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Indian aviation emerges from turbulence with new opportunities. Relighting the Flame

Press Release

Indian aviation is emerging from a turbulent period marked by a hostile cost environment, continued regulatory uncertainty, declining traffic and steep financial losses. But for 2013 there are signs of a turnaround.

An improved alignment between capacity and demand has seen yields strengthen and several airlines are now making profits, at least in the peak quarters. And following one of the most significant developments of 2012, the decision to allow 49% foreign airline investment, the sector may see more than one such transaction in the coming year. This will have a significant positive impact, in terms of capital and sentiment, in raising the professionalism of the sector and bringing India's market in line with 21st century global aviation.

New aircraft orders will be placed in 2013/14 as the market starts to look ahead to the next phase of growth. But cost pressures and a weak policy environment will continue to be a challenge.

Summary
  • Indian aviation is showing signs of a turnaround in 2013, with improved alignment between capacity and demand leading to stronger yields and profitability for some airlines.
  • The decision to allow 49% foreign airline investment in Indian carriers is expected to have a positive impact on the sector, bringing in capital and raising professionalism.
  • New aircraft orders are expected to be placed in 2013/14 as the market looks ahead to the next phase of growth.
  • The commissioning of new terminals at Chennai, Kolkata, and Mumbai will provide world-class airport infrastructure in all six Indian metros.
  • Certainty about economic regulation is crucial for strong investor interest in upcoming tenders for greenfield airport projects in Navi Mumbai and Goa.
  • The government's support and consensus on fiscal matters and the future of Air India are essential for addressing the significant challenges faced by the aviation sector.

With the commissioning into service of the new terminals at Chennai and Kolkata, and the partial opening of T2 at Mumbai during the year ahead, all six Indian metros will have world class airport infrastructure, a dramatic leap forward in the eight years since the modernisation program was announced. But 2013/14 must be the year in which certainty about economic regulation is achieved if there is to be strong investor interest in the upcoming tenders for the Navi Mumbai and Goa greenfield airport projects.

As always, much will depend on the government. The Ministry of Civil Aviation appears genuinely intent on helping the sector, but addressing the most significant challenges - particularly fiscal matters, and the future of Air India - will require inter-ministerial consensus and support from the very highest levels of government.

CAPA India Aviation Outlook: 2013/14

CAPA's Annual India Aviation Outlook is keenly anticipated by the industry each year as the leading analysis of the direction of one of the world's most important emerging markets. CAPA has a strong and established track record in accurately identifying key trends and developments in the Indian market, both on an annual and long term basis. We operate India's leading dedicated aviation advisory and research practice offering unrivalled analysis and data across the value chain.

CAPA's India Aviation Outlook is used by the leading industry players to shape their strategies and decisions in the market.

The Exclusive 2013/14 edition will be released on 22-Jul-2013. It includes CAPA's unique coverage of:

CAPA's Forecasts for 2013/14

  • Traffic, capacity and yields;
  • Profit and loss projections for each carrier;
  • Fleet induction plans and expected new orders.

Domestic Airline Assessment

  • Strategic plans of all scheduled airlines;
  • Outlook for full service and low cost business models in India;
  • Capital raising prospects and aircraft financing plans;
  • Prospects for foreign airline investment in Indian carriers and likely impact on the sector;
  • CAPA risk assessment of airline finance and operations;
  • Prospects for new entrants, particularly regional airlines.

International Airline Plans and Market Outlook

  • International strategy and network plans of Indian carriers;
  • Performance of and prospects for foreign carriers;
  • Expected bilateral developments with a focus on air services agreements with Hong Kong, Qatar, Singapore, Turkey and the UAE;
  • Impact of the liberalisation of foreign airline investment on bilateral policy;
  • Prospects for codesharing between Indian and foreign carriers;
  • Scenarios for global alliances in the Indian market;
  • Impact of global partnerships e.g. Emirates/Qantas, Etihad/Air France-KLM on Indian routes;
  • Implications of the expected approval for foreign carriers to launch A380 services.

Airport Privatisation and Investment, strategic directions; ANS corporatisation

  • Status of airport modernisation programs;
  • Greenfield airport development projects;
  • Projected timeline and implications of Navi Mumbai Airport tender;
  • Expected developments with airport charges and their impact on fares and traffic;
  • Regulatory settings at the Airports Economic Regulatory Authority;
  • Strategic direction of the Airports Authority of India;
  • Investment in air traffic management infrastructure;
  • Prospects for the corporatisation of air navigation services;
  • Financial analysis of the leading airport operators.

Regulatory Issues

  • Expected direction of the New Civil Aviation Policy;
  • Status of the formation of the Civil Aviation Authority;
  • Outlook for economic regulation of airport charges and airfares.

Outlook for Ancillary Sectors

  • Maintenance, repair and overhaul;
  • Business and general aviation;
  • Cargo and logistics;
  • Ground handling operations;
  • Skills and training.

CAPA India reports pricing

Early Bird to
31 Dec 2012
Advance Purchase
to 31 Jan 2013
Standard from
1 Feb 2013


India Aviation Outlook Report 2013/14

USD1,995 USD2,995 USD3,995 - Buy Now!


India MRO Report 2013

USD4,995 USD5,995 USD6,995 - Buy Now!


India Ground Handling Report 2013

USD4,995 USD5,995 USD6,995 - Buy Now!


CAPA will also be releasing in-depth sectoral reports on MRO and Ground Handling in India on 30 September 2013.

India MRO Report 2013

India's projected fleet expansion, the ageing of existing equipment, induction of new aircraft types, a growing aerospace components sector and the possibility of an indigenous regional aircraft program all create challenges and opportunities for airline operators and MRO suppliers. Coverage includes:

  • fleet profiles and delivery forecasts;
  • review of airline strategies for airframe, engine and components maintenance;
  • outsourcing strategies;
  • regulatory and fiscal issues;
  • assessment of infrastructure and capabilities;
  • identification of key service providers;
  • prospects for onshore service delivery;
  • skills requirements
  • quantification and forecasts for market value.

This ground-breaking study is based on a combination of robust data analysis and extensive engagement with airlines, maintenance organisations and government and provides unique insights into the size, direction and prospects for the market. For more information about the report contact Binit Somaia.

The report will be released on 30 September 2013 at a cost of USD6,995. The table below highlights the discounts available for packages combining more than one CAPA India report.

India Ground Handing Report 2013

India's ground handling industry is preparing for transformation as the new sectoral policy is set to be introduced in 2013. The changes will have cost and delivery implications for airlines, incumbent operators and global ground handlers seeking to participate in one of the key growth markets of the coming decade. This unique report will address:

  • the outlook for traffic growth in both the passenger and cargo segments;
  • differentiated airline strategies with respect to self-handling and outsourcing addressing the requirements of full service and low cost carriers, Indian and foreign airlines, passenger and freight operators;
  • demand for specialist handling for sensitive freight;
  • benchmarking of incumbent ground handlers on cost and quality of service delivery, and financial metrics;
  • market share and competitive positioning;
  • investment requirements in technology, equipment and training;
  • expected impact of the Supreme Court ruling on the implementation of the ground handling policy;
  • economic regulation of the sector;
  • upcoming tenders for new ground handling concessions.

At this critical juncture CAPA's Ground Handling Report 2013 will be an indispensible guide for any business with a stake in Indian ground handling. For more information about the report contact Binit Somaia.

The Ground Handling report will be released on 30 September 2013 at a cost of USD6,995.

Pre-order your report early for discount prices

The table below highlights the further reductions available for packages combining more than one CAPA India report.

Early Bird to
31 Dec 2012
Advance Purchase
to 31 Jan 2013
Standard from
1 Feb 2013
CAPA India Reports

India Aviation Outlook Report 2013/14
USD1,995 USD2,995 USD3,995 - Buy Now!

India MRO Report 2013
USD4,995 USD5,995 USD6,995 - Buy Now!

India Ground Handling
Report 2013
USD4,995 USD5,995 USD6,995 - Buy Now!
Combination Report Packages

Outlook + MRO
USD5,995 USD7,495 USD8,995 - Buy Now!

Outlook + Ground Handling
USD5,995 USD7,495 USD8,995 - Buy Now!

MRO + Ground Handling
USD8,495 USD10,495 USD11,995 - Buy Now!

Outlook + MRO + Ground Handling
USD9,995 USD11,995 USD13,995 - Buy Now!

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