Aviation Sector in India - Trends and Opportunities (2009-2013)

Over the last decade, rise of India as an economic power and a country with long-term stability, has resulted in it being one of the preferred locations for the trade and commerce activities. This has resulted in development and expansion of various sectors, including the civil aviation. In 1990s, Indian government adopted the policy of “open sky” which resulted in the liberalization of the civil aviation industry and since then the industry has undergone a rapid and dramatic transformation. However, last couple of years have been very bad for the industry with all the players suffering huge losses primarily due to global recession, high fuel prices and lower fares due to market competition. Total losses are estimated at INR75 billion (US$1.5 billion) and it is believed that it will take three-four years for the sector to recover fully. Fiscal 2010-11 has started on a positive note with Indian economy witnessing a much faster recovery than anticipated and increasing passenger traffic.

From a totally government owned sector, aviation today is a highly competitive market with private players like Jet Airways, Kingfisher, SpiceJet, etc, giving tough competition to the state-owned Air India. In 2009-10, passenger traffic carried by domestic carriers reach 58 million, growing by more than 250% over the decade; and over the next few years, it is expected to reach 100 million mark. However, in order to achieve these targets, India will have to resolve issues like bad airport infrastructure, regional connectivity, safety and global standards, training a highly skilled workforce, among others.

Off late, Indian government has also started showing interest in developing the sector and expects investments of around US$10 billion in aviation infrastructure. Foreign direct investments up to 100% are allowed in the airlines and in airport infrastructure projects. Airports are being developed using the pubic-private partnership model, attracting many private developers in the sector. Also there is a tremendous potential for MRO services in the country, with total market estimated to reach US$1 billion by 2013. Analysts believe that next decade will see India, establishing itself as a regional hub and will be an important global market presenting opportunities not only for airlines, but also for aircraft component manufacturers, air cargo companies, along with infrastructure developers.

Synergyst’s “Aviation Sector in India - Trends and Opportunities (2009-2013)” presents an insight into India’s aviation industry. Some of the key highlights of the report include following:

• Give a complete picture of India’s aviation industry and its role in country’s economy and discusses in detail the composition of sector.
• In-depth analysis of the overall aviation industry in India as well as various segments like airlines industry, airport infrastructure, aircraft manufacturing, etc, with information on passenger traffic and market revenues is discussed.
• Growth drivers, challenges facing the industry and overall trends in the sector are examined comprehensively.
• Market competition is analyzed in details with comprehensive profiling and market share assessment of leading players.
• Government policies and future plans are also discussed and how they will impact the sector has been thoroughly discussed.