Air India Comparative Analysis

1468 Words6 Pages
Topics 3
List of LCCs in India 4
Marco environmental factors that affect the airline industry: 6
Strategies followed by IndiGo 7
Strategies by spice jet 7
Market share of airlines: 8

Low cost airlines Firstly, low cost airlines are the airlines which offer cheap flights, cheap fares. Some times by low cost carrier’s flights and these low fares they may not even reach their BEP. Indian aviation market is conquered by the low cost carriers. And India is the second largest populated country in the world and with the most of India is of middle class people and increase of the middle class population
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It is the third largest airline in India (after IndiGo and Jet Airways) in domestic market share, and operates a fleet of Airbus and Boeing aircrafts. Operating various domestic and international routes in India and over various international routes. Air India has Delhi and Mumbai airports as its HUB airports.
Air Asia: Air Asia India ltd. Is an Indo-Malaysian Low cost carrier it’s a joint venture of Air Asia and Tata group India. Air Asia is the first foreign airline to set up a subsidiary India.
Air Asia will operate with world’s lowest unit cost 1.25rps (2.0¢ US) /available seat kilometer and a passenger break-even load factor of 52%. Air Asia currently operates 8 destinations in India with being Bangalore as HUB airport. And Air Asia totally uses A320-200 fleet.
Go Air Go Air commenced its operations in 2005. It is the fifth largest airline in India in market share. It operates domestic passenger services to 22 cities all over India With over 140 routes daily. Go Air has been growing, but the growth rate of the airline has been slow. Due to some tough competition in market of the LCCs. And Go Air serves 22 cities all over India with Mumbai airport as the HUB airport. And Go Air uses only A320-200
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The chart shows us that the indigo is occupying the market leader position in the industry and then follows by the jet airways Jet airways and Jetlite combination starts second in the share of markets. Air India has 19.5 percent of market share. Spice jet with 17.3 percent and Air coast and Air Asia with1.1 and 0.7 percent in the overall market share.

Indigo is the leading LCC in the Indian market. It has captured more market then jet airways that occupy the 2nd market in LCC market share.
These LCCs have become a threat to the full service carriers all these LCCs together created a market that a full service carrier cannot enter into Indian domestic market if it enters cannot exist for long.
In my view that DGCA should frame more additional rules to their LCCs that there should a minimum to the routes and rates these LCCs should also have a standards in their pricing.
By following cost leader ship that is by maintaining total revenue (TR) more than total costs (TC) by covering its total fixed costs in short span of time and had got in the profit gaining airline amongst the LCC in the industry.

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