ppts of aviation

8/2/2019 Ppts of Aviation

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Presentation

OfManagerial Economics-II

Topic: Aviation Crisis in India

Presented by:

Kirandeep Kaur

Tanvi Kaalia

Abinashi Guram

Anchal Puri


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History

Civil aviation in India started with its first

commercial flight on February 18, 1911.

Allahabad to Naini.

The first domestic air route between Karachi

and Delhi was opened in December 1912.

By the Indian State Air Services incollaboration with the Imperial Airways.


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However the actual instigation of India

Aviation Industry was in the form of Tata

Airline by JRD Tata in 1932.

In 1946, Tata Airlines was transformed into Air

India.

In 1953, the Government ofIndia nationalized all existing airline assets

and formed Indian Airline Corporation for

domestic air services along with Air IndiaInternational for international air services


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Until, 1991, these two companies played

monopoly in India.

In this year that private airlines were allottedthe 'air taxi scheme.

In 1994, private airline companies obtained

permission to operate scheduled air services.

Major change in 2003, when Air Deccan

introduced budget flying.

Now the list includes Spice Jet, Go Airwaysand Kingfisher Air.


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Indian Aviation Industry 2009

Aviation industry statistics have shown a

growth curve that establishes the emergence

of a new world leader.

Launching newer flights everyday with very

low fares to attract the maximum number of

customers.

Three main categories for the Aviation

Industry analysis.


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Three main categories for the Aviation

Industry analysis.

Airlines in India.

Airports in India.

Aviation Schools in India.


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Jet Airways and JetLite

Started in 1993 by Naresh Goyal with only few

flights to metropolitan cities of India.

The company operates more than 400 flights.

The airlines have its hub at Mumbais

Chhatrapati Shivaji International Airport.

It also has an international hub at Brussels.


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Kingfisher airlines started its operations on 9thmay,2005 with a fleet of 4 airbus A320.

Kingfisher airlines started operating with a brandnew fleet of 8 Airbus A320 aircraft,3 Airbus A319-100 aircraft and 4 ATR-72 aircraft.

UB holding ltd obtain a 26% stake in air Decan, alow cost airline which afterward Mallya acquiresand rebrand it as Kingfisher Red.


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Basically based in Banglore.

Operation is 214 flight a day.

The airline current operates on domestic routes

and international routes as well.

Main bases are:-

Bengluru international airport

Chataar prati shivaji airport.

Rajiv gandhi international airport.


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This is another excellent low cost budget airline

and is owned by InterGlobe Enterprises.

The company is headquartered in Gurgaon. The

company started its operation in 2003 with only

22 jets and flights to 145 domestic destinations.

The hub of the airlines is at Indira Gandhi

International Airport. The company is soon starting its international

operations.


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NACIL

NACIL stands for National Aviation Company ofIndia Limited.

This company is responsible for operating Air

India, Indian Airlines, Air India Express andAlliance.

The company is owned by Government of Indiaand was formed after the merger of Air India and

Indian Airlines.

The airlines has its operations to more than 100destinations across India and world.


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This is another later entrant in the field of lowcost arena. The company was started KalanithiMaran in 2004.

The headquarters of the airline is at IndiraGandhi International Airport.

The airline is the second best low cost airlines

in India. The number of passengers that hastravelled with the airlines is about 4 million tillnow.


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GoAir

This airline was established in 2004 by the

Wadia Group.

The airline operates to only 18 cities with 131

daily flights.

The main base of the airlines is at Mumbais

Chattrapati Shivaji International Airport.


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Reasons for BOOM in Aviation Industry

1.Foreign equity allowed

2.Low entry barriers

3.Attraction of foreign shores4.Rising income levels and demographic profile

5.Untapped potential of India's tourism

6.Glamor of the airlines


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Boom Period

The fleet of aircrafts comprises from

big passenger airplanes to the low cost

carriers.

The no. of aircrafts is about 500-550.

When the aviation sector was booming in the

period 2005-06.

It was also making itself a debt burden sector.


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The cost of salaries.

The second big expense is fuel.

These huge expenditure lead to big

borrowings.

To ease the pressure, the banks are trying to

restructure the loan repayment schedule.

Three major Airline companies, Jet, Air India

and Kingfisher are lining up to payback their

debts before they turn bad.


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Market Share

Airline/Company

Jet Airways (includes Jet

Lite)

IndiGo

Kingfisher

SpiceJet

GoAir

% Share

24.8%

19.6%

16.7%

16.1%

5.3%


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CURRENT

SCENARIO

Kingfisher-20.8

Jet airways:-19

Air India:-18.3

Indigo:-15.4

Spice jet:-12.9

Others:-13.6


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CRISIS


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Jet Airways News

Airline has a debt of Rs.13000 Crore

Jet Airways looks to raise funds, reduce debt.

Jet posts Rs 713.60 cr loss for Q2 on risingfuel cost.


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Current News of Kingfisher

Kingfisher, which reported a September quarterloss of USD 92 million on Tuesday, cancelledscores of flights last week as it abruptly shutsome routes. It has also been late paying

salaries. They have to pay 250 crores to Oil authorities

and 750 crores to Airport authorities.

They have lost approx 4321 crores and down

with 6500 crores. There are no pilots available for Kingfisher

airlines and flights are getting cancelled.


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As aircrafts or flights are getting cancelled.

Both the media and CEO Sanjay Aggarwal are

telling different reasons.


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