INDUSTRY: AIRLINES

<strong>Market share of key players in the Indian aviation sector
</strong>
Rank- Name of Players -Shares

1. Kingfisher Airlines and Kingfisher Red (previously Air Deccan)- 28%
2. Jet Airways and Jet Lite (previously Air Sahara)- 25%
3. Air India and Indian (previously Indian Airlines)- 16%
4. IndiGo - 14%
5. SpiceJet- 12%
6. GoAir- 3%
7. Paramount Airways- 2%
8. MDLR Airlines- 0.004%

<strong>
Future of Airlines industry in India</strong>: The challenges of the Indian aviation industry are cited below:
1. Passenger traffic is estimated to grow at a CAGR of over 15% in the coming few years.
2. The Ministry of Civil Aviation would handle around 280 million passengers by 2020.
3. US$ 110 billion investment is envisaged till 2020 with US$ 80 billion solely for new aircraft and US$ 30 billion for developing the airport infrastructure.



Swot Analysis : Updated

Strengths
• Domestic Market is large
• Government provides monetary assistance for manufacturing units
• Reduced Labor cost

Weaknesses
• Infrastructural setbacks
• Low productivity
• Too many taxes levied by government increase the cost of production
• Low investments in Research and Development

Opportunities
• Reduction in Excise duty
• Rural demand is rising
• Income level is at a constant increase

Threats
• Increasing rates of interest
• Too much competition
• Rising cost of raw materials