Indian aviation industry – A swot analysis

Air transport is the most modern, the quickest and the latest addition to the modes of transport. Because of speed with which airplanes can fly, travel by air is becoming increasingly popular. As far as the world trade is concerned it is still dominated by sea transport because air transport is very expensive and is also unsuitable for carrying heavy, bulky goods. However, transportation of high value light goods and perishable goods is increasingly being done by air transport. Now the trend has changed because of liberalization Privatisation and globalisation concept. The sector has also seen a significant increase in number of domestic air travel passengers. Some of the factors that have resulted in higher demand for air transport in India include the growing middle class and its purchasing power, low airfares offered by low cost carriers, the growth of the tourism industry in India, increasing outbound travel from India, and the overall economic growth of India. In addition to these factors, the emphasis on modernization of non-metro airports, fleet expansion by airlines, service expansion by state owned carriers, development of the maintenance, repair and overhaul industry in India, opening up of new international routes by the Indian government, establishment of new airports and renovation and restructuring of the existing airports have added to the growth of the industry. Hence, it is essential to analysis the current state of the Aviation business in India, along with a critical analysis of Low Cost Carriers, their strategies and impact on the Industry. Thus an author made an attempt to find the strengths, weakness, opportunities and threats of the Indian aviation industry for further improvement in the aviation industry.