ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT > Service Sector Management (S.S.M)

An Article on Aviation Sector in India

An Article on Aviation Sector in India

Discuss An Article on Aviation Sector in India within the Service Sector Management (S.S.M) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Aviation Revolutionised by liberalisation, the aviation sector in India has been marked by fast-paced change in the past few years. ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
An Article on Aviation Sector in India
Old
 (1 (permalink))
ross18
ross18 has much to be proud ofross18 has much to be proud ofross18 has much to be proud ofross18 has much to be proud ofross18 has much to be proud ofross18 has much to be proud ofross18 has much to be proud ofross18 has much to be proud of
 
Student of MBA at VIVEKANAND EDUCATION SOCIETYS INSTITUTE OF TECHNOLOGY
Mumbai, Maharashtra
 
Awards Showcase
Status: Offline
Posts: 2,441
Join Date: Jan 2006
Location: Mumbai, Maharashtra
Thumbs up An Article on Aviation Sector in India - August 15th, 2007

Aviation



Revolutionised by liberalisation, the aviation sector in India has been marked by fast-paced change in the past few years. From being a service that few could afford, the sector has now graduated to being a fiercely competitive industry with the presence of a number of private and public airlines and several consumer-oriented offerings.

The promise and the potential of the Indian aviation market are awesome. Over 135 aircraft have been added in the last two years alone. By 2010, India's fleet strength will stand at 500-550.


Economic Survey 2006-07 says:

The years 2004-05, 2005-06 and 2006-07 have been years of record growth in air traffic in India. During the period April-September, 2006, international and domestic passengers recorded growth of 15.8 per cent and 44.6 per cent, respectively, leading to an overall growth of 35.5 per cent. During the same period, international and domestic cargo recorded growth of 13.8 per cent and 8.7 per cent, respectively, resulting in an overall growth of 12.0 per cent.

India is the second largest aviation industry of the world

The Indian fleet, which comprised 170 aircraft in May 2005, is now almost twice that now, with 312 units. With the scheduled 2007 additions of 54-55, this number will rise to just under 370 by the end of the year. And growth is expected to continue apace: the Centre estimates that India’s fleet will reach approximately 500-550 aircraft by the end of 2010.

In the same period, the domestic market size will cross 60 million and international traffic 20 million. Aircraft manufacturer Airbus pegs India's demand at 1100 aircraft, worth US$ 105 billion, over the next 20 years. According to Civil Aviation Minister Praful Patel, the country will need 1,500 to 2,000 passenger planes in 10 years, up from 260 now.

India continues to show steady year on year growth, with a 7 per cent increase in the number of flights into and out of India (an additional 835 flights and more than 200,000 seats a month). The number of flights has virtually doubled from 6,800 in May 2001 to 13,200 in May 2007.

In fact, India is in third place in the Top 10 list of countries with the highest number of additional flights in May this year, behind only China and the US.

Investments, revenues, jobs: All set to take off

India's civil aviation passenger growth, at 20 per cent, is among the highest in the world. The sector is slated to cruise far ahead of other Asian giants like China or even strong economies like France and Australia. The number of passengers who will be airborne by 2020 is a whopping 400 million.

Between April and September 2006, however, amid a flurry of new entrants to the sector, domestic traffic growth accelerated to more than 45 per cent. The Centre for Asia Pacific Aviation (CAPA) predicts that domestic traffic will grow at 25 per cent to 30 per cent a year until 2010 and international traffic growth by 15 per cent, taking the overall market to more than 100 million passengers by the end of the decade. Indian carriers have 480 aircraft on order for delivery by 2012, which compares with a fleet size of 310 aircraft operating in the country today.

As pointed out by Minister of Civil Aviation, Praful Patel, presently, the number of air travelers is about 0.8 per cent of the population. By the time even 10 per cent of the population begins to fly, India will need about 5,000 aircraft.

More diverse businesses in non-metropolitan regions are creating new demand for air services. Airlines are bulking up on capacity -- 10 Indian carriers placed orders for 400 aircraft worth US$ 15 billion.

Upgrading Airport Infrastructure

By 2020, Indian airports are estimated to handle:
  • 100 million passengers
  • Including 60 million domestic passengers
  • Cargo in the range of 3.4 million tonnes per annum

Several improvements are envisaged to sustain this tremendous growth in the civil aviation sector. The Government’s airport modernisation plan proposes investments of US$ 9 billion by 2010. In January 2006, joint venture companies with 74 per cent private sector participation won contracts to upgrade New Delhi and Mumbai airports. The Airports Authority of India has got the contract to upgrade Kolkata airport and the Government is also planning to upgrade the Chennai airport.

The Government plans to develop around 300 unused airstrips across India - a move that has raised projections for jets required for regional connectivity. Boeing and Airbus, along with Embraer (Brazil), Bombardier (Canada), Sukhoi (Russia), ATR (France) and BAE System (UK) are keen to tap the emerging regional jet market in the country.

International no-frills budget carriers, especially Asian low-cost carriers (LCCs) are also making a beeline for India. Already, Iran’s Jazeera Airways and Sharjah-based Al Arabia have registered their presence here. Other airlines planning to enter the market are: Tiger Air (a joint venture between Temasek Holdings and Singapore Airlines), Thailand-based private carrier Nok Air, Indonesia’s Lion Air, United Arab Emirates’ Ras Al Khaima (RAK) Airlines, Malaysia’s Air Asia and Saudi Arabia’s Sama Airway.

Increased activity in the maintenance and repair operations (MRO) sector has attracted many foreign companies. Lufthansa has tied up with GMR Hyderabad International Airport Limited (GHIAL) to open an MRO facility for which it intends to invest US$ 23 million. Similarly, Boeing intends to invest US$ 100 million in a facility in Nagpur.

With airport infrastructure being upgraded, non-aeronautical revenues (from malls, bookshops and entertainment centres) are expected to contribute almost 50 per cent to revenue of airports.

Of late, the domestic market is witnessing a trend towards consolidation. In a bid to augment capacity and grab market share, the sector is witnessing a consolidation as well as rationalization of resources. Accordingly, Jet Airways has acquired Air Sahara, Air-India and Indian are to merge, Kingfisher Airlines has entered into a strategic relationship with Air Deccan, and Paramount Airways is talking to two airlines for a possible takeover.

Aviation Schools

With the sector expanding at a fast pace, the number of aircraft being used is on the rise and so is the need for pilots. Not surprisingly, aviation school is the latest buzzword among students as India would require 7,500-8,000 pilots and an equal number or more air cabin crew by 2010. Heavy pay packets are awaiting pilots with a commercial pilot license (CPL).

To take advantage of this situation, several pilot shops are being set up across the country:
  • Airbus has decided to set up an aviation school in Bangalore to train 1,000 pilots a year
  • Rajeev Chandrasekhar's Jupiter Aviation is looking to set up a similar venture in Bangalore or Hyderabad
  • Aviation consultant Praveen Paul has set up his own aviation school
  • Many more are in the offing including Deccan Aviation's venture with ATR, and Jet Airways and budget carrier UB Group planning to set up training centres.


Airlines on a buying spree

With such rapidly growth in the sector, manufacturers like Boeing and Airbus are filling their order books fast.

Boeing has received a US$ 1.5 billion order for 10 aircraft from Jet Airways, India's largest private airline. Airbus plans to invest more than US$ 1 billion in the Indian aviation industry in the next 10 years. Bombardier Aerospace, a Canada-based company that manufactures regional aircraft and business jets, is looking to tap the growing regional market in India for flight services. SpiceJet has ordered 10 next-generation Boeing 737-800 aircraft valued at a list price of more than US$ 700 million.

FDI Policy in Indian Aviation:

Paving the way for foreign investment in domestic airline companies, the Reserve Bank of India (RBI) has said that foreign institutional investors (FIIs) can pick up stake in these airlines beyond the sectoral FDI cap of 49 per cent through secondary market purchases.

  1. Airports
    • For greenfield airports, foreign equity up to 100 per cent is permitted through automatic approvals.
    • For existing airports, foreign equity up to 74 per cent is permitted through automatic approvals and upto 100 per cent through special permission (from FIPB).
  2. Air Transport Services
    • Foreign equity up to 49 per cent and NRI investment up to 100 per cent is permissible in the domestic air transport services through the automatic route;
    • Equity from foreign airlines is not allowed, directly or indirectly, in the domestic air transport services.
Advertisements


[B]Life is a JourneY You have to LivE,
But a DestinY You Can't AchievE.
LovE is a DestinY You want to AchievE,
But You Can't Bear The JourneY.[/B]


Things i Learnt in College

[B]
1.READ RULES CAREFULLY BEFORE POSTING.REFER FAQS.
2.USE SEARCH OPTIONS.DO NOT ASK FOR PROJECTS.
3.DO NOT POST YOU MAIL IDS.
4.CLICK ON THANKS BUTTON TO THANK A PERSON.
5.DO NOT POST REGARDING HOW INFORMATIVE/HELPFUL A THREAD WAS, RATE IT.
6.POST IN CORRECT SECTIONS.DO NOT SPAM.[/B]

Friends: (13)
Reply With Quote
The Following 2 Users Say Thank You to For This Useful Post:

Re: An Article on Aviation Sector in India
Old
 (2 (permalink))
reaper
reaper is an unknown quantity at this point
 
reaper
 
Institute: qq
Status: Offline
Posts: 14
Join Date: Jul 2007
Re: An Article on Aviation Sector in India - September 2nd, 2007

good info thanks
Friends: (0)
Reply With Quote
The Following User Says Thank You to For This Useful Post:
Re: An Article on Aviation Sector in India
Old
 (3 (permalink))
Aj Management Guru
aj_management is an unknown quantity at this point
 
aj_management
Student of BBA at Amity Global Business School
Hyderabad, Andhra Pradesh
 
Status: Offline
Posts: 19
Join Date: Jun 2009
Location: Hyderabad, Andhra Pradesh
Re: An Article on Aviation Sector in India - June 11th, 2009

good work ross.try to puk in some more info on airports etc
regards Aj
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
article, aviation, india, sector

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


» Login
Forgot Password?  New User?
  

» Ads





» Recent Threads

My struggles transformed...
Last post by Mohd. Khushroo
5 Hours Ago 01:45 PM
0 Replies
How To Choose The RIGHT...
Last post by Joel Francis
7 Hours Ago 11:43 AM
0 Replies
Choosing the Factual PR...
Last post by Joel Francis
8 Hours Ago 11:42 AM
2 Replies
NOTES ON PUBLIC RELATION ( 1 2)
Last post by Rosario Steve
8 Hours Ago 10:50 AM
10 Replies
This true story won...
Last post by Joel Francis
1 Day Ago 02:11 PM
0 Replies
Balley Price Holdings pa...
Last post by Val Berro
1 Day Ago 08:16 AM
0 Replies
Solution manual on... ( 1 2 3... Last Page)
Last post by Rishubh Satiya
1 Day Ago 05:53 AM
39 Replies
Soultion manual on... ( 1 2 3... Last Page)
Last post by Umberto Palazzo
1 Day Ago 04:21 AM
64 Replies
Solution Manual on... ( 1 2)
Last post by Santo Sammy
1 Day Ago 04:02 AM
17 Replies
Solution manual on... ( 1 2)
Last post by Jemsoo Seven
2 Days Ago 07:22 PM
14 Replies
international banking...
Last post by Aaina Khan
2 Days Ago 02:22 PM
9 Replies
Who are your five...
Last post by Justin Chouhan
2 Days Ago 01:06 PM
4 Replies
Are women dominant ( 1 2 3... Last Page)
Last post by Justin Chouhan
2 Days Ago 12:58 PM
92 Replies
World class manufacturing
Last post by Kartik Raichura
3 Days Ago 01:56 PM
1 Replies
Indian Rupee Update by...
Last post by Epic Research
3 Days Ago 11:22 AM
5 Replies

» Projects Helpline

project on privatisation
Last post by Shatrughna Bhoir
6 Days Ago 08:05 PM
topics related to 100...
Last post by Rachini Pandey
1 Week Ago 10:35 PM

» THE BIG FIGHT

No Threads to Display.
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in