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Aviation

For EGBT classes

PGDM (Semester 1)

1For class discussion at

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Aviation

Introduction

2

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Aviation

Te !ord "aviation" !as coined #$Frenc !riter Ga#riel %a %andelle in1&'

From te ver# "avier * derived +romte %atin !ord "avis" ("#ird")

%e,ends o+ uman -i,ts .

Pus/a0 at o+ avan in ama$an

Icarus in Gree0 m$t

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Aviation 3 4istor$

The modern age:

1'& 3 4ot air #alloon #$ Mont,ol5er

Innumera#le vain attem/ts to -$ li0e #irds

eali6ation . Birds ave di7erent constitution A#andoned te idea to /ut !in,s li0e #irds

8inese "solved te /ro#lem o+ aerialnavi,ation" usin, #alloons9 undreds o+ $ears#e+ore te 1&t centur$:

1;

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Aviation 3 4istor$

Durin, te 1;2

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Aviation

8aracteristics

C

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8aracteristics o+ Aviation sector

Duo/olistic Mar0et !it T!o aircra+t

manu+acturers 3 Boein,

Air#us

Aircra+t en,ines manu+actrures3 olls o$ce

General Electric

Pratt ? =itne$(Miniscule)

For class discussion at '

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T$/es o+ Airlines

Tere are mainl$ T= t$/es o+ Passen,er Airlines3

1. FSC3 Full Service 8arrier (AI9 ET9 istara)

2. LCC3 %o! 8ost 8arrier (Indi,o9 S/iceet9 GoAir)

(a) %o! +ares and minimum +acilities and N in*-i,t entertainment(#) 4idden car,es9 /a$ etra +or * Printin, o+ Boardin, Pass9 8ec0

in9 Meals etc

(c) /eration o+ standardi6ed +uel eHcient aircra+ts

(d) 4i, utili6ation o+ aircra+ts . uic0 turn around times

(e) Sort distances9 i, +reuenc$(+) Avoid overstaHn,

(,) 4i, seat load +actor

() /erate out o+ less #us$9 smaller9 cea/er air/orts

&

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Aviation

8ost o+ /erations

?

Pro5ta#ilit$ Factors

;

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8ost o+ /erations

ATF constitutes >@*@

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Pro5ta#ilit$ Factors inAviation

Pro5ta#ilit$ in,es on *

(a) Seat load +actor

(#) Ksa,e o+ +uel eHcient aircra+ts(c) 4i, turnaround rate

(d) ter non tic0et incomes

(e) utsourcin, o+ 0e$ servicesNote3 %88 mainl$ address to tese

+actors

11

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Aviation

Glo#al %88s

12

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Sout!est Airlines * %o! 8ost K:S: 8arrie

Started o/erations in 1;'19 4L*Dallas9 Teas9 KSA . /ioneer

in %88 =orlds lar,est lo!*cost carrier:

e/uted +or innovative advertisements

FTKNE listed it +or te 1

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$an Air * Euro/ean %o! 8ost Airline

Started o/erations in 1;&@9 4L*Du#lin9 Ireland

8Es maniacal +ocus on #ein, te lo!est cost /roducer Even encoura,ed sta7 to steal stationar$ +rom ostels ? #an0s to save costs

2@ Minutes turn around time9 to ,et maimum aircra+t utilisation

+ten o/erate +rom smaller9 less con,ested air/orts !it lo!er costs

Branded itsel+ as te Bad Bo$ o+ te Aviation Industr$ +ten use /rovocative ? Misleadin, ads tat ,et te attention at a lo! cost

Enormous car,es +or small mista0es3

O '< /er /assen,er i+ $ou +or,et to /rint $our Boardin, Pass in Advance

O 1

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Air Asia * Mala$sian %o! 8ost Airline Started o/erations in 1;;C9 4L*uala %um/ur9 Mala$sia

%ar,est %o! 8ost 8arrier in Asia (Bot in Fleet Si6e ? No: o+Passen,ers)

ecentl$ started o/erations in Sout India

Innovative Fares (FreeQ;;;Q1;;; so on) and stee/introductor$ discounts

India Partners Include Air Asia

Tata Sons

Telstra

1@

Air AsiaR >;J

Tata SonsR

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Aviation

Indian Aviation Sector

1C

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Aviation in India

%mportan&e

Service sector constitutes @'J o+ National =ealt (KSD 1:1 Trillion)

'e# segments 3

1: Ban0in, and Financial Services

2: r,ani6ed etailin,

: Education Sector

>: 4ealt 8are Sector

(. )ospita!it# Se&tor * +, of %ndia"s G$

Contriution of the air!ines usiness estimated at /S$0 + i!!ion.

C: Inde/endent Services

1'

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Indian Aviation Sector

Poised +or u,e ,ro!t due to *

1: %o!*8ost 8arriers (%88)

2: Modern air/orts ? In+ra*Structure

FDI in domestic airlines

>: IT +acilitations ? interventions

@: Gro!in, em/asis on re,ional

connectivit$C: Government initiatives

1&

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Evolution o+ Aviation in India

1;@ 3 ; Airlines includin, IA ? AI

1;@ 3 Nationali6ation o+ /rivate airlines

1;;> 3 Private airlines allo!ed to o/erate

1;;@ 3 et9 Saara9 Modilu+t9 Damania9 East=est

2

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Indian Aviation Sector

Some fa&ts3

To #ecome rdlar,est in te !orld #$2

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Indian Aviation Sector . 8urrentScenario

Indi,o as te 4i,est Mar0et Sare21

J Mar0et sares o+ Aviation /la$ers in India (B$

Passen,er TraHc)

Indi,o R (

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Pro5tQ%osses o+ IndianAirlines

%ndigo

(a) Net /ro5t at s 1' crore +or 2:

(Te sit $ear in continuit$)

(#) evenue to s 11911' crore:

Te t!o listed carriers

1.Spi&e5et * %osses s 19

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Te in,5ser Stor$

For class discussion at 2

Esta!ished in 2778

Ma$ 2

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Aviation

Airlines in India

2>

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Airlines in India

Air %ndia

(a) Founded ul$ 1;< as Tata Airlines

(#) 8ommenced

o/erations1@ cto#er 1;2

(c) evenue 3 KS2: #illion (FU 2)

(d) Net income3KS< million

(e) A+ter a lon, s/ell o+ losses recorded anet /ro5t o+ s 1>:C crore in Decem#erlast

2@

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Airlines in India

%ndigo

(a)Indias #i,,est airline

(#) ne o+ te t!o domestic carriers tat

ma0es a /ro5t9 te oter #ein, GoAir:(c)Plans to e/and a,,ressivel$

(d)Aims to raise s 92

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Airlines in India

9istara

(i) #et!een Tata Sons ? Sin,a/ore Airlines

(ii) 8ommenced o/erations in 2

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Airlines in India

AirAsia %ndia

(a) A oint venture !it Air Asia Berad oldin, >;J o+ teairline9 Tata Sons oldin,

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Airlines in India

5et Etihad

(a)A#u Da#i*#ased Etiad is te national airlines o+ teKnited Ara# Emirates

(#)/erates to over &@ destinations in over @< countries:

(c)et is a leadin, airline in India o/eratin, to over @ /er cent sta0e inNares Go$al*led et +or a#out s 29

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Aviation in India

Government Policies

;J is allo!ed in Indian Airlines

In ul$ 2;J to '>J !as reected

K/ to 1

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Aviation in India

For class discussion at 2

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Aviation in India

For class discussion at

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Aviation in India

ecent Develo/ments ?Initiatives

>

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Aviation in India

e&ent %n;estments < $e;e!opments1: Goo,le Inc: as launced -i,t searces in India: 3 ,oo,le:co:inQ-i,tsX

2:Air 8osta /lans to add & aircra+ts #$ 2 aircra+ts:

: Boein, is to set u/ an aircra+t manu+acturin, #ase in India (VMa0e in India)

>: istara as si,ned inter*line a,reements !it Sin,a/ore Airlines and Sil0Air:

@: Air =or0s India En,ineerin, as +ormed a !it Ua0sa Investment to

/rovide aviation maintenance services to international airlines and domestico/erators:

C:KS Federal Aviation Administration (FAA) as a//roved a /roduct develo/edand /roduced #$ te 5rm in India .

KT8 Aeros/ace S$stemsX9 Ben,aluru .

To indi,enousl$ /roduce and directl$ si/ an aviation /roduct to aircra+t

manu+acturers in te KS:

For class discussion at @

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Aviation in India

Go;ernment initiati;es:

Guarat ma$ ,et a second international air/ort at Dolera:

DG8A as ,iven its a//roval to Air Indias maintenance9re/air and overaul (M) unit:

GI as decided to a!ard air/orts in ol0ata9 8ennai9ai/ur and Ameda#ad on mana,ement contract #asis

GI /lans to +orm a committee to turn around and loo0 at/rivatisin, Air India:

Te Ministr$ o+ 8ivil Aviation /lans to list Air/orts Autorit$

o+ India and Pa!an 4ans %td on te stoc0 ecan,es: GI as a//roved te construction o+ 5ve #ud,et air/orts

+or re,ional connectivit$9 !or0 to start +rom FU1@:

C

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THANK YOU

For class discussion at '