Aviation Industry

India presently is the ninth biggest aviation hub in the entire world and is set to become the third largest by the turn of 2020. A total of 85 international carriers and five national carriers have flown over 163 million passengers (comprising both domestic and international passengers) to different destinations in India and in 40 other countries. By 2020, this figure is expected to coast to 450 million.

The civil aviation industry in India has long been a strategic commercial sector contributing considerably to overall economic growth and development. The aviation infrastructure has been going through a massive restructuring and modernization drive with airports all over the country being installed with the state-of-the-art air traffic control, surveillance and security systems.

Both the public and private sector airlines have also inducted new fleets of planes. However, losses posted by almost all Indian carries in the 2012-13 fiscal belie the much touted growth potential of the aviation industry. The perpetually escalating cost of aviation fuel, rupee devaluation, economic downturn, soaring operational costs, and low ROI have coalesced in making the aviation companies in India bleed financially. Despite the grim scenario prevailing in the aviation sector, many reputed international carriers are queuing up to launch operations in the country by partnering with an Indian airlines company.

  • According to data made public by DIPP (Department of Industrial Policy and Promotion), passenger transport and cargo transport in unison attracted a cumulative FDI amounting to nearly US$ 457 million between April 2000-July 2013
  • IndiGo emerged as the top player in the domestic aviation segment with a market share of 29.7% closely followed by the combine of Jet Airways-Jet Lite. The other key players were Spice Jet, Go Air and Air Indi Domestic
  • As per figures released by the DGCA  (Directorate General of Civil Aviation) there was a 0.74% increase in the number of domestic passengers flown between January-May 2013 from the corresponding period in 2012

Major Developments in Indian Aviation Industry

The Indian aviation industry has charted an extraordinary growth in the last ten years. The domestic aviation market at present is the fourth largest in the world with a market capitalization tantamount to US$ 12 billion. The AAI emerged as the pivotal player as far as upgradations of Indian airports were concerned.

Nevertheless, some notable private players like L&T Ltd, GVK, Siemens, GMR Infrastructure and Maytas Infra Ltd also contributed hugely towards modernizing domestic and international airports. The government of India by following an ‘Open Sky Policy’ has accelerated private participation as international air carriers have made the most out of heightened traffic rights. Foreign airlines now can make FDI up to the tune of 49%.

Government Drives

  • The Indian government will continue with its drive to upgrade and modernize airports and will make it an integral part of the 11th Five Year Plan
  • FDI to be gradually increased to 100% on an integrated basis
  • Tax holidays to companies involved in developing airports for at least ten years

Up-and-coming Trends and Patterns in Aviation Sector

  • The growing middle class in India with considerable disposable incomes will stimulate domestic travel
  • Eco-tourism and medical tourism are anticipated to further fuel the demand
  • FDI investments will reach US$ 150

What Lies Ahead

The Indian aviation industry is likely to become the third biggest in the entire world by 2020. The sector will have to gear up adequately to deal with 85 million international passengers and 336 million domestic passengers.

Career Opportunities In Aviation

Top Companies in Indian Aviation Industry

  • Air India
  • Jet Airways
  • Spicejet
  • GoAir
  • Indian Airlines
  • Paramount Airways
  • Spicejet

    SpiceJet airlines aims to be a low cost airline. Its fleet consists of several Boeing 737-800 aircrafts only. This single aircraft type fleet allows efficiency in maintenance. It operates in 14 destinations. Careers: Currently, Spice Jet is recruiting for the following openings: Aircraft maintenance engineer Trainee aircraft maintenance engineer Manager-aircraft … [Read more...]

    Paramount Airways

    Paramount Airways is a full business class airline operating in India and has its headquarters at Chennai. It is promoted by Madurai-based Paramount Group and was launched on 19th October 2005. It operates in 8 destinations. Paramount Airways is the first airline in India to launch the New Generation Embraer 170/190 Family Series aircraft. Its fleet includes a total of 5 … [Read more...]

    Jet Airways

    Jet Airways commenced its operations on May 5, 1993. It has emerged as India's largest private domestic airline. It has a market share of 25%. Jet Airways' current fleet consists of 62 aircraft. It operates 340 flights daily to 50 destinations. During 2005, it introduced medium and long-haul international operations. It has expanded the range of frequent flyer partnerships with … [Read more...]

    Indian Airlines

    The airlines started its operation on 1st August, 1953. Today, together with its fully owned subsidiary Alliance Air, it is one of the largest regional airline systems in Asia with a fleet of 70 aircrafts. The airlines network spans from Kuwait in the west to Singapore in the East and covers 76 destinations - 58 within India and 18 abroad. The Indian Airlines international … [Read more...]

    GoAir Airlines

    Go Air is a low cost carrier promoted by The Wadia Group. It is a domestic budget airline based in Mumbai and was established in June 2004. It's a relatively small player as compared to other low cost airlines. Currently, GoAir operates in 11 cities with 61 flights daily. The fleet of GoAir consists of airbus A320 with a capacity of 180 passengers. It has commenced operations … [Read more...]

    Air Sahara

    Air Sahara began its operations on December 3, 1993. It operated with a fleet of only two Boeing 737-200s. Today, its fleet consists of 27 aircraft. It offers 134 flights with 16500 seats on a daily basis and flies to various destinations in India, including important cities like Delhi, Bangalore, Mumbai, Kolkata, Lucknow, Hyderabad, Pune, Chennai. It has also introduced … [Read more...]

    Air India

    Air India Ltd. was established in 1953 with its headquarters at Mumbai. With 34 aircrafts Air India operates 46 destinations. The number of employees in Air India as on October 31, 2006 is 15,136. The airline has been profitable in most years since its inception. In the financial year ending March 31, 2006, Air India has made a net profit of Rs.9.7 crores, and earned a revenue … [Read more...]

    Air Deccan

    Air Deccan began its operations in August 2003 with 1 aircraft and 4 flights a day and is today the fastest growing airline flying over 300 flights a day. Air Deccan is presently operating a fleet of 43 aircraft over 64 destinations. Air Deccan provides affordable air travel at very low costs. The number of passengers carried during 2006-07 was 9 million. … [Read more...]


    The Indian aviation industry has witnessed remarkable growth in recent years, with key drivers being positive economic factors, including high GDP growth, good industrial performance, and corporate profitability and expansion. Other factors include higher disposable incomes, growth in consumer spending, and availability of low fares. As of May 2006, private carriers … [Read more...]

    Overview Swot Trends

    SECTOR OVERVIEW The Indian aviation market is booming. The estimated growth of domestic passenger segment is at 50% per annum and growth for international passenger segment is 25%. The international cargo is likely to grow at a rate of 12%. During the period April-September, 2006, international and domestic passengers recorded a growth of 15.8 per cent and 44.6 per cent … [Read more...]