Overview of Airlines Industry in India

Overview of Airlines industry in India
The aviation industry in India is one of those sectors that saw a constant pace of growth among the other industries in the world over the past many years. The open sky policy of the government has helped a lot of overseas players entering the aviation market in India. From then, it has only been growing in terms of players and the number of aircrafts. At present, private airlines account for around 75% portion of the domestic aviation market.
The 9th largest aviation market in the world is India. Taking the help of the statistics from the Ministry of Civil Aviation, approximately 29.8 million passengers traveled to/from India in 2008, showing a surge of 30% from 2007. The prediction stated that international passengers will touch 50 million by 2015. More opportunities in the aviation industry in India are likely to make way for about 69 foreign airlines from 49 countries.
Growth of Indian Aviation industry
The domestic airliners flew 3.67 million passengers in August 2009, as against 2.92 million in the corresponding period of 2007, up by 26%. By 2020, Indian airports will in all probability handle over 100 million passengers every year. The investment plans to the tune of US$ 9 billion has been made by the Aviation Ministry for modernizing the existing airports by 2010.


Market share of key players in the Indian aviation sector
Name of the players Market Share
IndiGo 29.8%
Jet Airways and Jet Lite (previously Air Sahara) 22.6%
SpiceJet 19.5%
Air India and Indian (previously Indian Airlines) 19.2%
GoAir 8.9%


Future of Airlines industry in India
The challenges of the Indian aviation industry are cited below:
• Passenger traffic is estimated to grow at a CAGR of over 15% in the coming few years.
• The Ministry of Civil Aviation would handle around 280 million passengers by 2020.
• US$ 110 billion investment is envisaged till 2020 with US$ 80 billion solely for new aircraft and US$ 30 billion for...