Aviation Industry Information

The airline industry provides transportation services for passengers as well as cargo through scheduled air routes. The aviation industry derives its revenues from regular ticket fees and freight charges. Other major components of the aviation sector include:

• Air traffic control • Helicopter and private charter services • Airport management • Express delivery service

History of the Airline Industry

The pioneers of the airline industry, the Wright Brothers invented the first airplane in 1903. The first modern airliner, Boeing 247, was launched in 1933. It traveled at 155 miles per hour and had a capacity of ten passengers. Boeing 747 was launched by Pan Am in 1969. This highly sophisticated aircraft had four engines and a seating capacity of 450. The airline industry initially fell under the category of a public utility service, with government agencies establishing the air routes and prices. However, with the Airline Deregulation Act of 1978, the industry became market driven.

Demand and Supply Drivers of the Airline Industry

The demand drivers of the airline industry include: o Ticket prices o Passenger income levels o Access to and suitability of other modes of transportation o Frequency of services • Safety • Random factors such as terror threat
The supply drivers of the aviation industry are: • Behavior of competition • Government regulation • Cost of resources (fuel, labor, maintenance, technology)

Study of the Indian Aviation Industry

1. Overview

1.1 Air Traffic: The Airport Authority of India (AAI) manages total 122 Airports in the country, which include 11 International Airports, 94 domestic