A Report on Aviation Industry, India

Assignment Report 2011

 Aviation Industry, India

Index
1. Overview of Indian Aviation Industry ............................................. 3

2. History.................................................................................................. 6

3. Indian Aviation Market ...................................................................... 7

4. Major Players .................................................................................... 13

5. Quantitative Analysis of 5 major players ……………………….. 23

6. Recommendations ………………………………………………… 26

7. References .......................................................................................... 28

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 Aviation Industry, India

1. Overview of Indian Aviation Industry

The Indian aviation industry has witnessed an impressive growth during the past few years, with
major contribution from the civil aviation segment. Indian aviation industry market has been
strongly supported by the government and the private sector. Availability of skilled manpower
along with favourable business environment will position India as one of the most attractive
investment destinations in the coming years. It is currently the 9th largest aviation market in the
world. On the basis of strong market fundamentals, it is anticipated that the civil aviation market
will register more than 16 per cent CAGR during 2010-2013.

Mr Praful Patel, Union Civil Aviation Minister has stated that the airline industry in India has
grown by 400 per cent in a short span of about six-and-a-half years. He said in 10 years Indian
market will be the third largest aviation market after the US and China .

Passengers carried by domestic airlines from January – June 2010 were 46.8 million as against
39.4 million in the corresponding period of year 2009 thereby registering a growth of 18.9 per
cent - according to data released by the Directorate General of Civil Aviation (DGCA).

Presently, Delhi's Indira Gandhi International Airport is the busiest airport in the country at
present, handling an average of about 843 flights per day. On November 29, 2010, it handled its
highest ever traffic with 865 operations.

It is projected that some US$ 100 billion in aircraft orders will be up for grabs over the next 20
years. Boeing's current market outlook (2009-2028) predicts that the country will require 1,000
aircraft worth US$ 100 billion over the next two decades, according to Dinesh Keskar, President
of Boeing and FICCI Aviation Committee chairman.

Leading aircraft manufacturers Airbus and Boeing have expressed optimism over the growth of
the civil aviation industry in India. As per Airbus, the country would need 1,032 new aircrafts
worth around US$ 138 billion by 2028. Boeing has also predicted that the sector would require
1,150 commercial jets worth US$ 135 billion in the next 20 years.

Timothy J Roemer, the US Ambassador to India has said that the US will work with the Indian
government and the domestic private sector to make the country an aviation hub. The AAI

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 Aviation Industry, India
(Airport Authority of India) is set to spend over US$ 1.02 billion in 2010, towards modernisation
of non-metro airports. AAI is planning the city-side development of 24 airports, including those
at Ahmedabad and Amritsar. Additionally, 11 new greenfield airports have been identified to
reduce passenger load on existing airports, according to Praveen Seth, member-operations, AAI.

Airport Retail
With the growth in the industry, airport retailing has also gained pace in the recent times. The
highest margin earners in this segment are food and beverages, beauty product, electronic items,
apparel etc. Development of new terminals and airports such as the recently inaugurated T3 in
New Delhi has provided have shown the intense effect that airport retail shall have in Aviation
sector. It has been predicted that airports would provide around 300,000-400,000 square feet
retail space by 2015. Many companies are also planning to leverage on this growing segment by
launching specific products for air travelers. For instance, French premium skincare brand
L'Occitane is planning to develop a special range to cater to the airport retailing segment. Some
airlines like Indigo, Jetlite, Go Air perform the sales of their items during travel calling it as
shopping at 30,000 feet. eg. Indigo airlines has launched Hello6e magazine which is actually a
brochure for so said as shopping at 30,000 feet. It charges its passengers even for simple
magazines which are free in airlines like Kingfisher Airines. The margin in retail may be
estimated by the fact that sales prices of items during air travel is more than 4 times the actual
cost.
Investment Policy
According to the FDI policy released on March 31, 2010, for the civil aviation sector (Airports),
 FDI up to 100 per cent is allowed under the automatic route for greenfield projects.
 For existing projects, FDI up to 100 per cent is allowed; while investment up to 74
percent under the automatic route and beyond 74 per cent under the government route.

Government Initiatives
To create world class airports, the government has recognised the need for the involvement of
private players in the development of airport infrastructure. Development of airports at Delhi and
Mumbai has been taken up under Public Private Partnership (PPP) mode. The capital expenditure
is funded through private equity, borrowings, and internal resources of joint venture companies.
The AAI has taken up the development of 35 non metro airports. As per the Economic Survey of
2009-10, out of 35 airports, 9 have been completed and put in operation. The other projects are in
progress and likely to be completed by 2010-11. The adoption of Open Sky Policy has resulted

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 Aviation Industry, India
in the entry of several new privately owned airlines and increased frequency of flights for
international airlines.
Road ahead
Investment opportunities of US$ 110 billion are being envisaged up to 2020 with US$ 80 billion
towards new aircraft and US$ 30 billion towards the development of airport infrastructure,
according to the Investment Commission of India. Lufthansa Cargo and GMR group have signed
an agreement to develop Rajiv Gandhi International Airport as a South Asian cargo hub, with
focus on pharmaceutical exports. Kingfisher Airlines and American Airlines, both members of
the Oneworld alliance, will begin their codeshare and frequent flyer arrangement in 2011, the
two airlines have announced.

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 Aviation Industry, India

2. History
The Indian civil aviation industry originated in 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. It was an extension of London-Karachi flight of the Imperial Airways. In
1932, JRD Tata founded Tata Airline, the first Indian airline. At the time of independence, nine
air transport companies were carrying both air cargo and passengers. These were Tata Airlines,
Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat
Airways, Orient Airways and Mistry Airways. After partition Orient Airways shifted to Pakistan.
In 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. The inaugural flight of Air India International Ltd took
off on June 8, 1948 on the Mumbai-London air route. The Government nationalized nine airline
companies vide the Air Corporations Act, 1953.
Accordingly it established the Indian Airlines Corporation (IAC) to cater to domestic air travel
passengers and Air India International (AI) for international air travel passengers. The assets of
the existing airline companies were transferred to these two corporations. This Act ensured that
IAC and AI had a monopoly over the Indian skies. A third government-owned airline, Vayudoot,
which provided feeder services between smaller cities, was merged with IAC in 1994. These
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. 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 (Transfer of Undertaking
and Repeal) Act, 1994. Private operators were allowed to provide air transport services. Foreign
direct investment (FDI) of up to 49 percent equity stake and NRI (Non Resident Indian)
investment of up to 100 percent equity stake were permitted through the automatic FDI route in
the domestic air transport services sector. However, no foreign airline could directly or indirectly
hold equity in a domestic airline company.

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 Aviation Industry, India

3. Indian Aviation Market

In terms of market share, private carrier Jet Airways was the market leader with 19.2 per cent
share, closely followed by Kingfisher Airlines with 19.1 per cent, Indigo with 17.3 per cent,
National Aviation Company Limited (NACIL) with 17.1 per cent, SpiceJet with 13.3 per
cent, JetLite with 7.0 per cent and GoAir with 6.9 per cent during the month of November
2010.

Market Share
19.20%
6.90% Jet Airways
7.00%
13.30% Kingfisher Airlines
Indigo
National Aviation Company Limited
Spice Jet
19.10% JetLite
Go Air
17.10%
17.30%

S.W.O.T. Analysis

STRENGTHS WEAKNESS

• Lower air fares

• Tourism in India • Poor infrastructure at airports.
• Growing outbound travel in India • Acute shortage of trained pilots and
• Growth potential Liberalization of sector technicians.
• Stiff rules and regulations for operation.
• Modernization of non metro airports
• High operational cost for airlines.
• Rising share of low cost carriers • High security threats in the subcontinent.
• Fleet expansion by state owned carriers • Training infrastructure incompatible both in
terms of quality and quantity.
• The opening up of new international routes
• Shortage of qualified instructors due
by Indian government migration to schedule operation.
• Establishment of new airports and • Pressure on quality standard of inducted
pilots.
restructuring of old airports
• Infrastructural constraints

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 Aviation Industry, India

OPPORTUNITIES THREATS

• The number of air travelers is about 0.8 per • Government Regulations; Though the govt.
cent of the population is making changes in the regulations, it
• India's civil aviation passenger growth, at needs to move at a much faster pace on this.
20 per cent, is among the highest in the • Aviation in India is over regulated and
world. needs to free itself from govt. shackles.
• India's civil aviation ministry expects 100 • Inadequate infrastructure.
million passengers by 2020. • Acute shortage of Pilots and maintenance
• India anticipates doubling of passenger engineers.
traffic over the next decade. • Security and safety.
• Economic Growth • Low profit margins and high operating
• Vibrant middle class: Increasing costs.
Consumerism and Affordability ”common • Other faster means of transportation
man”
• Under-penetrated markets
• Growth in Tourism
• Currently domestic passenger market is
growing at 50%

Strategic Groups

The companies in the Indian aviation industry may be divided into following strategic
groups:

Full range carriers with medium price: Wide coverage of services is provided and these
airlines have greatest potential to capture and lead the market. These have less number of
International destinations and the new comers can come up with low fares eg. Jet, Indian
Airlines, King Fisher Airlines.

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 Aviation Industry, India
Low cost carriers with low price: Great facilities and technology but no service for
economic class. All the services in economy class are provided by levying extra charges eg.
Spice Jet, Go Air, Indigo and other Low cost carriers.

Very high service with high price: Better service due to high fare and Attractive for the
growing middle class. But these have less coverage within country. eg. Taj airways, Club one
airways.

Good service with medium price: Low fare as compared to higher service provider. Better
services than LCC. These airlines target the middle class customers eg. Kingfisher, Jet
airways.

Key Demand Drivers

1. Tourism flow boosts traffic

India's share in global and South Asia's total demand for travel and tourism has been growing.
Tourist arrival in India has grown at a CAGR of 18% for the last three years to 4.5 million.

Tremendous business opportunities in one of the world's fastest growing economies would be the
key driver for this growth.

2. Cargo movement imperative

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 Aviation Industry, India
Low cost domestic carriers have been offering attractive prices to companies transporting a
variety of goods. The lack of refrigerated trucks and refrigerated warehouses have forced
exporters of perishable goods to use aircrafts. Cargo business is also much more revenue
generating than passenger traffic. Statistics indicate that airlines spend more than 75% on
transporting passengers, while only 25% is spent on cargo. Most Indian airlines earn about 10%
of their revenue from cargo income.

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 Aviation Industry, India
Fig. - Booming air freight business

Source: AAI, PL Research

3. Lifestyle changes herald air travel

Explosive growth in wages has led to significantly higher disposable income, bringing about a
distinct change in the lifestyle of the middle and upper class population, which essentially is the
target market of the aviation sector.
4. Infrastructure travails will reduce
The ministry of civil aviation has decided to modernise and upgrade 35 non-metro airports across
India. Leading airport developers are readying to participate in bids to win the right to construct
and operate commercial property at these airports. Apart from this, the government is also
planning to build greenfield airports at Navi Mumbai (Maharashtra), Kannur (Kerala), Hassan
and Gulbarga (Karnataka), Ludhiana (Punjab), Greater Noida (NCR), Paykong (Sikkim),
Cheithu (Nagaland) and Chakan (near Pune, Maharashtra). This would lead to reduction in
operational cost of carriers (due to lesser fuel consumption) as well as on-time performance by
players.

Concerns

1. Route dispersal guidelines constrain profitability: As per a Directorate General of Civil

Aviation (DGCA) order on route disbursal guidelines, it has been stated that a scheduled air
transport service provider operating Category I routes is required to deploy at least 10% of
ASKM on Category II routes and at least 50% of ASKM on Category III routes. Subject to
approval from the DGCA, concerned operator could meet this obligation by providing services
either by aircraft available in its fleet or with aircraft in any other operators' fleet on mutually
agreed terms and conditions.
2. Infrastructure constricting growth: The tremendous growth anticipated in the aviation
industry is possible only if the country's infrastructure is in place. The industry is already facing
problems of congestion during peak hours at major airports. The current airport infrastructure in
the country is inadequate to support the tremendous expansion in fleet announced by major
players.
3. Further competition cannot be ruled out: While there are well intentioned government
policies and controls like FDI norms, license control, landing slots and flight schedule

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 Aviation Industry, India
allocations that allow ample opportunity for airlines to remain profitable, but the sheer growth in
airline capacity can induce competition.

4. Airline functions need re-engineering: With the IT industry providing a commendable

backbone, airlines can now emerge from the inefficiency they have been restrained with.
Innovative strategies and new technologies may well offer cost savings, but at the same time they
can be hard to implement given the cost. S
Some of the areas that need re-engineering are:
 Customer oriented improvements - Self-service kiosks, remote passenger checkin,
fast bag drop-off and biometrics are the need of the hour.
 Improved crew management - Planning and pairing through online rostering.
Training module and packs. IT enabled crew control, crew communication and
crew records.
 Improvements in aircraft operation - Clear IT tools that allow uploading of
weather and flight plans and downloading of engine performance data help in pre-
flight and post-flight plans.

5. Carbon offsetting practices may add to cost: Globally, the aviation industry is under the
scanner because it is the fastest growing cause for global warming; and EU aircraft emissions
alone have risen by 87% since 1990. However, the aviation industry only contributes about 2%
of all global carbon emission. Also, according to International Air Transport Association
(IATA), airlines have been addressing the problem of carbon emission since the early 1970s –
well before other industries did anything constructive. Aircraft fuel efficiency has improved 20%
in the past decade and almost 5% in the last two years alone.

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 Aviation Industry, India

4. Major Players

Jet Airways

Jet Airways operating domestic and international services operates 330 daily
flights to 50 destinations across the country and 6 overseas, its market share is greater than any
other Indian domestic operator’s. Jet Airways airline offers relatively low costs by international
standards and often provides economical and discounted fares, especially on booking through the
internet. It has been able to lower its costs by ‘sweating its assets’ i.e. getting maximum
utilization out of its fleet by minimizing turnaround time between flights. With frequent flights,
at all possible timings to each sector of India, this airline provides convenience and services
within a league of its own.
Founded 1 April, 1992

Commenced 5 May, 1993

Operations

Hubs Chhatrapati Shivaji International Airport (Mumbai)

Secondary Hubs  Brussels Airport

 Chennai International Airport
 Indira Gandhi International Airport (Delhi)

Focus Cities  Bengaluru International Airport (Bangalore)

 Cochin International Airport (Kochi)
 Rajiv Gandhi International Airport (Hyderabad)
 Sardar Vallabhbhai Patel International Airport
(Ahmedabad)

Frequent Flyer Program JetPrivilege

Airport Lounge Jet Lounge

Subsidiaries JetLite

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 Aviation Industry, India
Fleet Size 99

Destination 71

Company Slogan “The Joy of Flying”

Parent Company TailWinds Ltd.

HQ Mumbai, India

Key People Naresh Goyal (Founder and Chairman)

Website www.jetairways.com

Source: www.wikipedia.org
Strategies

Jet Airways maintain market leadership in the domestic market. They have developed two
equally strong pillars: domestic and international operations. They have consistently been
providing a superior product to our passengers. Jet Airways exhibit seamless connectivity
spanning domestic and international routes. They are continuously improving their cargo revenue
potential - domestic and international. The focus of Jet Airways for reduction in unit cost of
operations is on following points:
 On reducing operating costs (specifically fuel)
 Reduction in selling and distribution cost (on-line bookings)
 Re-negotiation of agreements with various service providers
They are bent upon providing best customer service serving both business and economic class.
Jet Airways have phenomenally acquired Sahara Airlines thus getting stronger hold in market.
They have come up with several schemes to acquire and retain customers. Regular customers
enjoy discounted fare as marketing strategy.

JetLite

Jet Lite flies to various destinations in India, which include important cities
like Delhi, Bangalore, Mumbai, Kolkata, Lucknow, Hyderabad, Pune, Chennai along with
regional destinations like Ahmedabad, Gorakhpur, Allahabad, Bhubaneshwar, Ranchi and others.
The airline has recently added international destinations like Singapore, Colombo, Kathmandu

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 Aviation Industry, India
and Chicago (Code-share with American Airline) to its network and would be further enhancing
it by adding United Kingdom (London) and Malaysia (Kuala Lumpur) shortly. For cheap airfares
and great deals on international and domestic air tickets, including popular travel sectors like
New Delhi to Bangalore, Mumbai to Bangalore, New Delhi to Mumbai, Bangalore to New
Delhi, Mumbai to Goa, Delhi to Goa, Bangalore to Hyderabad and more, book your travel on
JetLite.

Kingfisher Airlines

Kingfisher Airlines is a famous and fast growing airlines. It can be easily

identified with the logo of a Kingfisher (bird) in flight with spectacular colours of red, blue and
green. Kingfisher Airlines is a major Indian luxury airline operating an extensive network to over
30 destinations. It promises to suit the needs of air passengers and deliver with reasonable
airfares. Kingfisher’s main luxury component is it’s inflight entertainment system. This highly
popular airline is very promising with brightly dressed staff, courteous services and cheap flight
fares. The interiors provide a world of luxury and you can avail cheap discounted fares year
round by booking for flight tickets over the internet. Flight schedules and status are easily
available on the World Wide Web for Kingfisher Airlines. Currently operating only on domestic
routes, it has plans to start flights to the United States of America, so travelers can expect many
desirable services to be added to the already blossoming airline.
Founded 2003

Commenced Operations 9 May, 2005

Hubs Bengaluru International Airport

Secondary Hubs  Chhatrapati Shivaji International Airport (Mumbai)

 Indira Gandhi International Airport (Delhi)
 Netaji Subhash Chandra Bose International Airport
(Kolkata)

Focus Cities  Chennai International Airport

 Cochin International Airport (Kochi)
 Pune International Airport
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 Aviation Industry, India

 Rajiv Gandhi International Airport (Hyderabad)

 Sardar Vallabhbhai Patel International Airport
(Ahmedabad)

Frequent Flyer Program King Club

Airport Lounge Kingfisher Lounge

Alliance OneWorld

Subsidiaries Kingfisher Express

Fleet Size 66 (+130) orders

Destination 77

Company Slogan Fly the Good Times

Parent Company United Breweries Group

HQ Kingfisher House, Mumbai, Maharastra

Key People  Vijay Mallya (CMD)

 Sanjay Aggarwal (CEO)

Website flykingfisher.com

Source: www.wikipedia.org

Some of its marketing strategies are as follows:

 Aims at future fleet expansion to increase market share
 Offering free tickets
 Corporate deal offers
 Concessional fares for students

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 Aviation Industry, India

Kingfisher Red
It was formerly known as Air Deccan, the airline was previously operated by Deccan Aviation. It
was started by Captain G. R. Gopinath and its first flight took off on 23 August 2003 from
Hyderabad to Vijaywada. It was known popularly as the common man's airline, with is logo
showing two palms joined together to signify a bird flying. The tagline of the airline was
"Simpli-fly," signifying that it was now possible for the common man to fly. The dream of
Captain Gopinath was to enable "every Indian to fly at least once in his/her lifetime." Air
Deccan was the first airline in India to fly to second tier cities like Hubballi, Mangalore,
Madurai and Visakhapatnam from metropolitan areas like Bangalore and Chennai.
After the merger, Air Deccan is known as Kingfisher Red run by Kingfisher Airlines. Air
Deccan had positioned itself as a “Low Cost Carrier”. Its target markets are: Upper middle
class in short term and lower middle class aggressively in long term.
Its marketing strategies are:
 Advertisement through print, radio and billboards
 In flight magazine for revenue generating
 In flight shopping scheme called “Brand for less” –AVA Merchandising
 Tie-up with Café Coffee Day
 ICICI-Travel agent purchase card
 Tie-ups with HPCL and Reliance Web World
 Single class aircraft configuration
 Internet booking and cheap fares
 Offering non-trunk short-haul routes and attracting high-end railway traffic through
comparable fares

National Aviation Company of India Limited (NACIL)

The National Aviation Company of India Limited (NACIL) was a company formed by the
government of India to oversee the merger of Air India and Indian. NACIL lasted 3 years and
was renamed Air India Limited on October 26, 2010. It was incorporated under the Companies
Act 1956 on 30 March 2007 and was owned by the Government of India based at the Air India
Building in Nariman Point, Mumbai. The Company was created to facilitate the merger of the
two main state-owned airlines in India: Air India, with its subsidiary Air-India Express and
Indian, together with its subsidiary Alliance Air (now called Air India Regional).

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 Aviation Industry, India

Air India

In an earnest attempt to pave way for emergence of a single entity as India's

national flag carrier, Indian Airlines and Air India, India’s premier airlines
were merged to form Air India and provide an integrated international and domestic footprint,
for the advantage of travellers. This merger has brought seamless integration of domestic and
international flights, allowing passengers to check in for their international flight from any
domestic point in India.
The new Air India has an improved frequent flier programs with new offerings to various global
destinations. The consumer is a clear winner in the merger, having a much-improved product and
superior service quality.

Founded 30 March 2007

Headquarters Air India Building, Nariman Point, Mumbai, India
Key People Arvind Jadhav, Chairman & Managing Director
Focus Cities  Bengaluru International Airport (Bangalore)
 Cochin International Airport (Kochi)
 Rajiv Gandhi International Airport (Hyderabad)
 Sardar Vallabhbhai Patel International Airport (Ahmedabad
Revenue Rs 15257.47 Crores
Net income Rs 1619.12 Crores
Employees 32,000 (2009)
Subsidiaries Air India Regional
Subsidiaries  Hotel Corporation of India Limited
 Air India Air Transport Services Limited
 Air India Engineering Services Limited
 Air India Charters Limited
 IAL Airport Services Limited
 Airline Allied Services Limited

Website www.airindia.com
Source: www.wikipedia.org
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 Aviation Industry, India

Indigo

IndiGo Air or IndiGo Airlines, as expected sports the deep colour of IndiGo as
its signature colour. It is a private domestic low cost airline. This airline is amongst the best,
offering professional services, economical prices with great deals and discounted fares. It
operates to all the major areas of India. Tickets can be booked online and the services provided
are user friendly while at the same time, extremely comprehensive.

Founded 2005

Commenced Operations 4 August, 2006

Hubs  Chhatrapati Shivaji International Airport (Mumbai)

 Indira Gandhi International Airport (Delhi)
 Netaji Subhash Chandra Bose International Airport (Kolkata)
Secondary Hubs  Bengaluru International Airport (Bangalore)
 Chennai International Airport
 Cochin International Airport (Kochi)
 Pune International Airport
 Rajiv Gandhi International Airport (Hyderabad)
 Sardar Vallabhbhai Patel International Airport (Ahmedabad)
Fleet Size 39 (+241 orders)

Destination 24

Company Slogan Go Indigo

Parent Company InterGlobe Enterprises

HQ Gurgaon, Haryana

Key People  Rahul Bhatia MD

 Aditya Ghosh President
Website www.goindigo.com

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 Aviation Industry, India
Source: www.wikipedia.org

Spice Jet

Spicejet is a low cost airline based in New Delhi and is one of India’s newest
start - up private airlines. Spicejet was earlier known as Royal Airways and now sets its
standards high as it competes with the Indian Railway passengers traveling in AC coaches; this
speaks tremendously for their cheap and discounted airfares. They marked their entry in the
service with Rupees 99 fares for the first 99 days and then followed with a Rupees 999
promotional fare for select sectors. With all these marketing strategies and booming business,
this airline leaves no loose ends. Spicejet offers every day spicy fares to budget conscious
travelers. This business also thrives on online air ticket bookings with a detailed list of flight
status and schedules. A low cost airline that offers budget travel at discounted rates with the best
of services.

Founded 2004

Commenced Operations 23 May, 2005

Hubs Indira Gandhi International Airport (Delhi)

Secondary Hubs  Chennai International Airport

 Chhatrapati Shivaji International Airport (Mumbai)
 Netaji Subhash Chandra Bose International Airport (Kolkata)

Focus Cities  Bengaluru International Airport (Bangalore)

 Cochin International Airport (Kochi)
 Pune International Airport
 Rajiv Gandhi International Airport (Hyderabad)
 Sardar Vallabhbhai Patel International Airport (Ahmedabad)

Fleet Size 25

Destination 22

Company Slogan “Get more when you fly”

HQ Gurgaon
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 Aviation Industry, India
Key Peoples Neil Mills, CEO

Website SpiceJet.com

Source: www.wikipedia.org

Go Air

Go Air is a low cost airline and operates domestic passenger services to 13

cities with 385 weekly flights. This relatively new, no frills airline offers great fares and deals
year round, within all major sectors of India. Go Air aims to be the lowest - cost airline in India
and provides passengers with a comfortable and affordable option to popular holiday and
business destinations within the country. Tickets can be booked online and travelers will be
provided with options that guarantee discounted fares and great deals on domestic tickets.

Founded 2005

Commenced Operations Nov, 2005

Hubs Chhatrapati Shivaji International Airport (Mumbai)

Secondary Hubs Indira Gandhi International Airport (Delhi)

Focus Cities  Bengaluru International Airport (Bangalore)

 Cochin International Airport (Kochi)
 Sardar Vallabhbhai Patel International Airport (Ahmedabad)

Fleet Size 10

Destination 18

Parent Company Wadia Group

HQ Andheri, Mumbai

Key People Jahagir Wadia (MD)

Website www.goair.in

Source: www.wikipedia.org
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 Aviation Industry, India

Quantitative Analysis of 5 major players

Revenues of major players in India

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 Aviation Industry, India

Revenue (in crores)

12000

10000

8000

Revenue (in crores)

6000

4000

2000

0
Kingfisher Air- SpiceJet Jet Airways Indigo
lines

Source: Wikipedia

Seat factors of scheduled domestic airlines

100
91
90 87.1 86.7 87.5 86.1
84.4 85.4
80.7 82
80 76.9 76.3 77 77.4
70.8
70

60
Seat Factor %

50 Oct, 2010
Nov, 2010
40

30

20

10

0
NACIL Jet Airways JetLite Kingfisher Spicejet Go Air Indigo

Report: DGCA (Directorate General of Civil Aviation)

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 Aviation Industry, India

Passenger carried (%)

jet airways jet lite kingfisher

15% spicejet goair paramount indigo
2% 28%

6%

14%

9%
26%

Report: DGCA (Directorate General of Civil Aviation)

Scheduled revenue aircraft departures in numbers

140000

120000

100000

80000

60000 2005-06
2006-07
40000 2007-08
2008-09
20000 2009-2010

0
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Report: DGCA (Directorate General of Civil Aviation)

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 Aviation Industry, India
Cargo Carried in 2009-10

140000

120000

100000

80000
Cargo Carried for scheduled dometic
services (in Tons)
60000 Cargo Carried for scheduled Interna-
tional services (in Tons)2
40000

20000

0
Jet JetLite Kingfisher Go Air Spice Jet Indigo
Air-
ways

Report: DGCA (Directorate General of Civil Aviation)

References
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25
 Aviation Industry, India
1) Annual Report: DGCA (Directorate General of Civil Aviation)

2) www.wikipedia.org

3) http://www.ibef.org

4) http://www.iloveindia.com/economy-of-india

5) http://money.sulekha.com

6) http://www.goindigo.in

7) http://www.jetairways.com

8) http://flykingfisher.com

9) http://www.airindia.com

10) http://spicejet.com

11) http://goair.in

12) http://www.authorstream.com

13) http://www.moneycontrol.com

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