AVIATION

INDUSTRY ANALYSIS

INTRODUCTION
GLOBAL AVAIATION WHICH IS CORRELATED TO WEALTH HAS INCREASEAD OVER THE YEARS WITH A RISE IN GLOBAL DEMAND. PRESENCE OF MAJOR AIRPORTS WITH HUGE TRAFFIC POTENTIALS AND SMALL CATHCHMENT AREAS PROVIDE LUCRATIVE OPPORTUNITY FOR THE GROWTH OF REGIONAL CARRIERS.

AIRCRAFT
    

AIR PASSENGER TRANSPORT AIR CARGO SERVICES AIR CHARTER SERVICES AIRCRAFT SALES & LEASE SERVICES AIRCRAFT MAINTAINENCE

HELICOPTER
    

HELICOPTER CHARTER SERVICES HELI LIFTING & RESCUE SERVICES HELICOPTER SIGHT SEEING SERVICE HELICOPTER SALES HELICOPTER MAINTAINENCE

AIR PASSENGER TRANSPORT

ALL MAJOR REGIONAL AND INTERNATIONAL AIRLINES ALL ACROSS THE GLOBE PROVIDE THE SERVICES OF AIR PASSENGER TRANSPORT SERVICES

INTERNATIONAL AIRLINES

COMPANIES

 

INDIAN PLAYERS : KINGFISHER, JET AIRWAYS & INDIAN AIRLINES. INTERNATIONAL PLAYERS : AIR FRANCE, LUFTHANSA & BRITISH AIRWAYS

AIR CARGO

COMPANIES SPECILASES IN AIR CARGO SERVICES OPERATE SOLELY ON FEW FLEETS IN TRANSPORTATION OF GOODS, DAILY MAILS, HEAVY MACHINERY , PERSONAL GOODS

COMPANIES

 

INDIAN COMPANIES : DECCAN AIRWAYS, INDIGO & SPICE JET INTERNATIONAL PLAYERS : ETHIHAD CARGO, ATLANTIC AIRWAYS, SINGAPORE CARGO

AIR CHARTER SERVICE

PRIVATE PLAYERS DOMINATE THIS SERVICE SECTOR AS AIR CHARTER IS AN EXPENSIVE AND LIMITED JOURNEY EXPERIENCE.CORPORATES AND HIGH NETWORTH INDIVIDUALS PREFER AND MAKE USE OF THIS SERVICE FOR PRIVATE PURPOSE.

COMPANIES

MAJOR PLAYERS : AIR CHARTER INTERNATIONAL , CHAPMAN FREE BORN, GLOBAL JETS.THE SERVICES IF VERY MUCH FEASIBLE IN EUROPEN, MIDDLEAST & IN THE WESTERN COUNTRIES ( AMERCIAS )

AIRCRAFT SALES & LEASE

FEW MAJOR PLAYERS DOMNINATE IN MANUFACTURING OF ALL KIND OF COMMERCIAL, MILITARY AND GENERAL PURPOSE ALL SIZES FLEETS.THERE ARE COMPANIES WHICH BUY SUCH FLEETS AND LEASES TO OPERATERS TO DIFFERENT COMPANIES FOR A PERIOD TO 2 TO 5 YEARS TIME DURATION.

COMPANIES

COMPANIES LIKE BOEING , AIRBUS, CESSNA, BOMBARDIER AEROSPACE RULE THE MARKET GLOBALLY.MAJOR AIRLINES ALL ACROSS THE GLOBE USE THE FLEETS OF THESE COMPANIES

AIRCRAFT MAINTAINENCE

THE BACKBONE OF ALL THE AIRCRAFT INDUSTRY IS THE MAINTAINENCE ON A REGULAR BASIS IN ORDER TO MAINTAIN EFFICENCY AND AVOID MISHAPHS DURING THE FLYING PERIOD.

COMPANIES

COMPANIES LIKE ROMAERO ( ROMANIA), SCANDINAVIAN AIRCRAFT MAINTAINENCE (SAM NORWAY), ST AEROSPACE ENGINEERING ( USA)TAKE ACCOUNT OF BIG COMPANIES FOR 3 TO 5 YEARS FOR AIRCRAFT PAINTING, REPAIRS & MAINTAINENCE

HELICOPTERS

HELICOPTER CHARTER SERVICE

COMPANIES PRIME BUSINESS IS TO OFFER INDIVIDUALS / CORPORATES HELICOPTERS FOR CHARTER / HIRE SERVICES FOR PARTICULAR HOURS/ MONTHS ON THE BASIS OF CLIENT REQUIREMENT.

COMPANIES

COMPANIES LIKE SWISS AIR, HELI AIR, SWIFT COPTERS LEASES THEIR HELICOPTERS TO CLIENTS FOR A PARTICULAR CONTRACT

HELICOPTER LIFT & RESCUE SERVICES

THIS COMPANIES PROVIDING THIS SERVICES SERVE GOVERNMENT OR OIL & GAS INDUSTRY.THET ENTER INTO CONTRACT OF SAVING LIFES AND LIFTING OF HEAVY MACHINERY AND SUPPRESING FOREST FIRE


COMPANIES

COMPANIES LIKE EAGLE AIR, ATLAS HELICOPTER, CABAIR MAJORLY ARE STATIONED IN OIL & GAS PLANT AND ONES INTO RESCUE SERVE LOCAL AREAS ON TIME OF EMERGENCY

HELICOPTER SIGHT SEEING & TOURISM

HELICOPTER SIGHT SEEING & TOURISM CONTRIBUTED TO A GREATER EXTEND IN AUSTRALIA, EUROPE AND AMERICAS.PLEASURE FLIGHTS ARE CHARGED ON HOURLY BASIS AND IT IS A VERY POPULAR MODE AMONGST THESE CONTINENTS

COMPANIES

COMPANIES LIKE HAWAAI HELICOPTERS,EURO AIR, LONDOM COPTERS SPECIALISES IN COUNTRY SIGHT SEEING,MOUNTAIN VIEW, FOREST TOURISM ON SHORT TRIPS TO INDIVIDUALS AND GROUPS

HELICOPTER SALES

ALL ACROSS THE GLOBE ONLY FEW PLAYERS DOMINATE THE HELICOPTER MANUFACTURING SEGMENT AND ALSO REACH TO INDIVIDUAL COUNTRIES THROGH ENORMOUS DISTRIBUTORS

HELICOPTER PIONEERS

COMPANIES

MAJOR PLAYERS LIKE EUROCOPTER, AUGUSTAWESTLAND, BELL HELICOPTERS ETC ARE PIONEERS IN COMMERCIAL & MILITARAY HELICOPTER MANUFACTURING ALL THE ACROSS THE GLOBE

HELICOPTER MAINTAINENCE

COMPANIES SPECIALISE IN TOTAL SUPPORT SYSTEM TO HELICOPTER INDUSTRY.OVERHAUL & MAINTAINENCE IS THE KEY COMPONENET IN REGULAR HELICOPTER UTILITY.THESE COMPANY ARE INTO CONTRACTS WITH MAJOR PLAYERS IN DIFFERENT REGIONS ACROSS THE GLOBE TO MAINTAIN THEIR COPTERS

COMPANIES

COMPANIES LIKE HELI-ONE , CHC HELICOPTERS, BN HELICOPTERS PROVIDE INTO END TO END COMPLETE MAINTAINENCE SUPPORT BY THEIR BRANCHES SPREAD ALL ACROSS THE GLOBE.

MARKET REVIEW

GLOBAL ARENA

MARKET SHARE
 In

many respects, commercial aviation enjoyed an exceptional year in 2009 with traffic growing worldwide at 7.4%. The region of maximum growth was the Gulf at +18%, followed by Africa and Latin America at +8%, Asia/Pacific at +7.3%, and Europe and North America at around +5.5%.

DELIVERIES & ORDERS



During 2006 and 2007, some 4,700 airplanes were ordered from Boeing and Airbus which represents a 30% increase on the size of the current fleet. Both manufacturers considered that aircraft ordered achieved a peak in 2007, and they are expecting to have substantially less orders in 2008 TO 2009 and subsequent years.

NET SHARE IN REVENUE



Despite this exceptional traffic growth, profit was inadequate. The worldwide net profit for international airlines was $5.5 billion, which represents only 1% of revenues The cost of fuel and continued pressure on yields contributed to the disappointing profit results. For 2008, IATA forecasts traffic growth to return to a more normal 5%, with net profit coming down to $5 billion. One should remember that historically, the long term growth of traffic worldwide averages 4.5 to 5% per annum.

AIRBUS & BOEING FORECAST



Both Airbus and Boeing have produced another 20-year forecast which project that the fleet of airplanes of more than 100 seats will grow from 13,500 in 2009 to 28,500 by 2026. As expected, the growth in the number of airplanes by types varies between manufacturers, the main difference being that Boeing forecasts a need for 960 Very Large Airplanes, while Airbus projects 1,700 of those. Boeing forecasts a need for 17,600 single aisle aircraft, and Airbus projects 16,500.

BACKLOG

The Boeing Company in 2009 recorded 662 net commercial airplane orders, bringing its backlog of unfilled commercial orders to more than 3,700 airplanes. The indication shows a positive incline in the industry by the backlog by major players.

REGIONAL RISE



REGIONAL AVAIATION INDUSTRY IS ON RISE.

US GOVERNMENT HAS ALSO ENCOURAGED THE FORMING OF REGIONAL AIRLINES TO PROVIDE FEEDER SERVICES FROM SMALL COMMUNITIES TO LARGER TOWNS. REGIONAL AIRLINES ENJOY HIGHER OPERATING PROFIT THAN CONVENTIONAL AIRLINES, DRIVEN BY BLOW LABOUR COST.
BUT THE RISING TREND OF JET FUEL PRICES CAN BRING MARGINS OF REGIONAL AIRLINES UNDER THREAT AND CAN HAVE A DETRMANTAL EFFECT.

NEW BUSINESS MODEL

NEW MODELS LIKE AIR TAXI,BOUTIQUE REGIONAL CATERING TO NICHE TRAVELLERS IS PICKING UP.

EMERGING MARKET


EMERGING MARKET LIKE CHINA,INDIA, MIDDLEAST POSES GREAT OPPORTUNITY FOR THE CIVIL AVAITION SECTOR, ESPECIALLY FOR REGIONAL CARRIRES. HOWEVER MARKET LIKE INDIA & MIDDLEAST ARE REGULATED MARKETS WHICH BAR ENTRY FOR FOREIGN PLAYERS. CHINESE PASSENGER TRAFFIC IS INCREASING VIGOUROUSLY,AND WILL BE THE THIRD LARGEST BEHIND THAT OF EUROPE AND US IN FUTURE

INDIA MARKET


INDIAN CIVIL AVAIATION IS POISED FOR GROWTH, WITH PREDICTED GROWTH LEVELS OF DOMESTIC & INTERNATIONAL TRAFFIC. BUT THE INDIAN REGULATION ON CIVIL AVAIATION PROHIBITS THE PARTICIPATION OF ANY FOREIGHJ AIRLINES IN DOMESTIC OPERATIONS.

MIDDLEAST MARKET


HOWEVER THE MIDDLEAST CIVIL AVAITION MARKET ARE MORE REGULATED AND CREATE DEMOTIVATING FACTOR FOR FOREIGN CARRIERS.

ASIA PACIFIC MARKET



GLOBAL AVAIATION INDUSTRY WILL SEE THE TRENDS SUCH AS, LIBERALIZATION IN ASIA PACIFIAC REGION AND INCREASED COMPETION IN DEVELOPED MARKETS

ABSENCE OF THE REGIONAL AIRLINE NETWORK NAD NO PROPER COVERAGE ARE SOME OF THE OPPORTUNITIES PRESENT. CHINESE POLICY ON CIVIL AVAITION HELPS THE FLOW OF FDI IN THE SECTOR INDCICATIN HUGE OPPORTUNITY FOR FOREIGH ENTITY.

GLOBAL MELTDOWN


US AVAIATION INUSTRY REVISED AFTER A DIP IN 2000, DRIVEN PRIMARILY BY PASSENGER FLIGHTS. MARKETS LIKE EUROPE & USA ARE GROWING SLOWER THAN THE AVERAGE WORLD RATE,CHARACTERISED BY A FALL IN THEIR GLOBAL SHARE FROM 61 % IN 2008 TO 52 % IN 2025. INTERNATIONAL AVAIATION INDUSTRY SUPPORTS THE UK AVAIATION INDUSTRY, WHICH IS NOW HAMMPERED BY RECENT TERRORISTS ATTACK. US CONSUMER TEND TO SPEND A LARGE PART OF THEIR INCOME ON HOUSING CLOSELY FOLLOWED BY TRANSORTATION AND OTHER NEEDS.

TOURISM STILL THE KING

AIR TRANSPORT HAS BEEN A MAJOR MEDIUM FOR TRAVEL, BUT INTERNATIONAL TOURISM HAS BEEN THE MAJOR DRIVER FOR GROWTH OF CIVIL AVAIATION.

CONCLUSION


In conclusion, despite some economic concerns raised by the situation in North America, some of which has spread to Europe, at least to the banking sector, It is believed that one should remain reasonably optimistic on the prospects for the growth of commercial aviation over the next timeframe. The areas of healthy growth are likely to remain the Gulf, China, Southeast Asia particularly India and Latin America. It is entirely possible that the strength of their economies may this time largely cushion them from the current U.S. economic problems.

THANK YOU