INTROODUCTION

•The origin of Indian civil aviation industry can be traced back to

1912
• when the first air flight between Karachi and Delhi was started by
the Indian State Air Services in collaboration with the UK based
Imperial Airways.
•In 1932, JRD Tata founded Tata Airline, the first Indian airline.

•n early 1948, Government of India established a joint sector

company, Air India International Ltd in collaboration with Air India
(earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three
Lockheed constellation aircraft. 
 INTRODUCTION
• The inaugural flight of Air India International Ltd took off on
June 8, 1948 on the Mumbai-London air route.
• In 2009-10, passenger traffic carried by domestic carriers
reach 58 million, growing by more than 250% over the
decade; and over the next few years, it is expected to reach
100 million mark.
• The Total sales for the industry stands at 41.31 thousand crore
for 2010.
• Net Profit is at - 3.9 thousand crore.
 MONOPOLY TO OLIGOPOLY
• In 1994, the Indian Government, as part of its open sky policy, ended the
monopoly of IA and AI in the air transport services by repealing the Air
Corporations Act of 1953 and replacing it with the Air Corporations Act,
1994. Private operators were allowed to provide air transport services
.
• By 1995, several private airlines had ventured into the aviation business
and accounted for more than 10 percent of the domestic air traffic.

• In the present scenario around 12 domestic airlines and above 60

international airlines are operating in India
 MONOPOLY TO OLIGOPOLY

• Till1986, the only flights plying in the Indian sky were Air India
and Indian Airlines both owned and controlled by the
Government of India and as such the government enjoyed
monopoly in the Indian Aviation Industry.
• The government-owned airlines dominated Indian aviation
industry till the mid-1990s.

In April 1990, the Government adopted open-sky policy and

allowed air taxi- operators to operate flights from any airport,
both on a charter and a non charter basis and to decide their
own flight schedules, cargo and passenger fares.
 GLOBAL INDUSTRY TREND
• 1950 through 1960 manifested a trend when the yearly
growth was consistent at approximately 15%. Airline industry
showed yearly growth ranging between 5% to 6% consistently
in the 80s and the 90s.
• The Airline industry trend shows that during the period 2000
through 2002, 6% profit was enjoyed by the Airline industry,
as much as 10% to 13% was gained by companies in the
catering sector, manufacturers of aircraft gained by
16%, airports gained by 10% .
 INDIAN INDUSTRY TRENDS
• The number of passengers traveling by air is on the rise.
• will require 2,000 more pilots and 10,000 maintenance staff in
2011.
• Government is spending more on development of
infrastructure. US$ 110 billion investment is envisaged till
2020 with US$ 80 billion solely for new aircraft and US$ 30
billion for developing the airport infrastructure.
• Passenger traffic is estimated to grow at a CAGR of over 15%
in the coming few years.
• The Ministry of Civil Aviation would handle around 280
million passengers by 2020.
PLAYERS IN INDIAN MARKET
MARKET SHARE(%) OF AIRLINES AUGUST'08

SPICEJET
OTHER
JET+JETLITE
KINGFISHER
AIR INDIA