The growing availability of affordable air travel has considerably widened aviation’s role in our sustainable society. Air travel is no longer a luxury commodity. The air transport industry has not only underpinned wealth creation in the developed world, but has also brought enormous benefits to developing economies by unlocking their potential for trade and tourism. The aviation industry not only contributes to the Gross Domestic Product (GDP) of the country and improves employment statistics, but also aids in domestic and international trade, and facilitates many other businesses. Socially the industry connects people to people leading to cultural exchange and enhancement.
Indian Aviation Industry
The ninth largest civil aviation market in the world. In India, the air traffic has consistently grown at a robust 12% - 18% per year in the last decade, and this trend is likely to continue in the near future. India’s aviation market caters to 117 million domestic and 43 million international passengers. Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs. Today, more than 87 international airlines operate to India and 5 Indian carriers connect over 40 countries. Foreign Direct Investment (FDI) in civil-aviation sector up to 49% allowed in domestic airlines.
As per data from the Airports Authority of India (AAI), passenger throughput grew to 159 million (FY 13) and cargo throughput to 2.19 million MT (FY 13), registering an impressive growth of 13 per cent and 10 per cent CAGR respectively over the period FY 2003-2013.
The most significant development in the Indian domestic market is the growing dominance of the low-cost carrier model, which in FY 2013 accounted for almost 70 percent of the domestic capacity. LCCs have driven the growth in aviation and tourism through low fares, introduction of regional routes and periodic discount offers. Full service carriers plan to shift more seats to their low cost offerings in line with market trends. Indian carriers plan to double their fleet size by 2020 to around 800 aircraft.
IndiGo a low cost carrier is at the top and shares 30.99% market share followed by Jet Airways & Jet lite combined at second position shares 23%, Air India the national carrier at third rank with 19.1% , Spice Jet at fourth rank with 18.2%, Go air at fifth rank with 8.7% followed by Air Costa with 0.1% market share are the leading domestic airlines in India as that of March 2014.
The total manpower requirement of airlines is estimated to rise from 62,000 in FY-2011 to 117,000 by FY-2017. It is estimated that the sector, overall, will need about 350,000 new employees to facilitate growth in the next decade. Shortfalls in skilled labour could create safety issues and may see staff salaries rise, hurting India's cost competitiveness.