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STUDY OF INDIAN AVIATION INDUSTRY
PROJECT REPORT
In
Research Methodology in Business
Post-Graduate Diploma in Business Management
Submitted to: Submitted by:
Dr. S.R.Dash Kalimul Haque (BM 010194)
Prof. Sanjay Mangla Ramkrishna Das (BM 010201)
Shubhra Singh (BM 010205)
Viraj Goyal (BM 010209)
INSTITUTE OF MANAGEMENT STUDIESLAL QUAN, GHAZIABAD 201009
Acknowledgements
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First of all, I would like to thank the Almighty for providing me with the strength to
complete this project.
I am highly obliged to have support of my faculties Dr. S.R.Dash and Prof. Sanjay
Mangla without which it was not possible to take up this activity.
An undertaking of work life, this is never an outcome of a single person; rather it bears
the imprints of a number of people who directly or indirectly helped us in completing the
present study. We would have failed in our duties if we dont say a word of thanks to all
those who made our report a grand success.
My sincere thanks also goes to our friends, peers and colleagues for supporting at every
juncture which helped us complete this project work in time and without which we would
not have been able to unravel several mysteries of the Aviation Industry.
DECLARATION CERTIFICATE
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Here by we declare that, we students of 1st year of Post Graduate Diploma Of
Management, have prepared a Research Methodology In Business project entitled asA
PROJECT REPORT ON AVIATION INDUSTRY IN INDIA.
By own efforts and research.
Kalimul Haque (BM 010194)
Ramkrishna Das (BM 010201)
Shubhra Singh (BM 010205)
Viraj Goyal (BM 010209)
CERTIFICATE FROM THE PROJECT SUPERVISOR
This is to cer tify that KALIMUL HAQUE (BM-010194) RAMKRISHNA DAS (BM-
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010201) ,SHUBHRA SINGH(BM-010205) , VIRAJ GOYAL(BM-010209) students of
1st year of Post Graduate Diploma Of Management, have prepared a Research
Methodology In Business project entitled asA PROJECT REPORT ON AVIATION
INDUSTRY IN INDIA, as a part of partial fulfillment of requirement of post
graduate diploma of management by INSTITUTE OF MANAGEMENT
STUDIES, GHAZIABAD.
Dr. S.R.Dash
Prof. Sanjay Mangla
(Faculties of Research methodology in
business)
TABLE OF CONTENTS
(i) Declaration Certificate 3
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(ii) Certificate From The Project Supervisor 4
(iii) Acknowledgement...2
(iv) Introduction 7
(v) Objective 9
(vi) Present Indian Scenario 11(vii) Boom And Bust in Indian Aviation Industry After LCC 13
(viii) Impact Of Rising Fuel Prices on the Industry.13
(ix) Research methodology 10
(x) Airlines Under Study 16
(1) Kingfisher Airlines .16
(2) Jagson Airlines 17
(3) Jet Airways .........17
(4) Singapore Airlines ..18
(5) Spicejet 18
(6) Emirates ..20
(7) British airways .21
(xi) Recommendations 30
(xii) Conclusion 31
(xiii) Refrences .32
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List of Tablesand Graphs
Table (1)14
Table (2)15
Table (3)22
Table (4)24
Table (5)26
Table (6)27
Table (7)29
Table (8)31
Table (9)33 Graph (1) 14
Graph (2) 15
Graph (3) 23
Graph (4) 25
Graph (5) 26
Graph (6) 28
Graph (7)..30
Graph (8)..32
Graph (9) ...34
INTRODUCTION6
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Air India was set up by J.R.D. Tata, who ran it successfully until it was nationalized in
1953. In the 1960s the Maharaja, as the national flag-carrier was affectionately known,
was flying to 32 destinations (it now flies to 46 destinations) and making profits. For
many years in India air travel was perceived to be an elitist activity. This view arose from
the Maharajah syndrome where, due to the prohibitive cost of air travel, the only people
who could afford it were the rich and powerful. In recent years, however, this image of
Civil Aviation has undergone a change and aviation is now viewed in a different light - as
an essential link not only for international travel and trade but also for providing
connectivity to different parts of the country. Aviation is, by its very nature, a critical part
of the infrastructure of the country and has important ramifications for the development
of tourism and trade, the opening up of inaccessible areas of the country and for
providing stimulus to business activity and economic growth. Until less than a decade
ago, all aspects of aviation were firmly controlled by the Government.
In the early fifties, all airlines operating in the country were merged into either Indian
Airlines or Air India and, by virtue of the Air Corporations Act, 1953 this monopoly was
perpetuated for the next forty years. The Directorate General of Civil Aviation controlled
every aspect of flying including granting flying licenses, pilots, certifying aircrafts for
flight and issuing all rules and procedures governing Indian airports and airspace. Finally,the Airports Authority of India was entrusted with the responsibility of managing all
national and international airports and administering every aspect of air transport
operation through the Air traffic Control.
With the opening up of the Indian economy in the early Nineties, aviation saw some
important changes. Most importantly, the Air Corporation Act was repealed to end the
monopoly of the public sector and private airlines were reintroduced. Domestic
liberalization took off in 1986, with the launch of scheduled services by new start-up
carriers from 1992. A number of foreign investors took an interest. Modiluft closed after
failing to meet financial obligations to lassoers and its technical partner, Lufthansa. In
1996-1998, Tata and SIA tried to launch a domestic carrier, but the civil aviation minister
had publicly stated his opposition on numerous occasions (Airline Business 1998).
The Indian government introduced the open sky policy for domestic players in 1991 and
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partial open sky policy for international players only in November 2004. Increasing
liberalization and deregulation has led to an increase in the number of players. The
industry comprises three types of players full cost carriers, low cost carriers (LCC) and
many start-up airlines that are making/planning an entry.
OBJECTIVE
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1- Study of Indian Aviation Industry as a whole.
2- Study of following Airlines in Indian Aviation Industry in terms
of expenditure, profits and passengers.
Kingfisher Airlines.
Jagson Airlines.
Jet Airways.
Singapore Airlines.
Spicejet.
Emirates.
British Airways.
RESEARCH METHODOLOGY
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The research is mainly based on the secondary data collected from various sources. One
of these sources is the internet.
Some for the tools being used in this research is MS Excel and SPSS.
Basic formulas that are being used are as follows:-
TREND ANALYSIS:-
Y = a + bx
=> y = N*a + b x ..(i)
=> (xy) = a x + b x^2 .(ii)
CORRELATION:-
Present Indian Scenario
India is one of the fastest growing aviation markets in the world. The Airport Authority
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of intense price competition with the incumbent full service carriers (Jet, Indian, Air
Sahara) disk-counting up to 60-70% for certain routes to match the new entrants ticket
prices. This, coupled with costs pressures (a key cost element, ATF price, went up
approximately 35% in recent months, while staff costs are also rising on the back of
shortage of trained personnel), is exerting bottom-line pressure.
The growth in supply is overshadowed by the extremely strong demand growth, led
primarily by the conversion of train/bus passengers to air travel, as well as by the fact that
low fares have allowed passengers to fly more frequently. There has, therefore, been an
increase in both the width and depth of consumption. However, the regulatory
environment, infrastructure and tax policy have not kept pace with the industrys growth.
Enactment of the open sky policy between India and SAARC countries, increase in
bilateral entitlements with the EU and the US, and aggressive promotion of India as an
attractive tourism spot helped India attract 3.2 million tourists in 2004-05. This market is
growing at 15% per annum and India is expected to attract 6 million tourists by 2010.
Also, increasing per capita income has led to an increase in disposable incomes, leading
to greater spend on leisure and holidays and business travel has risen sharply with
increasing MNC presence. Smaller cities are also well connected now. Passenger traffic
has increased and over 21 million seats have been sold, resulting in a growth of over
50%. The Indian travel market is expected to triple to $51 billion by 2011 from $16.3billion in 2005-06.
BOOM AND BUST IN INDIAN AVIATION INDUSTRY AFTER LCC
Air India and Indian Airlines retained a monopoly over civil aviation in India till 1992.
The deregulation of the Indian economy that started in the mid-1980s, and proceeded
more aggressively after the New Economic Policy in 1991, led to calls for opening up of
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the airline sector. Over the following years, several new airlines including Damania, East
West, Jet, Sahara, Modiluft and NEPC started operations. However, high fuel costs, poor
infrastructure, and a regulation that required them to fly on routes to distant parts of the
country as well as on non-trunk routes threatened their financial viability.
By 1997, Damania, Modiluft, East West and NEPC were forced to suspend services. Jet
and Sahara were thus the only survivors of the first phase of liberalization of the Indian
domestic airline industry. In 2003, Jet, Sahara, and Indian Airlines shared the market
between themselves with market shares of 46%, 9% and 40% respectively in the year-
ending March 31, 2003.
Impact of Rising Fuel Prices on the Industry:
The high price of fuel is killing the profitability. In two years the industry fuel bill more
than doubled to nearly US$100 billion23% of operating costs. And there is no relief in
sight. So what are airlines to do? Improve efficiency is the answer. Progress to date has
been dramatic. The break-even price of fuel rose from US$22 per barrel in 2003 to nearly
US$50 in 2005. Unfortunately, fuel prices are above that. Airlines will not return to
profitability until 2007 when we expect a break-even fuel price of US$55. Even then the
projected profit is only US$6 billion. Asia will remain profitable in 2006 posting US$2
billion in profit. That is still less than a 2% net margin.
ESTIMATION OF SALES:
TABLE-1
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GRAPH-1
INTERPRETATION:
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YEAR SALES
(CRORES)
2003 13281.06
2004 15303.39
2005 18632.05
2006 24061.09
2007 29096.25
2008 24320.28
2009 30982.76
2010 33897.15
2011 36811.54
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The forecasted sales for the year 2011 is estimated to be Rs. 36811.54
ESTIMATION OF NET PROFIT:
TABLE-2
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YEAR NET PROFIT (CRORES)
2003 -379.22
2004 356.97
2005 532.73
2006 -99.18
2007 -2191.98
2008 -2120.91
2009 -8336.81
2010 -5498.78
2011 -2659.87
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GRAPH-2
INTERPRETATION: The forecasted net profit for the year 2011 is estimated to be
Rs. -2659.8
AIRLINES UNDER STUDY
KINGFISHER AIRLINES:
Kingfisher Airline is a private airline based in Bangalore, India. The airline is owned by
Vijay Mallya of United Beverages Group. Kingfisher Airlines started its operations on
May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. The airline currently operates on
domestic routes. The destinations covered by Kingfisher Airlines are Bangalore,
Mumbai, Delhi, Goa, Chennai, Hyderabad,Ahmedabad, Cochin, Guwahati, Kolkata,
Pune, agartala, Dibrugarh, Mangalore and Jaipur.In a short span of time Kingfisher
Airline has carved a niche for itself. The airline offers several unique services to its
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customers.
These include: Personal valet at the airport to assist in baggage handling and boarding,
exclusive lounges with private space, accompanied with refreshments and music at the
airport, audio and video on-demand, with extra-wide personalized screens in the aircraft,
sleeperette seats with extendable footrests, and three courses Gourmet cuisine.
Kingfisher Airlines currently operates with a brand new fleet of 8 Airbus A320 aircraft, 3
Airbus A319-100 aircraft and 4 ATR-72 aircraft. It was the first airline in India to operate
with all new aircrafts. Kingfisher Airlines is also the first Indian airline to order the
Airbus A380. It placed orders for 5 A380s, 5A350-800 aircrafts and 5 Airbus A330-200
aircrafts in a deal valued at over $3billion on June 15, 2005. Delivery of the A330s is due
to start in late 2007, followed by the A380s in 2010 and the A350s in 2012.
JAGSON AIRLINES
Jagson Airlines is an airline based in Delhi, India. It operates scheduled and charter
services within India and to Bhutanand Nepal. The airline was established and started
operations in November 1991. It began charter operations with two 18-seat Dornier 228-
201 aircraft and later operated regular services from Delhi. It is wholly owned by Jagson
International. In 2006 they announced plans to expand their services to 9 cities, using
leased Airbus A321-200 aircraft. Jagson have withdrawn plans to launch a nationwide
scheduled low-cost airline by mid-2006 and plan to continue as a regional airline.
Jagson has recently taken deliveries of RJ 80s / BAe 146-200s Avro Regional Jets. They
will be starting operations to all their previous routes shortly. Efforts are on to merge the
earstwhile MDLR, which operated the same type of aircraft , and form a 5 aircraft airline.
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JET AIRWAYS
Jet Airways is Indias premier private airlines. Naresh Goyal is currently the chairman of
Jet Airways. Jet Airways operates over 320 flights daily to 43 destinations in India and
currently controls about 40% of Indias aviation market. Jet Airways was the first privateairline of India to fly to international destinations. It operates daily international flights to
Colombo, Katmandu,Singapore, Kuala Lumpur and London (Heathrow). Jet Airways has
won a number of awards in recognition of standards of its service and has also received
the ISO 9001:2000 certification for its In-flight Services. Jet Airways was established on
3 May 1991 with a fleet of 4 Boeing 737-300 aircraft, with 24 daily flights serving 12
destinations. Jet Airways presently operates 55 aircrafts and is now a public limited
company. Its fleet of 55 aircrafts include 3 Airbus 340-300E, 4 Boeing 737-800, 1 Airbus
330-200, 1 Boeing 737-700, 18 Boeing 737-800, 8 ATR 72-500, 2 Boeing 737-900, 12
Boeing737-700, and 6 Boeing 737-400. Jet Airways was recently involved in a
controversy. On January 19, 2006 Jet Airways announced its decision to buy fellow
airlines Air Sahara for 500million in an all-cash deal. The deal was touted as the biggest
in Indias aviation history. But the deal fell midway and now the two parties are involved
in a fierce court battle.
SINGAPORE AIRLINES
Singapore Airlines was the launch customer of Airbus A380 Superjumbo. SIA has
diversified airline-related businesses, such as aircraft handling and engineering. Its
wholly-owned subsidiary, SilkAir, manages regional flights to secondary cities with
smaller capacity requirements. Subsidiary Singapore Airlines Cargo operates SIA's
dedicated freighter fleet, and manages the cargo-hold capacity in SIA's passenger aircraft.
SIA has a 49% shareholding in Virgin Atlanticand engages the low-cost carriersector
through its stake in Tiger Airways. It ranks amongst the top 15 carriers worldwide in
terms ofrevenuepassenger kilometres, and 10th in the world for international passengers
carried. On December 15, 2010, Singapore Airlines was announced by the International
Air Transport Association as the world's second largest airline in the world by market
capitalisation with a worth of 14 billion dollars.
Singapore Airlines is the "world's most admired airline" and ranked 27th on Fortune
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World's Most Admired Companies rankings in 2010. It has a strong brandname and is a
trendsetter in the aviation industry, particularly in terms of innovation, safety and service
excellence, coupled with consistent profitability. It has won numerous awards, and is an
industrybellwetherfor aircraft purchases. SIA is one of the seven airlines to be ranked as
a 5-star airline by the independent research consultancy firmSkytrax.
SPICEJET
SpiceJet, Indias leading low cost airline, is a reincarnation of ModiLuft. It is promoted
by Ajay Singh and the Kansagra family. SpiceJet marked its entry in the Indian skies with
99 fares for the first 99 days, with 9,000 seats available at this rate.
This deal was followed it up with a 999 promotional scheme on select routes. Their
marketing theme offering low everyday spicy fares and great guest services to price
conscious travelers. Their aim is to compete with the Indian Railways passengers
19rivatiza in air conditioned coaches.
On 15 July 2008 Billionaire Wilbur Ross suggested he would invest 345 crore
(US$74.86 million) in the low cost airline. The board of directors of SpiceJet accepted an
offer in-principle from the US-based PE firm that would make available about 345 crore
(US$74.86 million) to SpiceJet, a joint statement issued by SpiceJet and WL Ross & Co.
Indian media baron Kalanidhi Maran acquired a major stake (37.7%) in this airline on
June 2010. On December 9, 2010, SpiceJet made a firm order for 15 Bombardier Dash 8
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Q400 and options for another 15.
EMIRATES
Emirates is thenational airline ofDubai,United Arab Emirates. It is the largestairline in
the Middle East, operating over 2,400 passenger flights per week, from its hub at Dubai
International Airport Terminal 3, to 105 cities in 62 countries across six continents. The
company also operates three of the ten world's longestnon-stop commercial flights from
Dubai to Los Angeles, San Francisco and Houston. Emirates is a subsidiary of The
Emirates Group, which has over 50,000 employees, and is wholly-owned by the
Government of Dubai directly under the Investment Corporation of Dubai. Cargo
activities are undertaken by the Emirates Group's Emirates SkyCargo division.
During the mid-1980s, Gulf Air began to cut back its services to Dubai. As a result
Emirates was conceived in March 1985 with backing from Dubai's royal family, whose
Dubai Royal Air Wing provided two of the airline's first aircraft. It was required to
operate independent of government subsidies, apart from $10 million in start-up capital.
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The airline became headed by Ahmed bin Saeed Al Maktoum, the airline's present
chairman. In the years following its founding, the airline expanded both its fleet and its
destinations. In October 2008, Emirates moved all operations at Dubai International
Airport to Terminal 3, a new terminal exclusively dedicated to Emirates to sustain its
rapid expansion and growth plans.
Emirates operates a mixed fleet ofAirbus and Boeingwide-body aircraft and is one of
only nine airlines to operate an all-wide-body aircraft fleet, whose centrepiece is the
Boeing 777. Emirates also has orders for 90 Airbus A380s with 15 of them already in
service and became the second operator of the Airbus A380-800 afterSingapore Airlines
when their first aircraft was delivered on 28 July 2008. Emirates has won numerous
awards and is an industry bellwetherfor aircraft purchases, purchasing over 130 aircraft
in 2007 alone.
BRITISH AIRWAYS
British Airways plc (BA) is the flag carrierairline of the United Kingdom which is
based and headquartered in Waterside, near its main hub at London Heathrow
Airport. British Airways operates a second hub at Gatwick Airport and a third hub,
served through its fully owned subsidiary, BA CityFlyer, atLondon City Airport.
British Airways is the largest airline in the UK based on fleet size, international
flights and international destinations. BAs UK passengers originating at non-
London airports must connect via London after British Airways discontinued all
direct overseas flights from UK airports outside London following the sale of BAConnect to British regional carrier Flybe in 2007. The British Airways Board was
established in 1971 to control the two 21rivatizatio airline corporations, BOAC and BEA,
and two much smaller regional airlines, Cambrian Airways from Cardiffand Northeast
Airlines from Newcastle upon Tyne. On 31 March 1974 all four companies were
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http://en.wikipedia.org/wiki/Ahmed_bin_Saeed_Al_Maktoumhttp://en.wikipedia.org/wiki/Dubai_International_Airport#Terminal_3http://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Boeinghttp://en.wikipedia.org/wiki/Wide-body_aircrafthttp://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/Airbus_A380http://en.wikipedia.org/wiki/Singapore_Airlineshttp://en.wikipedia.org/wiki/Bellwetherhttp://en.wikipedia.org/wiki/Flag_carrierhttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Waterside_(building)http://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/London_Heathrow_Airporthttp://en.wikipedia.org/wiki/London_Heathrow_Airporthttp://en.wikipedia.org/wiki/London_Heathrow_Airporthttp://en.wikipedia.org/wiki/Gatwick_Airporthttp://en.wikipedia.org/wiki/BA_CityFlyerhttp://en.wikipedia.org/wiki/London_City_Airporthttp://en.wikipedia.org/wiki/London_City_Airporthttp://en.wikipedia.org/wiki/BA_Connecthttp://en.wikipedia.org/wiki/BA_Connecthttp://en.wikipedia.org/wiki/Flybehttp://en.wikipedia.org/wiki/British_Overseas_Airways_Corporationhttp://en.wikipedia.org/wiki/British_European_Airwayshttp://en.wikipedia.org/wiki/Cambrian_Airwayshttp://en.wikipedia.org/wiki/Cambrian_Airwayshttp://en.wikipedia.org/wiki/Cardiffhttp://en.wikipedia.org/wiki/Northeast_Airlines_(UK)http://en.wikipedia.org/wiki/Northeast_Airlines_(UK)http://en.wikipedia.org/wiki/Newcastle_upon_Tynehttp://en.wikipedia.org/wiki/Newcastle_upon_Tynehttp://en.wikipedia.org/wiki/Ahmed_bin_Saeed_Al_Maktoumhttp://en.wikipedia.org/wiki/Dubai_International_Airport#Terminal_3http://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Boeinghttp://en.wikipedia.org/wiki/Wide-body_aircrafthttp://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/Airbus_A380http://en.wikipedia.org/wiki/Singapore_Airlineshttp://en.wikipedia.org/wiki/Bellwetherhttp://en.wikipedia.org/wiki/Flag_carrierhttp://en.wikipedia.org/wiki/Airlinehttp://en.wikipedia.org/wiki/Waterside_(building)http://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/London_Heathrow_Airporthttp://en.wikipedia.org/wiki/London_Heathrow_Airporthttp://en.wikipedia.org/wiki/Gatwick_Airporthttp://en.wikipedia.org/wiki/BA_CityFlyerhttp://en.wikipedia.org/wiki/London_City_Airporthttp://en.wikipedia.org/wiki/BA_Connecthttp://en.wikipedia.org/wiki/BA_Connecthttp://en.wikipedia.org/wiki/Flybehttp://en.wikipedia.org/wiki/British_Overseas_Airways_Corporationhttp://en.wikipedia.org/wiki/British_European_Airwayshttp://en.wikipedia.org/wiki/Cambrian_Airwayshttp://en.wikipedia.org/wiki/Cardiffhttp://en.wikipedia.org/wiki/Northeast_Airlines_(UK)http://en.wikipedia.org/wiki/Northeast_Airlines_(UK)http://en.wikipedia.org/wiki/Newcastle_upon_Tyne8/7/2019 RMB Report
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dissolved to form British Airways (BA). After almost 13 years as a 22rivatizatio
company, British Airways was 22rivatizat in February 1987 as part of the 22rivatization
plan by the Conservative Government of the time. The carrier soon expanded with the
acquisition ofBritish Caledonian (BCAL) in 1987 and Gatwick-based carrierDan-Airin
1992.
ANALYSIS OF AIRLINES UNDER STUDY
KINGFISHER AIRLINES:
TABLE-3
YEAR 2006 2007 2008 2009 2010
EXPENDITURE
(Rs. CRORES) 1,398.86 2,062.61 1,781.46 5,822.37 4,818.20
INCOME
(Rs. CRORES) 1,345.06 2,142.31 1,569.90 5,868.07 4,734.62
PROFIT
(Rs. CRORES) -113.44 -262.4 -325.18 -553.2 249.72
Analysis:
In the case of Kingfisher Airlines , in the year 2006 expenditure , income and loss was
1398.86 (Rs. Cr) , 1345.06 (Rs. Cr ) and 113.44(Rs. Cr) . In the year 2007 , expenditure
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http://en.wikipedia.org/wiki/British_Caledonianhttp://en.wikipedia.org/wiki/Dan-Airhttp://en.wikipedia.org/wiki/British_Caledonianhttp://en.wikipedia.org/wiki/Dan-Air8/7/2019 RMB Report
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was 2062.61 (Rs. Cr ) and income was 2142.31 (Rs. Cr) where Kingfisher faced loss of
Rs. 262.4 (Cr) . In 2008 , expenditure , income and loss was 1781.46 (Rs. Cr) ,1569.90
(Rs .Cr ) and 325.18 (Rs . Cr) . In 2009 , expenditure , income and loss was 5822.37
(Rs. Cr) ,5868.07 (Rs .Cr ) and 553.2 (Rs . Cr) . But in 2010 , kingfisher Airlines posted
profit of 294.72 (Rs .Cr) .
Correlation is0.99855917
GRAPH-3
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JAGSON AIRLINES:
TABLE-4
YEAR 2006 2007 2008 2009 2010
EXPENDITURE
(Rs. CRORES) 397.91 667.77 1,291.80 1,741.41 1,751.35
INCOME
(Rs. CRORES) 451.97 729.62 1,438.58 1,786.48 2,242.09
PROFIT
(Rs. CRORES) 21.74 -27.33 3.19 -51.96 429.73
Analysis:
In the case of Jagson Airlines , in the year 2006 expenditure , income and profit was
397.91 (Rs. Cr) , 451.97 (Rs. Cr ) and 21.74(Rs. Cr) respectively . In the year 2007 ,
expenditure was 667.77 (Rs. Cr ) and income was 729.62 (Rs. Cr) where Jagson faced
loss of Rs. 27.33 (Cr) . In 2008 , expenditure , income and profit was 1291.80 (Rs. Cr) ,
1438.58 (Rs .Cr ) and 3.19 (Rs . Cr) . In 2009 , expenditure , income and loss was
1741.41 (Rs. Cr) , 1786.48 (Rs .Cr ) and 51.96 (Rs . Cr) . But in 2010 , this airlines
posted profit of 429.73 (Rs .Cr) .
Correlation is 0.97642931
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GRAPH-4
JET AIRWAYS:
TABLE-5
YEAR 2006 2007 2008 2009 2010
EXPENDITURE
(Rs. CRORES) 4,262.09 6,020.66 8,056.00 10,969.32 8,329.85
INCOME
(Rs. CRORES) 6,060.47 7,373.39 9,448.34 12,014.90 10,688.39
PROFIT(Rs. CRORES) 1,431.64 1,037.12 755.1 601.83 2,108.72
Analysis:
In the case of Jet Airways , in the year 2006 expenditure , income and profit was
4262.09 (Rs. Cr) , 606.47 (Rs. Cr ) and 1431.64 (Rs. Cr) respectively . In the year 2007 ,
expenditure was 6020.66 (Rs. Cr ) and income was 7373.39 (Rs. Cr) where Jet airways
profited of Rs. 27.33 (Cr) . In 2008, expenditure , income and profit was 8056(Rs. Cr) ,
9448.34 (Rs .Cr ) and 755.1 (Rs . Cr) . In 2009 , expenditure , income and profit was
10969.32 (Rs. Cr) , 12014.90 (Rs .Cr ) and 601.83 (Rs . Cr) . In 2010 , this airlines
profited of 2108.72 (Rs.Cr) .
Correlation is0.98020971
GRAPH-5
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SINGAPORE AIRLINES:
TABLE-6
YEAR 2006 2007 2008 2009 2010
EXPENDITURE
(Rs. CRORES) 9,081.50 10,657.40 12,127.80 13,180.00 13,148.00
INCOME
(Rs. CRORES) 9,761.90 12,012.90 13,341.10 14,494.40 15,972.50
PROFIT
(Rs. CRORES) 680.4 1355.5 1213.3 1314.4 2124.5
Analysis:
In the case of Singapore Airlines, in the year 2006 expenditure, income and profit was
9081.50 (Rs. Cr) , 9761.90 (Rs. Cr ) and 680.4 (Rs. Cr) respectively . In the year 2007 ,
expenditure was 10657.40 (Rs. Cr ) and income was 12012.90 (Rs. Cr) where
Singapore Airlines profited of Rs. 1355.5 (Cr) . In 2008, expenditure, income and profit
was 12127.80(Rs. Cr) , 13341.10 (Rs .Cr ) and 1213.3 (Rs . Cr) . In 2009 , expenditure ,
income and profit was 13180.00 (Rs. Cr) , 14494.40 (Rs .Cr ) and 1314.4 (Rs . Cr) . In
2010 , this airlines profited of 2124.5 (Rs .Cr) .
Correlation is 0.96873568
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SPICEJET:
TABLE-7
YEAR 2006 2007 2008 2009 2010
EXPENDITURE
(Rs. CRORES) 397.91 667.77 1,291.80 1,741.41 1,751.35
INCOME
(Rs. CRORES) 451.97 729.62 1,438.58 1,786.48 2,242.09
PROFIT
(Rs. CRORES) 21.74 -27.33 3.19 -51.96 429.73
Analysis:
In the case of Spicejet Airlines, in the year 2006 expenditure, income and profit was
397.91 (Rs. Cr) , 451.97 (Rs. Cr ) and 21.74 (Rs. Cr) respectively . In the year 2007 ,
expenditure was 667.77 (Rs. Cr ) and income was 729.62 (Rs. Cr) where Spicejet
Airlines faced loss of Rs. 27.33 (Cr) . In 2008, expenditure, income and profit was 1291.8
(Rs. Cr) , 1438.58 (Rs .Cr ) and 3.19 (Rs . Cr) . In 2009 , expenditure , income and loss
was 1741.41 (Rs. Cr) , 1786.48 (Rs .Cr ) and 51.96(Rs . Cr) . In 2010 , this airlinesprofited of 429.73 (Rs .Cr) .
Correlation is 0.976668
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GRAPH-7
EMIRATES:
TABLE-8
Analysis:
In the case of Emirates Airlines, in the year 2006 expenditure, income and profit was
11602094 (Rs. Cr) , 13286331 (Rs. Cr ) and 2618789 (Rs. Cr) respectively . In the year
2007 , expenditure was 15,628,282.00 (Rs. Cr ) and income was 18130998 (Rs. Cr)
where Emirates Airlines profited of Rs. 2652291 (Cr) . In 2008, expenditure, income and
profit was 20,489,601.00 (Rs. Cr) , 23,050,927.00 (Rs .Cr ) and 2652291 (Rs . Cr) . In
2009 , expenditure , income and profit was 26,675,891.00 (Rs. Cr) , 29,839,618.00
(Rs .Cr ) and 3338873 (Rs . Cr) . In 2010 , this airlines profited of 5180171Rs .Cr) .
Correlation is 0.99932203
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YEAR 2006 2007 2008 2009 2010
EXPENDITURE
(Rs. CRORES) 11,602,094.00 15,628,282.00 20,489,601.00 26,675,891.00 34,392,500.00
INCOME
(Rs. CRORES) 13,286,331.00 18,130,998.00 23,050,927.00 29,839,618.00 39,467,427.00
PROFIT
(Rs. CRORES) 2618789 2652291 2652291 3338873 5180171
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GRAPH-8
BRITISH AIRWAYS:
TABLE-9
YEAR 2006 2007 2008 2009 2010
EXPENDITURE
(Rs. CRORES) 7,870.00 7,881.00 7,597.00 7,895.00 7,259.00
INCOME
(Rs. CRORES) 8,753.00 8,492.00 8,213.00 8,515.00 7,772.00
PROFIT
(Rs. CRORES) 883 611 616 620 513
Analysis: In the case of British Airways, in the year 2006 expenditure, income and
profit was 7870 (Rs. Cr) , 8753 (Rs. Cr ) and 883 (Rs. Cr) respectively . In the year
2007 , expenditure was 7881(Rs. Cr ) and income was 8492(Rs. Cr) where British
Airways profited of Rs. 611(Cr) . In 2008, expenditure, income and profit was 7597(Rs.
Cr) , 8213 (Rs .Cr ) and 616 (Rs . Cr) . In 2009 , expenditure , income and profit was
7895 (Rs. Cr) , 8515 (Rs .Cr ) and 620 (Rs . Cr) . In 2010 , this airlines profited of513Rs.Cr).
Correlation is0.95483216
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GRAPH-9
Recommendations
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Conclusion
If we consider all the airlines in Indian aviation industry kingfisher and emirates have avery close relationship between there expenditure and income. They have 99%relationship among all other airlines. Jagson airlines have 97% relationship between exp.and income, whereas Singapore airlines are at 96%, jet airways at 98%, Spice at 97% andBritish airways at 95%.
So, what we observe is that British airways is having the lowest percentage relationshipbetween expenditure and income i.e. exp made by the Co. is not giving equal amount ofincome.
Considering aviation industry as a whole the forecasted sales for the year 2011 isestimated to be Rs. 36811.54. The forecasted net profit for the year 2011 is estimated tobe Rs. -2659.8.
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References
Draft : The Civil Aviation Act, 2000 (Draft)
Survey :
Economic Survey
Articles : Articles (Alliance Library)
4 Ps Marketing November 2008 Edition
Business Line/India Today
Report :
IIM B Report-Blue Sky/Prabhudas Liladhar Report
Investments Bodie Keane Marcus
Investment Analysis & Portfolio Management Prasanna Chandra
Website :
http://www.grida.no/climate/ipcc/aviation/index.htm
http://ec.europa.eu/environment/climat/pdf/aviation_et_study.pdf
http://civilaviation.nic.in/
http://www.iata.org/whatwedo/environment/sustainability.htm
http://en.wikipedia.org/wiki/Aviation
32
http://www.grida.no/climate/ipcc/aviation/index.htmhttp://ec.europa.eu/environment/climat/pdf/aviation_et_study.pdfhttp://civilaviation.nic.in/http://www.iata.org/whatwedo/environment/sustainability.htmhttp://en.wikipedia.org/wiki/Aviationhttp://www.grida.no/climate/ipcc/aviation/index.htmhttp://ec.europa.eu/environment/climat/pdf/aviation_et_study.pdfhttp://civilaviation.nic.in/http://www.iata.org/whatwedo/environment/sustainability.htmhttp://en.wikipedia.org/wiki/Aviation8/7/2019 RMB Report
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http://en.wikipedia.org/wiki/Aviation_and_the_environment
http://www.jetstar.com/au/travel-info/carbon-offset/aviation-impact.html
http://www.aai.aero/about_us/aai_today.jsp
http://in.reuters.com/article/businessNews/idINIndia-32200020080228
http://en.wikipedia.org/wiki/Aviation_and_the_environmenthttp://www.jetstar.com/au/travel-info/carbon-offset/aviation-impact.htmlhttp://www.aai.aero/about_us/aai_today.jsphttp://en.wikipedia.org/wiki/Aviation_and_the_environmenthttp://www.jetstar.com/au/travel-info/carbon-offset/aviation-impact.htmlhttp://www.aai.aero/about_us/aai_today.jspTop Related