Report Details:
|
Price: |
| Report Code |
: |
BREP036 |
For delivery in electronic format: Rs. 2000;
For delivery through courier (within India): Rs. 2000 + Shipping & Handling Charges extra
ThemesBusiness Reports |
| Report Length |
: |
34 Pages |
| Period |
: |
2003 - 2006 |
| Organization |
: |
Indian, Jet
Airways, Air Sahara, Deccan Aviation Pvt. Ltd.,
Kingfisher Airlines |
| Pub Date |
: |
2007 |
| Teaching Note |
: |
Not Available |
| Countries
|
: |
India |
| Industry |
: |
Aviation |
Executive Summary
|
India is one of the
fastest growing aviation markets in the world. With the liberalization
of the Indian aviation sector, the industry had witnessed a
transformation with the entry of the privately owned full service
airlines and low cost carriers. As of May 2006, private carriers
accounted for around 75% share of the domestic aviation market. The
sector has also seen a significant increase in number of domestic air
travel passengers. Some of the factors that have resulted in higher
demand for air transport in India include the growing middle class and
its purchasing power, low airfares offered by low cost carriers, the
growth of the tourism industry in India, increasing outbound travel from
India, and the overall economic growth of India.
|
|
In addition to these factors, the emphasis on
modernization of non-metro airports, fleet expansion by
airlines, service expansion by state owned carriers, development
of the maintenance, repair and overhaul (MRO) industry in India,
opening up of new international routes by the Indian government,
establishment of new airports and renovation and restructuring
of the existing airports have added to the growth of the
industry.
However, in mid-2006, many airline operators announced large
losses. Analysts opined that a combination of factors such as
high aviation turbine fuel (ATF) prices, rising labor costs and
shortage of skilled labor, rapid fleet expansion, and intense
price competition among the players were responsible for the
losses in this sector. The problem was also compounded by new
players entering the industry even before the existing players
could stabilize their operations. It was estimated that the
industry as a whole could face losses of over Rs. 22 billion in
2006-07. Some experts expect the industry to consolidate in the
near future. The government also was keen to restrict the losses
in this sector by closer scrutiny of the business plans of new
entrants, conducting quarterly financial audits, etc.
Keywords
India Aviation Industry, Ministry of Civil Aviation , Air
Traffic Growth, Jet Airways, Indian Airlines, Low Cost Carriers, Kingfisher
Airlines, Airport Infrastructure, Inland Air Travel Tax, Price Wars Competition,
Government Policy, Air Deccan, Tourism Travel, Aviation Turbine Fuel,
Liberalization, Fleet Expansion
A Report on Aviation Industry in India
- Next Page>>
|
|
