Aviation Industry of India!

Dear Friends,


In my next few columns, i would try to pick each industry and would like to give you details related to that particular industry about How they Started, Their Growth, performance and future prospects. Today would like to start with The Aviation Industry.


Introduction:

The aviation industry encapsulates the development, operation and management of aircrafts. While the common perception about the sector is that it’s only about pilots and airhostesses, there are numerous other, equally significant job options that the industry cannot function without; from in-flight trainers and aircraft maintenance engineers to baggage handlers and reservations agents.

Research indicates the global aviation industry is poised to grow at a healthy 5.6% CAGR over the next 15 years. While major conventional mature markets such as the US and Europe will witness a significant fall in market share from 61% to 52%, emerging markets, such as India, China and the Middle East, offer a great growth potential.

Performance

The economic slowdown which began in 2008 hit the global aviation industry severely, with many airlines such as United and British Airways in the red. This was due to falling passenger numbers and increasing competition from low-frills airlines coupled with rapidly rising fuel costs. Despite passengers now resuming air travel, the increase has been very gradual. In fact, International Air Transport Association (IATA) Director General and CEO, Giovanni Bisignani, in December 2009, stated the global economic crisis “has cost the aviation industry 2 years of growth… as the improvement that has started since passenger traffic hit rock-bottom in March 2009 is similar to the pace of growth in 2006-2007.”

Growth Potential

In India, the industry sector continues to look promising. The liberalization of the Indian aviation sector in the mid nineties resulted in significant growth due to the entry of private service airlines. There was, and continues to be a strong surge in demand by domestic passengers, due primarily to the burgeoning middle class with its massive purchasing power, attractive low fares offered by the low cost carriers, the growth of domestic tourism in India and increasing outbound travel from India. In addition, the Government has also focused on modernizing non-metro airports, opening up new international routes, establishing new airports and renovating existing ones. Some estimate industry growth at 25% YoY.

Unfortunately, most major airline operators in India such as Air India, Indian Airlines, Jet Airways and Kingfisher Airlines have reported large losses since 2006, due to high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competition. The problem was also compounded by new players entering the industry even before the existing players could stabilize their operations. As a result of the already weak domestic scenario, the airlines suffered even further when the recession, which exacerbated all these factors, hit. Suffice to say, though that the Indian aviation industry has been more resilient than its global counterparts.

Despite many private airlines being in the red, the industry itself remains robust. According to Kapil Kaul, CEO India & Middle East, Centre for Asia Pacific Aviation (CAPA), India's civil aviation passenger growth is among the highest in the world. “The sector is slated to cruise far ahead of other Asian giants like China or even strong economies like France and Australia. The number of passengers who will be airborne by 2020 is a whopping 400 million.” To keep pace with this accelerated demand, existing players have been trying to increase fleets and widen their footprint to regional destinations as well. There has also been increasing attention from international low cost airlines such as Air Asia (Malaysian) and JetStar Asia (Australian) to capture part of this lucrative opportunity.

Future Prospects

As a result of the strong growth trajectory of the industry, there is likely to be a massive need for skilled personnel to helm this growth. India is already experiencing a shortage of pilots and is likely to face similar shortages across the wide direct and indirect employment pool. Hence, it is a great time to consider playing a role in this sector, as it holds great promise for development over the coming ten years, at least.

TOP COMPANIES:

A

Ahmedabad Aviation and Aeronautics Ltd.Air Charter Services Pvt. Ltd.Air Charters IndiaAir India Ltd.Alcoa Fastening Systems AerospaceAvaids Technovators Pvt. Ltd.Aviation India

B

Bengal Institute of Technocrats

D

Deccan Aviation Ltd.

G

Global Vectra Helicorp Ltd

H

Hindustan Aeronautics Ltd.

I

India Flysafe Aviation Ltd.IndiGo

J

Jagson Airlines LtdJet Airways (India) Ltd.
RegardsNITIN JAIN

K

Kingfisher Airlines Ltd

O

Obstruction Lights

R

Rajiv Gandhi Aviation Academy

S

SpiceJet Ltd.

T

Taneja Aerospace & Aviation LtdTesscorn SystemsThe Bird GroupThomas Cook (India) LtdTrans Asian Aviation

Is bad time just round the corner.....?

Dear Friends,

I was going through some of the news doing rounds in the industry and suddenly thought, is bad times for the Industry is just round the corner or it would pass away without effecting much? I am sharing those news with you all and would request your views on the same.

India Has Seen Jobless Growth, Says Top Adviser

India may have grown at over eight percent, but a top adviser has expressed concern over the "stagnant employment situation", saying the country with 40 million unemployed people witnessed "jobless growth" during the Eleventh Five Year Plan period from 2007-08 to 2011-12. "The only explanation for an almost stagnant employment situation is simply that not enough jobs are available in the economy, even with an eight percent plus growth rate," National Advisory Council member NC Saxena told in an interview."The Eleventh Five Year Plan witnessed jobless growth," he said. Mr. Saxena, a retired bureaucrat, said the government's argument that more young people are now attending educational institutions fails to explain "why there are still 40 million unemployed people in the country (according to the Current Daily Status figures of National Sample Survey Organisation 66th round), who should have got the jobs if the economy was creating them." Consumer Confidence, Job Optimism Take A Dip The deteriorating economic conditions have led to a drop in optimism levels among Indians this quarter, according to a survey by market research firm Nielsen. Around 61 percent of consumers said they would put aside their spare cash in savings, compared to 54 percent in the last quarter. As far as job prospects are concerned, Indians continue to be the most optimistic globally. However, their optimism has dropped from 86 percent in the last quarter to 81 percent in this quarter. Service Sector Index At 2-Year Low India’s service sector shrank for a second straight month in October, Financial Express reports. The seasonally adjusted HSBC Markit Business Activity Index slumped from49.8 in September to 49.1 in October, its lowest level in two-and-a-half years. The index measures the performance of around 400 firms. New business grew at its weakest pace since May 2009, a fall-out of the sagging global demand and tight monetary policy. India’s most closely watched inflation gauge, the wholesale price index, rose 9.72 percent in September on an annual basis, a tad lower than August’s 9.78 percent. The survey showed that Indian service providers were more hopeful about the coming year than last month as business expectations saw a rebound. The HSBC Markit Manufacturing PMI for India rebounded in October after remaining static in September. Survey Reveals 30% ITI Grads Still Jobless Despite industry having preference from government trained manpower about 30% of the pass-outs failed to get a job in 2009 after getting vocational training from public sector institutes, a government survey has found. The reason, according to a survey done by ministry of labour, says that non-availability of jobs or low salary were the two prime reasons for high unemployment rate in Industrial Training Institutes (ITIs). Most of the trainees were found to be from low-income group with monthly family income of less than Rs 5,000. On the curriculum side, 46 new trades have been added and special courses have been run with the help of the industry to train the trainers. The government has also initiated a scheme - apprenticeship training scheme - to get on field training. The impetus was given to provide adequately trained manpower for the economy growing at over eight percent annual rate.But, many pass-outs found that the industry preferred cheap labour, which was available in abundant in the market and therefore, did not offer them adequate salary. Many of the trainees expressed unhappiness over inadequate stipend, fewer opportunities for learning new skills and involvement of trainees in low end jobs. The survey conducted to assess the nature and quality of training in it is and employability of trainees found that practical training was lacking in the module. Many of the trainers also felt that the syllabus has not been synchronized with the needs of industry. ING To Slash 2,700 Jobs In Dutch Retail Banking Biz Dutch financial services giant ING Group plans to axe 2,700 jobs in its retail banking business in the Netherlands, as part of its cost cutting measures.ING Group will cut 2,700 jobs, including 700 contract workers, at its retail bank in the Netherlands, which would save 300 million euros (USD 412 million) annually from 2014 onwards, it said in a statement . "As income is coming under pressure, we must renew efforts to reduce expenses across the Group to adapt to the leaner environment and maintain our competitive position," Group CEO Jan Hommen said. Financial institutions across the world are laying off employees in their attempts to lower costs. Thanks Nitin Jain

Top 10 Oil and Gas Companies

Top 10 Oil and Gas Companies

Top 10 Oil and Gas Companies

 Previously, i already shared the List of Petroleum Companies Worldwide. Here come the list of Top 10 Oil and Gas Companies Worldwide

1. ExxonMobil 

ExxonMobil is the largest of the publicly traded integrated oil and gas manufacturers and marketers of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. The company also has interests in electric power generation facilities, with several divisions and hundreds of affiliates operating or marketing products in the United States and other countries of the world. The common principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products.  Most recently the company reconciled a forward looking vision with a historical approach to news headlines, as it released an Apple Iphone GPS software application to locate gas stations and later addressed the National Commission on the BP Deepwater Oil Spill and Offshore Drilling.

2. PetroChina

PetroChina was established in 1999, and is currently Asia’s biggest company and mainland China’s largest oil producer. The company is the stock market listed arm of the state owned energy giant China National Petroleum and enjoys a near duopoly in the Chinese market with Sinopec. The market value of PetroChina tripled when it first appeared on the Shanghai index, thus becoming the first company in history to have a market capitalization of $1 trillion.  With recent company plans for spending at least $60 billion in the next decade on overseas acquisitions, PetroChina’s aggressive strategic objective is to increase co-operation with foreign energy companies to accelerate its global expansion.

3. Royal Dutch Shell 

Royal Dutch Shell is a Netherlands-based company that was first launched in 1833 as a shell trading company in London, but now has operations in over 140 countries and covering almost every single aspect of the hydrocarbons industry. The company operates in three segments: Upstream, Downstream and Corporate. Last month the company reported that third quarter earnings have rebounded substantially from year-ago levels, driven by some improvement in industry conditions, and company strategy. The company indicated that it experienced new growth, with improved revenue and cash flow, underpinned by a 5 percent increase in oil and gas production, a 22 percent increase in liquefied natural gas (LNG) sales and increased downstream volumes. The company seemed optimistic on results despite continued difficult industry conditions in refining and natural gas markets.

 4. Chevron

Chevron is a California-based ‘supermajor’ with interests in over 180 countries and numerous joint venture projects in the Middle East. Historically, when the company was known as Standard Oil of California, a subsidiary, California-Arabian Standard Oil Company, was responsible for finding the world’s largest oilfield, the Ghawar field in Saudi Arabia. The subsidiary evolved into the Arabian American Oil Company (Aramco) and was eventually entirely owned by Saudi Arabia and was renamed Saudi Aramco. Saudi Aramco is the largest oil company of any kind in the world and has a staggering 25 percent of the world’s oil reserves.

5. Petrobras-Petróleo Brasil

Petrobras-Petróleo Brasil is a huge semi-public company that was the brainchild of the controversial Brazilian president Getúlio Vargas. The company operates in five segments: exploration and production; refining, transportation and marketing; distribution; gas and power, and international operations. Although, Petrobras has interests in most areas of the hydrocarbons industry, it is focused on leading in the development of technology for deep-water and ultra-deep water oil production.

 

6. British Petroleum (BP)

British Petroleum had its initial incarnation granted as a concession by the Shah of Iran in 1901 to search for oil. Seven years later the company made the first significant discovery in the Middle East.  The 70 years that BP remained in Iran were full of political intrigue and included questionable allegations of communism, military coups and the eventual renationalizing assets (with no compensation being paid to the company) by Ayatollah Khomeini.  With current operations in more than 80 countries, BP maintains two segmented revenue streams: Exploration and Production, and Refining and Marketing.  Since the spring, the company has been embroiled in an ongoing public relations battle surrounding its liability in the Gulf of Mexico oil spill.  Earlier this month BP reported that a strong operating performance across the group helped it return to profit in the third quarter of 2010 despite an additional pre-tax charge of $7.7 billion in respect of the spill.

 

7. Gazprom

Gazprom is the largest provider of natural gas in the world with 16 percent of the world’s gas reserves as well as being involved in various projects across the globe. The European Union has historically obtained around 25 percent of its gas from the company; however, in January 2009, an ongoing disagreement with the Ukraine resulted in supply disruptions, with eighteen European countries reporting major drops in or complete cut-offs of their gas supplies.  On June, 8, 2010, a Stockholm court of arbitration ruled in favour of Gazprom; however, the ongoing uncertainty of critical energy sources may potentially lead Russia’s neighbours to look for more secure gas supplies.

8. Total

Total is considered a ‘supermajor’ with headquarters in Paris, operating in more than 130 countries and employing over 96,400 individuals.  The company was founded after a partnership offer from Royal Dutch Shell was abruptly rejected by the French government after World War I.  The company is engaged in all aspects of the petroleum industry, with interests in the coal mining and power generation sectors, as well as a financial interest in Sanofi-Aventis. It is also active in solar-photovoltaic power, both in Upstream and Downstream activities. TOTAL’s worldwide operations are conducted through four business segments: Upstream, Downstream, Corporate and Chemicals.

9. ENI

ENI is Italy’s largest industrial company with interests across the hydrocarbons industry and producing around 1.7 million barrels per day of oil equivalent. The Italian government still has a 38 percent “golden” share in the company and has come under criticism from other members of the European Union for the over zealous exercising of its power of veto.  At the end of the last fiscal year, Eni reported operations in 77 countries, segmented into five revenue streams: Exploration & Production, Gas & Power, Refining & Marketing, Petrochemicals and Other units.

10. Sinopec-China Petroleum

Sinopec-China Petroleum business interests cover the whole spectrum of the oil and gas industry with exposure to refined oil products, intermediate petrochemicals, synthetic resins and synthetic fibers. The company grew out of the Shanghai Petrochemical Complex which was founded in 1972. In 1993, as an experimental unit, by standardized state-owned enterprise restructuring, SPC became the first Chinese listed company with its shares listed on Shanghai Stock Exchange, the Stock Exchange of Hong Kong and New York Stock Exchange. In 2007, it opened the first drive-through petrol station and fast-food restaurant in China.

Source: oilinvestingnews.com

Is telecom Industry A Sinking Ship?

Dear Friends,

In last few months we have seen tremendous change in the market dynamics of Telecom Industry. At one point of time when people were talking about Telecom as one of the largest growth sectors and hirer’s of professionals for next 5-10 years, a sudden change of the Management/Company structures in almost all the telecom companies have brought a halt and the hiring have come to minimal. Above this we have also heard Pink slips being issue to employees not only at junior level but at very senior level as well. This has come as shocking news to all of us related to talent Acquisition and people from telecom organizations.

Suddenly a lot of movement is seen from people working in telecom companies and professionals from these sectors have started approaching search firms and exploring their network to find out some opportunities outside this industry.

Why is this so? Are telecom companies in losses? Are they loosing revenues? Is their no growth left in telecom companies or are these companies actually playing intelligently by cutting down their manpower, saving cost thus resulting in higher revenues!

Recent news gives some clarity on this which is to be read this way:

“India’s telecom story is over. Industry revenues have not gone up in two years,” admitted the promoter of one of the largest mobile phone companies.”

“Six top executives of mobile phone companies are hunting for new jobs, signalling bad times for a sector that was once touted as the symbol of India’s growth story. Those looking for a career change include the CEO of one of India’s largest telecom operators and the heads of two new entrants.”

More answers are expected to come during next financial year when the manpower projections would be out and companies are back in the market with hiring trend. We have to just keep a close watch on the movement of this industry.

Thanks

Nitin Jain

Information Technology Industry Trend & Way Forward!!!!

Dear Friends,

I was going through this intresting article by Alpana and thought of sharing with you all...

Information Technology Industry Trend & Way Forward

Information Technology industry has always undergone large scale transformation and evolution in each decade right from 1990’s.

1990 –

In the early 90s’ industry used to bank on Mainframes for voluminous data processing as the basic need for Automation, Design Graphics(CAD, CAM) for manufacturing blueprints, Electronic Design automation(EDA) for micro technology chip fabrication and Program Logic Controllers (PLC) for automation of electro-mechanical machines.

In the middle 90’s, with the invent of GUI technology and user friendly screens, more focus came into front-end information capture and effective online display with various reporting mechanisms.   This started a whole new paradigm and became the single largest motive or goal behind all subsequent technology innovation and transformation.  User access controls and faster processing became the need of the day and richer GUI based system design and implementation was at full speed with large-scale need for system migrations from mainframe legacy systems to new ones in GUI.  Industry experts were divided across Mainframes and GUI systems with debates and case studies to prove the better one  citing various reasons across parameters – security, processing speed, volume transactions, network traffic, cost, maintenance overhead with future  changes, flexibility of closed versus open systems for change, object orientation and structured modularization versus monolithic code, scalability and robustness and finally which look better – green screens in dumb terminals versus colourful ones with intelligence processing at front end. 

In the late 90’s came the revolution of internet based systems with browser based thin screens for easy access across various domains in the world-wide-web (www) network.  Information access, display and storage became faster and across various medium, channels and segments. An un-precedent industry growth without proper control and lacking fundamentals of business reason with relevant context, lead to a collapse of the momentum and the notable Dot Com bubble burst.  Also, the industry was going through a large global scenario of removing the limitations of date and year processing without the century and incorporating the Year 2000 change management.

2000 –

The next decade of 2000 saw even greater and faster scale of transformation with further advancement of technology in internet access, browser based system design and development. This lead to a fundamental shift in entire business process across various industry verticals.  Business functions across all industries wanted to make information technology the basis of carrying out end-to-end process flows – effective and smart front end , work flows, rule and knowledge based engines, back-end effective storage and retrieval,  internal and external interfaces, dimensional reporting, expert systems with diagnostics and decision making analytics, real-time information processing and data transfer,  complex search operations, image processing, data warehouse, business intelligence, mobile devices and handsets with processing, connection power and integration capability to synergize and scale across systems, platforms and business.   

2010 –

When we look back into last two decades and introspect we see a clear trend and pattern across all transformation and evolution cycles. While technology innovation has been the prime driver to begin with any thought leadership, the cycle ended inherently with a final maturity in implementation of the thought or concept for effective business success, Government functioning or in welfare of society and humanity in general. This fundamental aspect makes a true difference between knowledge and application of knowledge for our benefits. This prime philosophy has been driving the industry before and will more so consciously in future. We are now into the decade of 2010 and have to gear up for the next generation of industry changes in technology innovation and implementation to run business more effectively in competition. Even greater importance is in how we are gearing up to manage this transformation as leaders in strategic and tactical terms. The challenge for us is to create an environment of abundance rather than that of perceived scarcity in economics view existing currently globally. This scarcity phenomena arises out of a receding demand or growth opportunities and increasing supply of candidates for growth. The answer and solution is to be creative and innovative leading to niche specialization in our own areas. This would facilitate and promote increased opportunities. While remaining independent and unique in our own area of specialization we should remain interdependent to each other at entry and exit points with respect to our area.  This would be the way for an all round organic growth which may be slow, but stable and steady in growing ever onwards ever upwards in a collective way.

By:

Alpana Bhattacharjee
Senior Consultant

 

Regards
NITIN JAIN

New Open Mandates!

Dear All,

Please find below the current critical open mandates doing round in the industry. In case you are intrested do share your updated profile with me on nitinjain05@gmail.com:

1) CEO for one of the MNC's about to launch operations in India. The product is a Job Portal.Position based in Delhi. Min exp 15 years.
2) Sales Manager for one of the leading luxury brands and MNC. The position is based in Chennai. Min experience 5 years in Luxury product handling.
3) Plant Head HRD - For leding groups of India. Position based at Delhi. Min exp. 10 years.

Thanks

Information..

Dear All,

This Blog has been started with the aim to share more information with each other to know whats going around in the industry, trend changing, change of business dynamics and extend our support to be active in the industry. Hope yopu all would share your thoughts regularly and make sure all our friends are aware about the new changing patterns of the industry.

Indutry Newz!!

Industry NEWZZZZZ.... 1. Manufacturing To Contribute 25 % Of GDP ; Create 100 Million Jobs Within A Decade

The Union Cabinet gave its approval to the long-awaited ambitious National Manufacturing Policy (NMP), which seeks to set up mega industrial zones, create 100 million jobs by 2022 and put India at par with manufacturing powers like China and Japan.“The NMP seeks to enhance the share of manufacturing in the GDP to 25 per cent within a decade and create 100 million jobs in manufacturing as part of the inclusive growth agenda of the UPA,’’ an elated Commerce and Industry Minister, Anand Sharma said after the Cabinet meeting chaired by Prime Minister, Manmohan Singh. Ruling out any kind of subsidies for units operating in these manufacturing zones, the newly approved policy states that to encourage the manufacturing sector, the government will provide fiscal incentives to the industry, particularly to the small and medium enterprises (SMEs).