Indian Aviation: Flying Through Turbulence

Aviation has always been a thorny industry. There are very few companies that make millionaires out of billionaires. But Indian Aviation Industry has stood out to be quiet a risky venture since its inception. The situation turned more brutal since the great recession of 2008. The recession which started in developed countries like USA, soon spread to rest of the world. India was no exception. One of the worst affected sectors was the Aviation Industry in India. Rising crude oil prices and falling value of Indian rupee in terms of dollar were the main factors that affected the profitability of the industry. Falling rate of passenger arrival, high taxes and rising airport charges are other important factors that affected the profitability of the industry. Company that earned consistent profits. Indigo airlines remained unaffected from the wreckage. A brief history of the sector is mentioned, followed by the transition bought by the then Finance Minister Dr Manmohan Singh through his liberalization policies in 1991 after the financial crisis that occurred in 1990. A detailed analysis is done of the entire industry with the help of the financial ratios. Financial ratios of the leading players have been studied from 2008-13. This is followed by multiple regressions where we tend to find the relationship among net profits and crude oil prices, rupee value and passenger arrival