Upload
vidhi-bansal
View
223
Download
0
Embed Size (px)
Citation preview
8/6/2019 IT Ppt- Growth in Aviation Industry
1/12
Presented by:
Geetika Jain (10609149)
Vidhi Bansal (10609184) Ankit Jain (10609 )
Samarth Goyal (10609 )
Abhishek Singh Tomar(10609131)
8/6/2019 IT Ppt- Growth in Aviation Industry
2/12
Background on Indian Aviation
Industryy Civil aviation in India is now entering a new phase of
development after two decades during which thesector has witnessed both stagnation andunprecedented growth.
y The industry has experienced some of the naturalgrowing pains of a sunrise sector, but numerouslessons have been learned and are being acted upon.
y Despite the recent growth, less than 2% of Indianstravel by air in any given year, highlighting that wehave barely arrived at the threshold of the growthpotential of Indian aviation
8/6/2019 IT Ppt- Growth in Aviation Industry
3/12
History of Domestic Aviation
1) Pre-1993
y Aviation was traditionally viewed as an elite activity, and one in whichsocialist governments could not be seen to allocate resources.
y The two government airlines Air India (long haul international) andIndian Airlines (domestic and shorthaul international) were the onlyIndian carriers.
y Both carriers operated with relatively old aircraft and inefficient workpractices, from airports which were functional at best.
y There was no focus on developing traffic and the market grew atuninspiring single digit rates.
8/6/2019 IT Ppt- Growth in Aviation Industry
4/12
1993-1998
y The first steps in domestic aviation deregulation weretaken allowing private airline entry, first as air taxis andthen as scheduled operators.
y However, the government was still focused on protecting
the state-owned carriers, and a slew of under-capitalisedand underprepared start-ups entered and then mostlyexited the market.
y Only Jet Airways and Air Sahara survived beyond theinitial couple of years.
8/6/2019 IT Ppt- Growth in Aviation Industry
5/12
1998-2006
y Domestic open skies policy which saw market entry byseveral carriers.
y The arrival of the low cost airline model in India withthe launch of Air Deccan, and subsequently SpiceJet,IndiGo and Go Air.
y Announcement of the airport modernisation plan,including the privatisation of Delhi and Mumbai,upgradation of 35 non-metros and encouragement ofGreenfield development.
8/6/2019 IT Ppt- Growth in Aviation Industry
6/12
2006-2010yAfter 12 consecutive months of year-onyear declines in
domestic traffic, July 2009 saw a return to positive
territory, which has continued since then.y This is partly due to the impact of a lower base
resulting from last years decline.
y Discussions with the industry indicate a discernible
increase in demand as business and consumerconfidence increases.
8/6/2019 IT Ppt- Growth in Aviation Industry
7/12
India Monthly Domestic Passenger
Numbers Last 12 Months
8/6/2019 IT Ppt- Growth in Aviation Industry
8/12
AIRLINESy In 2003 there were just 4 carriers
Air India, Indian Airlines, JetAirways and Air Sahara - alloperating full service models.
y
Private carriers in those days werelimited to operating domestic routesonly.
y Today, there are effectively 7 airlinesoperating 11 different brands.Air India + Air India ExpressJet Airways + Jet Konnect + JetLite
Kingfisher Airlines + KingfisherRedIndiGoSpiceJetGo AirParamount
8/6/2019 IT Ppt- Growth in Aviation Industry
9/12
Domestic Market Share of Airlines
and Growth in Domestic Market.y On the domestic front, the 3
large airline groups AirIndia, Jet Airways andKingfisher Airlines commanda 65% market share.
y An operating model whichdid not exist in the Indianmarket until 6 years ago,could account for almost 70%of domestic capacity by the
end of this fiscal.y 5 years ago, approximately
80% of air travel in India wasfor business, today that figureis less than half.
8/6/2019 IT Ppt- Growth in Aviation Industry
10/12
VISION 2020y CAPA estimates that by 2020 domestic traffic will
reach 160-180 million pax per annum and international
traffic will exceed 80 million.y There is likely to be a market for up to 1,000 general
aviation aircraft by 2020, including fleet renewal.
yA total of US$20bn investment will be required in the
airport sector over the next decade.y The airports system may be handling over 400 million
passengers per annum by 2020.
8/6/2019 IT Ppt- Growth in Aviation Industry
11/12
REFERENCESy CAPA-SITA White paper on Information Technology
in India Aviation.
ywww.capaindia.com
ywww.centerforaviation.com
ywww.airliners.net
ywww.avindia.blogspot.com
ywww.airbus.com
8/6/2019 IT Ppt- Growth in Aviation Industry
12/12