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  INDIAN AVIATION INDUSTRY WINGS Presented By: Sheetal Kumbhare Ayush Gupta
Aviation sector…..  The sector deals with the transport of passenger and cargo from one place to another, using the aerial route. Size  : About 75 million Passengers $5.6billion   Growth   Around 15% growth in last 10 years.   Growth in 2009 : 0.7%   Vision 2020 statement predicts handling 280 million customers by 2020
From then to now………. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Players in Aviation Industry  ,[object Object],[object Object],[object Object],[object Object]
Major Players (Market Share)
Top 3 Players
Kingfisher ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MARKETING STRATEGIES ,[object Object],[object Object],[object Object]
On the promotional front, Kingfisher has signed up the latest diva of Bollywood Ms.Deepika Padukone as the Brand Ambassador
Jet Airways  ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Kingfisher vs. Jet Airways
Kingfisher  Jet Airline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Jet Airways- Marketing Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object]
Air India ,[object Object]
[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Macro Fundamentals that will drive Aviation Growth……. Market Size Demographics Economic Growth Trade & Investment India has a population of 1.1 billion with an estimated middle class of 300 million. 50% of the population is <25 years old. Therefore, the size of the economically active segment will continue to grow for a number of decades (unlike the developed countries and even China). Average GDP growth of 6% p.a. sustained since 1991 and accelerating thereon. The first quarter of FY06/07 registered 9% growth, and the last Budget has established a target of 10%. India has an increasingly open economy, with strong growth in international trade, healthy foreign exchange reserves and increasing foreign direct investment.
Rise of the middle class….. A socio-economic revolution is underway as the consumer profile becomes increasingly middle class……
Change in travel preferences will continue to drive growth…… CAPA Indian Domestic Market Forecast: Business vs Leisure/VFR
SWOT analysis & Comparison ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Importance of CRM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
 
 
 
New government initiatives to develop India’s potential as the world’s fastest growing aviation market…… Changing regulation policies Increased privatization of airports  The government is planning to raise the foreign direct investment (FDI) limit to 74% for non-scheduled airline operations, helicopter services and regional airlines using small aircraft. The current FDI ceiling for airline services is 49%.  In 1997 the Government of India published a policy document to open up existing airports to domestic and foreign private investors in order to meet the significant costs involved in developing India’s airports to keep pace with the growth in air traffic. In Sep 2003, Govt leased out Delhi and Mumbai airports to the private sector as part of its extensive modernisation and growth plan for the sector.
CONTINUED……… Growing Infrastructure developments  Mumbai Airport - Planned investment of US$1.6 billion by 2020, of which US$1.3 bn will take place by 2014    Delhi Airport - Planned investment of US$764 million by 2014 and USD$.7 billion by 2020 Kolkata Airport - Modernisation will be led by the Airports Authority of India. Total project cost is estimated at US$360 million.   Hyderabad & Bengaluru Airports - Total investment of US$1.1 billion dollars. Both airports have commenced commercial operations in April 2008 .
Growing Infrastructure developments  35Non-Metro Airports -  Development of 35 non-metro airports will proceed at an estimated cost of US $ 1.2 billion. City side development will require a further US$350 million, with the modernisation process to be completed by 2009.   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
EXPECTATIONS OF THE INDUSTRY FROM GOVERNMENT… The industry’s wish list includes : The Indian aviation sector’s double-digit growth has been the fastest in the world. But the airlines have not made much out of the profitless growth, with most players stepped deep in red.  Lowering taxes on aviation turbine fuel (ATF) which is 35% of the operating cost of airlines. As per international standards, it is 10-15% of the operating cost. Extending exemption of withdrawal tax on lease rentals of aircraft Relaxing fringe benefit tax (FBT)  Removing service taxes on first and business-class travellers. Reduction in landing charges – In India low cost carriers (LCC) pay the same as full service airlines. As per international standards, it is lower for LCCs.
The growth opportunity in Indian Aviation….. . ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ Centre for Asia Pacific Aviation projects domestic traffic in India will grow 25-30% p.a., and international by 15% p.a. until 2010”
OUTLOOK INDIA 2020…… ,[object Object],[object Object],[object Object],[object Object],[object Object]
Job in Aviation The boom in the aviation sector is likely to generate nearly 2.5 lakh jobs by the year 2014. The study says that the civil aviation sector is also set to become a Rs 55,000-crore industry by the same time. The industry is expected to add 130 airliners to its current fleet of 270 airliners, which would, in turn, increase manpower demand

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Indian Aviation Industry

  • 1. INDIAN AVIATION INDUSTRY WINGS Presented By: Sheetal Kumbhare Ayush Gupta
  • 2. Aviation sector…..  The sector deals with the transport of passenger and cargo from one place to another, using the aerial route. Size : About 75 million Passengers $5.6billion Growth  Around 15% growth in last 10 years.  Growth in 2009 : 0.7%  Vision 2020 statement predicts handling 280 million customers by 2020
  • 3.
  • 4.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. On the promotional front, Kingfisher has signed up the latest diva of Bollywood Ms.Deepika Padukone as the Brand Ambassador
  • 12.
  • 13.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.  
  • 22. Macro Fundamentals that will drive Aviation Growth……. Market Size Demographics Economic Growth Trade & Investment India has a population of 1.1 billion with an estimated middle class of 300 million. 50% of the population is <25 years old. Therefore, the size of the economically active segment will continue to grow for a number of decades (unlike the developed countries and even China). Average GDP growth of 6% p.a. sustained since 1991 and accelerating thereon. The first quarter of FY06/07 registered 9% growth, and the last Budget has established a target of 10%. India has an increasingly open economy, with strong growth in international trade, healthy foreign exchange reserves and increasing foreign direct investment.
  • 23. Rise of the middle class….. A socio-economic revolution is underway as the consumer profile becomes increasingly middle class……
  • 24. Change in travel preferences will continue to drive growth…… CAPA Indian Domestic Market Forecast: Business vs Leisure/VFR
  • 25.
  • 26.
  • 27.
  • 28.  
  • 29.  
  • 30.  
  • 31.  
  • 32. New government initiatives to develop India’s potential as the world’s fastest growing aviation market…… Changing regulation policies Increased privatization of airports The government is planning to raise the foreign direct investment (FDI) limit to 74% for non-scheduled airline operations, helicopter services and regional airlines using small aircraft. The current FDI ceiling for airline services is 49%. In 1997 the Government of India published a policy document to open up existing airports to domestic and foreign private investors in order to meet the significant costs involved in developing India’s airports to keep pace with the growth in air traffic. In Sep 2003, Govt leased out Delhi and Mumbai airports to the private sector as part of its extensive modernisation and growth plan for the sector.
  • 33. CONTINUED……… Growing Infrastructure developments Mumbai Airport - Planned investment of US$1.6 billion by 2020, of which US$1.3 bn will take place by 2014   Delhi Airport - Planned investment of US$764 million by 2014 and USD$.7 billion by 2020 Kolkata Airport - Modernisation will be led by the Airports Authority of India. Total project cost is estimated at US$360 million.   Hyderabad & Bengaluru Airports - Total investment of US$1.1 billion dollars. Both airports have commenced commercial operations in April 2008 .
  • 34.
  • 35. EXPECTATIONS OF THE INDUSTRY FROM GOVERNMENT… The industry’s wish list includes : The Indian aviation sector’s double-digit growth has been the fastest in the world. But the airlines have not made much out of the profitless growth, with most players stepped deep in red. Lowering taxes on aviation turbine fuel (ATF) which is 35% of the operating cost of airlines. As per international standards, it is 10-15% of the operating cost. Extending exemption of withdrawal tax on lease rentals of aircraft Relaxing fringe benefit tax (FBT) Removing service taxes on first and business-class travellers. Reduction in landing charges – In India low cost carriers (LCC) pay the same as full service airlines. As per international standards, it is lower for LCCs.
  • 36.
  • 37.
  • 38. Job in Aviation The boom in the aviation sector is likely to generate nearly 2.5 lakh jobs by the year 2014. The study says that the civil aviation sector is also set to become a Rs 55,000-crore industry by the same time. The industry is expected to add 130 airliners to its current fleet of 270 airliners, which would, in turn, increase manpower demand