AVIATION

ENORM THEME PRESENTATION

INTRODUCTION
• Aviation industry has grown tremendously in the past 20 years from1.5billion
to 3.7billion people.
• Airlines are ramping up to serve more passengers by modernizing their fleets
and adding buying new generation aircraft that are more fuel-efficient and
also by becoming more sophisticated retailers, to compete with low-cost rivals
while maintaining healthy profitability.
• Aviation contributes majorly to economy by two main reasons ,tourism and
aircraft manufacturing.
• It is forecasted that it would reach the landmark of 8.2 billion by 2037.
CONTRIBUTION OF AVIATION INDUSTRY.
• The Aviation Industry in India is the most rapidly growing aviation sector of the
world.
• Aviation Industry in India holds around 69% of the total share of the airlines traffic in
the region of South Asia
• With the entry of the private operators in this sector and the huge cut in air prices,
air travel in India were popularized
• Aviation provides the only rapid worldwide transportation network, which makes it
essential for global business. It generates economic growth, creates jobs, and
facilitates international trade and tourism. According to recent estimates by the cross-
industry Air Transport Action Group (ATAG), the total economic impact (direct,
indirect, induced and tourism-connected) of the global aviation industry reached
USD2.7 trillion, some 3.5 percent of world’s gross domestic product (GDP) in 2014
CONTRIBUTIONS

EMPLOYMENT TOURISM

AVIATION

TRADE ECONOMIC GORWTH

CHALLENGES FACED BY AVIATION INDUSTRY
• UNCERTAINTY/RISING FUEL CHARGES
• COMPETITION
• OVERCAPACITY
• LABOUR UNREST
• EMERGENCE OF LOW COST CARRIERS.
• TECHNOLOGY
• INEXPERIENCE OF PILOTS LEADING TO CRASHES.
• TERORRIST ENVIRONMENT
CHALLENGES FACED BY AVIATION INDUSTRY
MAJOR INCIDENTS FACED BY AVIATION INDUSTRY

• ISSING OF MH370.
• PILOT CAUGHT SLEEPING IN A BOEING 747
• INCREASED NUMBER OF CRASHES BY AIRBUSES
• PASSENGER BEATEN UP FOR SCREAMING ALLAH HU AKBAR
• IT PROBLEMS FACED BY BRITISH AIRWAYS.
 FINANCE
• The domestic airline industry has reported negative net income in 23 of 31
years since deregulation and a strongly negative aggregate net present
value of earnings.
• The knee jerk explanation among many airline analysts has been to blame the
industry’s poor performance on overly burdensome taxes and high fuel costs
• Adjusted for the average flight distance, legacy carrier costs have remained
30%-60% higher than the LCCs for nearly all of the deregulation era,
averaging about 40% higher in the last decade.
• (** due to unstable fuelprices and varying tax rates , the industry has faced
huge burden in overcoming these factors.)
MARKETING
• Unassurance of safety
• Outdated technology used in flights.
• Customer dissatisfaction due to the lack of innovation.
HR/PR
• Hiring of inexperienced pilots
• Shortage of pilots
• Employee dissatisfaction due to non periodical pay
• Body shaming air hostess. EG: KLM airlines
• Understaffing and increased flight schedule.
• Mishandling of customers.
• Increased number of fatal accidents in the last decade due to inexperienced
pilots.
THE END