13. February 2007
India's aviation pie gets bigger
Date: 13. Feb. 2007
Sky-diving from being mere spectators to whirly birds in the race, India's aviation sector is slated to cruise far ahead of other Asian giants like China or even strong economies like France and Australia. The number of passengers who will be airborne by 2020 is a whopping 400 million.
According to a survey undertaken by the Airports Council International (ACI), Asia will be the fastest-growing region with an annual 9% growth. The two fastest-growing markets are set to be India (10.4%) and China (8.1%) in the next 20 years, led by strong growth in domestic traffic. Indian aviation industry will grow by 25% a year, sources in the Centre for Asia Pacific Aviation (CAPA) said.
"India is a big market for us — we've supplied 1,300 engines for defence and civil aviation. We expect the market to double in the next decade. So, we are looking at long-term businesses," Rolls-Royce MD Tim Jones told ToI.
After years of inertia, check out the promise and acceleration India is poised with — the potential is huge, trips per capita remain low even by the standards of other developing countries, while economic growth is racing towards 10% per annum. Domestic and international traffic is up 45% and 15.1%, respectively. In the past 12 months alone, airlines have carried 25.5 million domestic and 22.4 million international passengers.
The vibrancy in the Indian aviation market has been overwhelming: over 135 aircraft have been added in the past two years alone. And by 2010, India's fleet strength will stand at 500-550. CAPA estimates domestic traffic to grow 25-30% annually and international traffic 15% until 2010. The domestic market size is expected to cross 60 million and international traffic 20 million by end of 2010.
The aviation boom has attracted several new entrants. Until 2003, there were three main players — Jet Airways, Indian Airlines and Air Sahara. Now they are competing with Air Deccan, Kingfisher Airlines, SpiceJet, Paramount, GoAir, IndiGo and Indus Airways with several more such as Easy Air, Trans India amd Air Dravida preparing the ground for launch.
The bullish market is expected to consolidate — through closure or mergers and acquisitions — to 2-3 full-service carriers, 3-4 large national domestic carriers and 3-4 regional operators.
With the government likely to review entry norms for scheduled domestic airlines with reference to minimum equity capital and fleet size to ensure that new participants are adequately capitalised, the market is wide open and vibrant.
Source: http://timesofindia.indiatimes.com
Mid-air collision between two planes averted in Gujarat
Date: 13. Feb. 2007
A mid-air collision between a passenger plane and chartered flight was averted on Tuesday afternoon near Rajkot.
A Jet Airways flight with around 100 passengers was on its way to Rajkot from Mumbai. Suddenly the pilot reported a plane flying at the same height. The Air traffic control instructed the pilot who flew down his plane and a mishap was avoided.
The chartered flight was going to Jamnagar from Mumbai and was hired by Reliance.
Source: http://www.gujaratglobal.com
Deccan Aviation net swings to profit in Dec`06 qtr
Date: 13. Feb. 2007
Deccan Aviation`s (Q, N,C,F)* net swung to a profit of Rs 96.40 million for the quarter ended December 2006 as compared to the net loss of Rs 429.40 million during the previous quarter ended september 2006.
Net sales for the quarter rose 32.25% to Rs 4749.90 million from Rs 3587 million in the previous quarter. Total income grew 18.79% to Rs 6368.20 million as against Rs 5360.80 million in the last quarter.
Earning per share for the quarter stood at Rs 0.98 for December 2006 quarter.
During the period, the company allotted 1,963,640 equity shares of Rs 10 each at a premium of Rs 140 per equity share on preferential allotment basis to Investec Bank (UK). The paid up capital of the company stands increased to its 1,001,456,470.
The equity shares of the company were listed and admitted for trading on Bombay Stock Exchange and National Stock Exchange of India w.e.f. Jun 12, 2006.
The company operates in a single business segment i.e, of providing scheduled & unscheduled air transport services & operates only in India.
Deccan Aviation operates Air Deccan, a low-cost commercial passenger airline. Air Deccan, which began operations in August 2003, was the first Indian airline to follow a no-frills, low-cost passenger airline business model.
Shares of the company are trading lower Rs 0.65, or 0.50% at Rs 128.40. Total volume of shares traded at the BSE was 82,661.
Source: http://www.myiris.com
