This research paper studies on the structure, issues and challenges of Indian aviation industry and impact on economic growth. The milestones and major issues faced by the companies in Indian aviation industry are discussed. The monopoly of public sector may have ended, after entry of private players in the airline industry, but the industry growth is restricted by tax structure, lack of infrastructure, cartel formation by public sector oil companies, lack of vision by the government, poor regulation and management issues of companies. There are few factors such as entry of Low costs carriers (LLC), modern airports, vision of the new government regarding tourism and transportation, foreign direct investments, cutting edge technology, and vision of regional connectivity are driving the industry towards transformation. Industry has faced many challenges and still it is going on. Many new players are entering into this market. Policy change such as 49 percent investment through foreign direct investment (FDI) is changing the face of the industry. From the analyst point of view though this market is facing lot of issues and challenges it is growing at the rate of 18 percent per year. Many factors are contributing to this growth such as increase in disposable income of the population, industrial growth in the country or change in government policies such as FDI. From this perspective Indian market is lucrative. Since few years most of the Indian population is moving from lower middleclass to upper middleclass. They are gaining capability to spend and upgrade their lifestyle. This is providing opportunity for low cost players to tap the market share. Indian Aviation Industry research and analysis is a huge topic to study. Indian aviation market is very competitive. Various players are struggling to fetch the profit. Most of them are facing various problems. There are issues with operations, government policies, taxation and huge investment to be brought in to start the business. Last decade saw the Indian Airline industry grow at a breakneck speed. The industry experienced a drastic increase in number of passengers, driven by privatization of aviation industry and introduction of low cost carriers like Deccan Airlines, GoAir, SpiceJet etc. Infact, Indian Aviation Industry was one of the fastest growing Aviation Industry in the entire world. 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.
