The Indian Airlines Industry Prashi Agarwal Saurabh Goyal - PowerPoint PPT Presentation

1 / 6
About This Presentation
Title:

The Indian Airlines Industry Prashi Agarwal Saurabh Goyal

Description:

Started air operations in 2003 ... Only 40 million people travel by air 4% of the population. Path forward. Things to Look Forward ... – PowerPoint PPT presentation

Number of Views:1498
Avg rating:3.0/5.0
Slides: 7
Provided by: iimc8
Category:

less

Transcript and Presenter's Notes

Title: The Indian Airlines Industry Prashi Agarwal Saurabh Goyal


1
The Indian Airlines IndustryPrashi
AgarwalSaurabh Goyal
2
The Rise Fall of Maharaja
  • Maharaja Syndrome
  • Air travel an elitist activity
  • Prohibitive cost of air travel
  • Air Corporations Act, 1953
  • Air India nationalized in 1953
  • all airlines merged into either Indian Airlines
    or Air India
  • The Directorate General of Civil Aviation
    controlled every aspect of flying
  • Airports Authority of administering every aspect
    of air transport operation through the Air
    Traffic Control.
  • Post Maharaja (Liberalization)
  • Open skies policy for domestic players in 1991
  • Air Corporation Act repealed
  • Private airlines reintroduced
  • Partial open sky policy for international players
    only in November 2004
  • Full cost carriers, low cost carriers (LCC),
    start-up airlines (total 21 today!!)
  • Nose- diving prices
  • Privatization of Delhi and Mumbai airports

3
Players 2006Taking Indians To Places
  • Set up by J.R.D. Tata
  • Nationalised in 1953
  • National flag carrier
  • 44 world-wide destinations
  • Profitable in most years since its inception
  • Net profit of Rs.97 m for 2005-06
  • Growth of almost 15 over the previous year.
  • State owned domestic airline
  • Formerly known as Indian Airlines
  • Company rebranded as Indian in Dec 05 to revamp
    image in preparation for an IPO
  • GoIs plan to merge Air India and Indian into one
    giant airline consisting of 130-140 aircraft
  • Could take place anytime from the end 06 to mid
    07
  • Regular airline offering normal economy and
    business class seats.
  • 300 flights, 43 Indian destinations
  • Indian market share 32
  • Does not own its brand. Brand owned by Jetair
    Enterprises Ltd. a separate company substantially
    owned by Naresh Goyal
  • Prevents possible hostile takeover bid
  • Began on 3 Dec 1993with two Boeing 737-200
    aircrafts as Sahara Airlines
  • Initially services concentrated in northern India
  • Rebranded as Air Sahara on 2 October 2000.
  • Uncertainty over the airline's fare caused
    domestic markey share to slide from 11 in Jan 06
    to 8.5 in April

4
Players 2006Taking Indians Across India
  • Low-cost airline (LCC)
  • Began in May 2005
  • Entered with Rs. 99 fares for first 99 days
  • Offering low everyday spicey fares
  • Aim Compete with Indian Railways AC sgment
  • fleet of 6 Boeing 737-800 with 189 seats.
  • GoAir The Peoples Airline
  • established in June 2004
  • LCC promoted by The Wadia Group
  • GoAir FreeFares
  • Relatively small player as compared to other LCCs
  • Initial flights in southern western India with
    the first nine A320s
  • Remaining 11 aircrafts being added in 2nd yr
  • Services started in May 05
  • Initially operates only on domestic routes.
  • Owned by United Beverages Group under the
    leadership of Vijay Mallya
  • Pushing for amendment of rule which requires an
    airline to fly a min of five years on domestic
    routes before it can start flying overseas
  • Barring such an amendment, first international
    flights planned to start in 2010
  • India's first low-cost carrier
  • Started air operations in 2003
  • Despite a disastrous maiden flight which caught
    fire, Deccan continues to grow
  • Connects 55 cities within India
  • Planning a secondary hub at Chennai International
    Airport. Due to stock market downturn Air
    Deccan's IPO barely managed to scrape through

5
Global v/s Indian Scenario
  • At the macro-economic level Asia Pacific growth
    is impressive. India and China are growing
    between 8 and 10 each year
  • International passenger traffic grew 7.6 where
    as Asian airlines were slowerat 6.3
  • Asian freight traffic grew by only 4.2 in
    comparison to global growth of 3.2
  • Globally airlines lost US6 billion in 2005 and
    in Asia it is a mixed picture. Some carriers are
    among the most profitable. Others however are
    struggling but still the best performance in the
    world
  • India has moved from 2 state-run airlines to a
    vibrant industry with more than 10 players.
    Indian carriers stole the show in Paris with
    US12 billion of orders
  • Huge potential still to be tapped in Indian
    markets. Only 40 million people travel by air4
    of the population

6
Path forward
  • Things to Look Forward
  • Technology Vision 2020
  • Global airlines traffic to increase in lieu of
    the good performance
  • Allowing of Private Participation FDIs in
    construction maintenance of air traffic
    infrastructure
  • Air transport supports US3 trillion of global
    economic activity. That is 8 of global GDP and
    29 million jobs
  • Challenges
  • Infrastructure
  • Avian Flu
  • Tackling the rise in Fuel Price
  • Waving of Tax Exemption on leasing from
    government
  • With the advent of LCC, other airlines too
    reducing their price significantly
  • Costs pressures (ATF Prices Staff Cost)
Write a Comment
User Comments (0)
About PowerShow.com