ITT Project

Made By : Pushkar JoshiReg No : WRO0556519

Indian Aviation Industry

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Objectives OF Case Study Understanding Present

condition of Indian Aviation Industry

Analyzing what makes a particular aviation company successful.

Challenges faced by Indian aviation industry

Introduction Today, India has the fastest

growing domestic aviation market in the world, as per the International Air Transport Association (IATA).

Thus, India is all set to become a part of civil aviation revolution.

Aviation Industry in India holds about 69 % of the total air traffic in the region of South Asia.

Some Interesting Facts

Players in Indian Aviation Industry

1. PSU –

2. Listed -

3. Private-

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Market Share & Revenue

37%

22%1%

12%

9%

16%

2%1%

Indigo Jet Group VistaraSpice Jet Go Air Air IndiaAir Asia Others

CHALLENGES & ISSUES FACED BY INDIAN AVIATION INDUSTRY

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High Operational costs

Debt Burden

Infrastructural problems

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CONT.. Financial Stress affecting

passengers safety

Complex Tax Structure

High prices of ATF compared to international market

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Competition with foreign airlines

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Secret of success!!!Indigo Airlines Operations :Good coverage of technical

aspects.

Single Class: Having only economy class means that they don’t have to spend much upon privileged passengers.

Single type of aircraft : Mostly consists

of A-320-232.Thus it provides more flexibility & all the technical aspects or hiring charges are minimized

Operations :Good coverage of technical aspects.

Single Class: Having only economy class means that they don’t have to spend much upon privileged passengers.

Single type of aircraft : Mostly consists

of A-320-232.Thus it provides more flexibility & all the technical aspects or hiring charges are minimized.

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Cont…. Fuel :Domestic fuel taxes can be as high as

30% along with 8.2% of excise duty. Thus in order to tackle such situation Indigo has been using a software in order to plan it’s usage.

Route Planning : Indigo operates in less destinations than it’s competitors, but with a higher frequency.

It has a fleet of about 78 planes for 36 destinations.

Whereas Spice Jet works with a fleet of 58 planes for 46 destinations.

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CONCLUSION Aviation Sector is one of the challenging sectors Government must take a firm stand, rationalize

the tax structure & play a supportive role to strengthen the competitiveness of private players.

Attracting foreign investment & alternative ways to infuse equity should be explored.

Aviation industry cannot always blame government for all the problems, the management should also introspect.

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