...FACTORS AFFECTING DEMAND FOR AIR TRAVEL
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The growing share of the middle class in the total
population, and the increasing purchasing power of the middle class are the
major driver of demand for air travel in India. In addition, the introduction of
low fares, the expanding tourism industry in India, greater outbound travel from
India and at the bottom of all of this, the rise in the Indian GDP are the
factors propelling demand for aviation services in India...
• Growing Purchasing Power Of The Middle Class
• Lower Air Fares
• Tourism In India
• Growing Outbound Travel In India
• Growth Potential...
…CHALLENGES FACING THE INDIAN AVIATION SECTOR |
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Due to the growth in the aviation sector and capacity expansion by
carriers, the industry is facing challenges on several fronts. These
include a shortage of workers and professionals, safety concerns,
and the lack of accompanying capacity and infrastructure
development. Stiff competition and rising fuel costs are negatively
impacting the margins of the carriers...
• Employee Shortage
• Safety
• Lack of Capacity and Infrastructure Development
• Technological Upgradation
• Rising Fuel Prices
• The Indian Aviation Industry is expected to Incur Losses in 2006
• Temporary Moratorium on Issue of Licenses...…REGULATORY
ENVIRONMENT
The Indian government is mulling over plans to privatize the
operations and management of the four international airports at
Delhi, Mumbai, Chennai and Kolkata. The Indian government permits
100% FDI in the airport sector; FDI above 74% requires governmental
approval...
• Federation of Indian Airlines
• The Directorate General of Civil Aviation
• Ministry of Civil Aviation
• Airport Authority of India
• The Airport Authority of India Act 1994
• Civil Aviation Policy
• Liberalization of Entitlements
• Open Skies Agreement Between India and the US...
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