CHEPTER 6: OT ANALYYSIS OF AVIATION INDUSTRY
The past year has been one of change for corporate travel and the airline industry, and nearly every corporate travel program has been affected. For some, these effects have been positive; leading to lower air travel prices, but for others the effect has been negative, resulting in travel restrictions and budget cuts. Regardless, for many companies now is the time to start rebuilding travel programs through negotiations or sourcing projects, with the intent of improving savings and reducing costs in the years ahead.
India’s airlines industry had a smooth take-off ever since the government initiated its open skies policy a few years ago. After encountering some initial turbulence, it is now …show more content…
For security purposes need huge investments are expected to take place in aviation sector in near future.

1. SHORTAGE OF TRAINED PILOTS

There is a shortage of trained pilots, co-pilots and ground staff which is severely limiting growth prospects.

2. SHORTAGE OF AIRPORTS

There is a shortage of airport facilities, parking bays, air traffic control facilities and takeoff and landing slots.

3. HIGH PRICES
Though enough number of low cost carriers already exists in the industry, majority of the population is still not able to fly to other destinations. Sri Krishna International Research & Educational Consortium 4. TERRORISM
As we talks about terrorism we cannot forgot about the “airport attacks on passengers” so there is always a fear of terrorists attack in the airports. The airline industry should take appropriate measure to avoid such terrorism in the airports.

REASONS FOR BOOM IN AVIATION INDUSTRY
1. FOREIGN EQUITY ALLOWED
Foreign equity up to 49 percent and NRI (Non-Resident Indian) investment up to 100 percent is permissible in domestic airlines without any government approval. However, the government policy bars foreign airlines from taking a stake in a domestic airline company.
2. LOW ENTRY BARRIERS
Nowadays, venture capital of $10 million or less is enough to launch an airline. Private airlines