India is the ninth-largest aviation market in the world, according to research company RNCOS’s report titled ‘Indian Aerospace Industry Analysis’. The civil aviation market is expected to register more than 16 per cent compound annual growth during 2010-13.
Today, 87 foreign airlines and five Indian carriers provide connectivity to 40 countries. Domestic airlines served 43.8 million passengers during January-September 2012, according to data from the Directorate General of Civil Aviation.
The Vision 2020 statement announced by the Ministry of Civil Aviation envisages infrastructure to handle 280 million passengers by 2020.
While the outlook is upbeat, there are obvious challenges. The industry is facing multiple headwinds — high oil prices, high debt burden and liquidity constraints — and most airlines need significant equity infusion to improve their balance sheet. Therefore, it is critical for an airline to identify its business risks and mitigate them through effective strategies.
11/02/13 Ashish Sharma/Business Line
