For the complete report, get in touch with us at : info@netscribes.com The aviation market is growing steadily. The passenger air traffic segment is expected to grow at a CAGR of 15%. Growth in this sector is being propelled by increasing income levels and favourable economic conditions. The report begins with an introduction of the aviation industry. This is followed by the market overview section which discusses the market size in terms of passenger air traffic and growth as well as the market segmentation. The following section highlights the major opportunities in the market by analyzing the growth rates in traffic witnessed in the Indian metro cities and Indian non-metro cities in north, south, east and west between 2006 and 2010. An analysis of the drivers influencing the industry growth includes increasing spending power, lowering of fares, favorable economic condition, growth in tourism, investment in aircraft, Demand - Supply gap and low penetration. The key challenges identified include delays and cancellations, volatility in aviation turbine fuel prices, strict FDI regulations, high rate of service tax. The report discusses the current market trends as players expand international operation, airlines offering holiday packages, value added services are offered by the airlines. The competition section provides brief profiles of the major domestic players which incorporates their financials, business highlights and operational performance including their traffic statistics.

1. Domestic Aviation Market – India
Domestic Aviation Market India
July 2011

2. Executive Summary
Indian aviation market ranks Xth among the aviation markets across the globe
Global aviation industry is poised to grow at a healthy a% CAGR over the next P years
Market
Indian airline industry has grown by ~r% in the last six and a half years
Indian airline industry has grown by r% in the last six and a half years
Drivers: Challenges:
Increasing spending power  Delays and cancellations
Lowering of fares
Lowering of fares Volatility in aviation turbine fuel
Volatility in aviation turbine fuel
Drivers & Favorable economic condition prices
Challenges Strict FDI regulations
Growth in tourism
Investment in aircraft High rate of service tax
Demand‐Supply gap and low penetration
Airlines expand international operations
Trends
Airlines offering holiday packages
Value added services are offered by the airlines
Aviation market is highly organized with the presence of domestic and international
Competition
p players
Domestic players include Player 1, Player 2, Player 3 and Player 4
DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 2

3. •Introduction
•Market Overview
•Passenger Traffic – by
g y
geographical zones
•Drivers & Challenges
g
•Trends
•Competition
DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 3

4. Aviation Industry – Market Structure
Aviation Industry
Airlines Support Services Aerospace
Design and
Passenger Cargo MRO
Manufacture
Ground
Training Catering
Handling
Focus Area of Report
Source:
DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 4

5. Indian aviation industry is witnessing steady growth and is
expected to continue to grow
Overview Market Size: Passenger Traffic
• Indian aviation market ranks ath among the aviation
markets across the globe e
600
• Global aviation industry is poised to grow at a
healthy f% CAGR over the next g years 400
• Civil airline industry has grown by ~h% since 20‐‐ +b%
200 c d
• Domestic air traffic rose from i mn in 20‐‐ to j mn in
20‐‐ d i t
20 and international air traffic grew from l mn in 20‐
ti l i t ffi f l i 20 0
‐ to m mn in 20‐‐ 20‐‐ 20‐‐ 20‐‐e
Market Segmentation – 20‐‐ Service wise segmentation (20‐‐)
Service 1
p% Service 2
m%
n% Segment 1
Segment 2
q%
Source:
DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 5

6. Non‐metro cities city 1, city 2 show strong potential while
city 4 leads in the metro city category
High Growth Areas – Airport Traffic
SAMPLE
SAMPLE
City 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Growth
Metro Cities
M Ci i
Among the
City 1 ab ac ad ae af ag%
metro cities,
city 4 leads in
City 2 ah ai aj al am an% terms of
growth
City 3 ao ap aq ar as at% between 20‐‐
and 20‐‐
City 4 au av aw ax ay az%
Non‐Metro Cities
N M t Citi
North In the North,
city 1registered
City 5 a b c d e f% a high double
digit growth
digit growth
showing strong
City 6 g h i j k l% potential
Northwest
City 7
City 7 m n o p q r%
Source:
DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 6

7. Drivers and Challenges – Summary
Drivers
Challenges
Increasing spending power
Delays and cancellations
Lowering of fares
Lowering of fares
Volatility in aviation turbine fuel prices
Favorable economic condition
Strict FDI regulations
Growth in tourism
G th i t i
High rate of service tax
Investment in aircraft
Demand ‐ S
D d Supply gap and low
l dl
penetration
DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 7

8. Trends – Summary
Airlines expand
international operation
international operation
Key
Trends
d
Value added services are Airlines offering holiday
offered by the airlines
ff d b h i li packages
k
DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 8

9. Player 1 dominates the market while the aviation fleet is
dominated by Player 2
Competition – Overview Share of Aviation Fleet – 20‐‐
• The aviation market is a highly organized sector with the
12% Player 1
presence of domestic and international airline operators
Player 2
• In the domestic segment, Player 3 along with Player 4 is
38% Player 3
the major contributor followed by Player 1 and Player 5
22% Player 4
 The international segment is dominated by Player 5 followed
by Player 6 and Player 7
• Low cost carriers also has a prominent share in the
Low cost carriers also has a prominent share in the
market
28%
Market Share of Airlines – 20‐‐ Market Share of Airlines (Q1FY‐‐)
5% Player 1 Player 2 5% Player 1 Player 2
7% 2% 21% 7% 2% 21%
Player 3 Player 4 Player 3 Player 4
Player 5 Player 6 Player 5 Player 6
13% 13%
Player 7 Player 8 Player 7 Player 8
19% 19%
15% 15%
18% 18%
Source:
DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 9

10. Company Snapshot: Company 1
Company Snapshot: Company 1
Corporate Information Business Highlights
Headquarters Location 1 • The airline is a domestic Class R carrier which
Founded 20‐‐ operates a fleet of U which is expected to rise to
Employees XX more than V by Dec 20‐‐
Parent Company A • The company plans to offer international flight
Subsidiaries
S b idi i N.A.
NA services mainly to the Region T and Region Y
services mainly to the Region T and Region Y
Key People Person 1 ‐ Post 1  It will begin daily flights from City 1 to City 5, City 6and City
7 by Sep ‐‐
 City 3 will be connected to City 7 and City 8 from Oct’ ‐‐
 It is looking to add L more planes to its current fleet of
Domestic Operations (2010)
Company E aircraft
Fleet Size N.A.
Destinations N.A.
Hubs • Primary – City 1
• Secondary – City 2 and City 3
Service Class
Service Class Class R
Class R
Source:
10

11. Company Snapshot: Company 1
Traffic Statistics 2006‐07 2007‐08 2008‐09 2009‐10
Fleet Size FS1 FS2 FS3 FS4
Passengers carried (thou no) PC1 PC2 PC3 PC4
Passenger – Kilometres performed (mn no) PK 1 PK 2 PK 3 PK 4
Average Passenger Load Factor PK 5 PK 6 PK 7 PK 8
Seat Kilometers Available (mn no) SK 1 SK2 SK3 SK4
Average Weight Load Factor
g g AW1 AW2 AW3 AW4
Operational Performance 2006‐07 2007‐08 2008‐09
No. of Employees per aircraft E1 E2 E3
Operating Revenue per Employee ( INR mn) OR 1 OR 2 OR 3
Operating Expenses per Employee ( INR mn) EE1 EE2 EE3
Operating Revenue per Passenger carried (INR.) RP1 RP2 RP3
Operating Expenses per Passenger carried ( INR)
Operating Expenses per Passenger carried ( INR) EP1 EP2 EP3
Operating Revenue per RPKM (INR) R1 R2 R3
Operating Expenses per RPKM ( INR) E1 E2 E3
SAMPLE
SAMPLE 11

12. Thank you for the attention
The Domestic Aviation Market – India report is a part of Research on India’s Aviation Industry
Series.
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DOMESTIC AVIATION MARKET IN INDIA 2011.PPT 12