HISTORY The first commercial flight in India was made on February

18,1911.

In 1953 the government nationalized the airlines ,merged them ,and created Indian airlines.

For next 25 years JRD Tata remained the chairman and board of director on Indian airlines.

Until less than a decade ago, all aspects of aviation were firmly controlled by the Government.

Due to prohibitive cost of air travel only rich and powerful people can afford it.

All airlines merged into Indian airlines or Air India in 1953 under Air Corporation Act.

OVERVIEW Air Traffic: Airport Authority of India(AAI)

manages 122 Airports. Which include,- 11 International Airports- 94 Domestic Airports- 28 Civil enclaves

Growth: There is 9% growth of passenger and cargo traffic in last 10 years.

- Estimate 12% growth in domestic airlines.

Privatization: Privatization of international airport is in offing through Joint venture route.100% foreign equity has also been allowed in construction and maintenance.

Passenger Traffic: 1)International passenger traffic in October 2003 has increased by 15.4%.

2) Domestic passenger traffic in October 2002 has increased by 6.7% which leads to overall increase of 9.4%.

Liberalization: Liberalization followed a rapid transformation of Indian Airline Industry.

AIR SAHARAAIR SAHARA

AIR DECCANAIR DECCAN

KINGFISHERAIRLINES

KINGFISHERAIRLINES

JET AIRWAYSJET AIRWAYS

PUBLIC

INDIAN AIRLINES

PUBLIC

INDIAN AIRLINES

PRIVATE

PRIVATEPRIVATE

PRIVATE

Indian Airlines Indian Airlines was founded in 1953.

Today, together with its fully owned subsidiary Alliance Air, it is one of the largest regional airline systems in Asia .

Its annual turnover, together with that of its subsidiary Alliance Air, is well over Rs.4000 crores.

Indian Airlines was re branded as “Indian” on December 7, 2005. The main motto is to offer quality service, efficiency and reliability.

Indian Airlines is presently fully owned by the

Government of India.

Sahara airlines Air Sahara has established itself as one of the leading

players in the Indian Aviation industry. Starting on a modest scale and a capital of only

Rs.2000 in 1978, Sahara India Pariwar has traversed a long way to become an icon in Indian entrepreneurship.

Air Sahara began operations on December 3, 1993 following the Indian government's decision to open the skies to the private sector.

Efforts are being made to increase connectivity and offer convenient timings.

Jet airways In May 1974, Naresh Goyal founded Jetair

(Private) Limited

Jet Airways has emerged as India's largest private domestic airline. It currently has a market share of 46.7% per cent

Jet Airways has been voted India's 'Best Domestic Airline' consecutively and has won several national and international awards..

Kingfisher airlines Kingfisher Airlines Limited is a major indian airline.

Kingfisher operates more than 400 flights a day and has a network of 72 destinations.

Kingfisher has its registered office in the UB tower in Banglore and its head office in the Kingfisher House in Mumbai.

The airline started operations on 9 May 2005, Kingfisher Airlines is one of six airlines in the world to have a five-star rating from Skytrax.

Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems on every seat even on domestic flights.

Air Deccan Air Deccan is a unit of Deccan Aviation Private

Limited, India's largest private heli-charter company.

It was formed in 1995.

ATR is a European joint venture between Alenia Aeronautica and EADS.

The company has adopted a 'lean-and-mean' approach to staffing and aims at maintaining a low aircraft-to-employee ratio.

Competitors Started air operations Started air operations

in 2003in 2003 Connects 55 cities

within India India Planning a secondary Planning a secondary

hub at Chennai hub at Chennai International Airport. International Airport.

Services started in May 05

Initially operates only on domestic routes.

Pushing for amendment of rule which requires an airline to fly a min of five years on domestic routes before it can start flying overseas. Barring such an amendment, first international flights planned to start in 2010

Set up by J.R.D. Tata. Nationalized in 1953

44 world-wide destinations Profitable in most years since its inception

State owned State owned domestic airline domestic airline Formerly known as Formerly known as Indian AirlinesIndian Airlines

GoI’s plan to merge GoI’s plan to merge Air India and Indian Air India and Indian into one giant airline into one giant airline consisting of 130-140 consisting of 130-140 aircraft. Could take aircraft. Could take place anytime from place anytime from the end 06 to mid 07 the end 06 to mid 07

Began on 3 Dec Began on 3 Dec 1993 with two 1993 with two Boeing 737-200 Boeing 737-200 aircrafts as Sahara aircrafts as Sahara Airlines. Initially Airlines. Initially services services concentrated in concentrated in Northern India Northern India

““Regular” airline Regular” airline offering normal offering normal economy and economy and business class business class seats. 300 flights, seats. 300 flights, 43 Indian 43 Indian destinations destinations

KINGFISHER AIRLINES

DECCAN AIRWAYS

INDIAN AIRWAYS

AIR INDIA

Bangalore, Dec 20 (ANI) Boards of Deccan Aviation and Kingfisher Airlines have announced to merge both the airlines to create a mega airline.

The merged airliner is to be called Kingfisher Airlines.

The merger will help Kingfisher to meet Indian regulatory requirement of five year’s operation to fly overseas destinations.

UB group chairman Vijay Mallya will be the chairman and chief executive of the merged entity and Gopinath its vice-chairman.

KINGFISHER & DECCAN AIRLINES

The Government of India, on 1 March 2007, approved the merger of Air India and Indian Airlines.

The Authorized and Paid-Up Share Capital of the merged entity will be Rs.1500,05,00,000/- and  Rs.145,00,00,000/-, respectively.

It has been decided that post merger, the new entity will be known as “Air India” while “Maharaja” will be retained as its mascot. 

The Government has approved the appointment of Shri V Thulasidas and Dr V Trivedi as Chairman & Managing Director and Joint Managing Director, respectively, of the merged entity, with effect from the date of merger.

AIR INDIA & INDIAN AIRLINES

MARKET STRUCTURE

 

According to the figures on market share of various scheduled airlines in the same year, Jet Airways topped the list with 46.7 % in 2003-04, followed by Indian Airlines (IA) and its subsidiary Alliance Air together at 39.3%, Air Sahara at 13% and Air Deccan 1 %.

 

PROBLEMS FACED BY AIRLINE INDUSTRY

EXCESS CAPACITY Several new aircrafts were bought within a short span of time

which resulted in excess capacity of around 15% to 20%.

HIGH DEBT BURDEN The top three airlines including Air India, Kingfisher Airlines and Jet

Airways are now carrying a cumulative debt burden of approximately $8 billion.

POOR INFRASTRUCTURE Maintenance and Air Traffic Control (ATC) infrastructure are grossly

inadequate if the industry expects to grow any further.

EMPLOYEE SHORTAGE There is clearly a shortage of trained and skilled manpower in

the aviation sector as a consequence of which there is cut-throat competition for employees.

REGIONAL CONNECTIVITY What is hampering the growth of regional connectivity is the

lack of airports.

RISING FUEL PRICES The rising fuel prices have led to increase in the air fares.

HIGH INPUT COSTS Increasing manpower costs due to shortage of technical

personnel.

SUGGESTIONS Fare charge should be same for the

foreigners as for Indians. Debit credit cards should be accepted for

reservation. There should be more transparency

(clarity) in the announcement of flights. To open separate counter for single

baggage and last minute departure. Security check needs improvement. Easy information should be available to

passengers regarding transit baggage.

FUTURE OF AIRLINE INDUSTRY

Global vs. Indian Scenario

At the macro-economic level India and China are growing between 8 and 10% each year.

International passenger traffic grew at 7.6% where as Asian airlines were slower at 6.3%

Asian freight traffic grew by only 4.2% in comparison to global growth of 3.2%

Globally airlines lost US$6 billion in 2005 and in Asia it is a mixed picture. Some carriers are among the most profitable. Others however are struggling but still the best performer in the world.

Huge potential still to be tapped in Indian markets. Only 40 million people travel by air—4% of the population

SWOT STRENGTHPassengers will continue to need connecting/network services.Ensure a leisure travel, especially to the business traveler, like airport lounges.

WEAKNESSExcess capacityComplicated flight operations. Mounting debt

Opportunities Maintain short-haul flights

only to extent needed to

feed the network.

THREATSLabour problems as legacies try to streamline in order to compete with LCCsFlood of new capacity into the region from LCCs may trigger a competitive bloodbath among the legacies.

CONCLUSION The healthy competition of domestic airline has set

new trends in the quality of service.

With the oncoming of private airlines there is sea change in the quality of service and the price of job.

Hence today it is a matter of great significance that the Indian airline staff now cares about the passenger comfort and take pains to see that the flight is on time

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