privatization final

8/8/2019 Privatization Final

1/17

By

Akshay Gopal 07

Amit Jain 08Ankur Arora 09

Ankur Dave 10

Anshul Rawat 11


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WHAT IS PRIVATIZATION ALL ABOUT?????????


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Meaning

4Methods

Share Issue

Asset SaleVoucher

Privatization from below

Objective of privatization

Types of industriesGlobal Example

Proponents


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` To boost the tourism industry.

` 1986,the Air Taxi Scheme.

` Private airlines were allowed to operate charter

and non-scheduled services.

` To all authorized airports.

` To decide their fares and flight schedules.


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` To facilitate the growth of international trade,

exports.

` Early 1990s.` Open Skypolicy.

` For cargo which allowed international airlines

to operate cargo flights.

` Private operators can bring freighters to the

country for lifting cargo from any Custom airport.


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` Equity participation imports technical know-how,

expertise and management practices, which are

available globally.` More funds for modernization and expansion.

` Unlimited international network .

` Increased airline capacity.


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` Implies that the use of the assets in the private sectorentails a positive social rate of return.

` Economys existing resources are used moreeffectively.

` Privatization will depress aggregate demand.

` Even if investment is not depressed, privatization will

lead to an increase in potential output.` This increase in output will increase the gap between

aggregate demand and potential supply.


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` The mere transfer of ownership does not have to affect

the profitability of additional private sector investment.

` The expected rate of return to additional investment

doesnt change.` Doesnt significantly affect aggregate demand and

supply.

` Impact on government budget is similar to that of bond

financing.` Can have an expansionary impact on the economy in

the short run.


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20-25 % Price cut of flights (05-Dec-2010)

Current Scenario Of Aviation Sector In India

Mission OfMr. Prafull Patel Biggest Aviation Sector InWorld

Hyderabad & Bangaluru Airpot

Employement & Opportunities

Seprate Terminals for low cost Airlines (Controlling Air Traffic and

Cost)

No more a loss sector in India.


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` .. Quality of the service.Quality of the service.

`

Route rationalization.Route rationalization.

` First airline to have a new fleet of airbuses.First airline to have a new fleet of airbuses.

` Quality and continuous innovationQuality and continuous innovation


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` Service delivery to metros and other big cities

` Still a not in profit organization.Still a not in profit organization.

` High ticket pricing.High ticket pricing.

` Facing a tough competition from competitors.Facing a tough competition from competitors.


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` The expanding tourism industry.The expanding tourism industry.

` The non penetrated domestic market.The non penetrated domestic market.

` International market.International market.

` Untapped air cargo market.Untapped air cargo market.


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` CompetitorsCompetitors

` Infrastructure issues.Infrastructure issues.

` Fuel price hike.Fuel price hike.

` Tourism saturationTourism saturation

` Economic slowdown.Economic slowdown.

` Promotions and sponsorship declining.Promotions and sponsorship declining.


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` Reduce the labor cost

` Simplify the flight operations

` Offer more transparent pricing

` Get smart on fuel


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Privatization is need for Economic development & Growth

More infrastructure should be provided

Investment of foreign hands in Privatisation can lead better

results

Reduction in Oil prices can boost aviation sector


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Q/A

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