Aviation Industry in IndiaOverviewThe history of civil aviation in India began in December 1912. At the time of independence, the number of aviation companies operating within and beyond the boundaries of the company, which carried both cargo and passengers, was nine. In early 1948, a joint industry company, Air India International Ltd., was established by the Government of India and Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. Its first flight took off on 8 June 1948 on the Mumbai (Bombay)-London air route. At the time of its nationalization in 1953, it operated four weekly services between Mumbai-London and two weekly services between Mumbai and Nairobi. The joint venture was led by JRD Tata, a visionary who had founded India's first airline in 1932 and personally piloted its maiden flight. Current Trend in Civil Aviation Sector in India It is a phase of rapid growth of the industry due to huge constructions. increasing capacity in the LCC space, with capacity growing at around 45% annually. This has prompted a phase of intense price competition with current full-service carriers (Jet, Indian, Air Sahara) discounting up to 60-70% for some routes to match the ticket prices of new entrants. This, combined with cost pressures (a key cost driver, the ATF price, has increased by around 35% in recent months, while staff costs are also rising due to shortages of skilled staff), is putting pressure on on profits. supply is overshadowed by extremely strong growth in demand, driven mainly by the conversion of train and bus passengers to air travel, as well as the fact that low fares have allowed passengers to fly more frequently. There has therefore been an increase in both the breadth and depth of consumption. However, the regulatory environment, infrastructure and fiscal policy have not kept pace with the growth of the sector. Implementation of open sky policy between India and Saarc countries, increasing bilateral rights with EU and US and aggressive promotion of India as an attractive tourist location has helped India attract 3 .2 million tourists in 2004-2005. This market is growing at the rate of 15% annually and India is expected to attract 6 million tourists by 2010. Furthermore, the increase in per capita income has led to an increase in disposable income, resulting in more spending on leisure and holidays, while business travel has increased significantly. with a growing presence of multinationals.