Mergers in Aviation Sector in India

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.

In recent years the Airline Industry in Europe has experienced good levels of growth. Despite instances of deceleration the market is forecasted to remain stable producing moderate growth through to the end of the forecast period in 2018. According to a report issued by MarketLine in 2014 the European Airlines industry had total revenues of $180,945.8m in 2013, which represented a compound annual growth rate

Facts and figures formed the annual statistic, which is helping to make a prognosis. This year the anticipated increase will add an average 55,000 daily passengers, among the most popular destinations are New York, Las Vegas, Washington, D.C., Atlanta, Los Angeles, San Fransico and Newark.

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.

2) Large fleet size: Air India has the largest fleet size when compared to its competitors in India. It has a total of 111 fleets and 16 leased fleets. Out of the 111 fleets 27 of them are Boeing Dreamliner (Jhadav 2009).

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.

According the data of Statistics Canada, in 2013, the total number of air passenger in Canada was more than 122.4 million. Aviation industry can be proud that it transports passengers in the highest level of efficiency and comfort, the way and attitude of treating customers and it cannot be replaced by any other transportation industry. Aviation industry provides food, drinks, recreation and enthusiastic staffs. Though other transportation industries also provide similar service, aviation industry does the best. Geographically, aviation industry provides the services all over the world, it is

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

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.

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 aviation industry has been different however, as to date; it has mainly been dominated by two main Western players Boeing and Airbus. Now that China has also entered the Aviation industry, it will not be fool hardy to say that the Aviation industry is bound to undergo another transformation.

Since the airline industry is a direct product of market conditions, it is greatly affected by all externalities. Many people noticed a decline in travel after the September 11th tragedy occurred due to safety concerns. When there is a huge increase in fares that definitely interferes with the demand for travel; it causes the price of tickets to continue to rise since a clear correlation between supply and demand exists. When the economy is doing well in terms of the employment rate, and when the dollar is strong people have the tendency to travel more (Jerram,1998).

China has a rapidly growing aviation sector from 2600 aircraft to 4500 in the next five years (GTIN, 2011)

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

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