Group members Remiz george Prachi wagel Divya s srinivasan

1911 first commercial flight airmails from allahabad to nani (10 km) 1932 the aviation department of tata sons ltd Established 1938 tata airlines (successor to aviation sivision of tata son ) 1946 Tata Air Lines converted into a public Company and renamed Air India Limited 1948 Air India International incorporated 1953 Nationalization of Aircraft Industry

History First commercial flight on February 18, 1911 Allahabad to Naini made by a French pilot Monseigneur Piguet covering a distance of about 10 km First air route between Karachi and Delhi1912-by Indian State Air Services and Imperial Airways-extension to LONDON KARACHI flight Airmail Service-Karachi to Madras - Indian Airline, Tata Sons collaboration No govt. support

Independence and after 8 Air transport companies Tata Airlines, Indian National Airlines, Air Service Of India, Deccan Airways, Ambika Airways, Bharat Airways, Mistry Airways, Orient Airways Air India International Company-Joint Sector-Govt. Of IndiaJune 8, 1948, Mumbai to London 2 crores, 3 Lockheed constellation aircrafts Nationalization 1953 Domestic Civil Aviation under Govt. Of IndiaRemove operational limitation Department of Civil Aviation controls sector and part of Ministry of Civil aviation and tourism

Independence and after Public Sector DGCA monitors flying, AAI maintains airports Privatization Open Sky policies Unrestricted access by any carrier into the sovereign territory of a country No written agreement specifying capacity, ports of call or schedule of services Bilateral treaties For a disciplined and regulated aviation system between the nations of the world Regularity of operations through scheduled services The basis of ownership, number of seats to be utilized, type and certification of aircraft and visiting ports of call

. Till 2007 The Indian brand of aviation flew high NRI community assisted by civil aviation services Busiest traffic point in the world Aviation players promise bright prospects to globalization Luxury, Economy and budget airlines evolve - Passenger customization All International carriers establish route 50.74 million passenger max. in 2006

. International Air Transport Association (IATA) International Industry Trade Group Of Companies, Montreal 1945-140 countries Fare calculations Regulates passenger and cargo freight Maintains database of planes, fleet, crew information, passenger documentation Airport monitoring and control

India has the private airlines as its key players 75% of the market share is owned by the private sector. India is the 9th largest aviation market in the world

Players including Jet, Air Sahara, NEPC, East West, Modiluft, etc started service 1990 Open sky policy 1994 Private Carriers permitted to operate scheduled services 2003 Entry of low-cost carriers 2007 Merger of Indian Airlines into Air India Acquisition of Air Sahara by Jet Airways 2008 Kingfisher acquired 49% stake in Deccan Aviationc4. History 1986 Private Sector Players permitted as Air taxi operators

Accelerate the integrated development, expansion and modernization of the operational, terminal and cargo facilities at the airportscRegulatory authority for civil aviation security in India Airport Authority of India (AAI) cPromote safe and efficient Air Transportation through regulation and proactive safety oversight system Bureau of Civil Aviation Security (BCAS) cResponsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing airport facilities, air traffic services and carriage of passengers and goods by air Other Attached/Autonomous Organizations: Directorate General of Civil Aviation (DGCA) c5. Regulatory Authorities Ministry of Civil Aviation

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. Entry Of Private Player 127 are ownedc. Airline Industry in India 454 airports and airstrips (includes Operational, Non Operational, Abandoned and Disused Airports) & 25.5 million domesticcScheduled domestic air services - available from 82 airports May 2007- May 2008 c16 international, 7 custom airports, 28 civil enclaves coperated by AAI & 11.4% p.a (Cargo Traffic)c15% p.a (Passenger Traffic) c20% growth highest in the world Growth Rate Projections (for next 5 yrs) c22.4 million international passengers

Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Services of IndiacIndian Airlines (serving domestic sectors) cAir India (serving the international sectors) c3

Major Players in India ` Air Deccan ` Air India Express ` Air India ` Air Sahara ` Go Air Indian Airlines ` IndiGo Jet Airways ` Jet Lite Spice ` Jet Paramount Airways ` Kingfisher

. MARKET SHARE Others Airlines Market Share Spice Jet 2% 6% Kingf isher 8% Jet Airwyas Indian Airlines Jet Lite Jet Airways Air Deccan 10% 35% Air Sahara Air Deccan Kingfisher 15% Spice Jet Others Indian Airlines 24%

As airlines complete 5 years of domestic operations, those with 20+ aircraft will get international access Access to new revenue streams Help even out the seasonality factor of domestic operations Spread the risk of downturn in a single market The opportunity for some will be a challenge for the existing international players The risk cycle of increased competition, low yields, and growth transferred to the international arena Access to new markets

The Indian aviation industry Is one of the fastest growing aviation industries in the % share of the world. India has 454 airports and airstrips; of these,16 are designated international airports. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transforamtion.priavate airline account for around 75% share of the domestic aviation market Being primarily a govt-ownwed industry ,the Indian aviation industry is now dominanated by privately owned full service airlines and low cost carriers. Current scenario of Indian aviation industry

Domestic and international traffic is up 45% and 15.1 %,respectively. Over 135 aircraft have been added in the past two year alone. Center for Asia pacific aviation (CAPA) estimates domestic traffic to grow 25-30 % annually and international traffic 15%untill 2010.

Indian Aviation has seen high growth on account of sustained Indian socio economic growth and liberalized Government initiatives Airport Infrastructure needs to improve significantly to meet the current and future demand of the Indian Aviation Sector Authorities have initiated various steps to implement modernization, reconstruction and development of airport infrastructure to implement infrastructure development plan Provides a huge opportunity for private players operating in Aerospace and allied industries Significant opportunity for foreign companies as Indian companies not technologically equipped to cater to requirements Summation

. Aviation in 2007 Best growth period for India's civil aviation sector Passengers carried by domestic airlines increased by 27.9 per cent (to 64.9 million passengers) in the first three quarters Aircraft movements also increased by 23.3 per cent during April-December 2007-08 International movement was up by 14.8 per cent and the domestic, by 25.4 per cent Overall passenger and freight traffic by 25% and 11% respectively

. Aviation in 2007 IATA projection - India to be a driving force - US$ 5.1 billion to US$ 5.6 billion Global driving force 12% worldwide business jets Forecast - Increase of private or business jets at 50% - Ernst & Young Report Air Traffic 25%, 6 discount carriers Growth forecast surpass global average till 2025 Domestic air traffic , 86.1 million passengers by 2010, up from 32.2 million passengers in 2007

. Aviation in 2007 24.62 million people flew on international routes to and from India during April January 200708 Up 16.2% last fiscal Growth at domestic 26.1%, with 72.60 million people availing aircraft services Freight Traffic, domestic and International at 8.2% and 12.6% FDI to 28 airports Operation and Maintenance FDI upon 100% for Greenfield Airports Up to 74% and 100% through special permission

Aviation in 2007 Best year for India and the Aviation Sector Employment Opportunities broadened Hospitality in aviation on the sharp rise Year of Budget airlines and private players going international Prospective tourism and services industry