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Effect of Oil Prices on Airlines Industry

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Effect of Oil Prices on Airlines Industry
International
Oil Inflation &
Airlines Industry

Prepared for
Prof. Mahima Sharma
Faculty Member
Jaipuria Institute of Management

Prepared by
Shailesh Bharadwaj (cft07_128)
Sanjeev Prasad (cft07_130)
Sarita Singh (cft07_131)
Saurabh Bansal (cft07_135)
Shashank Anand ( cft07_138)
Students, PGDM- Trimester-4

July 31, 2008
INTRODUCTION

This report has been made to draw the attention of the people how the aviation industry has been dependent upon the Oil prices. Since the research has been done in the prospect of International Business so only those aspects have been covered that shows the dependency of the industry on the other countries. As we know that India is one of the fastest growing countries. It has become the most demanded business hub that attracts every company to do their business in India. Aviation is also one of the most attracting business sector that fully requires the cooperation of other countries for growth. In India many companies has come and doing their business very successfully. But these days increase in oil prices due to depreciation in dollar has compelled the companies to retrospect upon their strategies. Although this problem is worldwide but its effects are not similar so in international business every decision becomes very crucial. Our report shows those crucial elements that led all domestic as well as foreign aviation companies to think again on their plans.

Trends in Indian Aviation Industry

1. Consolidation in aviation sector:
The rise in the number of alliances in aviation industry will help in further growth of aviation sector in India. The Jet-Sahara merger is probably just the beginning. The recent 26% stake acquisition by the Dr. Vijay Mallya (United Breweries group) in the low-cost carrier Deccan Aviation is further confirmation that the Indian aviation industry is looking forward to more consolidations.
[pic] [pic]
2. The number of passengers traveling by air is on the rise:
With passenger
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