NIC Classification of Aviation Industry

8/7/2019 NIC Classification of Aviation Industry

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OF AVIATION

INDUSTRYSection H of NIC (Rev 2008): Transportation andstorage

Division 51: Air transport

Group 511 Passenger air transport

G

roup 512 Freight air transport


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OUTPUT

PRODUCTS/SERVICESGroup 511 Class 5110 ofGroup H Division 51It talks about activities in Passenger air

transport

Sub-class 51101 talk about Passenger airways

Sub-class 51102 talk about Helicopter servicesSub-class 51103 talk about Other passenger air-

transport n.e.c


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OUTPUT

PRODUCTS/SERVICESGroup 512 Class 5120 of Section H Division 51It talks about activities in Freight air

transport

Sub-class 51201 talks about Freight air transportservices

Sub-class 51202 talks about Launching ofsatellites and space vehicles and spacetransport


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OUTPUT

PRODUCTS/SERVICESClass 5223 of Group 522 talks about Serviceactivities incidental to air transportation

This class includes operation of terminalfacilities such as airway terminals, airport andair-traffic control activities, ground serviceactivities on airfields

This class excludes:- cargo handling (5224)

- operation of flying schools (8530, 8549)


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OUTPUT

PRODUCTS/SERVICESClass 5224 of Group 522 talks about Cargohandling in which sub-class 52243 talks about

activities in Cargo handling incidental to air

transport


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THE INDIAN AVIATION

INDUSTRY Air India was set up by J.R.D. Tata, who ran itsuccessfully until it was nationalized in 1953.

In the 1960s the Maharaja, as the nationalflag-carrier was affectionately known, was

flying to 32 destinations (it now flies to 46

destinations) and making profits.


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THE INDIAN AVIATION

INDUSTRY Aviation is, by its very nature, a critical part of theinfrastructure of the country and has important

ramifications for the development of tourism and

trade, the opening up of inaccessible areas of the

country and for providing stimulus to business

activity and economic growth.

Until less than a decade ago, all aspects ofaviation were firmly controlled by the

Government.


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THE INDIAN AVIATION

INDUSTRY In the early fifties, all airlines operating in thecountry were merged into either IndianAirlines or Air India by virtue of the Air

Corporations Act, 1953 Finally, the Airports Authority of India was

entrusted with the responsibility of managingall national and international airports andadministering every aspect of air transportoperation through the Air traffic Control.


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THE INDIAN AVIATION

INDUSTRY With the opening up of the Indian economy inthe early nineties, the Air Corporation Act wasrepealed to end the monopoly of the publicsector and private airlines were reintroduced.

Domestic liberalization took off in 1986, with thelaunch of scheduled services by new start-upcarriers from 1992.

A number of foreign investors took an interestbut continuously ran into problems in terms ofmeeting financial obligations or negotiations withgovernment of India


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PRESENT INDIAN

SCENARIO It is a phase of rapid growth in the industrydue to huge build-up of capacity in the LCCspace, with capacity growing at approximately

45% annually. This has induced a phase of intense price

competition with the incumbent full servicecarriers (Jet, Indian, Air Sahara) disk-countingup to 60-70% for certain routes to match thenew entrants ticket prices.


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PRESENT INDIAN

SCENARIO The growth in supply is overshadowed by theextremely strong demand growth, led primarilyby the increase in both the width and depth of

consumption.

Coupled with costs pressures (a key cost element,ATF price, went up approximately 35% in recentmonths, while staff costs are also rising on theback of shortage of trained personnel), is exertingbottom-line pressure.


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PRESENT INDIAN

SCENARIO Enactment of the open sky policy between Indiaand SAARC countries, increase in bilateralentitlements with the EU and the US, and

aggressive promotion of India as an attractivetourism spot helps India attract a lot of tourists inand this market is growing at 15% per annum andIndia is expected to attract 6 million tourists by

2010 The Indian travel market is expected to grow to

$51 billion by 2011


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KEY PLAYERS IN

INDIAN INDUSTRYAirlines on International Routes Air India is the national flag carrier airline of India with

a network of passenger and cargo services worldwide.

Air India has 44 world-wide destinations. The airlinehas been running into financial and administrativetroubles offlately

Jet Airways a regular airline which offers normaleconomy and business class seats. Jet Airways, alongwith Air Sahara, is the only airline which survived thedismal period of 1990s when many private airlines inIndia were forced to close down.


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KEY PLAYERS IN

INDIAN INDUSTRYAirlines on Domestic Routes Spice Jet is a low-cost airline. Their marketing

theme "offering low 'everyday spicy fares' and

great guest services to price conscious travell

ers".Their aim is to compete with the Indian Railwayspassengers travelling in AC coaches.

Go Air The Peoples Airline, a low cost carrierpromoted by The Wadia Group is a domesticbudget airline based in Mumbai, India establishedin June 2004. Its a relatively small player ascompared to other low cost airlines.


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KEY PLAYERS IN

INDIAN INDUSTRYAirlines on Domestic Routes Kingfisher Airlines is an airline based in Bangalore, India.

Services started on 9 May 2005, following the lease of 4Airbus A320 aircraft. It initially operates only on domestic

routes. IndiGo Airlines is a new and a private domestic airline

based in India. IndiGo placed an order for 100 Airbus A320aircraft during the 2005 Paris Air Show. The new low-farecarrier has started operations from August 4, 2006.

Waiting for Entry: - Among the new low-cost carrierswaiting to take wing in 2006 are Omega air, Magic Air, EastWest, Indus, Premier Star Air and MDLR Airlines


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OPERATORS IN CARRYING

DOMESTIC PASSENGERS


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POTENTIAL FOR

GROWTH The Indian Civil Aviation market grew at a compoundannual growth rate (CAGR) of 18 per cent, and was worthUS$ 5.6 billion in 2008

For green field airports, foreign equity up to 100 per cent is

allowed through automatic approvals. For upgradingpresent airports, foreign equity up to 74 per cent is allowedthrough automatic approvals and 100 per cent throughspecial permission (from FIPB).

The Centre for Asia Pacific Aviation (CAPA) has forecast that

domestic traffic will

increase by 25 per cent to 30 per centtill 2010 and international traffic growth by 15 per cent,taking the total market to more than 100 millionpassengers by 2010.


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POTENTIAL FOR

GROWTH India's civil aviation passenger growth, presentlyat 20 per cent, is one of the highest in the world,and is expected to surpass countries like China,

France and Australia. By 2020, 400 million Indian passengers are likely

to be airborne. By 2020, Indian airports areexpected to handle more than 100 million

passengers including 60 million domesticpassengers and around 3.4 million tonnes ofcargo per annum.


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POTENTIAL FOR

GROWTH Domestic air traffic is likely to more than double andtouch 86.1 million passengers by 2010, up from 32.2million passengers in 2007, states the market researchfirm PhoCus.

The government plans to invest US$ 9 billion tomodernize existing airports by 2010. The governmentis also planning to develop around 300 unusedairstrips, and subsequently, Boeing and Airbus, along

with Embraer (Brazil), Bombardier (Canada), Sukhoi(Russia), ATR (France) and BAE System (UK) are nowlooking at foraying into the Indian jet market.

NIC Classification of Aviation Industry

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