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Sectoral Report :

AVIATION
Sushant Bahadur
What is the sector?

 Thesector deals with the transport


of passenger and cargo from one
place to another, using the aerial
route.

 Airports,aviation parts
manufacturers, MRO and training are
also included.
Sector Details (India)

 Size
 About 75 million passengers
 $ 5.6 billion

 Growth
 Around 15% growth in last 10 years.
 Growth in 2009 : 0.7%
 Vision 2020 statement predicts handling
280 million customers by 2020
SEGMENTS IN AVIATION
Major Players (Market
Share)
Top 3 Players
Major Cost Components

 ATF costs

 Personnel wages

 Parking and Landing tariffs

 Cost of developing airports

 Aviation parts

 Electronic Ticketing services


PEST Analysis : Aviation
in India
SWOT Analysis : Aviation in
India
Challenges facing
Aviation
Prominent Aviation
Related News
 AI-IA merge into INDIAN
 Layoffs by airlines post recession
 Private airlines permitted
international trips e.g. Jet Airways,
Kingfisher
 Air Deccan-Kingfisher tie-up
 Greenfield airports at Bangalore and
Hyderabad
 Privatized airports at Mumbai and
Delhi
M&As in the Sector

 Jet-Sahara

 Air Deccan-Kingfisher
Trends in the Sector
Employment Trends

 Recently, there have been major


layoffs in all airlines

 RichardBranson has sought


permission to start Virgin Atlantic
airways : possible employment
generation. Same with Eurocopter

 India
can become an outsourcing
hub in aerospace manufacturing,
Impact of Economic Budget
(2009-10)
 Minimalimpact due to negligible
increase in budget outlays

 All
travel/tourism sectors given low
importance.
Reforms
(both implemented and
expected)
 Major liberalization reforms in 1991

 Independent aviation regulator appointed

 Bilateral and multi-lateral agreements at


government level

 Modernization of airports

 Setting up of privatized and Greenfield


airports
Reforms (contd)

 100% FDI in existing airports

 49%in domestic airlines under


domestic route

 100% equity ownership by NRI


permitted

 100% tax exemption for Greenfield


airports
INDUSTRY OUTLOOK

 The industry is expected to grow @ 15%


CAGR over the next 5 years

 Foreign Cargo players are expanding


capacities in India

 Eurocopter, is keen to enter India into the


EMS sector

 Major players are investing in airports, like


GMR Infrastructure, ADAG etc.
REFERENCES

 http://ibef.org/

 http://www.centreforaviation.com/

 http://www.naukrihub.com/india/aviation

 http://www.livemint.com/articles/

 http://www.businessaviation.com/
THANK YOU!

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