1. Aviation Industry
Analysis Report

2. Industry Overview
•
9th largest market
•
121 million domestic & 41 million international passengers
•
More than 85 international airlines & 5 Indian carriers connect over 40
countries
• Foreign direct investment (FDI) worth US$ 456.84 million from April 2000
to July 2013, released by Department of Industrial Policy and Promotion
(DIPP)
• Indian aviation market is poised to become the third largest across the
globe by 2020
Source * www.ibef.com

3. • As per Airport Authority of India (AAI) statistics, there are 127 airports in
India which incorporates 13 international, 80 domestic, 28 civil and 7
custom airports
• India has around 1091 registered aircrafts
• Growth rate of 18% CAGR
• The sector is expected to handle 336 million domestic and 85 million
international passengers with projected investment to the tune of US$
120 billion
Source * www.ibef.com

4. Consolidated Market
• Few big players controlling the market
• Huge capital at diposal
• Oligopolistic market

5. Challenges faced by this Industry
• Rising airline turbine fuel prices
• Congestion
• High airport charges
• Emergence of LCC alternatives
• Safety and security
• Land encroachments
• Infrastructural developments

6. Why international collaborations ?
• 49% open for FDI in this industry
•
Massive potential for growth as only 1.2 million or 2 % of people use air
travel
• Emergence of new carriers to a growing middle class
• Disposable income expected to grow at 8.5% per annum CAGR
• Open sky policy and liberalization
• Emergence of low cost airlines

7. Future Prospects
• Emergence of low-cost airlines
• Modernization and setting up new airports across the country
• Encouraging private investments in airlines and airport infrastructure
• Providing international airport status to major Tier-I and Tier-II cities

8. Governments Associations
•
Airport Authority of India (AAI)
• Airport Economic Regulatory Authority of India (AERA)
• Civil Aviation Authority
• The Federation of Indian Airlines

9. Other international associations
•
International Air Transport Association (IATA)
•
International Civil Aviation Organization (ICAO)