Domestic technical textiles Industry Segment-wise consumption of ...

Usage of technical textiles in airlines industry
The Indian Aviation Industry
The Indian aviation industry was stagnant until a few years back due to excessive regulation, limited
private participation, no service delivery innovation and higher travel costs. However, with the
removal of regulatory barriers, growing proportion of consuming class of population, growth in
tourism & business travel and entry of low-cost carriers (LCC), the growth in the sector has
accelerated. The entry of LCC led fall in air travel fares and the demand soared. The number of
players in the aviation sector grew from just 2-3 to more than 10. The domestic traffic grew to about
70 million in 2006-07 at a CAGR of 30% over the period 2004 to 2007.
Air passenger traffic 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Domestic 26.4 28.9 32.1 39.9 51.0 70.6
International 13.6 14.8 16.6 19.4 22.4 25.8
Source: The Aviation Arena, way2Wealth, DGCA
Over the last one year, due to increasing prices of air turbine fuel (ATF), the air fares have been rising
steadily. The rise in air fares has resulted in the slow-down of passenger growth. According to
Directorate General Civil Aviation (DGCA), the domestic air passenger growth has slowed down
from around 43% in 2007 to 11% in March 2008. As a result, there is a lot of overcapacity in the
overall market and airline operators are suffering from huge losses. Plagued with falling yields and
excess capacity, airlines have initiated route rationalisation and consolidation.
The fleet size and market share of the major domestic airlines is as given below:
Airline Operator Fleet size Market share
(in FY08) (July 2008)
Jet Airways 52 23.5%
Kingfisher Airlines 42 15.4%
Indian Airlines 76 18.3%
Jet Lite 24 8.3%
Air Deccan 41 11.3%
Indigo 17 10.5%
SpiceJet 15 8.4%
Paramount 12 1.6%
Go Air 6 2.5%
MDLR 0.2%
TOTAL 285
Source: Edelweiss Aviation Report, Karvy Aviation Sector Update
The fleet size and market share of the major Indian airlines operating international flights is as given
below:
Airline Operator Fleet size