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Indian Industry

SWOT Analysis

Strengths:

1. Growing tourism: Due to growth in tourism, there has been an increase in number of the international and domestic passengers. The estimated growth of domestic passenger segment is at 50% per annum and growth for international passenger segment is 25%

2. Rising income levels: Due to the rise in income levels, the disposable income is also higher which are expected to enhance the number of flyers.
Weaknesses:

1.Under penetrated Market : The total passenger traffic was only 50 million as on 31st Dec 2005 amounting to only 0.05 trips per annum as compared to developed nations like United States have 2.02 trips per annum.

2.Untapped Air Cargo Market: Air cargo market has not yet been fully taped in the Indian markets and is expected that in the coming years large number of players will have dedicated fleets.

3. Infrastructural constraints: The infrastructure development has not kept pace with the growth in aviation services sector leading to a bottleneck. Huge investment requirement for physical infrastructure for airports.

Opportunities:

1.Expecting investments: investment of about US $30 billion will be made.

2.Expected Market Size: Average growth of aviation sector is about 25%-30% and the expected market size is projected to grow upto100 million by 2010.

Threats Huge investments are expected to take place in aviation sector in near future. It is estimated that by 2012.

1.Shortage of trained Pilots: There is a shortage of trained pilots, co-pilots and ground staff which is severely limiting growth prospects.

2.Shortage of Airports: There is a shortage of airport facilities, parking bays,air traffic control facilities and takeoff and landing slots.

3. High prices: Though enough number of low cost carriers are already existing in the industry, majority of the population is still not able to fly to other destinations.


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