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Advantages Of Hybrid Business Model

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Introduction
The civil aviation industry in India has entered into a new age of expansion driven by factors such as low-cost carriers (LCC), modern airports, foreign direct investments (FDI) in national carriers, cutting edge information technology (IT) interventions and a growing emphasis on regional connectivity. The most significant development in the Indian domestic market is the increasing dominance of the low-cost carrier model, which has modernized the aviation industry by extending the choice of the air transport to customers at the lowest costs. Also, LCCs have driven the growth of aviation through the introduction of regional routes and periodic discount offers, thus accounting for huge benefits to the Indian aviation sector. This …show more content…

The criteria that should be met by an airline to be considered as hybrid airline are homogeneous aircraft fleet consisting of one type of aircraft, the usage of secondary airports(over 50% of airports should be secondary), point to point , no code sharing , one way tariff per flight ,one class in the cabin, no extra service on board. This paper mainly encompasses the merits of the hybrid business models over the traditional business models, the schemes handled to enhance their operational cost and the challenges faced by the LCAs in adapting to a hybrid airline business model to retain its dominance in the Indian aviation …show more content…

On the other hand, India‘s LCCs are also moving towards a hybrid model by offering more features of a full service carrier on a user-pays basis. LCC reliability, on-time performance, consistency, ground product and cabin crew service standards, particularly on IndiGo, are comparable with or even better than FSCs. Unbundling is a technique which offers additional but optional services. This gives a greater choice of the travel experience for the passengers and added revenue for the Indian LCCs. Indian LCCs tries to achieve a significant share of the corporate market, which is evident from Indigo and GoAir airlines, both of which are moving towards a hybrid model though their themes and definitions of a hybrid model may differ. Indigo airline introduces unbundled products that enable it to offer more of the features of a full service airline and generate ancillary revenue without changing the underlying business model. This includes lounge access, priority boarding, customized meals and loyalty programme membership, all on a user-pays basis. Thus, rather than a hybrid airline, IndiGo appears to be a "corporate LCC". GoAir on the other hand, makes a firm push towards hybridization by including membership of an alliance, GDS distribution, code sharing and the introduction of a separate premium economy or lite business class cabin. This challenging strategy which involves repositioning of the airline’s market proposition makes the carrier more

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