...Indian Aviation Industry Name: .................. Guide: Prof. ......... Roll Number: ..... Session: .............. Dept.: B.Com PREFACE This training manual introduces Aviation Industry.The module is meant to give all its users a firm grounding on Aviation Industry. The manual starts with the key concepts of basic Information of Aviation Industry.A major portion of this material revolves around goals & objectives of Aviation Industry. The next part of this manual covers Air facts. Final part of this book deals with benefits of Aviation Industry. The material also offers in-depth coverage of the issues related to uniqueness of aviation industry. It contains related examples and real life scenarios. Target Audience * Enrolment Operators * Enrolment Agency Supervisors * Registrar’s Supervisors * Introducers * Technical Support Staff Dependent or Related Modules To read this manual, no prior knowledge about Aviation is required. This is the first Module of the training program on Aviation and is common for all participants. All the following modules presumes that this module has been completed by the participant. ACKNOWLEDGEMENT At the successful completion of this project, I would like to express my sincere gratitude to all the people without whose support this project would not be completed. At the onset, I would like to thank my institute “St. Xavier’s College, Kolkata, the Principal Rev. Fr. Dr. J. Felix Raj S. J. and...
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...Fees in the Aviation Industry Embry-Riddle Aeronautical University ASCI 404 March 7, 2013 Fees in the Aviation Industry Within the past several years the airline industry has received plenty of negative press, due in large part to issues and events regarding airline fees, ethnic profiling at security checkpoints, sleeping air traffic controllers, and terribly long tarmac delays, to name a few. This paper aims its focus toward airline fees. Managers in the aviation industry, if not careful, can find themselves in the crosshairs of the Department of Transportation if they don't follow rules and procedures established by the federal government. Not only could a manager lose their job by deliberately failing to abide by established procedures, the carrier for which one is employed could be substantially fined by the Department of Transportation. A few of the problems associated with airline fees are their lack of transparency, the manner in which the information is displayed to customers on their websites, and the perception by the general public that the fees are exorbitant. Snider (2011), a Kiplinger's Personal Finance magazine writer, once said that he believes that in many cases, it is cheaper to ship bags than bring them onboard the aircraft. Though the popular perception in this country by many is "government is too big," when it comes to airline fees, government intervention is probably a good thing. Airline Fee Issues There is probably nothing more...
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...Managing and Regulating Global Maintenance, Repair, and Overhaul Facilities to Elevate Standards Equal to Domestic Facilities Name Institution Managing and Regulating Global Maintenance, Repair, and Overhaul Facilities to Elevate Standards Equal to Domestic Facilities Introduction Airline companies and private aircrafts in developed countries are increasingly outsourcing airplane maintenance, overhaul, and repair services abroad, especially in developing economies. There are as many speculations as to the cause of this trend with recent report by the Federal Aviation Authority (FAA) showing that these companies intend to cut costs. In other words, mechanics and other repair and maintenance professionals in countries such as the United States (U.S.), the United Kingdom (UK), Germany, and France are costly. Furthermore, Fielding, Lo, and Yang (2010) attribute the same to an increase in aeronautical fuel. As such, aircrafts need to balance between making profits and losses related to repair and maintenance overhead costs. However, the main conundrum that every stakeholder asks is whether or not it is safe to have airplanes maintained by mechanics in foreign countries? Following the many maintenance-related incidents, airlines are becoming more skeptical of these abroad service providing companies and personnel. Such accidents results from negligence, incompetent, lack of coordination and documentation of maintenance records. Given that most incidents are also associated...
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...Indian aviation industry is passing through a bad phase. Though, Indian carriers flew over 55 millions domestic passengers between January and November against 47 million in the like period of last year, they are finding it extremely difficult to continue with their expansion plans and existing operations, amid rising fuel prices and other policy constraints. Except the low-cost airline IndiGo, which continued to earn profit, all the other airline players faced tough times and many of them had to cut employee’s salary owing to their bad financial conditions. The crisis became more evident recently when major private player Kingfisher Airlines cancelled its operation on a number of routes owing to the losses it was incurring on it. The government is also under pressure as the state-run Air India itself is reeling under a huge debt, estimated at over Rs 40,000 crore. A 50 to 60 per cent hike in the jet fuel prices, which account for 40-50 per cent of an airline’s operating cost, has made it difficult for airline players to make their operation profitable. The airline players are blaming central government for imposing unreasonable and unbearable duties on jet fuel prices, and demanding a cut in the taxes levied on the same. Amidst the growing concern over an emerging crisis in aviation sector, industry honchos are mounting pressure on government to either relax taxes on ATF fuel or announce a bailout package for the ailing airlines. Background: Indian aviation and India’s...
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...Issues Aviation supports 1.7 million Indian jobs and contributes 0.5% of India's GDP. And that is just the beginning. It could do much more. Connectivity is the backbone of today's global economy--bringing people to business, tourists to vacation destinations and products to markets. All are important to India's development. On an average, Indians travel by plane once in ten years, while Americans travel 1.8 times each year. If Indians travelled as frequently as Americans, the market would be 2.1 billion travelers instead of today's 120 million. But instead of flourishing and delivering economic benefits, India's aviation industry is struggling. The twin shocks of skyrocketing oil prices followed by the global financial crisis hit in 2008-just as India was gearing up for high speed aviation growth. Four years later, the sector's recovery is hampered by high taxes, insufficient infrastructure, high costs and restrictive investment policies. AAI against Kolkata, Chennai airport privatisation Airports Authority of India (AAI) is opposed to the government's proposal of privatising the Kolkata and Chennai airports, its highest revenue earners, arguing that it is well equipped to manage the facilities, and such decisions can merely undermine the public sector. Criticising Planning Commission's logic that slow commercial decision-making at AAI was the reason for privatisation of these two airports, senior officials at the PSU expressed fear about the state-owned company's...
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...Current Market Outlook 2013 –2032 Current Market Outlook 2013 –2032 Outlook on a Page World regions Market growth rates 2012 to 2032 World economy (GDP) World regions Market value: $4,840 billion Share of fleet Delivery units 9% 13% 2% 6% 3.2% 100% 75% Number of airline passengers 4.1% 50% 25% Airline traffic (RPK) 5.0% 70% 0% 2012 Airplanes 20,310 2032 Airplanes 41,240 2013 to 2032 New airplanes 35,280 Cargo traffic (RTK) 5.0% • Regional jets • Single aisle • Small widebody • Medium widebody • Large widebody World regions Key indicators and new airplane markets Growth measures Regions World economy (GDP) % Airline traffic (RPK) % Cargo traffic (RTK) % Airplane fleet % Market size Deliveries Market value ($B) Average value ($M) Unit share % Value share % New airplane deliveries Large widebody Medium widebody Small widebody Single aisle Regional jets Total Market value (2012 $B, catalog prices) Large widebody Medium widebody Small widebody Single aisle Regional jets Total 2012 fleet Large widebody Medium widebody Small widebody Single aisle Regional jets Total 2032 fleet Large widebody Medium widebody Small widebody Single aisle Regional jets Total Asia Pacific 4.5 6.3 5.8 5.5 12,820 1,890 150 36 39 260 1,470 1,860 8,810 420 12,820 90 490 460 840 10 1,890 330 500 660 3,470 130 5,090 350 1,550 2,080 10,350 420 14,750 North America 2.5 2.7 3.8 1.5 7,250 810 110 21 17 30 390 760 5,000 1,070 7,250 10 130 170 460...
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...“Looks Bleak”, words of Ms. Larsen who is the vice president of operation at American Connector Company. Ms. Larsen said the above mentioned words when she was reading a report on competitors plan as they were thinking of entering the US market of electrical connectors. American market had been selling electrical connector since 1970’s when the US experience rapid growth as firms capacity were building up to meet the growing demand. However, soon by 1980, the market started to go down and since because of the boom in 1970’s there were a lot of suppliers in the market which lead to excess capacity production but less demand which lead to price competition amongst all the companies that had entered the US market since 1970’s. Electrical connector were in so demand in the first few years of its launch but because of very large amount of supply in the market, sales for each company went down by 3.9% and the customers had demanded better quality and lower prices which lead to lower profit at year end. AMP inc. which had the most market share of 16% was the market leader as their sales were over $800 million. American Connector and DJC were however, coming in the second tier of the market as there sales were in between $500 million to $800 million. American Connector company (ACC) was one of the companies that supplied the electrical connectors is the US, however recent news of DJC, a Japanese corporation which is in the same business is looking to expand its production in US which...
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...0 Strategic Management Indian Aviation Industry Group 1 Section B Strategic Management 1 Program & Batch PGDM 2014-16 Term IV Course name SM Name of the faculty Shalini R. Tiwari Topic/Title Indian Aviation Industry- A Strategic Perspective Original or Revised write-up Original Group Number 1 Contact no. or Email Id of Group Coordinator +91 8130083855 ft14mayankshekhar@imt.ac.in Group Members Sr. no. 1 Roll no. Name Vicky Roy 140102140 2 Nitish Nihal 140103119 3 Ankush Bansal 140103024 4 Mayank Shekhar 140101098 5 Priyanka Thaman 140102135 6 Deepak Jhunjhunwala 140102041 2 Contents Executive Summary……………………………………………………. 3 Indian Civil Aviation Sector- Chronology of events…….. 4 FDI Regulations………………………………………………………….. 6 Growing Low Cost Carrier Market share……………………. 6 Air Turbine Fuel Price trends……………………………………… 7 Rupee depreciation…………………………………………………… 7 LCC Strategies…………………………………………………………… 7 Financial Analysis……………………………………………………… 8 Current Transformation……………………………………………. 9 Industry Estimations…………………………………………………. 11 The Indian Advantage- The Four Big Prospects…………. 13 Evolution of the Indian Aviation Sector…………………….. 15 Strategic Grouping of Six Major Airlines……………………. 16 Six Major airports……………………………………………………… 16 Passenger traffic……………………………………………………….. 17 Freight traffic…………………………………………………………….. 18 Aircraft movement…………………………………………………….. 19 Private Sector players………………………………………………… 19 Airports-...
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...CONFIDENTIAL EXPERT REPORT Research Study of the Civil Aviation Sector in India SUBMITTED TO: The Ministry of Corporate Affairs, Govt. of India, India SUBMITTED BY: Nathan Economic Consulting India Pvt. Ltd., India www.nathaninc.com January 24, 2012 CONFIDENTIAL Table of contents 1. 2. 3. 4. 5. Executive Summary ................................................................................................................................. 1 Introduction .............................................................................................................................................. 7 Market Structure and Competition Issues ......................................................................................... 11 Identification of Anti-Competitive Provisions and Practices ......................................................... 15 Analysis of the Identified Issues .......................................................................................................... 24 5.1 Fleet and Equity Requirements ................................................................................................................... 24 5.2 Route Dispersal Guidelines......................................................................................................................... 29 5.3 Slot Allocation ..............................................................................................................................................
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...Professionalism in the Aviation Industry Antoine Hafed Inter-American University of Puerto Rico Bayamon Campus This paper was prepared for AWSC 4100, Taught by Professor Ocasio Being a commercial pilot is an achievement that a lot of student pilots dream of. It takes a lot of dedication, sacrifice and passion to achieve. Apart from receiving proper training, licenses, and certifications to become a certified commercial pilot, growing professionally as a person is very important in the aviation industry. Being professional will make you stand out; will increase your chances of being hired and being treated with respect among others. Having this professionalism is indeed necessary nowadays; competition in the industry stands tougher as time goes on. Obtaining a college degree will make you grow academically, but not always professionally. This is why it’s important to find different ways gain experience as an “acting” professional. At the Inter American University, they offer a bachelor’s degree in aviation, which provides a very intriguing class called: “Career Development for Aerospace Professionals”. While enrolled in this class, students will act and dress as professionals during the entire length of the class. Many wonder why they have to dress up for a class, not realizing that presentation is a very important key for obtaining a good professionalism. Impressions count for a lot, especially first impressions. Wearing the proper attire is the first thing people...
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...of AirAsia in the Malaysian domestic airline market. Firstly, the paper will provide a general background of the airline industry, in particular the Malaysian domestic airline market and a summary of an analysis of the industry using Michael Porter’s Five Forces Analysis. Secondly, the paper will provide a brief background of AirAsia and Malaysia Airlines. Thirdly, the paper will analyse the results of AirAsia’s strategy vis-àvis operating and financial performance. Finally, the paper will conclude a summary of AirAsia’s achievement of the past and present and prospect for the future. INDUSTRY BACKGROUND Airline Industry The airline industry is very competitive with existing airlines having to compete with each other as well as with new entrants from time to time. For every success such as Singapore Airlines and Southwest Airlines, there are plenty of failures such as Pan Am, TWA, Swissair, Sabena, Ansett, People Express, Go, Buzz and so on. Major Characteristics There are three major characteristics of the airline industry namely its product nature, its expenditure structure and its market entry conditions. Airlines’ product is homogeneous or undifferentiated, causing significant competition in markets, which are free from regulations and economic barriers. High capital and operating expenditure is another important characteristic of the airline industry. Aircrafts, airlines’ major capital expenditure, are very costly to acquire. For operating...
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...Name: Course: Date: Applying CVP to the Aviation Industry | | | |Sales (5 aircraft): | | |Total |$950,000 | |Per Unit |$190,000 | |Variable Expenses: | | |Total |285,000 | |Per Unit |57,000 | |Contribution Margin: | | |Total |665,000 | |Per Unit |133,000 | |Fixed Expenses |300,000 | |Net Operating Income |$365,000 | Calculate the break-even point for Wolverine Aircraft. Profit = Total revenue - Total costs = Total revenue - Total variable costs - Total fixed costs = Selling Price*Quantity – Variable Expenses*Quantity – Fixed Expenses = Quantity (Selling Price- Variable Expense) – Fixed Expenses Therefore, Quantity = [Profit + Fixed Expenses] / [Selling Price – Variable Expenses] Breakeven Quantity = [Profit + Fixed Expenses] / [Selling Price – Variable Expenses] Breakeven Quantity = [Profit + Fixed Expenses] / [Contribution Margin] Profit = 0 at breakeven, therefore Breakeven Quantity = Fixed Expenses / Contribution Margin = 300,000/ (133,000) = 2.26 Units Breakeven Revenue = Fixed Expenses / Contribution...
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...if you wish, the limitation of economics. So that to end, you are being assessed less on coverage but more on application. How Economic Factors Affect the Aviation Industry Introduction The aviation industry is particularly susceptible to external economic factors because it affects and depends on a substantial number of industries. Also, because the industry involves operating between borders, then economic factors from other parts of the world other than the domestic market also affect it. Issues such as fiscal policies (both within and without the countries of destination), wage inequality and positive and negative externalities have a way of changing operations within this industry. How shifts and price elasticity of supply and demand affect the aviation industry Supply and demand price elasticity of airline carriers may vary depending on the nature of the industry. For new and emerging industries such as the Indian aviation sector, then price elasticity of demand and supply is near perfect. The number of transporters being added into their markets are largely affected by the nature of demand for the commodity the country underwent rapid economic growth in the late nineties thus setting the stage for a shift in the country’s business arena. Many people within India had a renewed need for utilizing aviation services because of internationalizing their businesses. This demand for the commodity led to rapid expansion within the sector and increasing numbers of carriers...
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...impact of recession in air transport(passengers demand, economic cycles, current developments) The reports covers the entire aviation industry and will include the recession aspect and its consequences on the passengers demand, the economic cycle and also on the current developments. 1.0 Introduction One of the biggest international industries, the air transport, has the largest sensitivity on the economic crisis. That crisis hit and still continues to effect the populations, industries and economic growth in developed and developing countries. Every sector has been effected by the crisis, every industry has had a reaction and an immediate research for solutions. Instability of revenue and expenditure in the airline industry was effected from the global change. That for is easy to deduce that these reactions are different from each other. This in according to available founds, resources and differences in management. 2.0 Impacts on demand The demand aspect, is a factor that shows us the relationship between population and economic crisis. In fact, the perception of crisis brings different fears and uncertainty in people. Thus leading to an increase of the overall savings, with consequences under the economic factor, with less expenditure incurred by each person. This is one of the things that influenced more directly the airline industry, with a sharp drop in demand. Taking into account only two points is easy to imagine on one hand the airlines in trouble. And their...
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...Name: Jacob ZumBrunnen Date: December 8, 2014 M8 Module 8 – Aviation National and International Laws and Regulations, and Environmental Issue LOB 4 Explain the impact of environmental issues and environmental laws in the aviation industry Web Support link: http://www.nbaa.org/advocacy/issues/environment/ Minimizing the industries environmental impact. The aviation community has led the way in promoting advances aimed at reducing its environmental footprint for many years. Aviation emissions only make up a fraction of all of the transportation emissions, while business aviation makes up an even smaller fraction of that. As an example of something to reduce emissions and optimize aircraft performance and flight range over a decade ago winglets were introduced into general aviation. This equipment also contributed to more efficient fuel burn and is now in place on a large number of general aviation aircraft. In addition, the industry continues to reduce engine emissions by applying new technologies, which means that today’s aircraft engines are cleaner, quieter, and more fuel-efficient than ever. Operational improvements advanced by business aviation also have resulted in national airspace system efficiencies that help the environment. Over two years ago, NBAA members began equipping aircraft, at their own cost, with cockpit technology allowing for reduced vertical separation minimums (RVSM), effectively doubling the system’s airspace capacity. In spite...
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