MARKET OVERVIEW

Market definition
The airlines industry comprises passenger air transportation, including both scheduled and chartered, but excludes air freight transport. Industry volumes are defined as the total number of revenue passengers enplaned (departures) at all airports within the country or region, excluding transit passengers who arrive and depart on the same flight code. For the US and Canada, transborder passengers departing from either country are considered as part of the international segment. Industry value is defined as the total revenue obtained by airlines from transporting these passengers. This avoids the double-counting of passengers. All currency conversions in this profile were carried out using constant 2010 average annual exchange rates. For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.

Market analysis
The Indian airlines industry experienced strong growth during 2010 after suffering a large decline in 2009. The industry is expected to plunge back in to decline in 2011 with recovery not expected until 2013. The Indian airlines industry had total revenue of $4.8 billion in 2010, representing a compound annual growth rate (CAGR) of 1.1% between 2006 and 2010. In comparison, the Chinese industry increased with a CAGR of 10.8%, and the Japanese industry declined with a compound annual rate of change (CARC) of -3.6%, over the same period, to reach respective values of $26.9 billion and $23.3 billion in 2010. Industry volumes increased with a CAGR of 14.1% between 2006-2010, to reach a total of 80.8 million passengers in 2010. The industry's volume is expected to rise to 166.8 million passengers by the end of 2015, representing a CAGR of 15.6% for the 2010-2015 period. Domestic flights had the highest volume in the Indian airlines industry in 2010, with a total of 60.3 million passengers, equivalent to 74.6% of the industry's overall volume. In comparison, international flights had a volume of 20.5 million passengers in 2010, equating to 25.4% of the industry total. The performance of the industry is forecast to decelerate, with an anticipated CAGR of 0.6% for the five-year period 2010 - 2015, which is expected to drive the industry to a value of $4.9 billion by the end of 2015. Comparatively, the Chinese and Japanese industries will grow with CAGRs of 12.1% and 3.6% respectively, over the same period, to reach respective values of $47.5 billion and $27.8 billion in 2015.

ISIEmergingMarketsPDF in-iimahdvishwa from 203.200.225.151 on 2013-10-20 16:50:05 EDT. DownloadPDF. Downloaded by in-iimahdvishwa from 203.200.225.151 at 2013-10-20 16:50:05 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.