CHALLENGES FACED BY AIRLINE INDUSTRY IN INDIA

•Last decade saw the Indian Airline industry grow at a breakneck speed.• Economic growth and increasing link with global businesses resulted in a dramatic increase in passenger traffic.• However, the current global economic slowdown and dramatic rise in aviation fuel prices continues to negatively impact the Aviation Industry across the world. •The following report will brief the reader on overview and challenges faced by the Indian Airline industry.

CHALLENGES FACED BY AIRLINE INDUSTRY IN INDIA

• Employees shortageThere is clearly a shortage of trained and skilled

manpower in the aviation sector.• Fuel pricesATF prices form around 80%of the total cost of

operating costs of airline industry.• Excess capacityDue to increasing passenger traffic over the last 3

years, all Indian airlines build their capacity assuming the growth would continue in the future.

CHALLENGES FACED BY AIRLINE INDUSTRY IN INDIA

• High debt burdenBanks were liberal in lending airlines• Poor infrastructureInfrastructure continues to be a major constrain for

Indian airline industry today.• Regional connectivityRegional connectivity remains to be poor.