CONTENTS

Executive Summary
Highlights of the Report
1. Civil Aviation– Global Overview
1.1 Global Business Model for LCCs and FSCs
1.1.1 Business Model of LCCs
1.2 Industry Value Chain
1.2.1 Main Aspects of Value Chain Analysis
1.2.2 Value Chain Analysis of Aviation Industry
1.3 Global Air Passenger Growth Trends
1.3.1 Regional Trends
1.4 Global Air Cargo & Its Movement
1.4.1 Regional trends
1.5 Major players in the Global Civil Aviation
1.6 Growth Drivers
1.7 Issues & Challenges
1.8 Future Outlook
1.8.1 Regional Outlook
1.8.2 International Freight Demand
2. Civil Aviation – Indian Overview
2.1 Overview of Indian Civil Aviation Industry
2.1.1 Competitive Position of Airlines
2.1.2 Carrier-wise Passenger Traffic
2.1.3 Factor Inputs for the Aviation Industry
2.1.4 Business Models of LLC and FSC Carriers in India
2.2 Growth of Air Passenger Traffic
2.3 Air Cargo Market – Opportunities & Performance
2.4 Airport Infrastructure Status
2.5 Recent Industry Trends
2.6 Consolidation Phase in Indian Aviation Industry
2.7 Branding in Aviation Industry
2.8 Major Players in Industry Value Chain
2.8.1 GMR
2.8.2 GVK
2.10 Employment Opportunities
2.11 Institutions/Vocational Training Institutes in Industry
2.12 SWOT Analysis of Aviation Industry
3. Policy Framework
3.1 Airport Infrastructure Policy
3.1.1 Categorisation of Airports
3.1.2 Procedure Guidelines for Setting up of Greenfield Airport
3.2 Domestic Air Transport Policy
3.2.1 Categories of Air Transport Services
3.2.2 PPP in Airport Infrastructure
3.2.3 Foreign Equity Participation in Air Transport Services
3.2.4 Requirements for Becoming Air Cargo Operator
3.2.5 Procedure for Starting Scheduled/Non Scheduled Air Transport Services
3.2.6 Route Dispersal Guidelines Provision of Service in Different Categories of Routes
3.3 International Conventions
3.4 Open Sky Policy
3.5 Bilateral Agreements
3.6 Aviation Security (AVSEC) Law & Policy
3.6.1 The Air Craft Act, 1934
3.6.2 Air Craft Rules, 1937
3.6.3. Anti-Hijacking Act, 1982
3.6.4 Anti-Hijacking (Amendment) Act, 1994
3.6.5 The Suppression of Unlawful Acts against the Safety of Civil Aviation Act, 1982
3.6.6 The Suppression of Unlawful Acts against the Safety of Civil Aviation (Amendment) Act, 1994
3.7 Operation of Charter Flights under Inclusive Tour Packages (ITPs)
3.7.1 Application for the Tourist Charter Flights
3.7.2 Conditions for Operation of ITP Charter Flights
3.7.3 Safeguards and Penalties
3.8 Contract for Carriage of Goods by Air Act
4. Role of Regulatory Agencies in Civil Aviation
4.1 Role of the Central and the State Governments
4.2 Ministry of Civil Aviation
4.3 Directorate General of Civil Aviation
4.4 Bureau of Civil Aviation Security (BCAS)
4.5 Airports Authority of India (AAI)
4.6 International Air Transport Association (IATA)
4.7 International Civil Aviation Organization (ICAO)
5. Major Players
5.1 Public Carriers
5.1.1 National Aviation Company of India Limited (Merged Company between Air India and Indian Airlines)
5.2 Private Carriers – Full Service Airlines & Low Cost Airlines
5.2.1 Jet Airways (Including the Subsidiary JetLite)
5.2.2 Kingfisher Airlines (Merged Entity of Kingfisher Airlines and Deccan)
5.2.3 GoAir Airlines
5.2.4 IndiGo Airlines
5.2.5 Paramount Airlines
5.2.6 SpiceJet Airways
5.3 Regional Airlines
5.3.1 Jagson Airlines
5.3.2 MLDR Airlines
5.4 Charter Airlines
5.4.1 Taj Air
5.4.2 Deccan Aviation
5.5 Full Cargo Airlines
5.5.1 Blue Dart Aviation
5.5.2 Crescent Air Cargo
5.6 Marketing Strategies Adopted by Airlines
5.6.1 Marketing Strategies of FSCs
5.6.2 Marketing strategies of LCCs
5.7 Major Foreign Airlines Operating in India
6. Growth Drivers
6.1 Economic Growth
6.2 Global Trade
6.3 Corporate Trends/ Increasing Business Travels
6.4 Liberalisation & Deregulation
6.5 Foreign Direct Investment
6.6 Information Technology & E-Commerce
6.7 Growth in MRO Segment
6.8 Regional Connectivity and Emergence of Regional Airlines
6.9 Growing Medical Tourism
7. Issues & Challenges
7.1 Capacity Constraints
7.2 Passenger & Traffic Congestion
7.3 Taxation
7.4 Fuel Costs
7.5 Entry Barriers
7.6 Aviation Security
7.6 Lack of Availability of Skill
7.7 Specific Issues & Challenges for Low Cost Airlines
7.8 Low market penetration
8. Outlook
Annexure I: India’s Bilateral Agreements with other Countries on Air Traffic
Annexure II: Abbreviation and Acronym
Annexure III: Bibliography


LIST OF FIGURES

Fig 1.1: Airline industry value chain
Fig 1.2: Global trends in RPK and ASK (% growth) during 2004-07
Fig 1.3: Global trends in PLF (% growth) during 2004-07
Fig 1.4: Regional trends in RPK (% growth) during 2004-07
Fig 1.5: Regional trends in ASK (% growth) during 2004-07
Fig 1.6: Regional trends in PLF (% growth) during 2004-07
Fig 1.7: Global trends in FTK and ATK (% growth) during 2004-07
Fig 1.8: Regional trends in ATK (% growth) during 2004-07
Fig 1.9: Regional trends in FTK (% growth) during 2004-07
Fig 1.10: Region-wise Projected Growth of Air Passenger Traffic (2011)
Fig 2.1: Factor Inputs for the Aviation Industry (2005)
Fig 2.2: Trends in Air Passenger Traffic in India during FY04-FY08
Fig 2.3: Trends in Aircrafts Movements in India during FY04-FY08
Fig 2.3: Trends in Air Cargo Movements in India during FY04-FY08
Fig 5.1: Market share of airlines in India (as of June, 2007)
Fig 8.1: Projected Air Passenger Traffic in India during FY09-FY13
Fig 8.2: Projected Air Cargo Traffic in India during FY09-FY13
Fig 8.3: Projected Aircraft Movements in India during FY09-FY13



LIST OF TABLES

Table 1.1: Global Aviation Industry at a Glance (2007)
Table 1.2: Comparative View of Top 10 Global Airliners (2007)
Table 2.1: Comparative Study of Indian airliners
Table 2.3: Carrier-wise Passenger Traffic Data (2006-2008) in million
Table 3.1: Comparative View of Bangalore and Hyderabad International Airports
Table 3.2: Routes under Category-I (Routes Connecting Directly)
Table 5.1: Features of Co-branded Cards by Jet Airways & JetLite