Current Scenario of Indian Aviation Industry

 India completed 100 years in aviation sector on 18 February, 2011

454 airports and airstrips; 16 designated international airports

 In present scenario around 11 domestic airlines operating in India

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

The Indian Aviation Industry is one of the fastest growing aviation industries in the world

Domestic Airlines

MDLR Airlines

Spice Jet Airways

Paramount Airways

Kingfisher Airline

JetLite

Jet Airways

Jagson Airline

Indigo Airlines

Go Air Airlines

Air India

AVIATION

flying or operating a plane, it has to do with aviation. The aviation industry is the global transportation network that carries goods and passengers by air.

(If someone tells you that he's in aviationschool, that means he is learning how to fly a plane.)

Airline Industry is a system of transportation

Part of Aviation industry

Moving people and goods

Utilizing the airways

One of the only true global businesses

The aviation industry is the business sector dedicated to manufacturing and operating all types of aircraft. - (an aeroplane, helicopter, or other machine capable of flying.)

Types of Aviation

Civil AviationCivil Aircraft is a rather big group of aircraft. It refers to all non-military flights and activities in aviation.

General AviationGeneral aviation refers to all civil flights other than scheduled airline flights, both private and commercial. general aviation may include business flights, private aviation, flight training,  parachuting

Ballooning

This is a type of civil aviation that uses buoyancy to float in the air. This buoyancy is generally created by filling a large fabric envelope with hot air or gases that are lighter than the surrounding atmosphere. The less dense balloon lifts the basket tied underneath that carries people and cargo into the air.

Soaring

Soaring is a type of general aviation where the flight of a motorless aircraft involves using air currents and thermals to fly long distances.

Private Aviation

Private aviation is the part of general aviation that involves flying not for hire. In a private flight, the pilot is not paid, and the aircraft owner/operator does not receive money for the flight (other than rent from the pilot, in some cases).

Scheduled Airline Flight

An airline is a part of civil aviation that provides air transport services for passengers or freight, generally with a recognized operating certificate or license. Airlines vary from those with a single airplane carrying mail or cargo, through full-service international airlines operating many hundreds of airplanes.

Military Aviation

Military aviation is the use of aircraft and other flying machines for the purposes of conducting or enabling warfare, including national airlift (cargo) capacity to provide logistical supply to forces stationed in a theater or along a front.

OBJECTIVES

To encourage individuals to choose aviation-related careers To assist students, faculty, and institutions in defining and

achieving their aviation education aspirations Societal Relevance and a Community Resource

(Increase opportunities for undergraduate and graduate student academic success and prepare the student for entry into the aviation )

Porters 5 forces Model Porter’s 5 forces framework identifies the strength of all five market levers (Suppliers, Customers, Competition Rivalry, Substitutes and New Entrants) of an industry. Understanding each of these market forces allows businesses to make wise decisions which can maximize return in any industry.

Threat of New Entrants is low

The airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The main concern for this is the cost of entry. The airline industry is one of the most expensive industries, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and manpower. Another major barrier to entry is the brand name of existing airlines and it is really difficult to lure customers out of their existing brands.

Power of Suppliers is low.

The airline suppliers are mainly aircraft manufacturers, airports, fuel companies and there isn't a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically is rare.

Power of Buyers is medium to and increasing

The cost involved with switching airplanes is decreasing as customers can access internet easily to compare and buy air tickets online nowadays. With emerge of budget airlines like Jetstar, Spicejet, Indigo and AirDeccan, more customers including travel agents and individuals prefer to take the budget airlines rather than full service airlines

Availability of Substitutes is low

For international airlines, the threat is quite low as airline is the only way for travelling to long destinations. eg- From India to USA. For national airlines, the threat might be a little higher than international carriers as passengers can use ground travel like train or bus as substitute. Time, money, personal preference is also needed to be considered.

Competitive Rivalry is high

Airline industry is completely saturated. There are more service providers than needed in both local as well as international markets. The various airlines are competing for the same customers. The airlines are continually competing against each other in terms of prices, technology, in-flight entertainment, customer services etc. Highly competitive industries generally earn low returns because the cost of competition is very high.