THE AIRLINE INDUSTRY PHASE
The civil aviation industry in India has emerged as one of the fastest growing industries in the country. India is currently considered the third largest domestic civil aviation market in the world. India has become the third largest domestic aviation market in the world. India is a growing country in all senses and while the airline passenger numbers are increasing every year, the airlines are closing their operations also.
We have seen the struggle of some Airlines company in the last few months. Once upon a time, it was a glorious airline operating in the Indian domestic sector and international as well. The main culprit for today’s situation is due the price war between the airlines. The main idea to fill the 100 per cent seats, airlines offer cheaper tickets which makes them to reduce the prices further. And which now had ended with trouble which airline company is facing today.
The moment airlines are charging equal ticket prices or more than their operating expenses, air travel cost will increase, but at the same time airlines will start making profits.The real expansion of private airlines in domestic market started in 2000s. In 2003, Captain G R Gopinath started the India’s first low-cost carrier Air Deccan, which was followed by the launch of SpiceJet, IndiGo and GoAir. All these carriers followed the model of no-frills, cheaper tickets, and higher passenger load factors.
The low-cost carrier model revolutionized the Indian aviation sector, pushing the country’s annual passenger growth rate to double digits. Alongside the low-cost carriers, Kingfisher Airlines started operations in 2005, pitching itself as full-service carrier. These new airlines posed a formidable challenge to Jet Airways, which had so far operated largely in a duopoly with state-owned carriers Air India and Indian Airlines (which were merged in 2011).
The growth of air travel has remained steady despite unfavorable macroeconomic conditions. The entry of new market players, rising fuel prices and rapidly evolving customer expectations present new challenges for the airline industry. To stay relevant the industry must continue to innovate its operating models, find newer revenue streams and offer exceptional customer experiences
We have seen the struggle of some Airlines company in the last few months. Once upon a time, it was a glorious airline operating in the Indian domestic sector and international as well. The main culprit for today’s situation is due the price war between the airlines. The main idea to fill the 100 per cent seats, airlines offer cheaper tickets which makes them to reduce the prices further. And which now had ended with trouble which airline company is facing today.
The moment airlines are charging equal ticket prices or more than their operating expenses, air travel cost will increase, but at the same time airlines will start making profits.The real expansion of private airlines in domestic market started in 2000s. In 2003, Captain G R Gopinath started the India’s first low-cost carrier Air Deccan, which was followed by the launch of SpiceJet, IndiGo and GoAir. All these carriers followed the model of no-frills, cheaper tickets, and higher passenger load factors.
The low-cost carrier model revolutionized the Indian aviation sector, pushing the country’s annual passenger growth rate to double digits. Alongside the low-cost carriers, Kingfisher Airlines started operations in 2005, pitching itself as full-service carrier. These new airlines posed a formidable challenge to Jet Airways, which had so far operated largely in a duopoly with state-owned carriers Air India and Indian Airlines (which were merged in 2011).
The growth of air travel has remained steady despite unfavorable macroeconomic conditions. The entry of new market players, rising fuel prices and rapidly evolving customer expectations present new challenges for the airline industry. To stay relevant the industry must continue to innovate its operating models, find newer revenue streams and offer exceptional customer experiences
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