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Indian Economy &Employment

Sector-wise Analysis

Aviation Sector

PGDM (Semester 1)

1For class discussion at

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Indian Economy

A!ter independence economy wascontrolled

"pted !or Mi#ed Economy $ Socialism

o%ertone wit 'apitalism were inredients idiculed as *Messed-+p, economy

usiness operated under *.icense a/,

1001 economy was lierated to some e#tent

ow economy is open2 tou controls e#ist

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Indian Economy &Employment

GDP ominal 4 +SD 1567 8rillion an9ed 1:tin te world on ominal asis an9ed ;rdin te world on PPP asis GDP per 'apita 4 +SD 153: ? 33@()Industry 4 3@57: ? @:

(c)Ser%ices 4

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Ser%ice sector in India4 CeyStatistics

8e Ser%ice Sector in India constitutes ? o!Indias GDP (+SD 1567 8rillion)

Key segments include415an9in and Financial Ser%ices

35"ranied etailin;5Education Sector75Bealt 'are Sector5.Hospitality Sector accounting for 6% of

Indias G! and t"is includes t"econtri#ution of t"e airlines #usinessestimated at $S 6 &illion.@5Independent Ser%ices

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orld A%iation Sector Duopolistic Mar9et wit 8wo aircra!t

manu!acturers 4 oein and

Airus

Aircra!t enines typically supplied y

olls oyce

General Electric and

Pratt & itney

"utsourcin o! acti%ities leads to costrationaliation and !ocus on 9ey areas

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A%iation in India and est o!te orld

In terms o! Air traHc2 India will e te!astest rowin country !or air tra%el !orte ne#t 1: years5

For class discussion at @

India

2010-2018 2019-2028 20-Year

Growth

'orld

2010-2018 2019-2028 20-Year

Growth

12.2% 6.6% 7.3% 4.6% 4.8% 4.7%

A i i P ili

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A%iation sector4 Protaility!actors

"peration 'osts4

15 A%iation 8urine Fuel (A8F)4 7

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A%iation Sector4 Protaility!actors

Protaility ines on4-

(a)Seat load !actor

() +sae o! !uel eHcient aircra!ts

(c)on tic9et incomes(d)"utsourcin o! 9ey ser%ices

AD

(a)"peratin 'ost & Maintenance

For class discussion at 6

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Airlines "perators4'ateories

).*ull+Service ,arriers ( Air India2 Ket Airlines)Pro%ide many !acilities 4-(a)Allotment o! Seats ( usiness2 Economy)

()e!resments ( .uncJDinner2 Snac9s)(c)Internet connection(d)Entertainment ( 8= & Music)

&35 (o- ,ost ,arrier(Indio2 Spice-Ket2 Ket-.ite2 Go-Air)

(a)" !rills ( o entertainment !acilities)()Pre!erence o! Seat cared ( indow J Aisle)(c)Strict aae weits ("%er-care !or e#tra weit)(d)e!resment aainst payment ("nly ater Free)

0

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.ow 'ost 'arriers4 .ow Fares &Minimum !acilities

15 o In-Lit entertainment and support ser%ices

35 Bidden cares(oardin Pass2 'ec9-In2 Mealsetc)

;5 "peration o! !uel eHcient aircra!ts75 Bi utiliation o! aircra!ts $ uic9 8urn-Around

times

5 oute Selection

65 "perate witin less usy2 smaller2 ceaperairports

1:

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Soutwest Airlines - .ow 'ost +5S5'arrier

Started operations in 10>12 B-Dallas2 8e#as2 +SA $ pioneer in

low cost air tra%el Easy /et & yan air !ollow Soutwests stratey in Europe

orlds larest low-cost carrier5

eputed !or inno%ati%e ad%ertisements

F"8+E listed it !or te 1:tyear as amon Americas top 1:

most admired corporations Peculiar !eatures4

o Assined SeatsO

o 8ra%el Aents2 can oo9 only on its own wesite2 sa%es

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yan Air - European .ow 'ostAirline

Started operations in 106

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-Airline Started operations in 100@2 B-Cuala .umpur2 Malaysia

.arest .ow 'ost 'arrier in Asia (ot in Fleet Sie & o5 o! Passeners)

"!ten Awarded as est Asian .ow 'ost 'arrier

Air-Asia India .aunc Planned !or "ctoer 3:1;

India K= Partners Include

Air Asia

8ata Sons

8elstra

Cey people in Air Asia India include

8o start operations soon !rom Soutern India and e#pand internationally

Inno%ati%e Fares (FreeJ000J1000 so on) and steep introductory

discounts at te initial staes

1;

atan 8ata2 'ie! Ad%isor to teoard

,"airman meritus +/ataSons

8ony FernandesGroup ,0 for Air Asia

Arun atia "wner o! 8elstra

Son 1arried to (2 1ittalsonly aug"ter

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E%olution o! A%iation in India

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Indian A%iation Sector $ 'urrentScenario

Indio as te Biest Mar9et Sare1