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Objectives of privatisation in airport
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INTRODUCTION Civil aviation sector in India has evolved over time. On February 18, 1911 India's first commercial airplane flew between Allahabad and Naini. In 1912, India's first commercial international flight operated by the former Imperial Airways took place which connected Delhi to Karachi and beyond. In 1932, J.R.D. Tata flew an air mail service airplane, after which Tata Airlines plunged into scheduled air transport services. After World War II, in 1946, Tata Airlines became a public limited company and was renamed as Air India. Subsequently, in the year 1948, Government of India acquired 49% of the company and permitted the airline to operate international services under the name Air India International. After India's independence, in 1948, nine air transport companies carrying both air cargo and passengers operated in the country. To deal with the dwindling financial health of Indian civil aviation sector, the Government of India passed the Air Corporations Act, 1953, which nationalized all carriers providing services within India's civil aviation industry. The Act brought forth two nationalized Air Corporation, viz. Indian airlines Corporation (clubbing the existing eight airlines for operation of internal air services in the country and adjacent countries like Burma, Ceylon and Pakistan) and Air India International (for operation of long distance International services). Until the late 1980s, the civil aviation sector remained monopolized by Government owned airlines. But in 1986, Government paved way for private players in the aviation sector and airlines like Air Sahara, Jet Airways, Damania Airways, East West Airlines, Modiluft and NEPC Airways entered the Indian market. In April 1990, the Government adopted Indi... ... middle of paper ... ...lation of air transport services to/from/within/over India by Indian and Foreign airlines, registration of civil aircraft, formulation of air safety and airworthiness standards for civil aircraft registered in India and grant of certificates of airworthiness to such aircraft. It oversees the licensing of pilots, aircraft maintenance engineers, flight engineers and air traffic controllers. It also coordinates all regulatory functions with International Civil Aviation Organisation (ICAO). But latest developments have shown that DGCA would be replaced by another authority by the name Civil Aviation Authority established under the Civil Aviation Authority of India Bill, 2013. The bill has been tabled in the Parliament for its approval. But rumours suggest that this authority will perform no better functions than the extant DGCA due to lack of more powers and authority.
They have been operating as passenger and freight carriers, albeit under different corporate identities, since the beginning of commercial aviation in the 1930’s. They have weathered the cycles encountered by airlines and the aviation industry in general – political, economic, environmental and social; as well embracing the technological progress afforded the industry.
So the legislative status of the re-regulatory fever is still in doubt. But with a Republican Congress which seems to advocate that position, an airline bill could still pass which takes the aviation industry in the wrong direction.
In lights of the PESTLE model, the political factors bring both opportunities and threats to Jetstar’s new proposal. Since this proposal focus on the Australia-India low price airline market, the analysis conducts involving Australia and India political environments. There are two potential opportunities in this political environment. Firstly, the Australian government has the incentive to boost the development of tourism between the two countries (Tourism Australia 2012). With the support of government, the start of the new route could be easier. For example, American government erects legislation to increase competition of the airport ‘by forcing these airports to increase the availability of scarce facilities’ (Williams 2015). Such legislations and regulations as well as financing investment or subsidies from government could directly help the airline company cut the cost. Similarly, Australian government could also have powerful intervention to influence aviation market. Thus, it is a big opportunity for Jetstar to the new route expansion if it acquires the
Operating an air - express transportation industry requires large capital investments, and therefore it can impede the entry of new firms into the industry. For one, Airborne has already its own set of aircrafts and even operate its own airport, and it would be hard for a new firm to compete with this.
The novel Flight by Sherman Alexie is a story about a time traveling Indian foster kid who goes to shoot up a bank, but instead he gets transported through time and receives valuable lessons on how to deal with his main issue of abandonment. Every time he leaps into a new body the lessons get progressively difficult. Yet when he jumps into the last body, he must face the person that he blames the most, his father.
The aviation industry is very difficult to enter, and the threat of new entrants is low. The first and major threat to entry is the initial capital requirements. The development period is over 5 years, with very large initial investment costs, parts costs, and wages are necessary even before the company earn revenues and sell aircrafts. The economies of scale, when the airline company has a substantial order, there are reduction in cost because of discounts on large orders. The new entrant suffers a significant cost, which is a disadvantage compared to established companies. Another risk for the new entrant, the extra supply of products for the substantial order, will decrease prices. The result, the new entrant will
The airline industry is a costly business to partake in especially due to the cost of fuel and technology needed to operate the airplane. With EasyJet internationalizing into Africa, it had the notion of facing new competitors, however, with the finances (see appendix) it possesses and the famous identity of its brand, made the threat of being a new entry within the Nigerian market low. However, a big threat would be if local Nigerian airlines were to reduce its prices then EasyJet might be at risk because the local airlines have the necessary equipment and knowledge to operate in its region.
The perennial crisis in the airline industry: Deregulation and innovation. Order No. 3351230, Claremont Graduate University). ProQuest Dissertations and Theses,, 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364.
Kingfisher Airlines (KFA) was founded by Vijay Malaya and he is the chairman of United Breweries group (UB group) in the year 2003. Its first airplane was launched from Mumbai to Delhi in 9th may 2005. It started as a premium business class airline company. The airlines have a tag line “Fly the good times”. At the launch of airline, Vijay Malaya said “we are committed to achieving our ambition of making Kingfisher Airlines, India’s largest private airline both in capacity and market share. The airline ushered in a new era of luxury in India’s domestic aviation sector and its brand new aircraft with stylish red interiors, and smartly dressed crew and ground staff. Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems”. (Malaya, 2005). Kingfisher airlines are one of the seven airlines which were awarded the rating of five stars by skytrax. It operates 400 flights daily including the regional and international services. In 2009 it gave the highest market share in Indian airlines industries, carrying more than 1 million passengers. The main mistake was lack of understanding of customer requirements and luxurious facilities in airlines. Organizations focus on reducing costs and usually just CEO’S and top level managers prefer business class travel. Rest of the staff mostly travels by economy class. Moreover, buying most expensive business class tickets doesn’t go down well, when seniors aim to project the image of walking the talk. Secondly, the company is facing financial crisis since Mid-2008. After merging with Air Deccan in 2007, it is a low-cost airlines, provides minimum frills to customers at reasonable rates. Th...
During 19991-1992, Modiluft, East West and Damania went bankrupt. Air Sahara and Jet Airways survived along with government own Indian Airlines because they had the capability to bear losses. Globalization and privatization had a major impact on aviation industry. Indian aviation industry was deregulated by the government in 1990s. As a result now 14 airlines are operating today in Indian sky. Now, collaboration with international organization and foreign direct investment are welcome to improve infrastructure and technology. Today people who can not afford high prices of Full Service Carriers (FSC) can travel by Low Cost Carriers (LCC) or budget airlines. Air Deccan was India’s first LCC started in 2003. It flies to several metro and non-metro destinations. All airlines have three major fixed costs i.e. fuel costs, financing or aircraft lease and labour cost. But LCC costs are 10 to 15 per cent lower than FSC. This is because of three reasons. Firstly, saving on distribution cost as passengers book tickets on the internet. Secondly, no frills are offered on board. Thirdly, to accommodate additional seats, catering and cabin crew space in these aircraft has been used. So these aircraft have 40 seats more than the FSC.
Air India airline is one of the biggest airline in the India. It was established by the famous company TATA and since its incorporation. It has grown very well and has spread all over the world in the different destinations. It has become the reputable brand in the airline industry with having the operations over 152 destinations. It has link up connection in the 35 countries and it has currently having 137 fleets. This company becomes the public limited company in the 1946. The company has international and the local route and its performance is increasing day by day with the pace of the good growth as compare to the other airlines in the industries in the area and the channels in which this airline is working.
The 1930’s is considered the Golden Age of Flight due to the rapid advances in technology regarding the introduction of flight in World War I and an increase of mass production ability. As the first commercial flights began during the beginning of the decade, approximately only 6,000 passengers boarded a plane. By 1934, there were about 450,000 and in 1938 there were bout 1.2 million passengers (Air Transport). Improvements in air travel during the 1930’s made traveling for both leisure and vacation easier and faster, yet it remained a luxury mainly for the wealthy, politicians and celebrities.
Aerospace engineers examine, analyze, design, produce, and occasionally install components that make up aircraft, spacecraft, high-altitude vehicles, and high-altitude delivery systems (missiles). Satisfaction with the romantic image of rocket building can buoy many engineers through the highly anonymous work environments that many of them face. Individuals don't assemble rockets; teams do, dozens of teams working in highly supervised coordination. An aerospace engineer plays some part on one of the teams, spending more of her time (roughly 70 percent) in a lab, at a computer, and assembling reports than doing anything else. Not being able to see the "big picture" frustrates some professionals. The path to becoming an aerospace engineer is a rigorous one, but those who manage to survive the difficult lift-off emerge with an above-average degree of career satisfaction.
Jet Airways was found in 1st April 1992 by Mr. Naresh Goyal and they started their operation after one year may 5th 1993, Jet began international operations from Chennai to Colombo in March 2004. The company was listed on the Bombay Stock Exchange
In India, one can never over-look the political factors which influence each and every industry existing in the country. Like it or not, the political interference has to be present everywhere. Given below are a few of the political factors with respect to the airline industry: