Indian Aviation Industry
The Indian Domestic Aviation market registered a growth of 5% in FY 2013-14 with a total of 60.3 million domestic passengers carried during the year. Market share of Low Cost Carriers ("LCC") comprising SpiceJet, Indigo, Jet Lite, Go Air continued to increase at the cost of the Full Service Carriers. The market share of the LCCs increased to 64% in the domestic space, with ~25% CAGR for domestic passengers carried over the last 4 years. Indian LCCs (Indigo, SpiceJet) have also increased their foothold on International routes, making up ~20% of the passengers carried by Indian carriers on International routes. This clearly demonstrates that LCCs have the business model to drive growth and sustain its operations.
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Greater liberalization of air markets has the potential to increase global air traffic growth by over 1 percentage point per year.
Growth Prospects
The commercial passenger aviation industry currently supports over $2.4 trillion economic activity. Growth of aviation industry is highly correlated with GDP of the countries. Increase in GDP leads to the rise in disposable income levels and hence increasing the propensity to fly. With IHS predicting a 6.5 percent GDP CAGR till 2030, Indian aviation is one of the fastest growing industries in the world. (Exhibit1).
Along with the GDP growth, other factors that drive demand are the demographic distribution, price and availability. With more than half of its population under age group of 40, burgeoning Indian youth are set to drive aviation industry.
As per data from the Airports Authority of India (AAI), passenger throughput grew to 159 million (FY 2013) registering a growth of 13 per cent over FY 2003-2013. Currently the 9th largest market, India will see a total of 367 million passengers by 2034, an increase by 266 million annual passengers from today. It will overtake the United Kingdom (148 million extra passengers, total market 337 million) to become the 3rd largest market in the global Aviation Industry.
Regulatory Environment
The largest decision driving the current industry growth is the decision to allow 49 % Foreign Direct Investment into Indian airline carriers. This
Air Canada has been in the business of air transport for an extended period of time. Due to the experience and the exposure of the carrier in the field, it has made a commendable progress through many strategies as well as customer proximity. One of the approaches taken by the airline involves the identification as well as an implementation of cost reduction initiatives in a bid to increase revenue from its operations (Air Canada, 2016). It is also attempting to connect with the existing carriers across the world to connect the current customers to the international world. This approach has been adopted to increase its competitive advantage over other existing airlines.
In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.
American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.
Nathaniel Hawthorne is noted for his religious connotations in his works. Young Goodman Brown, The Minister's Black Veil and The Birthmark is three exemplary stories. His writing technique uses ambiguity in that the reader is opened to many different ways of interpretation. In respect to religious methodology the main character's of these short stories all encounter some sort of revelation.
The airline industry is greatly influenced by the the travel and tourism trends across the globe. The World Travel and Tourism Board states that the the level of tourism is likely to grow even as the years progress. The growth in the level of tourism is expected to grow at a level of 4.5 per cent annually. This is expected to continue upto 2017. Thus the organization should fully prepare it self and take over the tourism market.
of public passenger intercity travel. The outlook for the airline industry is good and continued growth is likely.
The aviation industry of any nation acts as a contributor to its economic growth, helps in globalisation and creating an international image. It is the best in terms of the fastest, safest and convenient mode of travel. Even though it is an expensive one, it is expanding its markets across the middle-class who are ready to spent money on leisure trips. Thus it is truly stated that aviation forms a vital core infrastructure area without which a country economy is handicapped.
This report has been made to draw the attention of the people how the aviation industry has been dependent upon the Oil prices. Since the research has been done in the prospect of International Business so only those aspects have been covered that shows the dependency of the industry on the other countries. As we know that India is one of the fastest growing countries. It has become the
This explosion provides research of how the UK Economy contributes to the Aviation industry in various way with the standard points and innovation – have impacted on UK economic growth through the Aviation industry. By this report, contribution to UK economy has explained such as trade, tourism, employment and government tax. This report will pay particular attention in trade contribution current status, value added contribution details of Tourism impact, direct and
Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and
2) Large fleet size: Air India has the largest fleet size when compared to its competitors in India. It has a total of 111 fleets and 16 leased fleets. Out of the 111 fleets 27 of them are Boeing Dreamliner (Jhadav 2009).
The sector employs more than 3 million people. Prior to the 1990’s, the air transport industry in Europe had been traditionally highly regulated and dominated by national carriers and state owned airports. Since then a single market for aviation has been created. The single market has seen the removal of all commercial restrictions for airlines flying within Europe. These include restrictions on routes, number of flights and the setting of prices.
The paper is on an analysis of role of aviation industry in Colombia and United Arab Emirates. Colombia is a developing country based on agriculture and oil reserves. In the past, they had many internal problems with guerillas, and cocaine smuggling. But, now Colombia is safer and has diversified there industries, and is mainly focusing on tourism and aviation. UAE on the other hand, is a fast developing nation with the second largest economy in the Middle East. They have major airlines like Emirates and Etihad that support a big part of their investment and tourism economy. There will be further analysis on the economies of both countries and factors that could lead to the growth of aviation.
The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).
Figure 5 : Air Cargo growth and its impact on GDP growth in India Source: NCAER,2012