TITLE PAGE

NAME OF STUDENT: SRI BALLABH RATHI

SEMESTER: 5 TH
ROLL NUMBER: 180
SUPERVISOR: ANUPAM PURKAIT
DATE OF SUBBMISSION: 16.11.2016
TITLE: THE INDIAN AVIATION INDUSTRY.

TERM PAPER TO BE SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS
OF THE GRADUATE DEGREE
BACHELOR OF BUSINESS ADMINISTRATION
J.D. BIRLA INSTITUTE
AFFIILIATED TO JADAVPUR UNIVERSITY

SIGNATURE OF THE STUDENT SIGNATURE OF

THE SUPERVISOR

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 DECLARATION
I declare the following:

The word count in my Term paper is 9288

The material contained in the term paper is the end result of my

own work.Due acknowledgement has been given in the bibliography
and references to all sources be they printed, electronic or personal.

I am aware that my term paper may be submitted to a plagiarism

detection service where it will be stored in a database and
compared against the work submitted from this institute or from
any other institute.

In the event that there is a high degree of similarity in content

detected, further investigation may lead to disciplinary action
including cancellation of my degree according to Jadavpur
University rules and regulations. I declare that ethical issues have
been considered, evaluated and appropriately addressed in this
research.

I agree to an entire electronic copy or sections of the discussion to

being placed on the e-learning portal, if deemed appropriate, to
allow future students the opportunity to see examples of the past
dissertations and to be able to print and download copies if they so
desire.

SIGNED : Sri Ballabh Rathi

DATE :16.11.2016

NAME : SRI BALLABH RATHI

ROLL NO : 180

SUPERVISOR : ANUPAM PURKAIT

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 ACKNOWLEDGEMENT
This project involved the collection and
analysis of information from a wide variety of
sources and the efforts of many people
beyond me. Thus it would not have been
possible to achieve the results reported in
this document without their help, support
and encouragement.
This project took me deep inside the topic
and helped me to understand various facts
related to the Indian aviation industry,
including the various facts and figures which
i would not have otherwise come across.
I would also like to acknowledge the help
that i received from my mentor. Resource
available from various websites, and
websites of various aviation industries
helped me to gather information on this
topic.

Sri Ballabh Rathi

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Page | 4
 ABSTRACT:
One of the fastest growing aviation industries in the world is Indian Aviation
Industry. With the liberalization of the Indian aviation sector, a rapid
revolution has undergone in Indian aviation industry. Primarily it was a
government-owned industry, but now it is dominated by privately owned full
service airlines and low cost carriers. Around 75% share of the domestic
aviation market is shared by private airlines. Earlier only few people could
afford air travel, but now it can be afforded by a large number of people as it
has become much cheaper because of stiff competition.

A wide range of services related to air transport such as passenger and cargo
airlines, unscheduled service operators --- private jets and helicopters,
airport management, and support services like Maintenance, Repairs and
Overhaul (MRO), ground handling, in-flight catering, and training are being
offered by Indian Aviation industry. Enormous benefit has reaped by the
Aviation sector from the entry of private carriers, especially from those of the
low fare ones. Still the aviation sector contributes a small part of the travel
and transportation services sector in India. In the year 2006-07 about 96
million passengers were travelled by airlines annually, while nearly 6 billion
passengers carried by the railways. In 2006-07 the airlines suffered losses of
around USD 500 million and the situation is expected to decline in 2007-08.
The reasons of these losses were high cost of operations, intense
competition, and unsustainably low fares. Due to the increasing costs
aviation industry is facing the difficulty. India's aviation sector stands up to
the crisis and races against its fastest growing global competitors.
Enhancement in affordability and connectivity add to the expected
improvement in both passengers and cargo traffic. Large public and private
investments which are supported by government initiatives in air travel
infrastructure are expected to pour in. This paper will discuss about
opportunities, issues & challenges faced by Aviation industry.

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 Contents

Title
page
.1
Declaration
.2
Acknowledgement
.3
Abstract
.4
Table of
contents
.5
Introduction
6
Literature
review
11

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Research
Methodology
.29
Data
Analysis
31
Results And
Conclusions
32
Bibliography
.33
Appendix
.34

INTRODUCTION
The various proposed research questions are:
The role of aviation industry in India

The contribution of aviation industry in Indian economy

The current situation And the future of the industry

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 The various policies and government initiatives

The challenges faced by the industry

Detailed study of the airline companies in India and comparisons between

them.

Internal and external analysis of the industry.

The various agencies involved in the aviation sector and investments made

The importance of the study:

To understand the benefits of having an efficient
aviation industry:
1) Consumer benefits for passengers and shippers
The aviation sector comprising the airlines together with the airports, air
navigation and other essential grounds services that make up the air transport
infrastructure carries over 70 million passengers1 and 1.4 million tonnes of air
freight to, from and within India. More than 130,000 scheduled international flights
depart India annually, destined for 70 airports in 50 countries. Domestically, more
than 664,000 flights make 89 million seats available to passengers annually,
destined to 73 airports2 . Among the many reasons that people and businesses use
air transport, people rely on it for holidays and visiting friends and family; while
businesses use air transport for meeting clients and for the speedy and reliable
delivery of mail and goods often over great distances. For this reason, the air
transport network has been called the Real World Wide Web 3 .

2) Aviation enhances economic performance

Improvements in connectivity contribute to the economic performance of the wider

economy through enhancing its overall level of productivity. This improvement in
productivity in firms outside the aviation sector comes through two main channels:
through the effects on domestic firms of increased access to foreign markets, and
increased foreign competition in the home market, and through the freer movement
of investment capital and workers between countries. Improved connectivity gives
Indian-based businesses greater access to foreign markets, encouraging exports,
and at the same time increases competition and choice in the home market from
foreign-based producers. In this way, improved connectivity encourages firms to
specialize in areas where they possess a comparative advantage. Where firms enjoy
a comparative advantage, international trade provides the opportunity to better
exploit economies of scale, driving down their costs and prices and thereby
benefiting domestic consumers in the process. Opening domestic markets to foreign

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competitors can also be an important driver behind reducing unit production costs,
either by forcing domestic firms to adopt best international practices in production
and management methods or by encouraging innovation.

3)Connectivity and long-term growth

A thought experiment considering the impact on trade from eliminating the air
transport network suggests the economic benefit of connectivity is substantial.
Moreover, the experience of businesses in Europe during the volcanic ash-induced
airspace closures of 2010, as just-in-time supply chains failed, provides a more
concrete illustration of how dependent modern economies are on their air transport
infrastructures.

To understand the challenges faced by Indian

aviation industry:
Airline industry is suffering from huge debt burden. The industry has a
debt of $15.83 billion
Airline industry is not able to generate profits and is suffering from
losses. The industry has lost about $10.6 billion from 2007-2014.
According to the Centre for Asia Pacific Aviation, the industry is
expected to record losses of $1.4 billion in financial year 204-15.
High airport charges: Airport charges contribute 20% for long
distance and 30% for short distance air tickets
High engineering charges for maintenance: The maintenance
repair and overhaul (MRO) charges are high, so airlines prefer to go to
Abu Dhabi, Jordan, Singapore for MRO. The increased MRO charge is
passed on to passengers.
Policy paralysis: The successive governments have failed to frame a
policy with a long-term vision for airline industry. The airline industry
has been left to fend for itself and serve the elite class in select
metros. The airline industry can be developed to utilize the trained
pool of technicians and engineers to create opportunities for
manufacturing, MRO, cargo, training and many other allied activities.
Airline industry should be viewed as a tool of economic growth and job
creation.
Low customer base: The customer base is not expanding rapidly to
enhance the operational profits
Poor regulation: The industry does not provided level playing field for
a new comer due to poor regulation. The monopoly of public sector

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 companies has now been replaced by cartel formation of private
companies. The procedures are complex and cumbersome. The DGCA
is supposed to support the development of industry, provide
supportive policy framework and look after the safety and concern of
passengers. However, DGCA works with a traditional government
servant mentality. The staff is untrained and demoralized.
Poor status of airports: The government has not allowed
competition in airports. Many international destinations have followed
policy of more than one airport. London has five, New York has four,
Hong Kong has four more international airports within 150 km radius
Financial stress may affect the safety of passengers, as airlines lower
their maintenance budgets. The audit report of DDGCA has highlighted
lack of spare parts as serious lacunae for maintenance of the aircrafts
comprising the safety of the passengers.
High price of ATF as compared to prices at international level:
ATF prices in India are highest globally and 60-70% higher than
neighboring hub like Kuala Lumpur, Bangkok, Hong Kong and
Singapore (Value added tax on ATF significantly affects the operating
profits.
Rupee depreciation affects the airline industry badly.
Complex tax structure for ATF: The pricing of ATF does not reflect
the international crude oil prices. Oil marketing companies fix the price
by adding many other charges. The public sector oil companies seem
to have made a cartel to fix the rates for airline companies, by abusing
their monopoly.

To understand the Factors contributing to the

growth of the aviation sector:
From an over-regulated and under-managed sector, the aviation industry in India
has now changed to a more open, liberal and investment-friendly sector, especially
after 2004. The civil aviation sector in India has moved into a new era of expansion.
Some major factors contributing to this are:

Higher household incomes

Strong economic growth and Supporting Government policies

Entry of low cost carriers (LCC)

Increased FDI inflows in domestic airlines and Increased tourist inflow

Surging cargo movement and Modern airports

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 Cutting edge information technology (IT) interventions

Focus on regional connectivity and Sustained business growth

To understand the Opportunities available in the

aviation industry:
Indian aviation space offers promising opportunities in the areas of

Aircraft manufacturing and infrastructure

Airport and ground support equipment

Maintenance Repair Operations (MRO) facilities

Ground handling services

Trained manpower

Air cargo and fuel hedging etc

To understand the Trends in Aviation Industry:

1. Consolidation in aviation sector: In aviation industries the rise

in the number of alliances will help in promote the growth of aviation sector
in India. Example of the Jet-Sahara merger is just the beginning. Indian
aviation industry is looking forward to more consolidations.

2. The number of passengers traveling by air is on the

rise: By 2025 passenger boarding expected to double and by the same
time aircraft operations are expected to triple, the number of passengers
traveling by air is on rise.

3. For the traveling public, price is paramount in choosing

a carrier: Airfares are fully transparent to the public and travelers are
choosing the lowest price option because of the Internet and round-the-clock
search facility. Even business travelers, who have been less price-sensitive,
are resisting fare increases. Travelers are not giving preference to brand but
the only premiums they are willing to pay for are time-of day and direct
flights.

4. Capacity is growing without much constraint: The new

aircraft have been ordered by Indian carriers for delivery in the coming
period, without clear plans to retire older planes. Significant numbers of
regional jets are also adding by them. Kingfisher Airlines has already ordered

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5 Airbus A380 aircrafts that will operate on international routes

5. Cost structures will continue to handicap legacy

carriers as they compete with newer airlines, as well as
with overseas carriers: Great threats are being posed by the low cost
carriers to legacy carriers, as a result of which they are reshuffle, their
pricing policies. Apart from this, they are also facing competition from
overseas players.

6. Oil prices are not expected to fall: Aviation Turbine Fuel (ATF)
prices have been increased by 3.5 per cent, in line with the rise in
international oil prices. Because of this there is a marginal increase in
airfares.

7. Outsourcing: Private airlines are famous to hire foreign pilots, get

expatriates or retired personnel from the Air Force or PSU airlines, in senior
management positions. Airlines are also famous to take on contract
employees such as cabin crew, ticketing and check-in agents.

To understand the Reason for Boom in Aviation

Industry:

1. Foreign equity allowed: Without any Government approval,

foreign equity up to 49 per cent and NRI (Non-Resident Indian) investment up
to 100 per cent is allowable in domestic airlines.

2. Low entry barriers: Nowadays, to launch an airline venture capital

of $10 million or less is enough. Private airlines are hiring foreign pilots, get
expatriates or retired personnel from the Air Force or PSU airlines in senior
management positions.

3. Attraction of foreign shores: Many private players like Jet and

Sahara have gone international by starting operations, first to SAARC
countries, and then to South-East Asia, the UK, and the US and many more
domestic airlines too will be entitled to fly overseas by using unutilized
bilateral entitlements to Indian carriers.

4. Rising income levels and demographic

profile: As compared to the developed country standards, India's GDP (per
capita) at $3,100 is still very low but as India is shining, at least in metro
cities and urban centers, where IT and BPO industries have made the young

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generation prosperous. Demographically, In India people in age group of 20-
50 among its 50 million strong middle class, has the highest percentage with
high earning potential. It contributes the boost in domestic air travel,
particularly from a low base of 18 million passengers.

5. Untapped potential of India's tourism: Presently India attracts

3.2 million tourists every year, while China gets 10 times the number. Due to
the open sky policy Tourist arrivals in India are expected to grow
exponentially.

6. Glamour of the airlines: An airline is as glamorous as the film-

making industry. Today Airline tycoons, like J. R. D. Tata and Howard Hughes,
Sir Richard Branson, Dr. Vijaya Mallya, have been idolized. Airlines have an
aura of glamour around them, and high net worth individuals can always toy
with the idea of owning an airline.

LITERATURE REVIEW.
A literature review involves the review of the
previous study that has been carried out in the
reference to same subject. A literature review can
help us in better understanding.

A Comparative Study Between Indian Public And

Private (Low Cost) Airlines With Respect To Their
Passenger Service by- Dipa Mitra (2010)
Examine in her study and she has given importance on healthy relationship
between customer and the Airline service provider. The Airlines Industry
today should aim not only at delivery of the service to the passengers, but
they should also focus on satisfying the passengers with the services. They
need to know the customer preferences and should bring changes according
to that. Then the customer will be satisfied. Some of the private players are
very much concerned about their passengers as well as some of them are
implementing low price strategy to attract the passengers. So in this
competitive age, the success of Airlines is very much dependent on the

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passenger service provided at all levels, after and during the journey to make
their passengers satisfied. This study focuses on the following objectives: to
identify the most important factors in passenger service both in public as
well as in private low cost airlines, to compare and contrast the services on
the basis of collected data and to suggest some adequate measures to
improve their passenger services. The significantly and positively influencing
factors related to passengers satisfaction and image of both the airlines are
identified with the help of factor analysis. This research has been done on
Indian Aviation Industry with a sample size of 104 respondents and this
whole study has covered only those customers who have been traveled by
public as well as low cost airlines. These data has been analyzed with the
help of SPSS software and statistics calculator.

A Study On Service Quality And Passenger

Satisfaction On Indian Airlines by- R.Archana
-Associate Professor, Directorate of Online &
Distance Education (DODE), Anna University of
Technology, Coimbatore, Tamil Nadu, India &
Dr.M.V.Subha-Research Scholar, School of
Management Studies, Anna University of
Technology, Coimbatore, Tamil Nadu, India. (2012)
They have studied the factors which influence on passenger satisfaction. This
study analyzed the data from passengers of three classes, economy,
business and premium. The results suggest that there are different factors of
in-flight service quality that are important according to the customer seat
class. They have identified that Cuisines provided, seat comfort, safety these
factors have an important role in customer satisfaction. The findings reveal
that these three dimensions are positively related to perceive service quality
in international air travel and of these dimensions, Cuisines provided, seat
comfort safety are the most important dimension in in-flight service quality.
They have also found that customer satisfaction depends on personal
entertainment, which is an important factor in flying decisions of passenger.

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According to their study online seat booking, call center facilities and
reservation/cancellation is highest influencing factor in flying decisions of the
passengers. The study covers a sample of 270 respondents and survey was
conduct at the Chennai international terminal of Tamil Nadu during May-June
2011.Samplingwas done by interviewing randomly selected passengers at
different time of a day. A structured questionnaire was used for collecting the
data

Customer Satisfaction With Domestic Airlines In

India- vaishal.c Mahajan and Rau. Ss (2010)-
research scholar, sathyabama university, Chennai,
India; sathyabama university, Chennai, India
The researcher extensively emphasis on the customer satisfaction is an
important tool in developing the customer satisfaction measures and
establishing business processes that link quality with customer satisfaction.
In recent years, there has been considerable managerial interest in defining,
measuring and developing customer satisfaction to meet the competitive
challenges among the industries. Airlines also are suffering from such
competition, Airlines must understand that customer satisfaction is what
guarantees the future of these companies and it is achieved by an adoption
of a comparative tool to minimize discrepancies between their services and
passengers needs. Various researches are available which clearly depict the
satisfaction among the customers. In India low cost airline industry is going
through an interesting phase of competition. Layoffs, shut downs and
industry consolidation have bettered employee morale and that shows up
the negative influence on the satisfaction level of the customers. The main
objective of the research is to identify major service determinants of airlines
and measuring customer satisfaction on these and to find out association
between customer profile and satisfaction.

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 Branding satisfaction in the airline industry: A
comparative study of Malaysia Airlines and Air
Asia- Kee Mun, Wong and Ghazali, Musa (2011)-
Faculty of Business and Accountancy, University of
Malaya, 50603 Kuala Lumpur, Malaysia.
This study is unique theoretically in exploring the dimensions of airline
services branding satisfaction. It also compares the satisfaction of one of the
worlds best full service airlines (Malaysian Airlines) and the worlds best low
cost airlines (Air Asia) The research revealed seven brand satisfaction
dimensions in the airline industry. These are tangibles, price, core service,
reputation, publicity, word-of-mouth, and employee. Brand is crucial in
differentiating the superiority of products or services over others. This is an
exploratory study examining the differences in brand satisfaction between
Malaysian Airlines (full service airlines) and Air Asia (low cost airlines) in
Malaysia They found that airline industry has undergone through a fast
moving ride for the past few years. One of the main developments in the
current aviation industry is the growing popularity of low cost airline with
high quality service. The competition between Malaysia airlines and Air
Pacific has-been cut throat as regards to price factor. Both the airlines have
different customer base and hence offers different service experience. It is
also note able that differentiate in providing higher service quality is the
main factor to increase or to attract customers towards them. It has been
noticed that customers are getting attracted towards the intangible service
where monetary value is less than the services being provided.

In-flight Meals, Passengers Level of Satisfaction

and Re-flying Intention by- Mohd Zahari, M. S,
Salleh, N. K., Kamaruddin, M. S. Y and Kutut, M. Z-
(2011)
Service quality is the essence of airline companies which makes their image
differentiate from others and keep their image in the minds of passengers.
Many airlines followed the route of higher service quality through on ground
and off ground service. Inboard meal is one of the important aspects of the

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airline operation. Nowadays it became marketing strategy. This research
depicts the reaction of customers through in flight meals to see the satisfying
level and re flying intention. Food not only sacrifices the inboard customers
but also have an effect on flying intention. Airline companies therefore
should not ignore this element but take the opportunity to create more
attractive and acceptable in-flight meals/food along with other matter as
marketing tools in attracting passengers to re-flying with them. By being
alerted to these matters, Airline Companies directly can position themselves
well and be more competitive in the fast growing airline industry. Better
understanding of the airline passengers expectations would also make the
airlines companies more sensitive and effective in operation management
techniques and improve passengers satisfaction and gain repeat
passengers.

Service Quality Perceptions of Domestic Airline

Consumers in India: An Empirical Study.
-Bhagyalakshmi Venkatesh -
PES Institute of Technology, Bengalru, Karntaka,
India and Rajendra Nargundkar-Indian Institute of
Management Indore Indore, India. (2006)
They have examined that pricing and service quality are the key variables
that decide the brand equity of each player in the airline industry. The article
suggests that measurement and management of service qualityis the key for
survival of airline companies. This research paper examines the service
quality delivered by four major airlines in India on the backdrop of stiff
competition in the airline service sector. The process traveling on a domestic
airline was divided into pre-flight, in-flight and post flight experiences. A
survey was conducted to find out the perceived service quality of frequent
fliers on each of the four airlines across a series of services performance
variables. The airline brands were positioned in a perceptual space, where
the perceived service attributes were also mapped. Clear
differencesemerged among the airlines, with two of them perceived as being
similar to eachother, and the other two differing in many aspects.

Passengers Perception of Retention Strategies

Adopted by Domestic Airlines in Coimbatore District

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 -by Mrs. V. Punitha - Assistant Professor, Dept. of
Commerce CMS College of Science and Commerce
(Autonomous) Coimbatore 641049, Tamil Nadu, India
and Dr. N. Tamilchelvi - Associate Professor and Head,
Dept. of Commerce T.S.A. Arts, Science and Tamil
College, Perur, Coimbatore 641009, Tamil Nadu, India
(2013)
Customer retention is defined as the marketing goal of preventing customers
from going to the competitor. Customer retention is the way in which
organizations focus their efforts on existing customers in an effort to
continue doing business with them. Airlines are realizing that retention
strategies are the magic bullet that helps them to build stronger and more
profitable relationships with the passengers. The study is carried out to find
out the effect of retention strategies adopted by domestic airlines in
Coimbatore district. A total of 500 respondents have been taken by applying
non-probable convenience sampling method and Multiple Regression is used
to test the hypotheses. Findings of the study reveal that the passengers
perceived that the retention strategies adopted by the domestic airlines are
effective. Satisfaction is a measure of how products and services supplied by
a company meet or surpass customer expectation. Customer satisfaction is
what guarantees the future of airlines and it is achievable by an adoption
between their service and passenger needs. The study has tried to find out
the level of satisfaction on the services offered by domestic airlines
in Coimbatore district. Total of 300 respondents have been taken by applying
non-probable convenience sampling method and chi-square test is used to
test the hypotheses. Findings of the study reveal that the passengers are
fairly satisfied with the services offered by domestic airlines.

Service Quality and Customer Satisfaction in the

Airline Industry: A Comparison between Legacy
Airlines and Low-Cost Airlines - David Mc. A Baker
Department of Management, Harmon College of
Business and Professional Studies, University of
Central Missouri, Warrensburg, MO, USA.(2013)

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The purpose of this study was to examine the service quality and customer
satisfaction of airlines between 2007- 2011 using data from the Department
of Transportation Air Travel Reports. The objectives of this study were to
compare customer satisfaction and service quality with respect to airlines
quality dimensions and subsequently to determine the relationships between
the dimensions of service quality and passengers satisfaction on airlines
services. A critical review of the literature revealed that the airline industry
has been struggling with many challenges: cutting costs, managing
fluctuating demand, keeping up with tight quality requirements while trying
to maintain superior services and satisfy the needs of various customer
groups. Data were collected from the Department of Transportation's Air
Travel Consumer Report on the following measures: percentage of on-time
arrival, passengers denied boarding, mishandled baggage and customer
complaints.

Customer Satisfaction Heterogeneity and

Shareholder Value- Rajdeep Grewal- Professor of
Marketing and Deans Faculty Fellow at the Smeal
College of Business, Penn State University,
University Park PA,Alka V. Citrin- Assistant
Professor of Marketing at the DuPree School of
Management, Georgia Tech, Atlanta, Georgia and
Murali Chandrashekaran- Professor of Marketing at
the Australian School of Business, University of
New South Wales, Sydney, Australia.

In this article researcher has describe the importance of

investment. They have done a research which says that
shareholder value and the growth of company depends upon the
investment done by the company i.e. in which sector or in which
department they has invested its money. In this research they

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have adopted the view that customer satisfaction is key
marketplace asset, they have tested two conjectures: (a)
objective service quality and advertising impact not only the level
of customer satisfaction, but also the heterogeneity in this asset
get impacted, and (b) Satisfaction heterogeneity will decrease the
utility of the satisfaction asset in driving shareholder value, and
also influence the contemporaneous volatility in
shareholder value. They have done this research using secondary
data from diverse sources describing the dynamics within the U.S.
Airlines Industry over a 9 year period from 1997- 2005. They
come to conclusion that increasing levels of satisfaction
heterogeneity serve to reduce the volatility in shareholder value.

Fuzzy Logic Based Decision Making for Customer

Loyalty Analysis and Relationship Management-
Umoh, U. A. Department of Computer Science
University of Uyo Uyo, Akwa Ibom State, Nigeria,
Isong, B. E. -Department of Computer Science
Akwa Ibom State University Mkpat Enin, Akwa
Ibom State, Nigeria (2012)
The researcher found that because of immense competition in todays
business market, the organizations are struggling to apply different
marketing strategies and programs to gain more market share and acquire
more customers on one hand and to make them satisfies and loyal to their
company, on the other hand. Therefore they can ensure long lasting
relationship with their customers and create barriers in front of customers
brand switch. Application of CRM as continuous marketing program has
gained great importance recently. Though application of CRM organizations
gain knowledge regarding their customers and transmit this knowledge to
company offer to fulfill the needs of customers and satisfy them. Airlines
effort to provide better loyalty programs and customization of service
besides making relationship with them can help to create customer
satisfaction as prerequisite of loyalty. Application of fuzzy logic technique in

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CRM is an emerging trend in the industry. It is important to make evident the
great potential that fuzzy logic has to offer, such as an effective mean for
managing customer relationships. Fuzzy Logic Controllers can provide more
effective control of non-linear systems than linear controllers, as there is
more flexibility in designing the mapping from the input to the output space.
Fuzzy logic is capable of resolving conflicts by collaboration, propagation and
aggregation and can mimic humanlike reasoning.

History:
Air India was set up by J.R.D. Tata, who ran it successfully until it was
nationalized in1953. In the 1960s the \u2015Maharaja\u2016, as the national
flag-carrier was affectionately known, was flying to 32 destinations (it now
flies to 46 destinations) and making profits. In recent years, however, this
image of Civil Aviation has undergone a change and aviation is now viewed
in a different light - as an essential link not only for international travel and
trade but also for providing connectivity to different parts of the country.
Until less than a decade ago, all aspects of aviation were firmly controlled by
the Government. In the early fifties, all airlines operating in the country were
merged into either Indian Airlines or Air India and, by virtue of the Air
Corporations Act, 1953 this monopoly was perpetuated for the next forty
years. The Directorate General of Civil Aviation controlled every aspect of
flying including granting flying licenses, pilots, certifying aircrafts for flight
and issuing all rules and procedures governing Indian airports and airspace.
Finally, the Airports Authority of India was entrusted with the responsibility of

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managing all national and international airports and administering every
aspect of air transport operation through the Air traffic Control.

Classification of Indian Aviation Industry

The players in aviation industry can be broadly categorized in
three groups:
1) Public players 2) Private players 3) Start up players

The market size in 2016

During January-August 2016, domestic air passenger traffic rose 23.14 per
cent to 64.47 million from 52.36 million during the same period in 2015.
Passenger traffic during FY 2015-16 increased at a rate of 21.3 per cent to
85.57 million from 70.54 million in the FY 2014-15.In July 2016, total aircraft
movements at all Indian airports stood at 168,400, which was 14.3 per cent
higher than July 2015. International aircraft movements increased by 8.2 per
cent to 32,830 in July 2016 from 30,330 in July 2015. Domestic aircraft
movements increased by 15.8 per cent to 135,570 in July 2016 from 117,050
in July 2015.Indian domestic air traffic is expected to cross 100 million
passengers by FY2017, compared to 81 million passengers in 2015, as per
Centre for Asia Pacific Aviation (CAPA).India is among the five fastest-growing
aviation markets globally with 275 million new passengers.

The Various Airline Operators In India:

Indigo: Indigo is a low-cost airline headquartered at Gurgaon, India. It is
the largest airline in India in terms of passengers carried, with a 39.8%
market share as of July 2016. The airline operates to 41 destinations and is
the second largest low-cost carrier in Asia. It has its primary hub at Indira
Gandhi International Airport, Delhi The airline became the largest Indian
carrier in terms of passenger market share in 2012. The company
went public in November 2015.

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SpiceJet: is a low-cost airline headquartered in Gurgaon, India. It is
the fourth largest airline in the country by number of passengers carried,
with a market share of 13.1% as of February 2016. The airline operates 306
daily flights to 41 destinations, including 35 Indian and 6 international
destinations from its hubs at Delhi, Kolkata and Hyderabad.

GoAir: is a low-cost carrier based in Mumbai, India. It is owned by the Indian business
conglomerate Wadia Group. As of February 2016, it is the fifth largest airline in India
with an 8% passenger market share. It commenced operations in November 2005 and
operates a fleet of Airbus A320 aircraft in all economy configurations. As of November
2016, the airline operates over 140 daily flights to 22 cities from its hubs
at Mumbai and Delhi.

Blue Dart Aviation is a cargo airline based in Chennai, India. It operates

with its main base as Chennai International Airport and services 7 Indian
cities. German courier company Deutsche Post owns a 70% stake in the
airline through its subsidiary Blue Dart Express. It provides service in 220
plus countries and territories all over the world through their parent company
DHL.

Air India is the flag carrier airline of India and the third-largest airline in
India in terms of passengers carried, after IndiGo and Jet Airways. It is owned
by Air India Limited, a Government of India enterprise, and operates a fleet
of Airbus and Boeing aircraft serving 85 domestic and international
destinations. It is headquartered in New Delhi. Air India has its main hub
at Indira Gandhi International Airport, New Delhi and a secondary hub
at Chhatrapati Shivaji International Airport, Mumbai.

Jet Airways is an airline based in Mumbai, India. As of February 2016, it is

the second largest airline in India after IndiGo with a 21.2% passenger
market share. It operates over 300 flights daily to 68 destinations worldwide
from its main hub at Chhatrapati Shivaji International Airport and secondary
hubs at Amsterdam Airport Schiphol, Chennai International Airport, Indira
Gandhi International Airport, Kempegowda International Airport and Netaji
Subhas Chandra Bose International Airport

Vistara :The Tata SIA Airlines Limited, is an Indian domestic airline based in Gurgaon with its hub
at Delhi-Indira Gandhi International Airport. The carrier, a joint venture between Tata
Sons and Singapore Airlines, commenced operations on 9 January 2015 with its inaugural flight
between Delhi and Mumbai. The airline had carried more than two million passengers by June
2016[2] and as of April 2016, has a 2.3% share of the domestic carrier market. The airline operates to
eighteen destinations with a fleet of Airbus A320-200 aircraft. Vistara was the first airline to introduce
premium economy seats on domestic routes in India.

Page | 23
Air Costa is an airline headquartered at Vijayawada, India. It is owned by Indian business company
LEPL Group and has a 0.8% market share in the Indian domestic airline market as of February
2016. The airline commenced operations as a regional airline in October 2013 using two Embraer E-
170 aircraft with the first flight taking off from its hub at Chennai on 16 October 2013. The airline got
a permit for pan India operations in October 2016.

FLEET STATISTICS OF SCHEDULED INDIAN OPERATORS AS ON

31st MARCH, 2015.

Investment

According to data released by the Department of Industrial Policy and Promotion

(DIPP), FDI inflows in air transport (including air freight) between April 2000 and March
2016 stood at US$ 931.05 million.

Page | 24
Key investments and developments in Indias aviation industry include:

Airbus SAS has signed an agreement with Karnataka-based Aequs

Aerospace, an aircraft component maker, for the supply of over
100,000 titanium machined parts for its A320 new engine option (NEO)
aircraft.

Boeing Company, an American plane maker, and Tata Advanced

Systems Ltd (TASL), a fully owned subsidiary of Tata Sons, have
entered into a joint venture to set up a new facility in Hyderabad to
manufacture Boeing AH-64 Apache helicopter fuselages.

GoAir, India's fifth-biggest carrier by passengers travelled, has signed a

memorandum of understanding (MoU) with Airbus to buy 72 A320neo
aircrafts, valued at US$ 7.7 billion, as part of an expansion drive.

Lockheed Martin Corporation plans to make India a manufacturing base

for its F-16V fighter jets, C-130J Super Hercules military transport
planes and helicopters.

Auto components maker Bharat Forge Ltd (BFL), the flagship company
of the US$ 3 billion Kalyani Group, has formalized agreement with
Rolls-Royce Plc, under which BFL will supply critical and high integrity
forged and machined components for a range of aero engines.

The Ministry of Civil Aviation has signed Memorandum of

Understanding (MoU) with Finland, Kazakhstan, Kenya, Sweden,
Norway, Denmark, Oman and Ethiopia for increased co-operation
between the countries in terms of additional seats, sharing of airlines
codes, increased frequencies and additional points of call, during the
International Civil Aviation Negotiations (ICAN),2015 held in Antalya,
Turkey.

Tata Advanced Systems (TASL) has signed a joint venture with

American aircraft manufacturing major, Boeing, to establish a centre of
excellence for manufacturing aero structures for Apache helicopter
initially and collaborate on integrated systems development
opportunities in India in the long term.

US-based aircraft manufacturer Boeing plans to assemble one of its

two helicopters namely, Chinook (heavy-lift) or Apache (attack type) in
India, thus becoming yet another global company to invest in India
encouraged by the Make in India campaign.

Page | 25
 Airbus, leading European aircraft manufacturer, plans to invest US$ 40
million to set up a pilot and maintenance training center in New Delhi,
which will be operational by the end of 2017.

Airbus also expects Indias aviation industry to grow at over 10 per

cent annually in the next decade, almost double the average growth
rate of the global aviation industry.

Government Initiatives

Government agencies project that around 500 Brownfield and Greenfield

airports would be required by 2020. The private sector is being encouraged
to become actively involved in the construction of airports through different
Public Private Partnership models, with substantial state support in terms of
financing, concessional land allotment, tax holidays and other incentives. In
the Union Budget 2016-17, the government introduced various proposals for
Maintenance, Repair and Overhaul (MRO) operations for airplanes. These
include customs and excise duty exemption for tools and tool-kits used in
MRO works. The government has also scrapped the one-year restriction for
utilization of duty free parts apart from allowing import of unserviceable
parts by MROs for providing exchange. As per revised norms, the foreign
aircraft brought in to India for MRO work would now be permitted to stay up
to six months or as extended by aviation regulator Directorate General of
Civil Aviation (DGCA). Such foreign aircraft would also be henceforth
permitted to carry passengers in the flights at the start and end of its period
of stay in India.
Some major initiatives undertaken by the government are:

The Ministry of Civil Aviation has finalized and put forward for approval
to the Union Cabinet, the new aviation policy, which includes proposals
such as allowing new airlines to fly abroad, introduction of more
regional flights and a new formula for granting bilateral flying rights.

The Indian Space Research Organization (ISRO) has signed a

memorandum of understanding (MoU) with the Airports Authority of
India (AAI), aimed at providing space technology for construction of
airports.

Page | 26
 The Government of India is planning to boost regional connectivity by
setting up 50 new airports over the next three years, out of which at
least 10 would be operational by 2017.

Airports Authority of India (AAI) plans to develop city-side

infrastructure at 13 regional airports across India, with help from
private players for building of hotels, carparks and other facilities, and
thereby boost its non-aeronautical revenues.

Directorate General of Civil Aviation (DGCA), India's aviation regulator,

has signed an agreement with United States Technical Development
Agency (USTDA) for India Aviation Safety Technical Assistance Phase II,
aimed at bringing in systemic improvements in the area of operation,
airworthiness and licensing.

The Government of India has given site clearance to Delhi Mumbai

Industrial Corridor and Development Corporation (DMICDC) for setting
up of a Greenfield Airport for public use near Bhiwadi in Alwar district
of Rajasthan and has granted 'in-principle' approval to 13 other
Greenfield airport projects.

The Airports Authority of India (AAI) plans to revive and operationalise

around 50 airports in India over the next 10 years to improve regional
and remote air connectivity.

Gujarat is expected to get a second international airport at Dholera.

The state government has formed Dholera International Airport Co. Ltd.
and is obtaining approvals from the union government.

The Directorate General of Civil Aviation (DGCA) has given its approval
to Air Indias maintenance, repair and overhaul (MRO) unit.

The Government of India has decided to award airports in Kolkata,

Chennai, Jaipur and Ahmedabad on management contract. AAI has
issued the Request for Qualification document for these four airports.

Airports in India (as on 31st march, 2016).

Page | 27
 Major private players in the aviation sector.

Major foreign players in the aviation sector.

Page | 28
 Successful public private partnership in the
aviation sector.

The Various Agencies Involved In the Aviation

Sector:
Ministry of civil aviation.
Located at Rajiv Gandhi Bhavan at the Safdarjung Airport in New Delhi, the
Ministry of Civil Aviation is responsible for formulation of national policies and
programmers for the development and regulation of the Civil Aviation sector
in the country. It is responsible for the administration of the Aircraft Act,

Page | 29
1934, Aircraft Rules, 1937 and various other legislations pertaining to the
aviation sector in the country. This Ministry exercises administrative control
over attached and autonomous organizations like the Directorate General of
Civil Aviation, Bureau of Civil Aviation Security and Indira Gandhi Rashtriya
Udan Academy and affiliated Public Sector Undertakings like National
Aviation Company of India Limited, Airports Authority of India and Pawan
Hans Helicopters Limited and the Commission of Railway Safety.

Directorate General of Civil Aviation- DGCA

The Directorate General of Civil Aviation (DGCA) is the regulatory body in the
field of Civil Aviation, primarily dealing with safety issues. It is responsible for
regulation of air transport services to/from/within India and for enforcement
of civil air regulations, air safety, and airworthiness standards. The DGCA
also co-ordinates all regulatory functions with the International Civil Aviation
Organization (ICAO).

Bureau of Civil Aviation Security - BCAS

The Bureau of Civil Aviation Security (BCAS) was initially set up as a Cell in
the DGCA in January 1978 on the recommendation of the Pande Committee.
The BCAS was reorganized into an independent department under the
Ministry of Civil Aviation on 1st April, 1987. The main responsibilities of BCAS
include laying down standards and measures with respect to security of civil
flights at international and domestic airports in India..

Commission of Railway Safety - CRS

The Commission of Railway Safety (CRS) , working under the administrative
control of the Ministry of Civil Aviation of the Government of India, deals with
matters pertaining to safety of rail travel and train operation and is charged
with certain statutory functions as laid down in the Railways Act (1989),
which are of an inspectorial, investigatory & advisory nature. The
Commission functions according to certain rules viz. statutory investigation
into accidents rules framed under the Railways Act and executive
instructions issued from time to time.

Air India Ltd

Air India Ltd. was incorporated under the Companies Act 1956 on 30 March
2007 and is owned by the Government of India. The Company was created to

Page | 30
facilitate the merger of the two main state-owned airlines in India: Air India,
with its subsidiary Air-India Express and Indian Airlines, together with its
subsidiary Alliance Air.

Airports Authority of India - AAI

The Airports Authority of India (AAI) was formed on 1st April 1995 by
merging the International Airports Authority of India and the National Airports
Authority with a view to accelerate the integrated development, expansion,
and modernization of the operational, terminal and cargo facilities at the
airports in the country conforming to international standards.

Pawan Hans Helicopters Ltd. - PHHL

The Pawan Hans Helicopters Ltd. (PHHL) is one of the leading helicopter
companies in India and is known for its reliable helicopter operations. Its
objective is to provide helicopter support services to the Oil Sector for its off-
shore exploration operations, services in remote and hilly areas as well as
charter services for promotion of travel and tourism. The Registered Office of
the Company is located at New Delhi and its Regional offices are at Mumbai
and New Delhi. PHHL is the first ISO 9001: 2000 certified Aviation Company
in India. Pawan Hans has played a vital role in the growth story of the
Helicopter Industry in India.

Page | 31
 Indian Oil- The largest ATF supplier in the country
Indian Oil is India's first ISO-9002 certified oil company conforming to
stringent global quality requirements of aviation fuel storage & handling.
Indian Oil Aviation also caters to the fuel requirements of the Indian Defense
Services, besides refueling VVIP flights at all the airports and remote heli-
pads/ heli-bases across the Indian subcontinent.IndianOil Aviation Service is a
leading aviation fuel solution provider in India and the most-preferred
supplier of jet fuel to major international and domestic airlines. Between one
sunrise and the next, Indian Oil Aviation Service refuels over 1500 flights
from the bustling metros to the remote airports linking the vast Indian
landscape, from the icy heights of Leh (the highest airport in the world at
10,682 ft) to the distant islands of Andaman & Nicobar.

National Civil Aviation Policy, 2016

The Minister of Civil Aviation Shri P. Ashok Gajapathi Raju released the
National Civil Aviation Policy 2016 in New Delhi today. This is the first time
since independence that an integrated Civil Aviation Policy has
been brought out by the Ministry. Speaking on the occasion Shri Raju
said that the centre-piece of the policy is to make regional air connectivity
a reality. He said that the policy aims to take flying to the masses by
making it affordable and convenient, establish an integrated eco-system
which will lead to significant growth of the civil aviation sector to

Page | 32
promote tourism, employment and balanced regional growth, enhance
regional connectivity through fiscal support and infrastructure
development and enhance ease of doing business through deregulation,
simplified procedures and e-governance.

DGCA APPROVED FLYING TRAINING ORGANISATIONS (AS ON 10th

AUGUST, 2016).

Page | 33
 RESEARCH METHODOLOGY
ALL DATA THAT HAS BEEN PROVIDED IN THIS
RESEARCH PAPER IS IN THE FORM OF
SECONDARY DATA.
QUALITATIVE RESEARCH

It is primarily exploratory research. It is used to gain an understanding of

underlying reasons, opinions, and motivations. It provides insights into the
problem or helps to develop ideas or hypotheses for potential quantitative
research. Qualitative Research is also used to uncover trends in thought and
opinions, and dive deeper into the problem. Qualitative data collection
methods vary using unstructured or semi-structured techniques. Some
common methods include focus groups (group discussions), individual
interviews, and participation/observations. The sample size is typically small,
and respondents are selected to fulfill a given quota.

QUANTITATIVE RESEARCH

It is used to quantify the problem by way of generating numerical data or

data that can be transformed into useable statistics. It is used to quantify
attitudes, opinions, behaviors, and other defined variables and generalize
results from a larger sample population. Quantitative data collection
methods are much more structured than Qualitative data collection methods.
Quantitative data collection methods include various forms of surveys
online surveys, paper surveys, mobile surveys and kiosk surveys, face-to-
face interviews, telephone interviews, longitudinal studies, website
interceptors, online polls, and systematic observations.

PRIMARY DATA
Primary data are first hand information. These information are collected
directly from the source by means of field studies. Primary data are original

Page | 34
and are like raw materials. It is the most crude form of information. The
investigator himself collects primary data or supervises its collection. It may
be collected on a sample or census basis or from case studies. Examples
include: Interviewing, Making your own questionnaire.

SECONDARY DATA:
Secondary data are the Second hand information. The data which have
already been collected and processed by some agency or persons and are
not used for the first time are termed as secondary data. Secondary data
may be abstracted from existing records, published sources or unpublished
sources. Examples include data collected from newspaper, magazines,
internet, and research paper.

THE VARIOUS CHARTS THAT HAVE BEEN USED

ARE :
PIE CHART

A pie chart (or a circle chart) is a

circular statistical graphic, which is divided into
slices to illustrate numerical proportion. In a pie
chart, the arc length of each slice (and
consequently its central angle and area),
is proportional to the quantity it represents. While it
is named for its resemblance to a pie which has
been sliced, there are variations on the way it can
be presented.

LINE CHART

Page | 35
A line chart or line graph is a type of chart which
displays information as a series of data points called
'markers' connected by straight line segments.[1] It is
a basic type of chart common in many fields. It is
similar to a scatter plot except that the
measurement points are ordered (typically by their
x-axis value) and joined with straight line segments.
A line chart is often used to visualize a trend in data
over intervals of time a time series thus the line
is often drawn chronologically. In these cases they
are known as run charts

COLUMN CHART

A column chart is
a graphic representation of data.
Column charts display vertical bars
going across the chart horizontally,
with the values axis being displayed
on the left side of the chart

DATA ANALYSIS (ALL REFERNCE TO BE TAKEN

FROM APPENDIX)
CHART 1 -PASSENGER TRAFFIC CARRIED BY SCHEDULED
CARRIERS OVER THE PAST DECADE
CHART 2-ATF CONSUMPTION OVER THE DECADE
CHART 3-FOREIGN TOURIST ARRIVAL & INTERNATIONAL
INBOUND PAX TRAFFIC
CHART 4-FREIGHT TRAFFIC CARRIED BY SCHEDULED CARRIERS
OVER THE PAST DECADE
CHART 5-COMPARISON OF PASSENGER LOAD FACTOR (PLF) AND
BREAK-EVEN LOAD FACTOR (BELF), 2014-15
PIE CHART 1 - DISTRIBUTION OF INDIA'S INBOUND
INTERNATIONAL PASSENEGER TRAFFIC, 2015-16

Page | 36
 PIE CHART 2- DISTRIBUTION OF INDIA'S OUTBOUND
INTERNATIONAL PASSENGER TRAFFIC, 2015-16
PIE CHART 3 - DISTRIBUTION OF INDIA'S INBOUND
INTERNATIONAL FREIGHT TRAFFIC, 2015-16
PIE CHART 4- DISTRIBUTION OF INDIA'S OUTBOUND
INTERNATIONAL FREIGHT TRAFFIC, 2015-16
PIE CHART 5 M ARKET SHARE (%)IN TERMS OF DOMESTIC
MARKET DEMAND(RPK)2015-2016
PIE CHART 6- DOMESTIC MARKET SHARE (%)IN TERMS OF
PASSENGER CARRIED 2015-201
TABLE 1-MARKET SHARE (%) OF INTERNATIONAL PASSENGERS
CARRIED BY SCHEDULED INDIAN CARRIERS AND FOREIGN
CARRIERS.
TABLE 2-MARKET SHARE (%) OF TOP 15 SCHEDULED
OPERATORS INTERNATIONAL OPERATIONS, 2015-16.
TABLE 3-YEAR ON YEAR GROWTH IN PASSENGERS AND
PASSENGER LOAD FACTOR (PLF)
TABLE 4-PERSONNEL STATISTICS OF SCHEDULED INDIAN
OPERATORS FOR THE YEAR
TABLE 5-Financial Summary Of All Indian Scheduled Carriers
FIGURE 1:PORTERS 5 FORCES
FIGURE 2 :SWOT ANALYSIS
FIGURE 3 :Various Strategies
FIGURE 4:Various Opportunities

Page | 37
 RESULTS &CONCLUSION
Due to the rise in income levels, disposable income is
increasing which enhanced the number of flyers. Indian
tourism is also in the growing stage as a result there has
been an increase in the number of international and
domestic passengers as well. It will lead to the growth in
airlines industry. Although currently there are many
challenges which are being faced by the Indian Aviation
Industry but the growth prospect is very much high.
Government has to take an initiative to improve the
Airport infrastructure and to pour in some investments as
well. Some steps are already being taken by the
government for the development of Aviation Industry,
considering that air transport is still expensive for
majority of the countrys population, of which nearly 40
per cent is the upwardly mobile middle class.
The industry stakeholders should engage and collaborate
with policy makers to implement efficient and rational
decisions that would boost Indias civil aviation industry.
With the right policies and relentless focus on quality,
cost and passenger interest, India would be well placed to
achieve its vision of becoming the third-largest aviation
market by 2020 and the largest by 2030. Indias aviation
industry is largely untapped with huge growth
opportunities.
Concluding we can say that apart from all the challenges
Aviation Industry's future is very bright in India.

Page | 38
 BIBLIOGRAPHY
http://www.ibef.org/industry/indian-aviation.aspx
http://www.india-opportunities.es/archivos/publicaciones/Airports-
January-2016.pdf
http://www.indianmba.com/Faculty_Column/FC1149/fc1149.html
http://www.mapsofindia.com/my-india/business/in-indias-burgeoning-
aviation-sector-safety-is-the-key-word
http://pezzottaitejournals.net/pezzottaite/images/ISSUES/V4N1/IJLSCMP
V4N120.pdf
https://www.iata.org/policy/Documents/Benefits-of-Aviation-India-
2011.pdf
http://www.civilaviation.gov.in/aboutus/orgsetup
http://www.dgca.nic.in/pub/Handbook_2015-16.pdf
http://www.bizresearchpapers.com/4.%20Dipa-FINAL.pdf
http://www.prosperfinancialmanagement.com/assets/client_files/PDFs/j
d.pdf
http://journals-sathyabama.com/archives/acm/Computing%20&
%20Management%20%202010%20-%2010.pdf
http://eprints.um.edu.my/10461/1/00007082_68208.pdf
http://waset.org/publications/8350/in-flight-meals-passengers-level-of-
satisfaction-and-re-flying-intention
https://www.researchgate.net/publication/228454854_Service_Quality_
Perceptions_of_Domestic_Airline_Consumers_in_India_An_Empirical_Stu
dy
http://worldwidejournals.com/paripex/file.php?
val=June_2013_1371565706_32aee_101%20V.%20PUNITHA.pdf
https://marketing.wharton.upenn.edu/mktg/assets/File/Grewal_Custom
er_Satisfaction.pdf
http://www.enggjournals.com/ijcse/doc/IJCSE13-05-11-002.pdf
http://worldscholars.org/index.php/ajtr/article/viewFile/317/pdf

Page | 39
Page | 40
 APPENDIX
Chart 1 -PASSENGER TRAFFIC CARRIED BY SCHEDULED CARRIERS
OVER THE PAST DECADE

The domestic passenger traffic registered a compound annual growth rate

(CAGR) of 10.10% during the period 2006-07 to 2015-16 while the
international passenger traffic grew at 8.75% (CAGR) during the same
period.

PIE CHART- 1 &2

DISTRIBUTION OF INDIA'S DISTRIBUTION OF INDIA'S

INBOUND INTERNATIONAL OUTBOUND INTERNATIONAL
PASSENEGER TRAFFIC, 2015-16 PASSENGER TRAFFIC, 2015-16

More than half of the passenger traffic to and from India is accounted for
by the countries in the Africa & Middle East

Page | 41
 TABLE 1-MARKET SHARE (%) OF INTERNATIONAL PASSENGERS
CARRIED BY SCHEDULED INDIAN CARRIERS AND FOREIGN CARRIERS.

TABLE 2-MARKET SHARE (%) OF TOP 15 SCHEDULED OPERATORS

INTERNATIONAL OPERATIONS, 2015-16.

Out of total 86 scheduled international Operators, 6 operators accounted

for 50% of International Passenger traffic. Jet Airways had the maximum
market share (14.1%) followed by Air India (11.4%), Emirates Airline

Page | 42
 (10.8%), Air India Express (5.3%), Etihad Airways (4.7%) and Qatar
Airways (4.0%).

TABLE 3-YEAR ON YEAR GROWTH IN PASSENGERS AND PASSENGER

LOAD FACTOR (PLF)

If we look at Airline-wise Growth in the number of Domestic Passengers, it is

found that the high growth of 21.58 % in the total domestic passengers during
2015-16 is mainly due to the high growth in passengers carried by Alliance Air, Jet
Airways, IndiGo and Air Asia. Another factor which led to the high growth is the
introduction of the new Airlines such as Vistara, Trujet and Air Pegasus.

CHART 2-ATF CONSUMPTION OVER THE DECADE

Page | 43
 The Air Turbine Fuel (ATF) consumption growth in India has been moving
in tandem with the growth of air traffic. In the year 2015-16, ATF
consumption went up by 8.7% which is consistent with increase in aircraft
and air traffic movement.

CHART 3-FOREIGN TOURIST ARRIVAL & INTERNATIONAL INBOUND PAX

TRAFFIC

An important aspect of international traffic to and from India pertains

to trend in foreign tourist arrivals in India. In 2015, Foreign Tourist
Arrivals accounted for 33.6% of inbound international traffic in India.

TABLE 4-PERSONNEL STATISTICS OF SCHEDULED INDIAN

OPERATORS FOR THE YEAR 2014-15.

Page | 44
 Out of the total airline staff of 56560, 37.7% is employed by
Air India Ltd followed by Jet Airways (23.8%), IndiGo (18.6%)
and SpiceJet (7.4%).

CHART 4-FREIGHT TRAFFIC CARRIED BY SCHEDULED CARRIERS OVER

THE PAST DECADE

Air cargo carried by scheduled airline operators, both domestic and

international witnessed a positive growth in 2015-16. The domestic
cargo traffic registered a growth of 7.6% (CAGR) over the period
from 2006-07 to 2015-16 while International cargo traffic grew at
4.7% (CAGR) during the same period.

PIE CHART- 3 &4

Page | 45
 Freight traffic is coming to India in almost equal proportion from
around the World except the freight traffic from the Americas while
from India, more than half of the freight traffic is carried to the
countries in the Africa & Middle East.

CHART 5-COMPARISON OF PASSENGER LOAD FACTOR (PLF) AND

BREAK-EVEN LOAD FACTOR (BELF), 2014-15

A higher PLF implies that an airline is successful in selling available

seats. However, higher PLF may not result in higher operating
profit. When PLF is less than break-even load factor, the airline in
question is running losses. Evidently, in the year 2014-15, only Air
India Express, IndiGo and Go Air were operating at a PLF higher
than break-even load factor (BELF)

PIE CHART - 5 &6

Page | 46
 In the year 2015-16 both in terms of passenger carried and RPK,
IndiGo had the maximum market share followed by Jet Airways, Air
India and SpiceJet.

TABLE 5-Financial Summary Of All Indian

Scheduled Carriers

Page | 47
 FIGURE 1: PORTERS 5 FORCES

FIGURE 2 : SWOT ANALYSIS

F

Page | 48
The opportunities for the aviation sector

FIGURE 3: Various Strategies

FIGURE 4: Various Opportunities

Page | 49
Page | 50