GoAir Vistara

-12000

-10000

-8000

-6000

-4000

-2000

0

2000317

-3668-5000

-1003

5.44

-10660

Other cost

cutting factors

Low Avg Fleet Size, Fuel

Single Class

INDIGO

NDIGO BEING THE EAGER BEAVER

I

Marketing&

Finance

Route Planning

Single type of aircraft

NDIAN AVIATION – SPREADING ITS WINGSI

Decline in

Crude Prices

High PLF’s

DCF to replace 5/20

Increase in air

passenger

traffic

Positive

signs from

Tourism

Provisions in Union Budge

t 2014-

15

NVESTMENT OPPORTUNITIES

• 300 Business jets, 300 small air crafts, 250 helicopters expected in next 5 years

• Demand for MRO Facilities

• Greenfield Projects under PPP at Navi Mumbai & Goa

• Developing Guwahati

• USD 1.3B on non metro projects between 2013-17

• SEZ Aerotroplis Model

I

SOURCE : CRISIL RESEARCH

THANK YOU

!