Present situation of the Indian aviation industry

Aviation industry of India have radically transmuted from being a highly regulated and poorly managed industry to a more liberal and deregulated sector since 2004 that attracted a lot of private investors. Ever since the aviation sector had been flourishing due to entrance of low cost carriers, rise in the Indian household incomes, steady economic progress, augmented Foreign Direct Investment and more tourists visiting India and raised cargo movement and encouraging government policies (KPMG, 2008).

AAI, in 2009, had estimated that the aviation industry will witness a growth of 16 per cent for international and 20 per cent for the domestic business. The Ministry of Civil Aviation also started to adopt a highly non- interventionist policies for allotment of traffic rights and capacity entitlements. Domestic carriers were granted international licenses; enter into joint ventures with foreign companies which proved to be beneficial for both of them (Delloite, 2009). However, these predictions could not be converted into actual figures. The year 2012 began with most crucial challenges ever since the 2004 sectoral reforms came into existence. The biggest irony of the Indian aviation sector is that it exists in the most promising and steadily growing economy and firms have optimistic approach towards business growth, yet CAPA (2011) have assessed that collectively Indian carriers shall lose around $ 2.5 billion by the end of 2012. This estimation is based on the total revenue of the current year being less than $10 billion, lower than the worst year for the sector, 2008-09, where the air traffic was dropping and fuel prices hobnailed at $150 per barrel. Domestic business is the worst hit with Indian carriers losing $25-30 per passenger per flight. With the downfall of a very prominent Indian carrier, Kingfisher Airlines and the existing turmoil in the industry, the Prime Minister of India, was compelled to make an exceptional interference with a 12 point agenda for the Ministry of Civil Aviation for monthly reporting (CAPA, 2011).

Indian Aviation Sector indeed is experiencing a turbulent time but with the economic growth of the country and international recovery from economic slowdown, Indian carriers can expect the worries to fly away soon.

REFERENCE

Parul Goyal

Analyst at Project Guru
A prolific academic content writer with over 2 years of experience in coursework, academic research and dissertation writing in compliance with internationally acceptable referencing styles like Harvard, APA, MLA etc. Have the ability to deliver genuine, quality and plagiarism free work within the stipulated time. Moreover,I have 1.5 years of experience of lecturer-ship in the past. My areas of expertise are Marketing and HR domains. Harbor a consistent quest to polish my creative writing abilities by getting more exposure to various kinds of writing over an array of topics.

Related articles

  • Loss making Indian aviation industry India’s aviation industry has consistently been in the news for huge losses. During the financial year 2012-13, the whole industry reported a loss of over Rs. 5,800 crores (Business Standard, 2014).
  • Why airlines in India are facing losses? Recently, Kingfisher Airlines was all over the news but for the wrong reasons. It is on the verge of a collapse. However, this is an alarm for the worse which is yet to come.
  • Challenges faced by the aviation industry Aviation industry is an important parameter of a nation’s economic health. It contributes significantly to the GDP of the nation and provides employment.
  • An overview of the Indian aviation industry Aviation industry is one among the most important industries of any country because of its economic and social viability. The aviation industry not only contributes to the Gross Domestic Product (GDP) of the country and improves employment statistics...
  • Indian retail sector The most promising and booming industry of future is retailing. At Kearney, a well-known international management consultancy...
Discussions

2 Comments.

  1. Hi

    I Am Geetika Jaggi. I Hail From Ambala City. I Have Done HTCS Diploma In Frankfin From Chandigarh.Currently I Am Pursuing Last Year Of Humanities.I Am Searching A Job In Airport On Ground Staff. I Am A Good Team Leader. I Hope So You Are Reply Me Soon And Considered My Application Form. i Gain Lots Of Knowledge From This Page.

    ThanksRegard

    Geetika Jaggi

  2. COMMENT: THIS IS VERY COOL SIDE IT GAVE LOT KNOWLEDGE.

Discuss

We are looking for candidates who have completed their master's degree or Ph.D. Click here to know more about our vacancies.