Indian Aviation Industry Case Study

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The Aviation Industry in India has faced major challenges in the last 5 years after enjoying a period of unprecedented boom since the de-regulation of the Indian Skies in the early 1990’s. The private aviation industry which saw its first carrier in Jagson Airlines, now has more than 20 players vying for a share of the lucrative Indian Aviation Market, which has unparalleled abeyance for growth. The market already has some 150 million travellers passing through its airports, and if Indians begin to travel with the same frequency as Americans, then the years ahead could see the market boom beyond the two billion mark. This will not happen quickly and is dependent on an expected increase in per capita GDP. Even so, by 2020 traffic at Indian …show more content…

Airline companies bought and leased aircrafts far beyond the demand that prevailed in the Indian Market, which led to low occupancy and many a times the aircraft were run way below capacity for this reason. Buying aircraft beyond the demand posed by the market led to multiple loss lines for the airlines. Having an aircraft, despite not flying it, entails considerable charges on maintenance as well as recruiting the appropriate staff, should the aircraft be …show more content…

The only partially successful merger that has been witnessed in the Indian Aviation Industry has been the one between Jet Airways and Air Sahara. Jet Airways acquired Air Sahara for 340 Mn$, in a deal which many said was overvalued. The merger was completed without many glitches and both the entities merged, with Air Sahara being rebranded as JetLite, a low cost carrier wing of Jet Airways. JetLite eventually merged with another Jet Airways division JetKonnect in 2012. VALUE OF A

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