Indian Aviation Industry : The Indian Domestic Aviation Market

Increased interest rates & credit crunch in US are affecting people to spend on luxuries like long distance air travel. The economic environment of the airline sector has been characterized by growth in relation to most key figures. Air travel demand has closely mirrored the cyclical pattern shown by gross domestic product (GDP) figures in that it responds to cyclical upswings and downswings. However, air travel growth has far exceeded GDP growth over the period. Between 1960 and 1995 the total world economy, measured by GDP, grew by a factor of just over three, while air transport, measured by tonne-kilometres, grew by a factor of nearly 20 (Hanlon, 1999).Furthermore, fuel and aircraft prices are major expenditure items subject to fluctuations and the international orientation of the industry means that movements in foreign exchange rates can have major effects upon industry profitability. Holloway (1998) maintained that aviation managers face the need to pursue strategies capable of sustaining profitability throughout entire economic cycles.

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

of public passenger intercity travel. The outlook for the airline industry is good and continued growth is likely.

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

The airline industry is greatly influenced by the the travel and tourism trends across the globe. The World Travel and Tourism Board states that the the level of tourism is likely to grow even as the years progress. The growth in the level of tourism is expected to grow at a level of 4.5 per cent annually. This is expected to continue upto 2017. Thus the organization should fully prepare it self and take over the tourism market.

The aviation industry of any nation acts as a contributor to its economic growth, helps in globalisation and creating an international image. It is the best in terms of the fastest, safest and convenient mode of travel. Even though it is an expensive one, it is expanding its markets across the middle-class who are ready to spent money on leisure trips. Thus it is truly stated that aviation forms a vital core infrastructure area without which a country economy is handicapped.

This explosion provides research of how the UK Economy contributes to the Aviation industry in various way with the standard points and innovation – have impacted on UK economic growth through the Aviation industry. By this report, contribution to UK economy has explained such as trade, tourism, employment and government tax. This report will pay particular attention in trade contribution current status, value added contribution details of Tourism impact, direct and

This report has been made to draw the attention of the people how the aviation industry has been dependent upon the Oil prices. Since the research has been done in the prospect of International Business so only those aspects have been covered that shows the dependency of the industry on the other countries. As we know that India is one of the fastest growing countries. It has become the

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

The growth of airline industry in any country is directly proportional to its GDP growth; the greater the business activity, the more air travel and the higher the GDP of the country. The demand

The paper is on an analysis of role of aviation industry in Colombia and United Arab Emirates. Colombia is a developing country based on agriculture and oil reserves. In the past, they had many internal problems with guerillas, and cocaine smuggling. But, now Colombia is safer and has diversified there industries, and is mainly focusing on tourism and aviation. UAE on the other hand, is a fast developing nation with the second largest economy in the Middle East. They have major airlines like Emirates and Etihad that support a big part of their investment and tourism economy. There will be further analysis on the economies of both countries and factors that could lead to the growth of aviation.

The airline industry exists in an extremely competitive environment and as a result, prices are very elastic. Since all airlines essentially offer the same service, there cannot be a significant variance in airfare, or else there would be losses in business to competitors. Nevertheless, improvements in technology have made the world a smaller place in recent decades, however inversely, the global population continues to grow, which will result in more people flying in the years to come.

The air travel industry is estimated to have grown up from a total of $6.8 billion in 2005 to $9.7 billion in 2009. This signifies a progress rate of 9.5% annually over the

Figure 5 : Air Cargo growth and its impact on GDP growth in India Source: NCAER,2012