Swot Analysis of Aviation Industry

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INTRODUCTION Aviation industry in India has the potential to grow because - • 16 Millions Indians are travelling by rail daily • 19 Millions Indians are travelling by air yearly Due to bilateral air traffic agreements, the international air traffic increased by 17%.Only 1% of the Indian population have used the airplane at least once(Air Deccan: „40% of our passenger are first time travellers“) 450 – 500 Million. Indians are potential air travellers. There were only TWO players in post independence era.All airlines were merged either into Indian Airlines or Air India (Air Corporations Act,1953). Government monopoly for next 40 years (till 1991).Huge entry barriers for private players. CURRENT SCENARIO The liberalization of aviation industry in India has precipitated the boom for domestic and international passenger carriers. The domestic passenger and cargo traffic recorded a growth rate of 44.6% and 8.7%, and the international passenger and cargo traffic recorded growth rates of 15.8% and 13.8% respectively during 2006-071. The Airport Authority of India (AAI) manages total 122 airports in the country, which include 11 international airports, 94 domestic airports and 28 civil enclaves. Top 5 airports in the country handle 70% of the passenger traffic of which Delhi and Mumbai together account for more than 50%. The latest data compiled by Airports Authority of India (AAI) shows that all the airports handled 90.44 million passengers during the calendar year 2006 compared with 67.95 million handled during the same period in the previous year2. The substantial growth of Indian aviation industry is mostly due to: (i) low fares offered by Low Cost Carriers (LCC) like Deccan, Spicejet, GoAir etc; and (ii) Scheduled domestic air services are now available from 75 airports as against just 50 earlier so it is evident that Indian airline industry

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