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Indian Civil Aviation Industry

Executive Summary

This paper reviews the civil aviation industry in India with the focus on innovation and corporate governance, and how innovation and corporate governance are contributing to the success of the Indian aviation companies both on commercial and social front. We start by looking at the evolution of aviation in India and identify key players to evaluate from innovation and corporate governance perspective. We also identify the aspects of innovation and corporate governance that contribute to the success of the airlines. Further, we define success factors and then evaluate each of the aviation players against these factors based on secondary research. We have selected NACIL, Jet Airways, Kingfisher Airlines, Indigo Air and Paramount Airways for the purpose of evaluation in this paper. The paper concludes by outlining a model for airlines to follow in terms of innovation and corporate governance to achieve success.

Table of Contents
Executive Summary 2
History of the Indian Airline Industry 4
Innovation 5
Innovation in Civil Aviation Industry in India 5
Routing Model 6
Segments 6
Use of Technology 6
Pricing 7
Branding 7
Bundling 7
Loyalty Programs 7
Infrastructure usage 7
Fuel Efficiency 8
Financial Engineering 8
Outsourcing 8
Processes 8
Alliances 8
Corporate Governance 9
Key Performance Measures of Corporate Governance 9
Ownership Structure 10
Board and Independent Directors 10
Financial Transparency and Information Disclosure 10
Shareholder Rights 10
Regulatory Framework 11
Internal control procedures 11
Top Management Compensation 11
Success Criteria 11
Introduction of Players 12
NACIL 12
KingFisher Airlines 12
Jet Airways 12
Paramount Airways 13
Indigo Air 13
Analysis of the Indian Airline Companies 13
NACIL 13
KingFisher Airlines 14
Jet Airways 15
Paramount Airways 15
Indigo Air 16
Comparative Analysis 16
Recommendations 17
References 18

History of the Indian Airline Industry

Civil aviation in...