Indian Aviation Industry

Major Highlights in 2013

Jet Airways-Etihad Airways deal
AirAsia and the Tata Group queuing up to start new airline in India
Tatas planning to start a full service airline in India in partnership with Singapore Airlines.
SpiceJet interline agreement with Tiger Airways
Existing Position
India is the 9
th
largest civil aviation market in the world
India ranks fourth in domestic passenger volumes (116.3 million)
79% of aircraft movement happens from international airport 21% from other airport
84% Passenger Traffic happens from International Airport and 16% from other airport
Business travel USD 30.9 bn in 2013

Opportunity
By 2020 going to be 3
rd
largest aviation market
Passenger traffic expected to be 450 million by 2020
Domestic and international passenger traffic are expected to grow at annual average rate
of 12% and 8% in next five years
Business travel expected to be USD 85.6 bn by 2023
Additional 30 airports required to handle the growing passenger and cargo traffic in next
five years
Investment to the tune of US $4 Billion required for General Aviation aircrafts in next 5
years

Challenges
Lack of infrastructure
Tax & Duties
Shortage of manpower
Fuel Prices
Local Connectivity
Reserve Routes


Indian Business Aviation Market- Overview

Number of Business Aviation aircraft around 680 as per Business Aviation Association
including private jet helicopters, turboprops and piston engines and this number are
expected to reach 2000 by 2020
Number of Private Jet in India around 140
India represents 12% of Private Jet Market
As per Bombardier in next 20 years India would have 1340 private jet

Demand driver for Indian Business Aviation market
Economic growth- Over the next 20 years, real GDP in India is forecasted to grow at an
average of 6.8% per year.
Globalization- Continuously expanding reaches on a global scale to improve efficiencies
and expanding market opportunities.
Productivity & Poor Connectivity-.Commercial aviation does an inadequate job of
connecting second and third-tier cities, creating a great opportunity for business aviation
to save time and increase business travelers productivity through point-to-point travel.
Bombardier study reveals that the use of a mid-size jet saves around 20 percent of
management time, compared to the use of regular airline services
Number of billionaires- Growing by 20%, expected number of billionaire 119 by 2023
and India will rank 4
th
in world.


Challenges
India does not have any guidelines or policy for the business aviation sector.
Inflexible access to takeoff and landing slots
Airspace constraints
Inadequate infrastructure in terms of airports
Ground support
Aircraft maintenance and training
Limited parking and hanger space


Fixed Base Operator

Only two FBO operating in India, Delhi Airport & Mumbai Airport
SHAURYA AERONAUTICS PVT LTD- 1
st
FBO of India at IGI Airport

Challenges


References:-
http://www.india-aviation.in/pages/view/38/an_overview.html
http://www.ficci.com/pressrelease/1556/ficci-press-release-india-aviation-2014.pdf
http://www.pwc.in/en_IN/in/assets/pdfs/publications/2013/changing-dynamics-final-copy-feb-4-
2013.pdf
http://businessaircraft.bombardier.com/content/dam/bombardier/en/ownership/whitepapers/4500
_Bombardier_MarketForecast%202013_V24-LR.pdf
http://www.ibef.org/industry/indian-aviation.aspx


FBO at Mumbai Airport- http://www.handbook.aero/hb_airportpage.html?recnum=2447