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Aviation sector..
The sector deals with the transport of passenger and cargo from one place to another, using the aerial route. Size : About 75 million Passengers $5.6billion

Growth Around 15% growth in last 10 years. Growth in 2009 : 0.7% Vision 2020 statement predicts handling 280 million customers by 2020

From then to now.

1953: NATIONALISATION OF AIRCRAFT INDUSTRY Assets of 9 existing companies transferred to two entities in the aviation sector controlled by the Government in Indian Airlines, primarily serving domestic sectors Air India, primarily serving the international sectors IMPLICATIONS Aviation became a preferred mode of transport for elite class Restricted Growth of Aviation Industry High Cost structure Underdevelopment of infrastructure 1986: Private Sector Players permitted as Air taxi operators. Jet, Air Sahara, etc started service. 1994: Private Carriers permitted to operate scheduled services. Six operators granted license, however only Jet and Air Sahara able to service. 2003: Entry of low cost carriers. Air Deccan, Spice Jet, Go Air, Indigo. IMPLICATIONS Aviation is now affordable with check fares and discount schemes. Various Operators with different business model. Huge growth foreseen in Aviation

AVITION SECTOR IN INDIA

Sector structure/Market size The Indian aviation industry is one of the fastest growing aviation industries in the world. The government's open sky policy has led to many overseas players entering the market and the industry has been growing both in terms of players and number of aircrafts. Today, private airlines account for around 75 per cent share of the domestic aviation market. India is the 9th largest aviation market in the world. According to the Ministry of Civil Aviation, around 29.8 million passengers traveled to/from India during 2008, an increase of 30 per cent on previous year. It is predicted that international passengers will grow upto 50 million by 2015. Further, due to enhanced opportunities and international connectivity, 69 foreign airlines from 49 countries are flying into India.

Aviation

Roads

Transportation

Railways

Ports

24% annual growth

Growth Rate

Growth
Domestic airlines flew 3.67 million passengers in August 2009an increase of 25 per cent. The Centre for Asia Pacific Aviation (CAPA) forecasted that domestic traffic will increase by 25 per cent to 30 per cent till 2010 and international traffic growth by 15

per cent, taking the total market to more than 100 million passengers by 2010.
The government plans to invest US$ 9 billion to modernise existing airports by 2010. The government is also planning to develop around 300 unused airstrips. India ranks fourth after US, China and Japan in terms of domestic passengers volume. The number of domestic flights grew by 69 per cent from 2005 to 2008. The domestic aviation sector is expected to grow at a rate of 9-10 per cent to reach a level of 150-180 million passengers by 2020. The industry witnessed an annual growth of 12.8 per cent during the last 5 years in

the international cargo handled at all Indian airports. The airports handled a total of 1020.9 thousand metric tones of international cargo in 2006-07.
Further, there has been an increase in tourist charter flights to India in 2008 with around 686 flights bringing 150,000 tourists. Also, there has been an increase in non-scheduled operator permits 99 in 2008 as against 66 in 2007.

Players in Aviation Industry

The players in aviation industry can be categorized in three groups: Public players : Indian Airlines
Private players : Jet Airways, Kingfisher Airlines, Spice

Jet, Air Deccan

Start up players : Omega Air, Magic Air, Premier Star

Air & MDLR Airlines.

Major Players (Market Share)

Financial stability and industry knowledge Our deep understanding of the aircraft market enables us to take the residual value risk, bringing cost savings potential, off balance sheet treatment and greater customer flexibility. We can structure complex multidimensional solutions for Corporations and individuals. Thanks to GEs financial strength and industry expertise we are able to offer customers reliable financing programs and products.

Mission.

To maintain competitive enviornment. Ensure safety and security according to international industries. Promote safe, cost-efficient & orderly growth eviornment. Contribute to social and economic development.

vision
After the high drama that unfolded last weekend, with private airlines threatening to go on strike, it is time the country demanded from the prime minister a long-term strategic vision for Indian aviation.

STEEP threat to the aviation industry

1. SOCIO-CULTURAL
Large emerging economies like Brazil, Russia, India and China are currently witnessing a sizeable proportion of their population officially embrace middleclass behaviours, like the expectation and realisation of international travels. While this will involve new intra-national routes, it will also strengthen already busy routes for investors and developed economies seeking physical access and

building of trust within the BRIC economies. Meanwhile, budget airlines like Ryan Air and South West Airlines, and their BRIC emerging equivalents, are seeking to disrupt the market with increasingly a la carte offers, including 'standing seats', charging for luggage, and enabling on-line reservation of seats and tailored meals, at a cost of course. Demand for travel is unlikely to taper off at a moment when Facebook is reducing our degrees of separation, diasporas can once again connect with their emerging economies of cultural connectedness, and social media is introducing us to new and exciting travel destinations.

 2. TECHNOLOGY if we look at the jet engine for a moment, it has not drastically changed

in recent years. What we are noticing is a shift in how airlines are thinking about technology. Airlines will have less sunken costs in particular types of technology and may be able to more quickly upgrade or downgrade their needs depending on the vicissitudes of the marketplace As technology improves and consumers adapt their behaviours to match the new opportunities.arties' - a development which sounds both scary and invasive, but which highlights the potential impact of socio-cultural / technology trends on the aviation industry.This trend is powered by mobile devices, which present a great opportunity for airlines. Scandinavian Airlines recently offered a new mobile app which enables travellers on other airlines to see how delayed their flights are compared with the airline in the world with the most on-time departures, Delta have instituted smart phone re-charge stations at their gates which presents further branding opportunities, free Wifi access to travellers in exchange for studying your online behaviours.

 3. ECONOMIC
Airlines are hostage to oil producing countries and to the

mercurial movements in oil prices. Slight shifts in volatility and foreign exchange rates can throw even the most well-hedged airline into the red. This is an area that airlines must solve flexibly under the current business model in which they are operating. Alternatively, they must figure out an aviation business model that enables better conditions for staff, and similarly better profit margins. Ultimately these are tough trade-offs and involve a decision where on the luxury - budget spectrum an airline wants to position itself. The other development that airlines need to be aware of in an increasingly transparent world, with economic shocks like the Eurozone crisis constantly looming on the horizon, is that employer branding and customer facing brands are increasingly merging. This is a result of social media transparency, and it can be embraced or rejected by airlines.

 4. ENVIRONMENTAL
The aviation industry is one of the largest emitters of

carbon in the world. While they have attempted to pass on the costs of carbon emissions to the customer, in reality this has not worked particularly well, and ironically many green advocates are opting not to offset the carbon cost of their seats. An area for opportunity for airlines is to more closely watch the defence industry which counter-intuitively tends to drive green technology adoption

 5. POLITICAL
The aviation industry is an industry which has been beset

by the tensions between public and private enterprise for a long time. National laws around majority ownership, shareholders interests, and union militancy have all contributed to an explosive molotov cocktail of considerations. With airline fuel costs subsidised in certain parts of the world and with heavy government interests vested in the future of national airlines, it will be interesting to see how relative newcomers like Virgin continue to fare against the behemoths like British Airways.

Other Developments

Industry demands FDI inflows to be increased

Budget airlines experience major losses Future ready for mergers and acquisitions Hospitality and tourism sector witnessing pressure due higher travel expenses Business process adopt alternatives to travel viz voice conferencing services etc

Challenges Faced
Sharp upturn in demand for allied services including MRO,

ground handling, and catering services

Major talent crunch, boosting opportunities for training service

providers
Airport facilities to be upgraded to meet demand with marginal

profits
Inadequate Infrastructure Rising Input Costs

 At a time of great uncertainty and rapid change in many industries, aviation stands out as one of the fastest growing and most dynamic sectors in the global economy. With the industry landscape shifting constantly, the momentum of this change looks set to accelerate in size and scope, calling for a new generation of air transport leaders. To stay ahead of the game, airline CEOs need to be able to think in possible scenarios and rapidly adapt their business models to changing market conditions while providing their organizations with clear guidance. Most importantly, they will need to ensure that they have the right leadership qualities on board and that they adopt appropriate talent management practices. According to a survey by an organisation, 56 percent believe that the existing internal pool of talent is not sufficient in size and quality to supply future leaders who possess the competences described above. While quality of leadership has become an important differentiating success factor in the air transport industry, many players are still struggling to master the pivotal management mission of identifying and developing leadership talent. To bring about necessary changes, HR leaders should prepare for a role in the co-driver seat.

HR in the aviation industry: time to develop a new generation of leaders

 HR's role in developing a new generation

of leaders

Human resources leaders can play the role of strategic architects and

advocators of cultural change, aligning strategic business priorities with future talent needs in terms of experience, competencies and personal qualities. Although most CEOs recognize the ability of HR leaders to drive cultural change and foster a new generation of leadership talent, most HR executives currently lack the influence required to implement substantial changes. Only 33 percent of respondents HR function already acts as a driver of change and a strategic business partner. Other industries have shown that a strong thought partnership between CEOs and HR leaders often lead to positive changes. To move into the co-driver seat for the major transformations ahead in this fast-changing industry, HR needs to play a leadership role in talent strategies. Perhaps more importantly, however, aviation needs to open up to external recruitment and implement the onboarding procedures necessary to integrate leaders from diverse backgrounds.

CONCLUSION
The future of aviation industry in India is bright and cannot go any worse. The Indian mentality of cure first may come to the rescue since the sector has realized the pitfalls and the better management will survive in this conscious World. The good news however is India is doing much better than anywhere else in the World and so its said