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Transcript of Indian aviation
DIVYA LIZ GEORGE
14093
MARY MONISHA
14060
DHARA B SHAH
14067
GEORGE JACOB
14095
SHANKAR R
14114
HE INDIAN AIRLINE INDUSTRYA TALE OF WINS AND
LOSSES
G5
• Indian Aviation – An Overview
• Evolution of Indian Aviation Sector
• Key Players
• Porters 5 forces analysis
• The Growth drivers
• FDI Policy
• What ails the Indian Aviation Industry?
• Indigo being the eager beaver
• Indian Aviation – Spreading its wings
• Investment Opportunities
GENDAA
NDIAN AVIATION – AN OVERVIEW
9th largest
civil aviation market
3rd largest aviation market by 2020
163 million
passengers in
2013-14
800 aircraft by 2020
FDI Over US$
569M
Capacity – 220M
Passengers
4.63M tonnes Cargo
I
CAGR 16%
EVOLUTION OF INDIAN AVIATION
1997-08 to 2002-
03
2003-04 to 2006-
072007-08 2008-09 2009-10 2010-11
2011-122012-132013-142014-15
Dormant sector – Low Competition
Competition intensifies
Deflating revenue,
inflating costs
Consolidation Phase
Era of LFC’s
PLF’s on cloud nine
Domestic passenger traffic growing
strong
Exit of Kingfisher
Operating margins suffers
Intensified competition – New
entrants
Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
8%10%
21% 20%
25%
45%
23%21% 20%
25%23%
19%
2% 3%5%
-5%-8%
8%
15%
7%
14%17%
19% 20%
LCC v/s FSC Domestic Traffic Growth Rates
KEY PLAYERSINDIGO
JET AIR
WAY
S
38.9%
18.3
%
AIR IN
DIA
15.8
%SPICEJET
11.7%
GOAIR
8.6%NEW
EN
TRANTS
6.7%
As on 19th June 2015Source : CAPA
JetLite3.2%
AirAsia India1.3%
Vistara1.3%
Air Costa0.8%
Air Pegasus0.1%
MEDIUM HIGH
Threat of New Entrants
LOW
Power of Suppliers
Power of Buyers
Availability of substitutes
Competitive Rivalry
ORTERS 5 FORCES ANALYSIS OF THE INDUSTRYP
5 International Airports, Other Major
Projects
Emergence of LCC
In middle Income
Population
Focus on Infrastructur
e
Collaborations
HE GROWTH DRIVERST
DI POLICYF100% 74% 49%
Greenfield Airport Projects under
automatic route
Existing Airport Projects under Gov. approval
route
Helicopter Services
Maintenance and repair organizations
Existing Airport Projects under automatic route
Domestic scheduled passenger airlines under
automatic route
Ground handling under automatic route
Ground handling under Gov. approval route
Other Investments
HAT AILS INDIAN AVIATION?
The 5/20 Rule
ATF
Category 2 by FAA
W
INANCIAL PERFORMANCE FY14F
Indigo Jet Airways Air India SpiceJet GoAir Vistara
-12000
-10000
-8000
-6000
-4000
-2000
0
2000317
-3668-5000
-1003
5.44
-10660
Other cost
cutting factors
Low Avg Fleet Size, Fuel
Single Class
INDIGO
NDIGO BEING THE EAGER BEAVER
I
Marketing&
Finance
Route Planning
Single type of aircraft
NDIAN AVIATION – SPREADING ITS WINGSI
Decline in
Crude Prices
High PLF’s
DCF to replace 5/20
Increase in air
passenger
traffic
Positive
signs from
Tourism
Provisions in Union Budge
t 2014-
15
NVESTMENT OPPORTUNITIES
• 300 Business jets, 300 small air crafts, 250 helicopters expected in next 5 years
• Demand for MRO Facilities
• Greenfield Projects under PPP at Navi Mumbai & Goa
• Developing Guwahati
• USD 1.3B on non metro projects between 2013-17
• SEZ Aerotroplis Model
I
SOURCE : CRISIL RESEARCH
THANK YOU
!