ppt aviation sector

ppt aviation sector - Transcript

Economics

Presented By

Aashit J Shah Ashish

Aviation Sector Before and After 1991

Topics
Introduction India s economy before 1991 Aviation Industry before 1991 Liberalization Singh Impact of Liberalization Policy on Aviation industry Government steps to develop Aviation industry Conclusion

Bibliography

Introduction
Economics is a study of usage of scarce resources up to its

optimum level
It helps to study the economy of a country

The Indian Economy was highly influenced by Invaders

Pre Colonial British rule Colonial and USSR
Aviation industry was also influenced by the changes in

Economy
Samuelson Nordhaus 2008

India s economy before 1991
Influenced by Protectionism and Public ownership

Existence of License Raj Red Tape

Average growth rate of India was 3 5 p a with Per capita 1 3 p a

More focused on Heavy Industries and Agriculture

Less attention towards service sector

Downfall of USSR and Gulf War added fuel to the fire of crisis

Aviation Industry before 1991
Journey of sector began in year 1920 with Air Mail First flight was launched by Tata Sons Ltd in 1929 Government joined Tata Sons with initial investment of 2 crore began its

services from 1948 Bombay to London air route
Nationalized in 1953 Number of hours flown grew by 27 during 1981to 1990 91 Number of passengers grew by 42 in the year 1981 to 1991

Central Statistical Organization 1997 and 2003

Liberalization Singh
Indian economy faced countless problems

during the year 1990 91
Caused major imbalance in payments of

loans
International Monetary Fund IMF demanded

for economic reforms in return of aid
P M Narsimha Rao and Finance Minister Dr

Manmohan Singh took initiative to bring Liberalization
It abolished License Raj Policy gave sanction to Foreign Direct

Impact of liberalization on aviation

The Air Corporation Act 1953 repealed

paving the way for the opening up of the domestic sector

and the disinvestment of the two public sector airlines New privately owned domestic airlines start functioning 1991 India declares unilateral policy of open sky for international air cargo Biggest order for air crafts INDIGO 100 A320

Impact of liberalization
Passenger Flow Market Share

Source DGCA CAPA 2009

Impact of liberalization

Source CAPA Airbus AAI Boeing DGCA 2007

Government step to develop Aviation
airline sector more private airlines to fly international

Foreign Direct Investment regulations in the Abolition of the 5 year 20 aircraft rule to allow City side development of non metro airports

US 1 2 billion
Development of second airport in Mumbai Allowing Indian carriers to compete on

international routes
Lowering taxes on Aviation Turbine Fuel ATF Source DGCA Reduction in Landing charges
Civil Aviation Ministry

Beyond 2010
US 120 billion investment by 2020 Demand for aviation services and our

aviation system must go hand in hand
Proper attention to infrastructure and

security

Conclusion
Vast potentiality of growth Foreign companies are ready to invest in

Indian aviation
Low entry barriers Employment generation

Bibliography
AAI 2009 Retrieved october 6 2009 from airports authority

of India http www aai aero AAI main jsp
AERA 2009 the gazette of India Retrieved october 7 2009 from

Airports Economic Regulatory Authority of India http civilaviation nic in aera mainpage htm
Ahluwalia M S n d economic reforms in India since 1991

Retrieved october 7 2009 from planningcommission gov in aboutus speech spemsa msa008 d oc
Aviation industry n d Retrieved october 7 2009 from

business headlinesindia http www business headlinesindia com industries aviation ht ml
civil aviation policy n d Retrieved october 7 2009 from

civilaviation http civilaviation nic in moca civ pol html
Datt R Sundharam K 2008 Indian economy 8th ed New

Bibliography
Housing India n d aviation industry in India

Retrieved october 7 2009 from India housing http www indiahousing com infrastructurein india aviation industry in india html
line b 2008 September 08 airport zone

Retrieved october 7 2009 from the hindubusinessline http www thehindubusinessline com 2008 09 08 stories 2008090850760600 htm
Ministry of Finance 1991 Economic Survey

1990 91 Delhi The Controller of

Bibliography
N s n d competition issues in the civil aviation

sector Retrieved october 6 2009 from www cci gov in images F1 NancyShah 20 080411102237 pdf
Prasad S New economic policy reform and

development 1st Ed New Delhi Mittal publication
Tendulkar S Mitra A Narayanan K

Das D 2006 India industrialization in a reforming economy new Delhi academic foundation
Williamson J Zagha R 2002 From the