Indian Logistics Industry Insight

Aviation

May 2007

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SYNOPSIS
The global logistics industry was valued at US$3.5 trillion in 2005, whereas US logistics industry size was around US$900 billion, 25% of the global logistics industry. Logistics costs in India is estimated to be around 13% of the GDP, which comes to around US$94 billion in 2005-06. However, Indias spending on logistics industry is much higher than the developed economies like the US (9.5%) and Japan (10.5%). Air transport sector contributes over 0.2% to the countrys GDP at constant prices (1999-2000 prices). Transport sectors contribution to the GDP has been firming up over the last couple of years, mostly because of the growing economic activities in the country. Domestic air cargo traffic has been growing at CAGR of 12.80% from 2001-02 to 2006-07, whereas international air cargo traffic has been moving at CAGR of 13% during the same period. During 2006-07, total air cargo traffic is estimated to be over 1.56m tonnes against 1.4m tonnes during 2005-06, registering a growth rate of 14.65%. According to the Planning Commission, Indias air cargo movements would grow at over CAGR of 11.5% from 2007-08 to 2011-12. Riding high on export of gems and jewellery, special chemicals and high-value pharmaceuticals, international air cargo traffic at all Indian airports has been growing rapidly. The report covers the overview of Indian logistics industry, market size, cost components, overview of air transport system in India, air cargo traffic trends, growth drivers, demandsupply scenario, technology and innovation, and future outlook of the global as well as Indian air cargo industry. In addition, the report also includes profiles of four major players in the sector. The report will be highly significant for industry analysts, airline companies, banks and financial institutions, investor consultants, logistics companies and freight forwarders.

Indian Logistics Industry Insight - Aviation

No of Pages: 85

No of Tables: 19

Cygnus Business Consulting & Research 2007

CONTENTS
1. EXECUTIVE SUMMARY 2. HIGHLIGHTS 3. LOGISTICS INDUSTRY STRUCTURE 3.1. Global Logistics Industry Overview 3.1.1. Component of Global Logistics Cost 3.1.2. Structure of Global Logistics Industry 3.2. Indian Logistics Industry Overview 3.2.1. Spending on Logistics in India 3.2.2. Cost Component of Indian Logistics Industry 3.2.3. Infrastructure Development Boost to Logistics Industry 4. AIR TRANSPORT SYSTEM IN INDIA 4. 1. Overview 4.1.1. Requirements to become schedule Air Transport Operator 4.1.2. Characteristics of Indian Aviation Sector 4. 2. Air Transport Sector and Indian GDP 4.3. Airports 4.3.1. Airport Infrastructure Status in India 4.3.1.1. Major International Airport Infrastructure Status 4. 4. Air cargo market 4.4.1. Opportunities Galore- Indian Air Cargo Industry 4.1.2. Performance of Top 46 Airports 4. 5. Airport Authority of India and its Role 4.5.1. Role of AAI 4. 6. Carriers 4.6.1. Indian Airlines & Air India 4.6.2. Jet Airways 4.6. 3. Air Deccan 4. 7. Recent trends 5. INTERMEDIARIES AND SUPPORT SERVICE PROVIDERS 5. 1. Introduction 5. 2. Reasons to outsource logistics functions 5. 3. 3PL Market Size 5. 4. Function of 3PL 5. 5. State of 3PL in India 5. 6. Fourth Party Logistics (4PL)

Indian Logistics Industry Insight - Aviation

Cygnus Business Consulting & Research 2007

5. 7. Clearing & forwarding agents 5. 8. Warehousing 6. MARKET DYNAMICS 6.1 Overview of aviation industry 6.1.1 Market Size of Air Transport System in India 6.1.2. Market Share 6.2 Demand Supply Scenario 6.2.1. Global Air Cargo Forecast 6.3. Growth Drivers 6.3.1 Economic Growth 6.3.2 Global Trade 6.3.3 Infrastructure 6.3.4 Information Technology 6.3.5 Liberalisation and De-regulation 7. TECHNOLOGY & INNOVATION 7.1. Air Traffic Management 7.2. Communication/Navigation/Surveillance 7.3. Electronic Data Interchange (EDI) 7.4. Advance Passenger Information System 8. MAJOR PLAYERS 8.1 Indian 8.1.1. Corporate Profile 8.1.2. Business Profile 8.1.3. Physical Performance of Indian 8.1.4. Financial Performance 8.1.5. Business Strategies 8.2. Air India 8.2.1. Corporate Profile 8.2.2. Business Profile 8.2.3. Physical Performance of Air India 8.2.4. Financial Performance 8.2.5. Business Strategies 8.3. Jet Airways 8.3.1. Corporate Profile 8.3.2. Business Profile 8.3.3. Financial Performance 8.3.4. Business Strategies

Indian Logistics Industry Insight - Aviation

Cygnus Business Consulting & Research 2007

8.4. Blue Dart 8.4.1. Corporate Profile 8.4.2. Business Profile 8.4.3. Financial Performance 8.4.4. Business Strategies 9. COST STRUCTURE 9.1. Cost Drivers 9.1.1. Air Transport System in India 10. ISSUES AND CHALLENGES 10.1. Introduction 10.2. Major Indian Airports Running Out of Capacity 10.3. High Waiting Time and Congestion in Airports 10.4. High Fuel Cost 10.5. Taxation 10.6. Aviation Security 10.7. Lack of Manpower 11. GOVERNMENT INITIATIVES, SCHEMES & REGULATIONS 11.1. Introduction 11.2. Requirements for becoming an Air Cargo Operator 11.3. Guidelines for Foreign Equity Participations in the Domestic Air Transport Sector 11.4. PPP in Airport Infrastructure 11.5. Aviation Growth through Growth in Air Cargo 11.6. Initiative on Safety 11.7. Regulations 12. FUTURE OUTLOOK 12.1. Global Air Cargo Market 12.2. Indian Air Cargo Market

Indian Logistics Industry Insight - Aviation

Cygnus Business Consulting & Research 2007

LIST OF TABLES
Table 1: Infrastructure Development Boost to Logistics Industry Table 2: Terminal Areas and No. of Counters- IGI, Delhi Table 3: Status of International Terminal- IGI, Delhi Table 4: Status of Domestic Terminal- IGI, Delhi Table 5: Mumbai Airport Cargo Handling Facilities Table 6: Netaji Subhash Chandra Bose International Airport Cargo Handling Facility Table 7: Cargo Traffic Handled at Top 46 Airports in India Table 8: Operational Fleet of Indian Airlines/Alliance Air Table 9: Operational Fleet of Air India Ltd Table 10: Total Cargo Traffic Trends Table 11: Global Air Cargo Forecast (2007-2009) Table 12: Physical Performance of Indian Table 13: Financial Highlights of Indian Table 14: Physical Performance of Air India Table 15: Financial Highlights of Air India Table 16: Financial Highlights of Jet Airways Table 17: Financial Highlights of Blue Dart Table 18: Comparative Airport Charges Table 19: Airport Development Programme in India

Indian Logistics Industry Insight - Aviation

Cygnus Business Consulting & Research 2007