...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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...STUDY OF THE SCENARIO OF INDIAN AVIATION INDUSTRY IN A SPAN OF FIVE YEARS AND THE RISE AND FALL OF KINGFISHER AIRLINES IN THOSE YEARS. Indian Aviation Industry It is one of the fastest Growing Aviation Market. There are approximately one billion people and 0.05% of them fly. More and more middle class families now prefer air transport than other traditional mode of transport. The Indian travel market has nearly tripled to $ 51 billion by 2011, from $16.3 billion in 2005-06. Origin of Indian civil aviation industry India occupies an eminent position in the civil aviation sector with a large fleet of aircrafts. Estimates show that the domestic and international passenger traffic in India is growing tremendously PEST ANALYSIS – AIRLINE INDUSTRY Political Factors India’s political environment – Tension with Pakistan, Government’s inability to control issues (riots etc) September 11 th - huge drop in air traffic due to safety and security concerns Trade relations with other countries have to be good Economic Factors Recession- airlines are considered as a luxury High operation costs due to low demand resulted in laying off employees Social Factors People from varied income groups have to be catered Destination, kinds of food served have to be chosen carefully Technological Factors Use of Internet- online ticket booking, updated flight information & handling of customer complaints restructuring the existing airports to world class appeal ...
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...Private jets industry belongs to general aviation aircraft domain and is one the important area of general aviation industry development. General aviation aircraft industry in the United States is most developed with about 224,000 private jests, accounting more than 78% of the total in the world. In China, the total number of private jets is only about 200, much less than that of US. But the private jets market is full of opportunities. According to a recent report, in China, there are about 825,000 multi-millionaires, 51,000 billionaires. It is estimated that more than 300,000 people will become the potential buyer of private jets in the near future. This attractive piece of cake will undoubtedly make the world’s aircraft manufacturers salivating. But the income of Chinese is not a reason that constrained the development of private jets market in China. The law and policies concerning the private jets are far behind the market, discouraging the development of the private jets industry. China has been strictly controlling its low-altitude airspace. If you want to conduct a cross-provincial flight, you need to make official application one week ahead, making it inconvenience of the private flight. Also, the lack of private airport is another reason that constrains the development. A low-standard airport of private jets only required a 10-metre-radius ground and a 20-meter-long runaway. However, there are less than 10 standard private airports in China, compared to the number of...
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...INDIAN AVIATION INDUSTRY CURRENT CHALLENGES AND OPPORTUNITIES COVENTRY UNIVERSITY LONDON CAMPUS APS-PROFESSIONAL AND ACADEMIC SKILLS ASSIGNMENT 4 NAME: VINITHA R STUDENT ID: 5216846 COURSE: MBA Global Business DATE: 28/02/2014 SUBJECT: APSLON EXECUTIVE SUMMARY: Aviation plays a vital role in nation’s economic growth. This is an industry which consistently contributes the growth of GDP and provides employment massively. In this study I have found out the challenges faced by the industry and the opportunities raised on aviation industry. INTRODUCTION: The aviation industry in India has the rapid growth in the world with private airline acquiring more than domestic aviation. There are huge annual growth rate of airport and airstrips along with the domestic aviation .The Government have offered many steps in order to develop the growth of the industry players. The Government aim is to change the industry to more equality and investment of social atomosphere.The government added a lot of new airports and converted Morden airports for the country. It also improved the policies which provide eventual opportunities. In the aviation Industry there are also severe challenges faced by the air carriers in order to survive in the marketing industry. Though there are a lot of new entrants entered the industry they were unable to compete and eventually withdrawn them from the industry. They also met heavy...
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...BCCA’S INSTITUTE OF MANAGEMENT STUDIES Nesbit Road, MAZAGAON, MUMBAI – 10 V SEMESTER :______________________________________ NAME OF STUDENT : CLASS : T.Y.B.M.S DIV : 000 SUBJECT : 0000000000 TOPIC : RISE & FALL IN THE AVIATION INDUSTRY NAME OF PROFESSOR : 000000000 ____________________________ _____________________________ SIGNATURE OF STUDENT SIGNATURE OF PROFFESSOR ________________________ _______________________ MAX. MARKS OBT. MARKS ABSTRACT OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO...
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...Aviation Industry Prepared by Madhulika Appasani 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. At the industry level, long term viability also requires return of pricing power through better alignment of capacity to the underlying demand growth. Aviation Industry Indian hospitality sector contributes 8-9 percent of the country’s GDP. The sector encompasses travel and tourism and major segments that fall under this category include accommodation and catering (hotels, restaurants), transportation (cruise, railway, rentals, airline companies), travel agencies and tour operators. The tourism and hospitality sector together contributed US $32.7bn in 2011, and registered a CAGR of 13 percent. Currently, India has 114,000 hotel rooms, which stands 150,000 rooms short in meeting the current requirement. Thus, the growth opportunity for this sector is immense, but is tangled with challenges across parallel sectors and the overall economy. According to estimates provided by World Travel & Tourism Council (WTTC), contribution of travel and tourism to nation’s GDP will grow consistently in the next decade though this growth opportunity will be closely linked to the growth of India’s hotel and restaurant business. Structure of Indian Aviation Industry: ECO 561 – IMT Hyderabad ...
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...Strategic Management: Porter Analysis for Civil Aviation Industry Ajay Kr. Dhamija¤(N-1/MBA PT 2006-09) Abstract "The air transportation system has become essential to the economic progress for the citizens and businesses of this nation" The airline industry must: ² Be e±cient and technologically superior ² Have the ¯nancial strength to respond to rapid change and opportunity. ² E±ciently move people, products and services to markets, wherever they exist Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid °eet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid °eet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. We present here the porter ¯ve force analysis of Civil Aviation Industry and hance try to ¯nd out whether it would be advantageous to enter into this industry or not. Keywords: Porter Analysis, Airline Industry , Available Seat Mile, Revenue Passenger Mile , Revenue per Available Seat Mile , Air Tra±c Liability , Load Factor , Threat of New Entrants , Bargaining...
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...Airline industry Indian Airline Industry Management Economics P a ge |1 Airline industry A Project report on INDIAN AIRLINE INDUSTRY Submitted on 13Oct2012 in partial fulfillment for the requirement of the subject "Managerial Economics” during academic course of PGDM-Executive 2012-13. Submitted by Abhas Desai(06) Bharat Dalvi (05) Nitin Palve (19) Prasad Babu (10) Arjun Singh (04) Ravi Sastry (22) Vivek Misra (16) Guide: Prof. J Bhargavi K.J.Somaiya Institute of Management studies and research Mumbai Management Economics P a ge |2 Airline industry Industry Outlook: Global Positioning Airlines Industry analysis : Management Economics P a ge |3 Airline industry • • • • Economic growth environment is weak Industry profitability not perfectly but closely correlated High fuel price no problem when growth is strong But growth now close to point where profit turns to loss Management Economics P a ge |4 Airline industry • • • • Price of jet fuel persistently high In 2008 spiked higher but just 7 months Jet fuel price >$120/b for past 15 months Even after recent fall still higher than early 2011 Given difficult environment cash flow performance to date good at around 10% of revenues, except Europe (1/2 that) Financial market signal more or less consistent with change in cash flows since 2009 Management Economics P a ge |5 Airline industry • • • Demand for air travel expanding well above trend...
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...Aviation Industry Information The airline industry provides transportation services for passengers as well as cargo through scheduled air routes. The aviation industry derives its revenues from regular ticket fees and freight charges. Other major components of the aviation sector include: • Air traffic control • Helicopter and private charter services • Airport management • Express delivery service History of the Airline Industry The pioneers of the airline industry, the Wright Brothers invented the first airplane in 1903. The first modern airliner, Boeing 247, was launched in 1933. It traveled at 155 miles per hour and had a capacity of ten passengers. Boeing 747 was launched by Pan Am in 1969. This highly sophisticated aircraft had four engines and a seating capacity of 450. The airline industry initially fell under the category of a public utility service, with government agencies establishing the air routes and prices. However, with the Airline Deregulation Act of 1978, the industry became market driven. Demand and Supply Drivers of the Airline Industry The demand drivers of the airline industry include: o Ticket prices o Passenger income levels o Access to and suitability of other modes of transportation o Frequency of services • Safety • Random factors such as terror threat The supply...
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...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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...The term Business Environment is composed of two words ‘Business’ and ‘Environment’. In simple terms, the state in which a person remains busy is known as Business. The word Business in its economic sense means human activities like production, extraction or purchase or sales of goods that are performed for earning profits. On the other hand, the word ‘Environment’ refers to the aspects of surroundings. Therefore, Business Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are uncontrollable in nature and affects the functioning of organization.Business Environment has two components: 1.InternalEnvironment 2. External Environment Internal Environment: It includes 5 Ms i.e. man, material, money, machinery and management, usually within the control of business. Business can make changes in these factors according to the change in the functioning of enterprise. External Environment: Those factors which are beyond the control of business enterprise are included in external environment. These factors are: Government and Legal factors, Geo-Physical Factors, Political Factors, Socio-Cultural Factors, Demo-Graphical factors etc. It is of two Types: 1.Micro/OperatingEnvironment 2. Macro/General Environment Micro/Operating Environment: The environment which is close to business and affects its capacity to work is known as Micro or Operating Environment. It consists of Suppliers, Customers, Market Intermediaries, Competitors...
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...foreign investment restrictions, have further collectively made India, the apple of investors' eye, for most productive, profitable, and secure foreign investment. According to a recent survey by the United Nations Conference on Trade and Development (UNCTAD), India has conspicuously emerged out as the second most popular and preferable destination in the entire world, after China, for highly profitable foreign direct investment. In recent years, bulk of the foreign direct investment in indian business sectors of infrastructure, telecommunication, information technology, computer hardware and software, and hospitality services, have been made by investors of countries like US, UK, Mauritius, Singapore, and many others. Global Jurix, one of the leading full-fledged legal organizations of India with global repute, has been helping companies, business corporations, organizations, and other potential investors of countries all around the world, in making foreign direct investment in indian business sectors, in various ways described in the section below. | FDI - Inbound and Outbound | The Foreign Direct Investment (FDI), anywhere in all across the world, is elaborately and impeccably advised, supported, and well-facilitated by Global Jurix. With its well-established and organized offices in major countries of all around the globe, Global Jurix has been providing a rather wide range of diverse legal services for FDI, in a large number of developed and developing countries...
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...To analyze the Indian Commercial Aerospace market for Cobham India Pvt. Ltd By Satyendra Shukla 11P224 Management Development Institute Gurgaon 122 001 May, 2012 To analyze the Indian Commercial Aerospace market for Cobham India Pvt. Ltd By Satyendra Shukla Under the guidance of Mr. Lee Griffiths Director India Cobham India Pvt. Ltd. Management Development Institute Gurgaon 122 001 May, 2012 Executive Summary The project aims at to analyze the Indian Aerospace Industry and try to find out through secondary research the growth prospective of the same. Cobham has many capabilities that could be exploited to supply equipments and spares for the MRO (maintenance, repair and overhaul) industry in India. So we used the various reports and predictions available at the websites of Airport Authority of India, Directorate General of Civil Aviation, Ministry of Civil Aviation and websites of various airlines and MRO companies to understand the market dynamics. We came across various difficulties faced by them and also saw various opportunities lurking round the corner. We tried to estimate the fleet size of various airlines and the expected growth in next five years. Also the focus was given on the Non-Scheduled operators as their numbers is rising at a lightening pace. We also had the projections made by Ministry of civil aviation about the growth of passenger volumes in the future, and all the future growths...
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...Introduction The civil aviation industry in India has entered into a new age of expansion driven by factors such as low-cost carriers (LCC), modern airports, foreign direct investments (FDI) in national carriers, cutting edge information technology (IT) interventions and a growing emphasis on regional connectivity. The most significant development in the Indian domestic market is the increasing dominance of the low-cost carrier model, which has modernized the aviation industry by extending the choice of the air transport to customers at the lowest costs. Also, LCCs have driven the growth of aviation through the introduction of regional routes and periodic discount offers, thus accounting for huge benefits to the Indian aviation sector. This...
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...transport agreements, which liberalize the rules and regulations on international aviation’. It includes regulation relate to international airline market, and make able to reduce control by government. This regulation has a relationship with various factors, which includes both of both of travelers and freights, of airline industry (USlegal,2013). Nowadays, many countries joined to this regulation, such as EU and ASEAN. India joined to this regulation without exception. September 2012, the Indian government announced that they designed to give permission to foreign airline industry to corner 49percent of airline industry of India. Therefore, six greatest Indian airlines have loan of combined $13billion, and have been expected to loose combined $1.6billion for this year by Center for Aviation since March 2013. In short, it is consequently difficult to develop their business within India for Indian airline companies, and the loose of the business has to expected. On the other hand, airline industry in other countries hesitate to enter the market, cause they expect they are not able to earn enough profits from Indian due to their low incomes (The Economist,2013). Therefore, it can be an opportunity to develop Indian airline industry even within the regulation. 1.1.2 Economic factors Nowadays, the increasing cost of fuel can been seen in airline industry in every countries. In India, the Aviation Turbine Fuel, ATF, increased 22percent from last July to September. Therefore...
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