Aviation Industry

AVIATION INDUSTRY: One of the fastest growing industries in the world. There are approximately one billion people and only about 0.05% of them fly. More and more middle class families now prefer air travel to traditional rail travel. The Indian travel market is expected to triple to $51 billion by 2011 from $16.3 billion in 2005-2006. AAI totally manages 127 airports includes 13 International airports,7 custom airports,80 Domestic airports and Civil enclaves. Over 1100 registered aircrafts. By 2020, Indian airports are estimated to handle 100 million passengers, including 60 million domestic passengers. The amount of cargo handled will fall in the range of 3.4 million tons per annum. Main players in the aviation industry.... Jet airways Kingfisher Indian Spice jet Air India PEST ANALYSIS: • PEST analysis stands for \"Political, Economic, Social, and Technological analysis\" and describes a framework of macro environmental factors used in environmental scanning. Can be used as a basis for the analysis of business and environmental • PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. POLITICAL FACTORS: Foreign airlines are not allowed to buy a stake in domestic airlines. The five categories proposed in the Cabinet note for FDI review include: -Maintenance -Training facilities -Cargo handling -Chartered services FDI limits: -100% for Greenfield airports - 74% for the existing airports -100% through special permission - 49% for airlines - 100% for NRI’s. SOCIAL FACTORS: Development of cities leads to better services and airports. Employment opportunities Safety regulations The symbol attached to a plain travel. Airline has become a Commodity business. ECONOMICAL FACTORS: Contribution to the Indian economy

Rising cost of fuel. Investment in the sector of aviation. The growth of middle income group family affects the aviation sector. Shortage of infrastructure capacity. TECHNOLOGICAL FACTOR: The growth of E-commerce and E-Ticket. Satellite based navigation system. Modernization and privatization of the airports. Developing green field airports with private sector for example in Bangalore the airport corporation limited. Mobile and online check-in.