A Study of Antecedents of Growth in Indian Aviation Industry

Abstract

The aviation industry today is at a threshold of opportunity in this globalized world. It is at the same time confronted with the stark reality of dealing with the crossroad path of evolution and the baggage of the past. The future growth is inviting, yet, the growth antecedents are blurred and need to be reflected upon for clarity, purpose and direction of the future. Aviation has a competitive advantage particularly for long distance travel. Indian aviation ranks number ten in the world and is projected to be among global top three nations by year 2025 in terms of passenger traffic. The growth of Indian aviation is influenced by an eco-system which the research anticipates, is subjected to the governmental public policy making, governance and socio economic factors. These while uncontrollable by the aviation industry players per se, however, greatly influence and define the aviation industry strategy. Then there are factors such as technology evolution and adaption, social media, service offerings, customer services, aircraft utilization, marketing strategy or data analytics/data mining etc. which are defined by the industry. A review of the existing literature revealed gaps in the identification and impact of drivers of growth of aviation industry, especially in Indian context. The study aims to peep into the factors driving the growth of the Indian aviation and prioritize them in terms of aviation infrastructure and growth. These identified growth constructs and drivers are supplemented by interviews with the aviation industry experts. A review of literature has further confirmed and improved the list. Development of a theoretical research framework using the major constructs has led to framing of research hypothesis. A perception survey of middle to top management aviation expert was done with a final sample size of 83. On the pilot survey basis, an exploratory factor analysis was conducted for scale development and to validate the survey instrument.