Aviation Industry in India

Released on: September 30, 2008, 4:04 am

Press Release Author: bharatbook

Industry: Transportation & Logistics

Press Release Summary: Bharatbook.com launches a latest report which gives a detail
information about "Aviation Industry in India"

Press Release Body: Bharatbook.com added a new report on "Aviation Industry in
India" (http://www.bharatbook.com/detail.asp?id=80691)

The Aviation industry in India encompasses a wide range of services related to air
transport such as passenger and cargo airlines, unscheduled service operators ---
private jets and helicopters, airport management, and support services like
Maintenance, Repairs and Overhaul (MRO), ground handling, in-flight catering, and

The Aviation sector has reaped massive benefit from the entry of private carriers,
especially from those of the low fare ones. The growth of the airlines sector has
caused a sharp upturn in demand for allied services including MRO, ground handling,
and catering services. The booming aviation industry, along with its tertiary
services, has wreaked a major talent crunch, boosting opportunities for training
service providers. The ever-expanding Indian economy and increased demand for trade
has pushed the need for air cargo services to a new high. Increasing number of
entrants in the sector has forced airports to expand their cargo handling

The aviation sector is still a small part of the travel and transportation services
sector in India. 2006-07 posted annual passenger traffic of about 96 million, as
compared to nearly 6 billion passengers carried by the railways. The industry has
already bumped into several challenges; inadequate infrastructure being the most
crucial. The airlines suffered losses of around USD 500 million in 2006-07 and the
situation is expected to deteriorate in 2007-08. The high cost of operations,
intense competition, and unsustainably low fares have contributed to these losses.
While initiatives have been taken to remove bottlenecks to growth, a need for
further investments in capacity is felt more than ever. A recent spate of mergers,
however, has come to some relief.

The decelerating profit margin does not entail a slump in revenue generation. It is
the increasing costs that have thrown the aviation industry into the present plight.
India’s aviation sector stands up to the crisis and races against its fastest
growing global competitors. Improved affordability and connectivity add to the
expected improvement in both passengers and cargo traffic. Large public and private
investments in air travel infrastructure, supported by government initiatives, are
expected to pour in.

For more information, kindly visit - http://www.bharatbook.com/detail.asp?id=80691

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Contact Details: contact Information

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