Aviation Industry in India
The report provides a snapshot of the Indian Aviation Industry and the dynamics that drive the sector. It covers the size and segments of the market, the existing industry scenario, and major trends in the sector. It will also seek to highlight the key challenges that are faced by the industry.
The competitive landscape provides an overview of the major participants in the sector including the interplay among full service and low cost carriers, the changing market share scenario, as well as emerging airport operators. The report also provides a brief snapshot of the carriers and airport operators.
The study further covers the industry regulations, some of the key drivers for the sector and an overview of the outlook for the industry going forward including government initiatives that are likely to play a role in shaping the future of the industry.
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.
Table of Content
• Overview of Aviation Industry in India
1. Market Size & Growth
2. Market Segments
• Current Scenario
• Key Challenges
• Competitive Landscape
1. Competitive Analysis
2. Major Players
• Regulation and Taxation
• Porter’s Five Forces Model
• Growth Drivers & Future Outlook
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