Airlines Industry in India

Airlines in India

Go IndiGo Founded in 2005, Commenced Operations on 4th August, 2006. IndiGo is a private domestic low-cost airline based in Gurgaon, Haryana, India. MD Rahul Bhatia and Aditya Ghosh President. It operates domestic services linking 23 destinations. Its main base is Delhi's Indira Gandhi International Airport

It was awarded the title of Best Domestic Low Cost Carrier in India for 2008.

Cities Served: Andhra Pradesh, Assam, Bihar, Delhi, Goa, Gujarat, J&K, Karnataka, Kerala, Maharashtra, Manipal, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh, West Bengal. IndiGo Fleet Consists of 33 Airbus -320 200 with a passenger capacity of 180. Plans for 100 AirCrafts by 2015-2016. The carrier has set a target of serving approximately 30 Indian cities by 2010 with a fleet size of 40 A320 aircraft. IndiGo has plans to buy additional 150 aircraft for deliveries before 2025

Founded in 2003, Commenced 9th May, 2005. Kingfisher Airlines is an airline group based in India. Its head office is Kingfisher House in Vile Parle (East), Mumbai. Vijay Mallya CMD, Sanjay Aggarwal - CEO Kingfisher Airlines is one of six airlines in the world to have a 5-star rating from Skytrax Kingfisher operates more than 375 daily flights to 71 destinations, with regional and longhaul international services. In May 2009, Kingfisher Airlines carried more than a million passengers, giving it the highest market share among airlines in India

Fly the Good Times.

Kingfisher Airlines serves 63 domestic destinations and 8 international destinations in 8 countries across Asia and Europe. Kingfisher Fleet Consists of Different Models of Airbus and ATR s. Airbus 319, 320, 321, 330, 350 and 380. ATR 42-500 and 72-500.

Total of 66 Aircrafts and orders placed for more 130 aircrafts promised to be delivered by 2015.

Your Palace in the Sky Air India is a state-owned flag carrier and currently the oldest and largest airline of the Republic of India. The airline operates a fleet of Airbus and Boeing aircraft serving Asia, Europe and North America. Founded in July 1932, Commenced Operations on 15 October 1932. Air India was founded by J. R. D. Tata in July 1932 as Tata Airlines

Air India serves 11 domestic destinations and 18 international destinations in 11 countries across Asia, Europe and North America.

Air India Fleet Consists of 6 Airbus and 25 Boeing Aircrafts.

Air India is the only Airlines in India to Order 27 of the new Boeing 787-8 Model.

Market Size

Domestic and international traffic is up 45% and 15.1 %,respectively. Over 135 aircraft have been added in the past two year alone.

Passengers carried by domestic airlines from January-June 2010 stood at 25.71 million as against 21.1 million in the corresponding period of 2009 a growth of 22 per cent according to data released by the Directorate General of Civil Aviation (DGCA)

Market Share

get more when you fly SpiceJet is a low-cost airline based in New Delhi, India Kishore Gupta - CEO It is the most profitable airline in the country and the only profitable airline among NSE/BSE listed companies. It began service in May 2005 and by 2008, it was India's second-largest low-cost airline in terms of market share.

SpiceJet was voted as the best low-cost airline in South Asia and Central Asia region by Skytrax in 2007.

SpiceJet, India's leading low cost airline, is a reincarnation of ModiLuft.

get more when you fly SpiceJet flies to 22 destinations across India, Nepal and Sri Lanka. It commenced international operations with flights from Chennai to Colombo, Sri Lanka on 7th October 2010, and flights from New Delhi to Kathmandu, Nepal on 9th October 2010. Spice Jet Fleet Includes Boeing Planes Model No. 737 800 and 737 900

Employees over 2000 + in 2009 Ordered 33 Boeing 737 Aircraft officially on 5.11.2010

Portfolio

get more when you fly

Annual Results In Brief Sales 2161.08 Crs. Operating Profit 16.02 Crs. Interest 6.12 Crs. Gross Profit 70.91 Crs. EPS (Rs.) 2.54 Crs

get more when you fly Awards Outlook Traveller's Best Low Cost Airline India (Feb 2009 and 2010) India Award for Best website 'World Low Cost Airlines Asia Pacific Conference' at Singapore 2010 Best low fare airline in India, as per survey conducted by MaRS on behalf of Hindustan Times (December 2009) World Travel Market Award for multi-channel approach in distribution, London (November 2009) Best Employer Brand Award, for our employee best practices, from the Employer Branding Institute, Hyderabad (December 2009)

Current scenario of Indian aviation industry

The Indian aviation industry Is one of the fastest growing aviation industries in the % share of the world. India has 454 airports and airstrips; of these,16 are designated international airports. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transforamtion.priavate airline account for around 75% share of the domestic aviation market Being primarily a govt-ownwed industry ,the Indian aviation industry is now dominanated by privately owned full service airlines and low cost carriers.

Financial Structure of Spice Jet

New Delhi, July 30, 2010: SpiceJet, Indias most preferred airline, has announced its first quarter results for the current financial year. SpiceJet reports a net profit of Rs. 55.22 crores for the quarter ended June 2010, as against Rs. 26.34 crores for the same quarter last year. Highlights for the Quarter Ended June 30, 2010 v/s June 30, 2009 Financial performance for the quarter: 35% increase in Revenue from Operations. 24% increase in Revenue per ASK from 2.41 to 2.99 4% increase in Revenue per Passenger (From Rs. 3270 to Rs. 3428) EBIDTA improved from Rs. 21 crores to Rs. 59 Crores EBIDTA margin improved from 4.0% to 8.3% EBIDTAR improved from Rs. 121 crores to Rs. 154 crores Net Profit after Tax of Rs. 55.22 crores compared to Rs. 26.34 crores

Operational performance for the quarter29% growth in number of passengers 9% growth in available seat Kilometers 11% growth in number of departures Increase in Load factor from 76% to 88%

Solid fourth quarter result leads to full year profitability SpiceJet Board approves USD75 million fund raising proposal SpiceJet to have positive net worth by the end of FY2011 To launch international operations this year To stick to capacity plans for 2010 to not jeopardize turnaround Outlook: Strong near-term outlook

conclusion
Indian Aviation has seen high growth on account of sustained Indian socio economic growth and liberalized Government initiatives Airport Infrastructure needs to improve significantly to meet the current and future demand of the Indian Aviation Sector Authorities have initiated various steps to implement modernization, reconstruction and

development of airport infrastructure to implement infrastructure development plan Provides a huge opportunity for private players operating in Aerospace and allied industries Significant opportunity for foreign companies as Indian companies not technologically equipped to cater to requirements

Conclusion continued
Despite a growing market, airlines in India are fighting for survival in a highly competitive environment A host of initiatives are required to be taken by all concerned, to tide over the current situation
Control Costs Improve quality of service Develop a large pool of skilled / technical manpower Attract more professionals to manage the aviation industry Develop infrastructure to match growth plans Liberalise rules & regulations governing civil aviation, without compromising on safety & security Reduction in ATF prices and taxation on ATF and lease rentals