Air India’s Role and Its Fast Paced Growth of Aviation Industry in India: an Analytical Approach
Air India’s Role and its Fast Paced Growth of Aviation Industry in India: An Analytical Approach T.Sujin. Ph.D Research Scholar, School of Management, Noorul Islam University.
Dr .S. Edmund Christopher, School of Management, Noorul Islam University.
Abstract: Indian Aviation Industry has been going through a turbulent phase over the past several years. By year on year more customers are using Air transport for moving one place to another. In Airline Industry Air India is playing major role in Air transportation. In the year 1999-2000 total operating revenue was Rs. 38,775.3 million and total expenses Rs. 47,178.9 million, in this year Air India earned Rs. 8,403.6 million incomes over than total expenses. In the year 2010-2011 total revenue was Rs. 142,551.1 million and total operating expenses Rs. 164952.0 million, in this year Air India lost Rs. 22,400.9 million. By year on year revenue is decreasing and it is going in loss nature. On 1999-2000 passengers carried by Air India 3194,000 Domestic and International, and passengers carried on 2010-2011 by Air India were 3843,000 in Domestic and International. Using of Air transportation by more people by year on year even though Air India is not earning more revenue. The main reason of loss is hike in fuel price. On 1999-2000 fuel and oil price was Rs.7,061.3 million, and on 2010-2011 it’s increasing up to Rs. 61,120.5 million. Between last ten years fuel price hike was very huge, by on 2010-2011 price hike up to 8.5 times than 1999-2000. Because of fuel hike, Air India is facing more expenses than revenue. The researcher going to analyze operating and total revenue, operating and total expenses of Air India for ten years, and correlation between fuel and oil expenses with passengers carried by Air India. Because of heavy competition Air India cant able to increase their fare and due to hike in fuel price and miss management Air India is facing heavy loss right now.
Keywords: Operating Revenue,
Dr .S. Edmund Christopher, School of Management, Noorul Islam University.
Abstract: Indian Aviation Industry has been going through a turbulent phase over the past several years. By year on year more customers are using Air transport for moving one place to another. In Airline Industry Air India is playing major role in Air transportation. In the year 1999-2000 total operating revenue was Rs. 38,775.3 million and total expenses Rs. 47,178.9 million, in this year Air India earned Rs. 8,403.6 million incomes over than total expenses. In the year 2010-2011 total revenue was Rs. 142,551.1 million and total operating expenses Rs. 164952.0 million, in this year Air India lost Rs. 22,400.9 million. By year on year revenue is decreasing and it is going in loss nature. On 1999-2000 passengers carried by Air India 3194,000 Domestic and International, and passengers carried on 2010-2011 by Air India were 3843,000 in Domestic and International. Using of Air transportation by more people by year on year even though Air India is not earning more revenue. The main reason of loss is hike in fuel price. On 1999-2000 fuel and oil price was Rs.7,061.3 million, and on 2010-2011 it’s increasing up to Rs. 61,120.5 million. Between last ten years fuel price hike was very huge, by on 2010-2011 price hike up to 8.5 times than 1999-2000. Because of fuel hike, Air India is facing more expenses than revenue. The researcher going to analyze operating and total revenue, operating and total expenses of Air India for ten years, and correlation between fuel and oil expenses with passengers carried by Air India. Because of heavy competition Air India cant able to increase their fare and due to hike in fuel price and miss management Air India is facing heavy loss right now.
Keywords: Operating Revenue,
Bibliography: 1. Directory of Civil Aviation, Url: http://dgca.nic.in 2. History of Air India, URL: http://en.wikipedia.org/wiki/Air_India 3. Air India’s performance, URL: http://www.moneycontrol.com/news/business/air-indias-performance-has-improved-ajit-singh_790992.html 4. Indian Aviation Industry, March 2012, through turbulent times, FDI relaxation alone not a game changer. 5. Aviation Industry, October 31, 2011. 6. Performance of Air India, URL: http://www.firstpost.com/economy/air-indias-performance-has-improved-says-ajit-singh-546120.html