Aviation Sector A critical analysis to

understand competitive scenarios and

margins of players in the sector

GROUP 4: Anoop Guleria, Aradhana shrivastava, Ansuman G Sahoo, Arun

Panwar.

INTRODUCTION:
Indias aviation industry is very fast growing. It is included in
the worlds five fastest-growing aviation markets with more than 27.5 crore
new passengers. By 2020 Indian avaiation market shall be becoming third
largest and also plans to bring around 250 airports under operation across
the country. The world is interested in Indian aviation from manufacturing
to tourism, from airlines and global businesses meetings to discrete
travellers, from merchants and businessmen. This industry helps in
movement of goods and services and also people within and ouside borders.

COMPETITION AND MARGIN:

The Perfectly competitive market in aviation field does not exist in
the world. Normally civil aviation markets use to display either monopolistic
or oligopolistic type of market characteristics. After the deregulation this
industry shows the characteristics of oligopolistic market.
Indias civil aviation sector includes a wide range of customers
including passengers and cargo services, There are relatively small no. of
airlines with some significant market share, cost barriers to enter market,
providing differential services, and various competitive firms which are
affecting each others business decisions. These market characteristics
represent that there exists inherent oligopolistic market structure in Indias
civil aviation sector. Because in Indias civil aviation sector, economies of
scale and scope exist and in order that all the market participants achieve
break even then these firm must first achieve a minimum efficient scale of
operation.