Professional Documents
Culture Documents
By
NAME: SREELAKSHMI.S
SIGNATURE:
GUIDE NAME:PRASANTH.G
DESIGNATION: FACULTY
SIGNATURE:
ABSTRACT
Researcher: SREELAKSHMI.S
Year: 2012-2015
INTRODUCTION
India is one of the fastest growing economies of the world with an
average GDP growth of over 8.9 percent in last five years.
Aviation is an important part of national infrastructure and one of
the prime movers for economic growth and an important strategic
element of employment generation.Aviation sector in India has
been transformed from an over regulated and under managed
sector to a more open, liberal and investment friendly sector since
2004. The Indian Aviation Industry has been going through a
turbulent phase over the past several years facing multiple
headwinds – high oil prices and limited pricing power contributed
by industry wide over capacity and periods of subdued demand
growth.
HISTORY
SCOPE
The Indian aviation industry is forecasted to grow phenomenally
in the coming years. The Vision 2020 announced by the Civil
Aviation Ministry conceives of building infrastructure to support
280 million customers.Investments to the extent of US$ 110 billion
are envisaged by 2020. About US$ 30 billion for development and
sprucing up of existing airports and US$ 80 billion for building new
fleets is being estimated. The aerospace giant Boeing projects
that the Indian aviation industry will require about 1,000
commercial jets in the coming 20 years. With the growth and
development, comes challenges and the aviation sector is no
exception. The severe challenges posed against aviation industry
are that the industry has to deal with safety concerns, decline in
returns, stiff competition, rise in fuel cost, regional connectivity,
improper exploitation of trunk routes, soaring input costs and
many more.
Market Size
Government Initiatives
India is the ninth largest civil aviation market in the world and
fourth in terms of domestic passenger volumes (116.3). The
country’s civil aviation market is also set to become the world’s
third largest by 2020. Total freight traffic registered a compound
annual growth rate (CAGR) of 6.6 per cent over 2006-13; it stood
at 2.19 million tonnes in 2013. Domestic freight traffic also
increased at a CAGR of 7.1 per cent over 06-13 while
international freight traffic rose 6.2 per cent over the same period.
In FY13, domestic freight traffic was 0.78 million tonnes, while
international freight traffic was at 1.41 million tonnes.The
government has done its bit to support the airport sector in the
country. It has focused on infrastructure as well as liberalised
policies. One such policy is, the Open Sky Policy – a concept that
calls for the liberalisation of the rules and regulations of the
international aviation industry (especially commercial aviation) so
as to foster a free-market environment for the airline industry.
Furthermore, it has constantly provided policy sops and
encouraged foreign direct investment.The Indian aviation sector is
likely to see investments totalling US$ 12.1 billion during the
Twelfth Five Year Plan. It aims to boost MRO business in India,
which is currently worth US$ 500 million and is estimated to grow
over US$ 1.5 billion by 2020.