Aviation Industry
Aviation Industry
Introduction
The aviation industry has always been at the forefront of technological innovation, continuously pushing
boundaries to make air travel safer, more efficient, and more sustainable. In recent years, several emerging
technologies have been revolutionizing various aspects of aviation, from aircraft design to air traffic
management.
Electric propulsion systems are gaining momentum in the aviation industry, promising quieter, more
efficient, and environmentally friendly aircraft. Electric propulsion not only reduces carbon emissions but
also opens up possibilities for new aircraft designs, such as distributed propulsion systems and electric
vertical takeoff and landing (eVTOL) vehicles.
Advancements in artificial intelligence (AI) and automation are paving the way for autonomous aircraft.
These aircraft can potentially enhance safety by reducing human error, optimize flight routes for fuel
efficiency, and enable new modes of air transportation, such as aerial taxis and unmanned cargo delivery
drones.
The development of lightweight, high-strength materials, such as carbon fiber composites and advanced
alloys, is enabling the design of more fuel-efficient and environmentally sustainable aircraft. These materials
enhance structural integrity while reducing weight, leading to improved fuel efficiency and reduced
emissions.
Urban air mobility initiatives aim to revolutionize urban transportation by integrating electric vertical takeoff
and landing (eVTOL) aircraft into existing infrastructure. These aircraft promise to alleviate congestion on
the ground, reduce commute times, and provide efficient transportation solutions for urban commuters.
As the aviation industry strives to reduce its carbon footprint, sustainable aviation fuels (SAF) are emerging
as a promising solution. These fuels, derived from renewable sources such as biomass and waste materials,
offer a way to significantly reduce greenhouse gas emissions without requiring modifications to existing
aircraft or infrastructure.
The aviation industry is undergoing a period of rapid transformation driven by emerging technologies that
promise to make air travel safer, more efficient, and more sustainable than ever before. From electric
propulsion to autonomous aircraft and sustainable aviation fuels, these advancements are reshaping the
future of aviation, ushering in a new era of innovation and opportunity. As these technologies continue to
mature, they hold the potential to revolutionize how we travel and connect with the world above.
The civil aviation industry in India has emerged as one of the fastest growing industries in the
country during the last three years. India has become the third largest domestic aviation market
in the world and is expected to overtake UK to become the third largest air passenger market by
2024.
Market Size
India is expected to overtake China and the United States as the world's third-largest air
passenger market in the next ten years, by 2030, according to the International Air Transport
Association (IATA).
India’s passenger traffic stood at 131.62 million in FY22 (from April to December 2021).
Domestic passenger and international passenger traffic declined at a CAGR of -9.02% and -
28.64%, respectively, from FY16 to FY21, owing to C9.0OVID-19-related restrictions on flights
in FY21 however they are recovering. In FY21, airports in India pegged the domestic passenger
traffic to be ~105.2 million, a 61.7% YoY decline, and international passenger traffic to be ~10.1
million, an 84.8% YoY decline, over the fiscal year ended March 31, 2020. In October 2021, the
average daily domestic passenger flight departures stood at >5,857, with average daily domestic
traffic being >7,00,000 air passengers.
Between FY16 and FY21, freight traffic declined at a CAGR of -1.77% from 2.70 million tonnes
(MT) to 2.47 MT. Freight traffic on airports
in India has the potential to reach 17 MT by
FY40.
To cater to the rising air traffic, the Government of India has been working towards increasing
the number of airports. As of 2020, India had 153 operational airports. India has envisaged
increasing the number of operational airports to 190-200 by FY40
Further, the rising demand in the sector has pushed the number of airplanes operating in the
sector. The number of airplanes is expected to reach 1,100 planes by 2027.
Investments
According to the data released by the Department for Promotion of Industry and Internal Trade
(DPIIT), FDI inflow in India’s air transport sector (including air freight) reached US$ 3.06
billion between April 2000 and June 2021. The government has allowed 100% FDI under the
automatic route in scheduled air transport service, regional air transport service and domestic
scheduled passenger airline. However, FDI over 49% would require government approval.
IndiGo signed an agreement to investigate the possibility of using sustainable fuel in planes in
July 2021.
Raghu Vamsi plans to build a US$ 15 million facility in Hyderabad to meet Boeing's needs as of
August 2021.
Rare Enterprises, in partnership with former CEOs of IndiGo and Jet Airways, plans to start an
ultra-low-cost airline to capitalise on the domestic air travel demand in 2021.
India’s aviation industry is expected to witness Rs. 35,000 crore (US$ 4.99 billion) investment in
the next four years. The Indian Government is planning to invest US$ 1.83 billion for
development of airport infrastructure along with aviation navigation services by 2026.
have set a capital outlay target of Rs. 91,000 crore (US$ 12.08 billion) for the
development of the airport industry.
In October 2021, Tata Sons won the bid to acquire state-run Air India by offering Rs.
18,000 crore (US$ 2.4 billion) to acquire 100% shares.
In October 2021, Akasa Air, a start-up airline, received a ‘No Objection’ certificate from
the Ministry of Civil Aviation to launch operations. The start-up plans to commence its
operations from mid-2022.
In September 2021, JetSetGo, a private aviation company, plans to make its flight
operations carbon neutral by 2024 through a carbon management programme.
In August 2021, Indira Gandhi International Airport was declared the best airport in India
and Central Asia at Skytrax World Airport Awards.
In June 2021, SpiceJet announced its ambitious target to fly 100 million domestic
passengers on Sustainable Aviation Fuel (SAF) blend by 2030 under the aegis of World
Economic Forum (WEF).
In April 2021, Boeing, an aircraft manufacturer, announced that it has partnered with the
Indian Aviation Academy (IAA) and the University of Southern California (USC) to
conduct safety management system training sessions for all stakeholders in the domestic
aviation industry.
In March 2021, the government announced plan to set up two water aerodroames in
Assam and four water aerodromes in Andaman & Nicobar Islands this year to boost
tourism and connectivity.
On March 25, 2021, Union Minister of Civil Aviation Hardeep Singh Puri inaugurated the Kurnool
Airport, Orvakal, Andhra Pradesh, in a virtual ceremony. The flight operations at Kurnool airport
will commence on March 28, 2021 under the Regional Connectivity Scheme – Ude Desh Ka Aam
Nagrik (RCS-UDAN). UDAN flights carried 34,38,955 passengers till 7th November 2021.
According to WTTC, India ranked 7th among 185 countries in terms of travel &
tourism’s total contribution (4.7%) to the GDP in 2020. The contribution was worth US$
121.9 billion.
AAI plans to invest Rs. 25,000 crore (US$ 3.58 billion) in next the five years to augment
facilities and infrastructure at airports.
UK group to invest Rs. 950 crore (US$ 135.9 million) in Turbo Aviation's new airline
TruStar.
Government Initiatives
Some major initiatives undertaken by the Government are:
The Ministry of Civil Aviation (MoCA) announced that airlines can operate domestic
flights without any capacity restriction, effective from October 18, 2021.
In October 2021, the Union Minister of Civil Aviation, Mr. Jyotiraditya M. Scindia,
virtually flagged off the first direct flight along the Shillong–Dibrugarh route, under the
RCS-UDAN (Regional Connectivity Scheme - Ude Desh Ka Aam Naagrik) scheme.
Ministry of Civil Aviation launched the Krishi UDAN 2.0 scheme in October 2021. The
scheme proposes assistance and incentive for movement of agri-produce by air
transportation. The Krishi UDAN 2.0 will be implemented at 53 airports across the
country, largely focusing on Northeast and tribal regions, and is expected to benefit
farmers, freight forwarders and airlines.
On October 20, 2021, Prime Minister Mr. Narendra Modi inaugurated the Kushinagar
International Airport in Uttar Pradesh. The international airport is likely to facilitate the
air travel requirements of international Buddhist pilgrims in India.
In August 2021, the government plans to implement a biometric boarding system using
facial technology in six airports, including Bengaluru, Hyderabad and Pune. The project
is currently in the testing phase.
The Ministry of Civil Aviation (MoCA) increased capacity of domestic flights to 65%,
from 50%, effective from July 05, 2021.
The Ministry of Civil Aviation (MoCA) is hopeful that aspiring commercial pilots will
soon be able to get trained in India without having to leave the country. In this regard, the
government in July 2021 announced setting up eight new flying academies across the
following five airports: Belagavi and Kalaburagi in Karnataka, Jalgaon in Maharashtra,
Khajuraho in Madhya Pradesh, and Lilabari in Assam.
The Airport Authority of India plans to abolish royalty and offer steep discounts in lease
rent to encourage MRO units to set up facilities at its airports.
The government is planning to start 14 more water aerodromes across the country, after
the successful launch of seaplane service by Prime Minister, Mr. Narendra Modi,
between the Statue of Unity near Kevadiya in Gujarat's Narmada district and Sabarmati
Riverfront in Ahmedabad in October 2020.
Under Union Budget 2021-22, the government lowered the custom duty from 2.5% to 0%
on components or parts, including engines, for manufacturing of aircrafts by public sector
units of the Ministry of Defence.
Under Union Budget 2021-22, the Indian government expanded the scope for ‘Krishi
Udaan’ in convergence with Operation Green Scheme, wherein air freight subsidy of
50% for agri-perishables would be provided to North East states and 4 Himalayan
states/UTs.
The expansion of product-coverage will boost the ‘Krishi Udaan’ scheme and improve
air cargo transportation from these states.
For a better execution of the PM-Gati Shakti vision, Minister of Civil Aviation Mr.
Jyotiraditya M. Scindia asks for synergy between the Central and State Governments to
build 16 new airports in Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Rajasthan, and
Maharashtra.
Achievements
3,13,668 domestic passengers flew on February 28, 2021—the highest number since
resumption of domestic flights on May 25, 2020.
Under RCS-Udan scheme, approximately 34,74,000 passengers were flown and 335
routes were awarded during 2019, covering 33 airports (20 unserved, 3 underserved, 10
water aerodromes).
As of November 29, 2021, 1.83 crore Indians have been repatriated under the Vande
Bharat Mission (VBM). The Vande Bharat Mission operated about 2,17,000 flights.
Future
4. Environmental Sustainability: With increasing concerns about climate change, the aviation
industry is under pressure to reduce its carbon footprint. Emerging technologies such as electric
propulsion, sustainable aviation fuels, and advanced aerodynamics can help airlines achieve
their environmental goals by reducing emissions and promoting sustainability.
Overall, the application of emerging technologies is vital for the continued growth, efficiency, and
sustainability of the aviation industry, enabling safer, more efficient, and enjoyable travel experiences
for passengers while driving innovation and competitiveness for airlines and other industry
stakeholders.
To identify key challenges and opportunities associated with the adoption of emerging
technologies in aviation.
Market Analysis: Analyze market trends, industry forecasts, and competitive landscapes to
understand the adoption rates and potential market opportunities for emerging technologies in
aviation.
Operational Impact: Investigate how the adoption of emerging technologies will impact
various aspects of aviation operations, including safety protocols, maintenance procedures,
workforce training, and supply chain management.
Risk Assessment: Identify potential risks and uncertainties associated with the adoption of
emerging technologies, such as cybersecurity threats, privacy concerns, regulatory compliance
issues, and socio-economic impacts.
Airlines in India spend about 13 to 15 per cent of their revenues towards maintenance- The second
highest cost item for airlines and fuel.
India is moving forward to become the world’s thirdlargest civil aviation market by 2024. Currently,
major airlines connect 103 operational airports within the country and many more across the globe.
Despite the RCS-Udan scheme, India’s aviation industry is largely untapped with huge growth
opportunities. The Indian government is planning to invest $1.83 billion for the development of
airport infrastructure along with aviation navigation services by 2026. India’stotal passenger traffic
stood at 199.60 million in the period April to October 2019, with 1.5 million aircraft movements. The
Mumbai-Delhi air corridor is ranked the world’s third-busiest route. Total freight traffic for the same
period was two million tonne. There are 604 aircraft operated by scheduled airline operators in India.
Airlines in India spend about 13 to 15 per centof their revenues towards maintenance - the second-
highest cost item for airlines after fuel. Generally airlines carry on-tarmac inspections (A and B
checks) in-house and work with thirdparty Maintenance, Repair and Overhaul (MRO) for engine,
heavy maintenance (C and D checks) and modifications.
Vision 2040
On January 15, 2019, the Ministry of Civil Aviation (MOCA) released a report titled ‘Vision
2040’, outlining a roadmap for the future of civil aviation in India. The report projects that air
passenger traffic will increase six-fold to 1.1 billion passengers by 2040 and by then 2,359
passenger aircraft would be required. Air cargo movement will quadruple to 17 million tonne by
2040. The number of airports in India would rise to around 200. The government proposed
creating a $2-billion fund to help support low-traffic airports. India targets to establish an aircraft
manufacturing base by 2040.
According to the Department of Industrial Policy and Promotion (DIPP), Foreign Direct
Investment (FDI) inflows in India’s air transport sector including air freight, reached $1,904.37
million between April 2000 and June 2019. The government allows 100 per cent FDI in the air
transport sector. However, FDI over 49 per cent would require government approval. For Non-
Resident Indians (NRIs), 100 per cent FDI will continue to be allowed under automatic route.
This has now been allowed in ‘Brownfield Airport’ projects as well. India’s aviation industry is
expected to witness 35,000 crore ($4.99 billion) investment in the next four years.
Business Aviation
Private non-scheduled operators are required by the Directorate General of Civil Aviation
(DGCA) to set up a CAR 145-approved maintenance shop or work with a DGCAapproved third-
party MRO. Most private operators prefer the outsourced model for line maintenance (on-tarmac
checks) and use OEM/DGCA-approved facilities for engine, heavy maintenance and
modifications on their aircraft. The Indian business aviation market is complex from a
maintenance perspective as it has over 60 different aircraft types operating in a total market of
about 350 aircraft (business jets, turboprops and helicopters). Each individual type requires
trained technical manpower, tooling and approvals from regulator as well as the OEM to enable
an MRO to offer world-class maintenance services.
The Indian MRO market is currently estimated to be around $800 million and is growing at
about eight per cent annually against a four per cent world average. A recent Ernst & Young
study reveals that Indian MRO market growth rate will go up to 15 per cent. With India’s
growing aircraft fleet, it is cost-effective for domestic airlines to have their aircraft serviced
within the country. The increasing age of Indian aircraft, both civil and defence, requires
frequent maintenance.
MRO abroad involves ferry flight, logistics costs and engine and component hours. Having the
flexibility to get the aircraft serviced in India at a local MRO, results in 30 to 40 per cent savings
in aircraft maintenance costs for an airline, despite the tax regime on import of spares into the
country making them 30 per cent more expensive as compared to international MROs. The other
key impediment to growth of airline MRO in India is the lack of availability of hangar space at
key international airports. This limits the ability of MROs to tap into the larger potential market
of aircraft operating within five to six hours of flying distance from India.
The key MRO segments are defence, commercial aviation and business aviation. Major tasks are
of engine overhaul, airframe heavy maintenance and modifications, line/field maintenance, and
component overhaul. The Indian MRO industry must meet global standards. Setting up an MRO
is highly capitalintensive with a long break-even time. There is a need for the right manpower.
Also, it requires continuous investment in tooling, certification from Indian and international
regulators, and clearance from OEMs. The Indian MRO Market has just begun to grow.
Recognising the potential of the MRO business and in line with the ‘Make in India’ policy, the
Government of India has introduced certain policy initiatives recently. These include exemption
from customs duty for the tools and tool-kits used by the industry; extension of the one-year
timeline for utilisation of duty-free parts to three years so as to enable economies of scale and
permission for foreign aircraft brought to India for MRO work to stay for the entire period of
maintenance or up to six months. Earlier, foreign aircraft could not come into India for more than
15 days without a cumbersome approval process. Further, aircraft are now allowed to come in
with passengers, which were not permitted earlier, leading to losses for the airlines. GST on
MRO services reduced from 18 per cent to five per cent is considered great news for MRO in
theDefence and Aerospace sector.
As per the Union Budget 2020-2021, the government will promote domestic manufacturing of
aircraft and aircraft financing and leasing activities to make India’s aviation market selfreliant. In
January 2019, the government organised the Global Aviation Summit in Mumbai which
witnessed participation by over 1,200 delegates from 83 countries. At the same time, it also
released the National Air Cargo Policy Outline 2019 which envisages making Indian air cargo
and logistics the most efficient, seamless and cost and time effective in the next decade. Up to
100 per cent Foreign Direct Investment (FDI) has been permitted for MRO industry. Indian
aircraft MRO service providers are exempted completely from customs and countervailing
duties.
India’s taxation policies are perceived to be less favourable for the MRO industry.
Joint Ventures/Partnerships
With the increase in the number of civil and military aircraft, more and more global MRO
companies are planning to offer engineering services by forming Joint Ventures (JV) with Indian
firms. For instance, GMR Hyderabad International Airport (GHIAL) and MAS Aerospace
Engineering (MAE), a wholly-owned subsidiary of Malaysia Airlines have set up a 50:50 JV
airframe MRO company in Hyderabad. The company would make an initial investment of $50
million. Another 1,000-acre MRO and aerospace park will be developed near the international
airport at Devanahalli in Bengaluru. Also, Jupiter Aviation and HAL have already acquired land
for MRO in Karnataka. Other JVs include Boeing with Air India, Airbus with Air India, Sabena
Technics of TAT Group, France with TAAL, Timco Aviation Services with HAL, EADS with
Air India and Jupiter Aviation & Logistics, Eurocopter with Pawan Hans Helicopters for
Dauphin fleet, Concor with HAL, SIA Engineering of Singapore with Wadia group, Pratt and
Whitney with HAL (engines), GE Aviation with Air India (engines), Rosoboronexport of Russia
and India’s Krasny Marine Services for Russian fleet, Taneja Aerospace with Air Works
Commercial MRO Services Pvt. Ltd. For MRO, GMR with Lufthansa Technik, EADS with
Indian Aero Ventures for airport development and operation, Max Aerospace with Air France-
KLM for MRO facility for aircraft components in India and Maini Global Aerospace Pvt. Ltd.
(MGA) with GE Aviation, among others.
The generated revenue from defence aircraft MRO has finally started increasing. The prime
reason facilitating this has been the large fleet size of the Indian Air Force (IAF). Moreover, the
Indian Navy and the Indian Army have their independent fleet which further increases the
demand for aviation MRO. HAL provides aircraft MRO for Kiran, Jaguar, Mirage 2000, MiG-21
Bison, Dornier Do-228, HS-748, An-32, ALH, Cheetah and Chetak helicopters. The revenue
generated from engine overhaul is the highest. Militaries focus more on the periodic maintenance
of the fleet in the view of the flying risks involved. Technology advancements entail several
upgrade contracts which have also propelled the growth of the military aviation MRO market.
The increasing complexity of the engine militaries focus on frequent engine maintenance and
periodic checks, irrespective of whether it is flying or not. Engine MRO is also the most
expensive one. The quantum of flying being undertaken in each fleet is known and requirement
of overhauls can be predicted. There is, therefore, some clarity in the task and job required for
overhaul. It will make it is easier for industry to do logistics and economic planning based on
such predictions. Success of the industry could also relieve the IAF of some non-core activities.
The IAF operates nearly 240 Mi- 17 variants. There are civil variants of this platform. This could
be a great starting point. The strategic partner route will soon open up manufacture and
procurements of aircraft and systems made in India. Production of parts will get the
technological fillip. The setting up of aircraft production will certainly create MRO opportunities.
Analysis of current trends and challenges in the industry
Everyone affinities to travel in the airline once in their lifetime and two-thirds of people in India
have experienced their dreams. We all know, India is renowned for the Civil and Military
aviation industry according to the International Air Transport Association.
Starting its Voyage on 18th February 1911 by covering 9.7 kilometers from Jumna River to
Nainin and ultimately becoming the burgeon aviation market in the world. Epiphany, India
Aviation industry became the blue ribbon and prognosticate to rank third largest aviation market
in the world by 2024.
In the remote times, those people who are rich could afford the airline ticket, besides there is not
much development made from the side of Indian Aviation industry.
As time ticks away, we are here eventually becoming the fastest-growing aviation market and
owning 128 operational airports as of now.
The history of the Indian Aviation industry incipient back in 1911, where the plane was set as a
tool to carry out mail across the Yamuna river to Naina. When it comes, domination of aviation-
IndiGo stands top of the list, along with Spicejet, Vistara, AirAsia India and Air India.
Furthermore, these six aviation networks connect nearly 80 cities across India and play a vital
part in the development of the Indian Aviation Industry. On the other hand, Indian Military
Aviation would never let us down in bestowing a major role.
Market Size of the Indian Aviation Industry
Day by day, the number of travellers in India board gradually accelerated, which is reported as
the industry quadrupled in size and expected passengers to be tripled around 560 million by
2037.
Notably, the Indian aviation industry is the third-largest aviation industry in the world and
stands 5th largest market regarding aircraft passengers in both domestic and international.
Indian Aviation industry represents oligopoly characteristics and also sees a great impact in
2010- 2019 where a CAGR of 13.4% augment in the domestic passenger traffic, whereas the
international grew at a CAGR of 9.3%.
As is the case, the ongoing pandemic lucidly tumours the Indian aviation industry which incurred
2.9 billion in 2020 and 4.1 billion in the current fiscal year 2021-22, where the industry faced a
decline in India's passenger traffic.
SpiceJet
SpiceJet is another low-cost airline based in Gurgaon, Haryana. The company is the second-
largest airline in India by the number of passengers carried and it holds a market share of 13.6%
as of March 2019.
The company was established as an air taxi provider and was acquired by Ajay Singh and
renamed SpiceJet in 2004 and took off its first flight in May 2005.
Jet Airways
Jet Airways is a Mumbai based Indian International airline founded by Naresh Goyal that started
as an air taxi operator in 1993 and became a full-fledged airline in 1995 and started its
International flights in 2005.
It was one of the largest Indian airlines with a market share of 21.2% in February 2016. But due
to competition and price war, the company underwent a downfall leaving it Bankrupt and forcing
the company to cease its operations in April 2019. The company is due to come back at the end
of 2021.
The impact of technology on the aviation industry has been profound, shaping every aspect from
aircraft design and manufacturing to air traffic management and passenger experience. Here are
some key areas where technology has made a significant impact:
3. Navigation and Air Traffic Management: GPS technology has greatly enhanced
navigation accuracy and efficiency, leading to safer and more streamlined flight routes.
Next-generation air traffic management systems, such as Automatic Dependent
Surveillance-Broadcast (ADS-B), improve situational awareness and reduce the risk of
mid-air collisions.
Overall, technology continues to drive innovation and efficiency in the aviation industry, shaping
the way we fly and opening up new possibilities for the future of air travel. However, it also
presents challenges such as cybersecurity threats and regulatory complexities that must be
addressed to ensure safe and sustainable aviation growth.
Competitive landscape
The competitive landscape in the aviation industry is dynamic and multifaceted, involving
various stakeholders such as airlines, aircraft manufacturers, airports, and service providers.
Here's an overview of the key players and factors shaping competition:
1. Airlines: Airlines compete on factors such as price, route network, service quality,
frequent flyer programs, and alliances. Full-service carriers, low-cost carriers (LCCs),
and regional airlines each target different market segments with distinct strategies.
Legacy carriers like Delta Air Lines, American Airlines, and Lufthansa compete globally
with a focus on premium services and extensive networks. Meanwhile, LCCs such as
Southwest Airlines, Ryanair, and AirAsia emphasize low fares and point-to-point routes
to attract price-sensitive travelers.
3. Airports: Airports vie for airline partnerships and passenger traffic, seeking to attract
carriers by offering competitive landing fees, modern facilities, and efficient operations.
Major hub airports like Hartsfield-Jackson Atlanta International Airport, Dubai
International Airport, and London Heathrow Airport compete for global connectivity and
passenger volume, while secondary airports target niche markets and low-cost carriers.
4. Service Providers: Various service providers contribute to the aviation ecosystem,
including aircraft leasing companies, maintenance, repair, and overhaul (MRO)
providers, ground handling services, and technology vendors. These companies compete
based on factors such as cost-effectiveness, reliability, and technological innovation. For
example, aircraft lessors like GECAS and SMBC Aviation Capital offer flexible leasing
solutions to airlines, while MRO providers like Lufthansa Technik and ST Engineering
specialize in aircraft maintenance and component repair services.
Key Features:
1. Battery Technology: The Alice is equipped with a custom-designed lithium-ion battery
system, capable of storing enough energy to power the aircraft for up to 650 miles (1,040
kilometers) on a single charge. This range makes it suitable for regional routes, such as
intercity or island-hopping flights.
2. Capacity and Design: The aircraft has a sleek, futuristic design with a capacity for nine
passengers and two crew members. Its spacious cabin features large windows,
comfortable seating, and ample legroom, providing passengers with a pleasant flying
experience.
3. Environmental Benefits: By eliminating the use of fossil fuels, the Alice significantly
reduces carbon emissions and environmental impact compared to traditional aircraft. It
also operates quieter than conventional planes, contributing to noise reduction in
communities near airports.
Achievements:
In 2021, Eviation Aircraft announced partnerships with several airlines, including Cape
Air and United Airlines, to integrate the Alice into their fleets. These partnerships
underscored the growing interest in electric aviation and the potential for the Alice to
transform regional air travel.
The Alice received certification from the Federal Aviation Administration (FAA) and
European Union Aviation Safety Agency (EASA), clearing the way for commercial
operations. This milestone validated the safety and airworthiness of the aircraft, paving
the way for its entry into service.
Impact:
Chapter-3
Emerging Technologies in the Industry
10 emerging technologies those are reshaping the flying experience for the airline
industry.
Airline industry has not just revolutionised the way we travel but has shrunk the world into few
hours. Today, the airline industry carries a huge number of 3.6 Billion passengers per year and
accounts for delivering one-third of the world’s trade. The growing numbers of passengers and the
technological innovations have changed the face of the airline industry for good.
Let’s take a look at the top 10 emerging technologies which are revolutionising the flying experiences and
digitally transforming it to a tech-savvy and customer centric industry.
1. Blockchain Technology
Given the popularity gained by the blockchain technology in the financial sector it is seeing a
wide range of applications in other industries as well. Airline industry has just started
realising the potential of blockchain in various aspects. Recently, Air France talked about
how they are looking at blockchain technology in improving business process and improving
workflows.
Here is how airlines can use blockchain technology to improve operational efficiencies, security
systems and even customer experiences
By implementing blockchain technology airlines can do away with the need to rely on
physical ID proofs by saving passengers’ data maintained in a virtual de-centralised
database, which can be accessed by relevant people.
It can help in turning flying miles into a more valuable asset which can be used to give
added benefits to the customers, by tokenising these points and offering them a chance to
accrue these points through a community of partners.
Blockchain can be extremely useful in building a robust security system for managing
customer data.
The Gatwick airport uses AR to help passengers navigate the complex layout of the airport,
and London City Airport has installed AR tech to help air traffic controlloers with the vital job of keeping
planes safe Gatwick airport install navigation beacons that can interface with the smartphones for AR
Navigations.
Artificial Intelligence
With AI gaining traction industries are using it to upgrade customer experience at every touch
point. From chat bots to voice-based AI tools there are umpteen use cases of AI being utilised.
The airline industry understands the power of AI in helping them stepping up their technology
game. A lot of forward thinking airlines understand the impact AI can have in multiple areas of
the industry and are already investing in the same.
E.g. UK-based EasyJet is using AI for predictive analysis. The airline is using a combination of
these technologies to make sense of all the available data and use these insights to create offers
and services personalised for individual travellers. The airline also has a recognition tool that
reads passports and fills out all the information for flyers — easing out the data entry and data
management tasks more manageable.
Easyjet, Korean Air is also exploring how voice-activated digital assistant can help in offering a
seamless travel experience.
Beacons Technology
Beacons technology has seen a lot of success when it comes to retail and there is a huge potential
for the airline industry to use Beacons in making navigation easy for travellers between different
terminals at the airport. Further, Beacons can help airports and vendors at the airport premises to
know where passengers are and then send them personalised and relevant information
accordingly. These updates can be about boarding gate number, baggage carousel, flight status
oralso about the shops and eateries around the customer.
MIAMI International airport is already leveraging Beacons in its premises to create a personalised
experience for the travellers. The app provides information about the entire airport as travellers navigate
through various places at the premises. Further, they are also updated with relevant information depending
on their individual journey, e.g. gate numbers, flight updates, baggage collection details, etc.
Robotics
The airline industry is also using robotics in assisting with various tasks like customer
management, baggage handling, car parking, etc.
The introduction of KLM’s socially-aware ‘Spencer Robot’ last year created a lot of buzz. This
robot has been equipped with the capability to deal with social situations between people and can
‘see’ and analyse people nearby with his sensors. Spencer can also distinguish between
individuals, families and larger groups, and also learns about and then complies with social rules,
ultimately acting in a human-friendly way.
Biometrics
The airlines industry is consistently working towards making travel experience delightful and
comfortable for their customers. Adopting the Biometrics Technology at airlines and airport
touch points is one such attempt by the industry. Back in 2015, the biometrics trial was launched
with the ‘Happy Flow’ project. Aptly named, this project aimed at creating a seamless and
secureair travel process.
In just two years, today, a lot of biometric-enables single token platforms have been introduced,
and airlines and airports are leveraging them to revolutionise passenger experiences. E.g.Air
New Zealand has launched a biometric-enabled bag drop to speed-up the check-in process.
Recently Delta Airlines went a step ahead and launched the world’s first self-service biometric-
enabled baggage drop to free up “free up more Delta people” to deal with customers.
Wearable Technology
Airlines have started to use wearable technology is various ways to do more than improving
customer experience on flights. Some of the examples of airlines using wearable technology are:
- Recently Japan Airlines used Microsoft’s HoloLens for training its new crew members and
engineers. Using HoloLens, the mechanics can be trained about engine mechanics akin to the
experience they will have working on an actual plane.
- EasyJet and British Airways are among the airlines that have created apps for the Apple Watch,
enabling passengers to store boarding passes and receive real-time updates on their wrist.
Internet of Things
According to the FTE:
‘’Over the course of the next decade, it is likely that all “things” on board will be connected and
the health of everything, from engine performance to the IFE system, will be monitored in real-
time. Sensors will automatically detect and report faults to maintenance teams on the ground,
removing the need for the crew to manually report faults. Moreover, the addition of sensors to
aircraft seats will enable the crew to monitor individual passenger health and wellbeing, and to
proactively respond to their needs.’’
Virgin Airlines have implemented IoT in its Boeing 787. Every single element on the plane is
attached to a wireless aeroplane network, providing real-time IoT data on elements like
performance, maintenance etc. The airline is using the deluge of data that it is collecting through
these flights to improve the efficiency of the aircraft and also being pro-active.
E.g. United Airlines uses a smart ‘’collect, detect, act’’ system to analyse around 150 variables in
the customer profile including their previous purchases, preferences etc. and provide tailor-made
offers to them. United Airlines has seen a YoY revenue increase of 15% after implementation of
this system.
Further, this data can also help in increasing the operational efficiencies through predictive
analytics.
Southwest Airlines has partnered with NASA to indicate potential safety issues. By using
machine-learning algorithms, they have built an automated system capable of crunching vast
data sets to warn about anomalies and to prevent potential accidents.
Mobile Solutions
Today, smartphones have become an integral part of people’s life. Airlines have started
venturing into the world of mobile solutions and are using this platform to connect with their
customers throughout the passenger journey starting from booking of a flight till deplaning it.
E.g. Delta Airlines recently started providing their passengers’ virtual boarding passes 24 hours
before their journey through their mobile app, easing out the check-in process for their
passengers.
Benefits and potential applications of these technologies
The aviation industry stands to gain numerous benefits from the integration of blockchain,
biometrics, big data analysis, mobile solutions, and wearable technology. Here are some
potential applications and advantages:
1. Enhanced Security: Biometrics combined with blockchain can provide highly secure
authentication for passengers and staff. Facial recognition, fingerprint scans, or iris scans can
replace traditional IDs and boarding passes, reducing the risk of identity theft and fraud.
3. Efficient Baggage Handling: RFID tags and blockchain technology can be used to track
luggage throughout the entire journey, from check-in to arrival, reducing the likelihood of lost
or mishandled baggage.
4. Maintenance and Operations: Wearable technology such as smart glasses can provide
maintenance workers with hands-free access to relevant information and real-time data about
aircraft components. This can improve efficiency in maintenance tasks and reduce downtime.
5. Chain Management Supply: Blockchain technology can be utilized to track and manage the
aviation supply chain, including the sourcing of parts and components, ensuring authenticity
and traceability.
6. Data Analysis for Safety: Big data analysis can be applied to vast amounts of aviation data,
including flight records, maintenance logs, and weather patterns, to identify potential safety
hazards and improve predictive maintenance strategies.
7. Flight Optimization: Big data analytics can also be used to optimize flight routes, fuel
consumption, and scheduling, leading to cost savings and reduced environmental impact.
8. Personalized Services: By analyzing passenger data, airlines can offer personalized services
and tailored experiences to their customers, such as targeted promotions, preferred seating
options, and customized meal choices.
9. Training and Simulation: Virtual reality (VR) and augmented reality (AR) technologies can
be used for pilot training and simulation, providing a realistic and immersive learning
experience without the need for physical aircraft.
By integrating these technologies, the aviation industry can improve operational efficiency,
enhance safety and security, and deliver a more personalized and seamless experience for
passengers and staff alike.
1. Security:
Comparison: Emerging technologies offer higher security and accuracy, reducing the risk of
identity theft and fraud compared to traditional methods.
2. Passenger Experience:
Comparison: Emerging technologies offer greater transparency and efficiency in supply chain
management, reducing the risk of errors and fraud.
Emerging Technology: Big data analytics for flight optimization, AI algorithms for
predictive maintenance.
Comparison: Emerging technologies enable more accurate analysis and optimization, leading
to cost savings and improved efficiency compared to traditional methods.
Emerging Technology: Virtual reality (VR) and augmented reality (AR) for immersive
training simulations.
Comparison: Emerging technologies offer more realistic and interactive training experiences,
allowing for more effective skill development compared to traditional methods.
7. Regulatory Compliance:
Comparison: Emerging technologies provide more reliable and efficient methods for ensuring
regulatory compliance, reducing the risk of errors and penalties compared to traditional methods.
In summary, while traditional methods have served the aviation industry well for many years,
emerging technology solutions offer significant advantages in terms of security, efficiency, and
innovation. By embracing these technologies, airlines and aviation companies can enhance
safety, improve operational performance, and deliver a better overall experience for passengers
and staff.
Chapter-4
Detailed analysis of a specific project or case study within the industry
One compelling case study within the aviation industry that showcases the integration of
emerging technologies is the partnership between Delta Air Lines and Misapplied Sciences for
the implementation of Parallel Reality™ technology at Detroit Metropolitan Airport (DTW).
Project Overview:
Delta Air Lines collaborated with Misapplied Sciences, a technology company specializing in
Parallel Reality™ displays, to introduce a groundbreaking experience for passengers at DTW.
The project aimed to revolutionize the way passengers receive information at airports by
leveraging emerging technology to provide personalized and targeted messaging to individuals
within a large crowd.
Parallel Reality™ displays utilize an array of tightly controlled pixels to create individualized
images for each viewer simultaneously. This technology allows multiple viewers standing in
front of the display to see different content tailored specifically to them, without requiring any
special eyewear or devices. Each viewer experiences a unique and personalized message or
information, enabling a highly customized experience within a shared physical space.
Implementation at DTW:
Delta and Misapplied Sciences implemented Parallel Reality™ displays at DTW's McNamara
Terminal, a hub for Delta Air Lines. The displays were strategically placed in the terminal's main
departure area, where they served as interactive informational kiosks for passengers. Travelers
could approach the displays, scan their boarding passes, and receive personalized information
such as directions to their gate, flight status updates, and promotional offers tailored to their
itinerary and preferences.
Benefits and Impact:
While the project demonstrated significant promise and received positive feedback from
passengers, there were some challenges and considerations to address:
2. Cost and ROI: The initial investment in deploying emerging technology solutions like
Parallel Reality™ displays may be substantial, and airlines must carefully evaluate the
return on investment (ROI) and long-term viability of such projects.
3. Privacy and Data Security: Personalized messaging and data collection raise concerns
about privacy and data security, requiring robust measures to protect passenger
information and comply with regulatory requirements.
Conclusion:
The partnership between Delta Air Lines and Misapplied Sciences for the implementation of
Parallel Reality™ displays at DTW exemplifies the potential of emerging technologies to
transform the aviation industry and enhance the passenger experience. By embracing innovation
and collaborating with technology partners, airlines can differentiate themselves, improve
operational efficiency, and deliver personalized services that meet the evolving needs and
expectations of travelers in an increasingly digital world.
In the case study of Delta Air Lines' partnership with Misapplied Sciences for the
implementation of Parallel Reality™ displays at Detroit Metropolitan Airport (DTW), several
emerging technologies were effectively utilized:
1. Parallel Reality™ Displays: The centerpiece of the project was the Parallel Reality™
displays developed by Misapplied Sciences. These displays leverage advanced pixel
control technology to deliver personalized messages to individual viewers within a shared
physical space. Each display is capable of simultaneously transmitting unique content to
multiple users without the need for special eyewear or devices, providing a highly
customized experience for each viewer.
5. User Interface Design: The user interface design of the Parallel Reality™ displays was
critical to the success of the project. The displays needed to be intuitive and user-friendly,
allowing passengers to easily interact with the technology and access the information
they needed without confusion or frustration.
6. Testing and Optimization: Prior to deployment, extensive testing and optimization were
conducted to ensure the reliability, accuracy, and performance of the Parallel Reality™
displays under real-world conditions. This involved testing the displays with a diverse
group of users to identify and address any usability issues or technical glitches.
Overall, the implementation of emerging technologies in the Delta Air Lines and Misapplied
Sciences partnership involved a combination of hardware, software, data integration, and user
interface design to create a seamless and personalized passenger experience at Detroit
Metropolitan Airport. By leveraging innovative technologies like Parallel Reality™ displays,
airlines can differentiate themselves, improve operational efficiency, and enhance the overall
passenger experience in today's increasingly digital and interconnected world.
4. Innovation and Brand Differentiation: Delta Air Lines demonstrated its commitment
to innovation and customer-centric solutions by partnering with Misapplied Sciences to
deploy cutting-edge technology at DTW. The project showcased Delta's leadership in
adopting emerging technologies to differentiate itself from competitors and deliver a
superior passenger experience.
Lessons Learned:
2. User-Centric Design: Prioritizing user experience and designing intuitive interfaces are
critical for the adoption and acceptance of new technologies by passengers. User testing
and feedback should be incorporated throughout the development process to identify and
address usability issues and optimize the user experience.
Overall, the partnership between Delta Air Lines and Misapplied Sciences for the
implementation of Parallel Reality™ displays at DTW demonstrated the transformative potential
of emerging technologies in enhancing the passenger experience and driving operational
efficiency in the aviation industry. By leveraging innovative solutions and embracing a culture of
innovation, airlines can stay ahead of the curve and deliver exceptional value to their customers.
Chapter-5
Challenges and Opportunities
Challenges:
Opportunities:
3. Innovative Business Models: Airlines can explore new revenue streams and customer
engagement strategies through innovative business models, such as subscription services
or partnerships with other industries.
By addressing these challenges and seizing opportunities, the aviation industry can continue to
evolve and thrive in a rapidly changing global landscape.
2. Legacy Systems Integration: Many airlines and airports still rely on legacy systems that
may not be compatible with new technologies. Integrating emerging technologies with
existing infrastructure and systems can be challenging and may require substantial
investments in upgrades and interoperability solutions.
3. Data Security and Privacy: Emerging technologies often involve collecting and
analyzing large amounts of sensitive passenger data. Ensuring the security and privacy of
this data is essential to gaining passenger trust and complying with regulations such as
GDPR and CCPA.
4. Cost and Return on Investment (ROI): Implementing emerging technologies can be
costly, and airlines need to carefully assess the potential ROI. Balancing the upfront
investment with the expected benefits and long-term savings can be challenging,
especially in a highly competitive and cost-sensitive industry.
10. Environmental Impact: While emerging technologies may offer benefits in terms of
fuel efficiency and emissions reduction, they may also pose environmental challenges,
such as increased energy consumption during implementation and disposal of outdated
equipment. Balancing technological advancements with environmental sustainability
goals is important for the long-term viability of the aviation industry.
Addressing these challenges requires careful planning, collaboration, and investment from
airlines, airports, regulators, technology providers, and other industry stakeholders. By
proactively addressing these challenges, the aviation industry can harness the full potential of
emerging technologies to improve safety, efficiency, and passenger experience.
Technological advancements present numerous opportunities for the aviation industry to improve
safety, efficiency, sustainability, and the passenger experience. Here are some key opportunities:
6. Data Analytics and Predictive Maintenance: Big data analytics and predictive
maintenance techniques allow airlines to analyze vast amounts of data collected from
aircraft sensors, maintenance records, and operational systems to identify patterns,
predict failures, and optimize maintenance schedules, leading to cost savings and
increased reliability.
8. Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies have
applications in pilot training, maintenance, and passenger entertainment. For example,
AR-enabled maintenance manuals can provide technicians with real-time guidance and
visualizations, while VR-based training simulations can enhance pilot training
effectiveness and safety.
10. Urban Air Mobility (UAM): Advances in electric vertical takeoff and landing (eVTOL)
aircraft, drone technology, and air traffic management systems are paving the way for
new urban air mobility services, including air taxis, cargo drones, and medical evacuation
services, which could revolutionize urban transportation in the future.
By embracing these technological opportunities, the aviation industry can enhance safety,
efficiency, sustainability, and the passenger experience, while driving innovation and growth in a
rapidly evolving global landscape.
7. Build Resilience and Flexibility: Develop contingency plans and resilience strategies to
mitigate risks associated with technology implementation, such as technical failures,
cybersecurity threats, and regulatory changes. Diversify technology investments and
partnerships to spread risk and adapt to evolving market conditions.
Based on the analysis of implementing emerging technologies in the aviation industry, here are
some recommendations for industry stakeholders:
4. Data Security and Privacy: Prioritize data security and privacy considerations in the
development and deployment of emerging technologies, implementing robust measures
to protect passenger information and comply with regulatory requirements.
6. Training and Education: Invest in training programs to equip employees with the
necessary skills and knowledge to operate and maintain new technologies effectively,
fostering a culture of continuous learning and innovation.
7. Pilot Projects and Scaling: Conduct pilot projects to test the feasibility and effectiveness
of emerging technologies in real-world environments before scaling up to full
deployment, iterating based on feedback and lessons learned.
8. Sustainability Initiatives: Integrate sustainability considerations into technology
investment decisions, prioritizing solutions that reduce environmental impact, such as
fuel-efficient aircraft, alternative fuels, and carbon offset programs.
9. Collaborative Innovation: Promote collaboration and knowledge sharing among
industry stakeholders, leveraging collective expertise and resources to accelerate
innovation and address common challenges.
10. Continuous Improvement: Adopt an iterative approach to technology implementation,
continuously monitoring performance, soliciting feedback, and making adjustments to
optimize effectiveness and efficiency over time.
Suggestions for future use of emerging technologies
1. Drone Delivery Services: Explore the use of drones for small-scale package delivery
services, such as transporting medical supplies, spare parts, or critical equipment to
remote locations or between airport facilities.
2. Smart Maintenance Solutions: Implement smart maintenance solutions that utilize
Internet of Things (IoT) sensors and predictive analytics to monitor aircraft components
in real-time, detect potential issues early, and optimize maintenance schedules for small
fleets of aircraft.
3. Augmented Reality (AR) Training: Develop AR-based training programs for small
aviation maintenance teams to enhance technical skills and efficiency by providing
hands-on, interactive guidance and simulations for equipment maintenance and repair
tasks.
4. Biometric Boarding and Security: Introduce biometric boarding and security solutions
for small airports or charter flight operators, allowing passengers to undergo seamless
identity verification and security screening processes using facial recognition or iris
scanning technology.
5. Virtual Reality (VR) Cockpit Simulators: Deploy VR cockpit simulators for small
flight training schools or aviation academies to provide cost-effective and immersive
training experiences for aspiring pilots, allowing them to practice flying techniques and
emergency procedures in a realistic virtual environment.
6. Remote Monitoring for General Aviation: Offer remote monitoring services for small
general aviation aircraft owners, enabling them to track their aircraft's performance,
location, and maintenance status using IoT sensors and mobile applications, providing
peace of mind and improving safety.
7. Blockchain-based Aircraft Records: Implement blockchain-based solutions for
managing aircraft maintenance records and logbooks for small aircraft operators,
ensuring data integrity, transparency, and compliance with regulatory requirements.
8. Smart Airport Facilities Management: Utilize smart building management systems
equipped with IoT sensors and automation technologies to optimize energy consumption,
maintenance schedules, and facility operations for small airport terminals and hangars.
9. Autonomous Ground Vehicles: Introduce autonomous ground vehicles for small
airports to automate baggage handling, aircraft towing, and ground support operations,
reducing labor costs and improving efficiency.
10. Passenger Experience Enhancements: Enhance the passenger experience at small
airports by implementing digital wayfinding solutions, interactive information kiosks,
and personalized mobile applications to provide real-time flight updates, navigation
assistance, and tailored services.
Possible areas for further research or exploration
1. Sustainable Aviation Fuels (SAF): Explore SAF options like biofuels and hydrogen-
based propulsion for smaller aircraft, aiming to reduce emissions and promote
environmental sustainability.
2. Weather Forecasting and Monitoring: Develop specialized weather technologies for
small aviation, such as portable sensors and real-time analytics, to enhance flight
planning and safety.
3. Satellite Communication and Navigation: Utilize satellite systems for improved
connectivity and navigation in small aircraft and remote airports, enhancing operational
efficiency.
4. Remote Sensing and Aerial Imaging: Investigate remote sensing technologies like
LiDAR and thermal imaging for small-scale aerial surveys and infrastructure inspection
tasks.
5. Aviation Cyber-Physical Systems (CPS): Study the integration of CPS in small aircraft
and airport infrastructure to enhance safety and efficiency.
6. Mobile and Wearable Technologies: Explore mobile devices and AR applications for
small-scale aviation tasks such as inspections and pilot training.
7. Smart Airports and Aviation Ecosystems: Investigate digital platforms and decision-
making tools tailored to small-scale operations for improved efficiency and collaboration.
8. Aircraft Health Monitoring Systems (AHMS): Research real-time diagnostics and
predictive maintenance for small aircraft to enhance safety and reduce maintenance costs.
9. Airspace Management and Integration: Develop innovative airspace management
solutions for small drones and urban air mobility operations to ensure safe integration
into controlled airspace.
10. Humanitarian and Emergency Response: Explore the use of emerging technologies for
small-scale humanitarian and emergency response operations, such as aerial search and
rescue missions and medical evacuations in remote areas.
Chapter-7
Conclusion
The Indian aviation sector plays a significant role in the economy. The project
examined the current growth and challenges faced by this industry. There is
enormous potential of growth but only if the challenges are taken seriously. India
will become the third largest aviation market in the world very soon. Airlines must
take the benefit of VGF (Viability Gap Funding) in regional connectivity scheme so
that our major airports are connected with smaller ones. Civil aviation is a key sector
that promotes tourism and trade, facilitates growth of business and has multiplier
effects across the economy. People now want to travel faster and conveniently which
is why they prefer flying. The government must understand the potential of this
industry and should make the policies and regulations accordingly. Heliports and
helipads will also be coming up in the next few years as non-scheduled operators are
now given liberty to operate. There should also be close cooperation with
international agencies like IATA, CAPA, ICAO, etc. for policy formulation. As India
has relaxed its FDI norms, we can expect reputed foreign companies to show interest
in modernizing Greenfield and Brownfield airports. India currently has one of the
least penetrated aviation markets in the world with approximately 1% of Indians
having travelled by air and rest have never flown by air due to weak connectivity
between major tier I cities andsmaller tier II and III cities. The Indian civil aviation
industry also contributes for the GDP of the country. If all the above-listed
challenges are addressed properly and the potentials are tapped, then India can very
soon become the largest civil aviation market in the world.
Bibliography
Books
Airline Marketing and Management “Book by Stephen Shaw” Seventh Edition.
Website links
https://www.ibef.org/industry/indian-aviation
https://www.investindia.gov.in/sector/aviation
https://www.businesstoday.in/interactive/longread/indian-aviation-gets-
ready-for- a-dogfight-105-05-04- 2022#:~:text=Indian%20carriers
%20currently%20have%20about,said%20a%202 019%20Boeing
%20forecast
https://en.wikipedia.org/wiki/Aviation_in_India
https://www.civilaviation.gov.in/
https://prsindia.org/theprsblog/state-of-the-civil-aviation-sector-in-india