Intro

India's domestic aviation market expansion has been the strongest in the world - tripling in the past five years, according to the International Air Transport Associations (IATA) report. India is currently the ninth largest aviation market in the world, according to a RNCOS report Indian Aerospace Industry Analysis. The Government's open sky policy has attracted many foreign players to enter the market and the industry is growing in terms of both players and the number of aircrafts. Given the strong market fundamentals, it is expected that the civil aviation market will register a compound annual growth rate (CAGR) of more than 16 per cent during 2010-2013. India's domestic air traffic grew at a rate, which is the second highest after Brazil, according to global figures for June 2011, compiled by IATA. The country's domestic traffic grew by 14 per cent in the same period as against Brazil's 15.1 per cent. Indian airlines reported a continuous growth trend and a strong domestic passenger growth rate of 22.3 per cent in July 2011. Passenger traffic has grown at 18 per cent year on year (y-o-y) basis and the year 2010 closed at 90 million passengers both domestic and international. India is the fastest growing aviation market and expected to be within 4-5 big aviation markets by 2020 and 3rd in terms of domestic market after US and China. In July 2011, airlines in India handled 5 million domestic passengers, according to data released by the Directorate General Civil Aviation (DGCA) on September 12, 2011, marking the 11th consecutive month of double-digit growth. Indias domestic market has witnessed passenger growth for 26 consecutive months now. In July 2011, Indias airlines handled 1.3 million international passengers, an increase of 8.5 per cent y-o-y, according to DGCA. Passengers carried by domestic airlines during Jan-Aug 2011 were 39.63 million as against 33.41 million during the corresponding period of previous year thereby registering a growth of 18.6 per cent, according to data released by DGCA. India is expected to cross the 450 million mark of domestic passengers by 2020. During the last two decades from a fleet of only about 100, the scheduled operators now have reached 435 aircrafts connecting the nation and the world. Private carriers are anticipated to post a combined profit of US$ 350US$ 400 million for the fiscal years 201112, as reported by Centre for Asia Pacific Aviation (CAPA) India, in its 2011-12 - Aviation Industry outlook. Domestic capacity is also projected to grow by 12-14 per cent for the assessment period. Aviation - Market Players

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During July 2011, Vijay Mallya-promoted Kingfisher was the largest domestic standalone carrier with around 1.1 million passengers, based on CAPA calculations. Jet Airways/JetLite had a combined passenger level of 1.2 million passengers, or around 26 per cent of the market IndiGo started its international air services from September 1, 2011 after completing the mandatory five years of wholly domestic operations. The low cost carrier (LCC), the largest in the domestic Indian market, marks the start of its foray into international markets with direct services to Dubai, followed by Singapore and Bangkok in the first phase connecting all key global business hubs Dubai's first low cost airline, flydubai, will start flights to the city of Ahmedabad in Gujarat from August 27, 2011. Ahmedabad is the world's third fastest growing city in the world and it will become the third Indian city on flydubai's rapidly expanding network. The airline will offer seats from Ahmedabad to Dubai beginning at Rs 7,500 (US$ 156.25) inclusive of taxes and seven kilograms of hand baggage. The flights will operate once in a week on Saturdays only Hyderabad-based GVK Power & Infrastructure would be paying Rs 114 (US$ 2.37) for each equity share to Siemens Project Ventures to buy the latter's 14 per cent stake in Bengaluru International Airport Ltd (BIAL)

Aerospace on a High

The Indian commercial aerospace market is estimated to absorb about 1,100 commercial jets worth US$ 130 billion over the next 20 years, making it one of the most lucrative markets for the global aviation majors, according to a new Deloitte Touche Tohmatsu report. Mentioning the recent orders

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placed by IndiGo (180 Airbus A-320 aircrafts) and GoAir (72 A-320neo aircrafts), the report declared India as the fastest growing commercial aviation market in the world An investment proposal worth Rs 11,700 crore (US$ 2.44 billion) from European Aerospace and Defence Systems (EADS) is among the many aerospace projects received and approved by the State Government for its aerospace special economic zone (SEZ) in Bengaluru. They plan to develop a 250 acre SEZ at Devanahalli, north of the city, at an investment of around Rs 14,500 crore (US$ 3.02 billion), according to Ms Manjula Geetha, Deputy Secretary, Infrastructure Development Department. There is a huge growth in Karnataka, which is the preferred investment destination in this sector for components and MRO projects, she added Low-cost carrier, IndiGo, has signed a US$ 16 billion dollar deal with Airbus to acquire 180 single-aisle aircraft. The firming-up of the order for 150 A320neo and 30 A320 planes follows the memorandum of understanding (MoU) the carrier had signed with the European aircraft manufacturer in January 2011 SpiceJet has acquired a new fleet of Q400 aircraft from Bombardier and it will use these aircrafts in its new regional service, scheduled to start on September 21, 2011. Under the deal, SpiceJet also has the option of ordering 15 more Q400 NextGen aircraft

Intro The aviation industry encapsulates the development, operation and management of aircrafts. While the common perception about the sector is that it s only about pilots and airhostesses, there are numerous other, equally significant job options that the industry cannot function without; from inflight trainers and aircraft maintenance engineers to baggage handlers and reservations agents. Research indicates the global aviation industry is poised to grow at a healthy 5.6% CAGR over the next 15 years. While major conventional mature markets such as the US and Europe will witness a significant fall in market share from 61% to 52%, emerging markets, such as India, China and the Middle East, offer a great growth potential. Performance The economic slowdown which began in 2008 hit the global aviation industry severely, with many airlines such as United and British Airways in the red. This was due to falling passenger numbers and increasing competition from low-frills airlines coupled with rapidly rising fuel costs. Despite passengers now resuming air travel, the increase has been very gradual. In fact, International Air Transport Association (IATA) Director General and CEO, Giovanni Bisignani, in December 2009, stated the global economic crisis has cost the aviation industry 2 years of growth as the improvement that has started since passenger traffic hit rock-bottom in March 2009 is similar to the pace of growth in 2006-2007. Growth Potential In India, the industry sector continues to look promising. The liberalization of the Indian aviation sector in the mid nineties resulted in significant growth due to the entry of private service airlines. There was, and continues to be a strong surge in demand by domestic passengers, due primarily to the burgeoning middle class with its massive purchasing power, attractive low fares offered by the low cost carriers, the growth of domestic tourism in India and increasing outbound travel from India. In addition, the Government has also focused on modernizing non-metro airports, opening up new international routes, establishing new airports and renovating existing ones. Some estimate industry growth at 25% YoY. Unfortunately, most major airline operators in India such as Air India, Indian Airlines, Jet Airways and Kingfisher Airlines have reported large losses since 2006, due to high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competition. The problem was also compounded by new players entering the industry even before the existing players could stabilize their operations. As a result of the already weak domestic scenario, the airlines suffered even further when the recession, which exacerbated all these factors, hit. Suffice to say, though that the Indian aviation industry has been more resilient than its global counterparts. Despite many private airlines being in the red, the industry itself remains robust. According to Kapil Kaul, CEO India & Middle East, Centre for Asia Pacific Aviation (CAPA), India's civil aviation passenger growth is among the highest in the world. The sector is slated to cruise far ahead of other Asian giants like China or even strong economies like France and Australia. The number of passengers who will be airborne by 2020 is a whopping 400 million. To keep pace with this accelerated demand,

existing players have been trying to increase fleets and widen their footprint to regional destinations as well. There has also been increasing attention from international low cost airlines such as Air Asia (Malaysian) and JetStar Asia (Australian) to capture part of this lucrative opportunity. Future Prospects As a result of the strong growth trajectory of the industry, there is likely to be a massive need for skilled personnel to helm this growth. India is already experiencing a shortage of pilots and is likely to face similar shortages across the wide direct and indirect employment pool. Hence, it is a great time to consider playing a role in this sector, as it holds great promise for development over the coming ten years, at least.

Firm under aviation industry India is one of the flourishing global aviation markets. As per Airport Authority of India (AAI) statistics, there are 127 airports in India which incorporates 13 international, 80 domestic, 28 civil and 7 custom airports. Moreover India has around 1091 registered aircrafts. Over the years there has been steady growth in the number of private players establishing their business in India due to increasing liberalization and deregulation. Hence, at present aviation industry consist of three types of players namely, Full cost carriers, Low cost carriers (LCC) and other start-up airlines. An overview of Aviation sector in India The aviation sector in India has registered an estimated increase in domestic passenger sector by 50% per annum in the recent years, while the growth in international passenger section is estimated as 25%. Experts foresee future growth in international cargo by 12%. As per the prediction of the Ministry of Civil Aviation, India in the coming decade will require 1,500 to 2,000 passenger aircrafts out of which 135 planes have already been added. It is also predicted that India's aircraft capacity will stand at 500-550. In the year 2010, as estimated by the ministry, the domestic market will exceed 60 million and the international traffic will achieve 20 million. And in 2020, Indian airports will be effective enough to support 100 million passengers, which would include 60 million domestic passengers. The quantity of cargo managed by the airport is estimated to decline in the range of 3.4 million tonnes per year. Top aviation companies in India

Air Charter Services Pvt Ltd: Air Charter Services Pvt. Ltd. performs its business operations with private business aircrafts, executive and corporate air charters, helicopter tours, VIP charter flights, and photo and video flights. Its client list incorporates VIPs, corporate firms, tour co-ordinators, travel agents and air medical evacuation professionals. It provides services such as relief, VIP, air ambulance and privacy services.

Air Charters India: Air Charter India is owned by the STIC Travel Group and has around 100 airplanes in India. It covers several international destinations with an unmatchable logistics support. The aviation company has 40 offices with a highly skilled manpower of above 1000 people. It offers services like heli-skiing, charter flights for pilgrimage in India, heli-sightseeing, corporate jets, executive jets, etc. Air Charter India provides airplanes such as helicopters, business aircrafts, aircrafts for corporates, individuals and group travelers.

Air India: National Aviation Company of India Limited (NACIL) was the first Indian aviation company which led the way for other companies in the aviation sector. It was initiated before the India gained its independence. Later it collaborated with Indian Airlines and gained the reputation of being the largest airline in South Asian airline. Air India Cargo, Air India Express and Air India Regional are its subordinates in aviation market. It offers First class, Executive class and Economy class services and has codesharing pacts with companies like Air France, Austrian Airlines, Aeroflot, Air Astana, Emirates Airline, Air Mauritius, Kuwait Airways, etc.

Aviation India: Aviation India provides services like cargo services, flight operation, air charter services, passenger services, freight control, advisory and consultancy, aircraft preservation and renovation, international flight operation, air supervision and helipad engineering, etc. The airlines has skilled workforce and offers total control and functional back-up to several international schedule / non-schedule operations.

Indian Airlines: Indian Airlines was inaugurated on 1st August, 1953 and in collaboration with its fully governed subordinate in aviation market Alliance Air, it takes pride in being recognized as one of the biggest regional airline systems in Asia. It has a fleet of 70 airplanes and covers 76 destinations, 58 Indian destinations and 18 foreign destinations. Globally it covers Oman, UAE, Kuwait, Qatar, Singapore, Yangon, Pakistan, Maldives, Bangladesh, Sri Lanka, etc.

Deccan Aviation Ltd.: The aviation company has its presence in 8 places namely, Mumbai, Ranchi, Surat, Hyderabad, Bangalore, Katra, Colombo (Sri Lanka) and Delhi. It has 350 daily departures and covers 65 destinations in India. It offers the benefit of no-cost travel to infants, ticketing counters, lavish aircraft interiors and ticketing flexibility.

Indigo: Indigo is a utilitarian low-price domestic airline which offers feasible flying alternatives for millions. The airline was facilitated by the Air Passengers Association of India (APAI) as the Best Low-Fare Carrier in India for the year 2007 . Indigo has 120 daily departures and a fleet of 19 Airbus A320. The airline covers 17 destinations namely, Agartala, Bangalore,

Bhubaneshwar, Ahmedabad, Delhi, Chennai, Guwahati, Hyderabad, Goa, Imphal, Kolkata, Mumbai, Vadodara, etc.

Paramount airways: Paramount Airways is a business class airline which has its base in India and headquarters at Chennai. Endorsed by Madurai-based Paramount Group and Paramount Railways was inaugurated in 19th October 2005. Its fleet comprises 5 aircrafts and it operates in 8 destinations.

Go Air Airlines: Like SpiceJet, a Go Air airline is also a low price airline endorsed by the Wadia group. It was inaugurated in Mumbai in June 2004. It operates in 11 cities with 61 daily departures. It has started its functions in Ahmedabad, Chennai, Bangalore, Coimbatore, Goa, Cochin, Jaipur, Mumbai, Pune, Delhi, Srinagar, etc.

Kingfisher Airlines: It is the one and only 5-star airline in India which offers excellent first class service on domestic itineraries also. A part of UB group, Kingfisher Airlines has received 30 awards for its novelty and customer satisfaction. After its tie-up with Deccan, the airline covers 64 cities and has 484 daily departures.

Spice Jet: Spice Jet is basically a low cost airline which incorporates many Boeing 737-800 airplanes in its fleet. It covers 14 destinations in India.

Air Sahara:

Air Sahara was inaugurated on December 3, 1993 with a fleet of only two Boeing 737-200s. Now it comprise of 27 aircrafts, 135 daily departures and availability of 16500 seats on regular basis. It reaches various Indian destinations like Bangalore, Kolkata, Delhi, Lucknow, Mumbai, Chennai, etc.

Jet Airways:

Jet Airways was established on May 5, 1993. It earns yearly revenue of Rs 2502.89 and total income of approx ` 117868.8 Million. At present it id India's biggest private domestic airline with 62 aircrafts and a market share of 25%. It covers 50 destinations with 340 regular departures. Jet Airways has pacts with foreign airlines, such as Lufthansa, Swiss, Gulf Air, Austrian Airlines, Qantas and Thai.