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India Aviation Industry Report - H1, 2013

June 2013 | 33 pages | ID: I4D45213AFEEN
Emerging Markets Direct

US$ 475.00

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Over the last ten years, the Indian aviation industry witnessed a period of high growth, with total passenger traffic growing at a CAGR of around 18% during 2003-2011. The industry has also helped in stimulating other sectors of economy such as tourism, hospitality and trade. However, over the last 18 months, the industry went through a period of subdued growth, particularly in domestic passenger traffic.

FY13 was a good year in terms of international passenger traffic growth for scheduled Indian carriers. The industry was also able to bring down its losses by a great extent. Yet, all scheduled Indian air carriers except IndiGo, incurred losses in the year. High airport charges, deprecation of the Indian rupee, expensive aircraft turbine fuel and low air fares were the major challenges faced by the carriers in FY13. The year also saw discontinuation of services of Kingfisher Airlines as a result of severe financial crisis. Much awaited FDI policy allowing investment by foreign airlines in the sector was also cleared in September 2012.

Low cost carriers gained significant market share during the first five months of 2013. IndiGo became the largest carrier upstaging Jet Airways in the domestic market. In terms of operating performance, IndiGo emerged as the best carrier on many parameters. Entry of AirAsia in FY14 is expected to heat up the competition further in the LCC segment.

Despite the challenges, the rising middle class and consistent growth in tourism bodes well for the aviation sector. Depreciation of rupee, rise in fuel prices and highly leveraged balance sheets are the biggest challenges for the sector.

Key Points:
  • In the first five months of 2013, domestic passenger traffic of scheduled Indian carriers grew by 0.8% y/y. International passenger traffic, meanwhile, declined by 9% y/y in the first four months of 2013.
  • In the first four months of 2013, domestic cargo carried by Indian carriers grew by 1.1% year on year while international cargo contracted by 4.3% year on year.
  • The utilization of available capacity for scheduled domestic carriers was around 78% for the first five months of 2013. IndiGo recorded the highest passenger load factor, followed by GoAir.
  • At the end of May 2013, IndiGo became the largest domestic carrier with a market share of 29.5%, rising from 26% share in June 2012. Jet Airways’ (combined with JetLite) share declined from 27.4% to 22.5% but was able to hold on to its second spot. SpiceJet held to its third position on the list with a market share of 19.8%.
1. INDUSTRY PROFILE

1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. MARKET TRENDS AND OUTLOOK

2.1 Key economic indicators-India
2.2 Domestic passenger traffic
2.3 International passenger traffic
2.4 Fleet
2.5 Capacity & demand
2.6 Passenger load factor
2.7 On time performance
2.8 Flight cancellation
2.9 Passenger complaints
2.10 Air cargo trends
2.11 Airports
2.12 Industry forecast

3. LEADING PLAYERS AND COMPARATIVE MATRIX

3.1 Leading players
  3.1.1 Jet Airways (India) Limited
  3.1.2 SpiceJet Ltd
  3.1.3 GMR Infrastructure Ltd
3.2 Comparative matrix
3.3 SWOT analysis

4. TABLES AND CHARTS

Table 1: World air passenger traffic statistics
Table 2: Revenues of leading aviation sector companies of India
Table 3: Long term debt and net worth of scheduled airlines in India
Table 4: Targets to be achieved in respect of civil aviation during 12th Plan
Table 5: International destinations of scheduled Indian carriers
Table 6: Active fleet of scheduled Indian carriers
Table 7: Passenger load factor of scheduled Indian carriers-2013
Table 8: Passenger traffic at major JV international airports
Table 9: Operational performance of Jet Airways
Table 10: Balance sheet parameters
Table 11: Valuation matrix
Chart 1: Annual air passenger traffic-India
Chart 2: Y/Y air passenger traffic growth rate
Chart 3: Position of constituent parties in lower house of parliament
Chart 4: Current account deficit and fiscal deficit
Chart 5: Quarterly GDP growth rate-India
Chart 6: Average Monthly USD to INR Exchange Rate
Chart 7: Inflation during FY13-India
Chart 8: Index of industrial production
Chart 9: GDP by sectors at factor prices
Chart 10: Percentage change over previous year- GDP by Sector
Chart 11: Domestic passenger traffic of scheduled Indian carriers
Chart 12: Market share of scheduled domestic airlines by passenger traffic
Chart 13: Passenger traffic of Indian carriers on scheduled international services
Chart 14: Active fleet size & average fleet age of scheduled Indian carriers
Chart 15: Share of leading aircraft manufacturers
Chart 16: Y/Y change in capacity and demand
Chart 17: On time performance of scheduled domestic airlines
Chart 18: Flight cancellations data of scheduled domestic airlines
Chart 19: Passenger complaints of scheduled domestic airlines
Chart 20: Cargo carried by scheduled Indian carriers- Annual
Chart 21: Share of Indian carriers in domestic cargo traffic
Chart 22: Number of airports by type
Chart 23: Forecast for domestic passenger traffic of scheduled Indian carriers
Chart 24: Jet Airways (India) Limited- Shareholding
Chart 25: Consolidated net sales of Jet Airways
Chart 26: Profit margins of Jet Airways
Chart 27: SpiceJet Ltd- Shareholding
Chart 28: Passengers and cargo carried-Annual
Chart 29: Net sales of SpiceJet
Chart 30: Profit margins of SpiceJet
Chart 31: GMR Infra Ltd-Shareholding
Chart 32: Business segments by revenue share
Chart 33: Revenues of GMR Infra
Chart 34: Profit margins of GMR Infra


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