STUDY OF THE SCENARIO OF
INDIAN AVIATION INDUSTRY IN A SPAN OF FIVE YEARS
AND THE RISE AND FALL
OF
KINGFISHER AIRLINES IN THOSE YEARS.

Indian Aviation Industry
It is one of the fastest Growing Aviation Market. There are approximately one billion people and 0.05% of them fly. More and more middle class families now prefer air transport than other traditional mode of transport. The Indian travel market has nearly tripled to $ 51 billion by 2011, from $16.3 billion in 2005-06. Origin of Indian civil aviation industry India occupies an eminent position in the civil aviation sector with a large fleet of aircrafts. Estimates show that the domestic and international passenger traffic in India is growing tremendously
PEST ANALYSIS – AIRLINE INDUSTRY
Political Factors
India’s political environment – Tension with Pakistan,
Government’s inability to control issues (riots etc) September 11 th - huge drop in air traffic due to safety and security concerns
Trade relations with other countries have to be good
Economic Factors
Recession- airlines are considered as a luxury
High operation costs due to low demand resulted in laying off employees
Social Factors
People from varied income groups have to be catered
Destination, kinds of food served have to be chosen carefully
Technological Factors
Use of Internet- online ticket booking, updated flight information & handling of customer complaints restructuring the existing airports to world class appeal

Porters 5 forces
Threat of New Entrants is low
The airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The main concern for this is the cost of entry. The airline industry is one of the most expensive industries, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and manpower. Another major