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.
IndiGo has expanded rapidly till it became the first and largest airline in India in terms of market share by 27% in 2012. And in 2013, IndiGo reached the second fastest growing low-cost airline in the continent and the 10 biggest low-cost carriers in the world. There are many factors contributed in the success of IndiGo. Time is the first thing to be considered in IndiGo 's operations. They spend only 6 minutes to disembark 180 passengers, and 18 minutes for next flight to
However, the airport didn’t take action to recover this problem. Thus, there are a lot of tourist have been affected and disappointed by the security level of the Ho Chi Minh airport. Besides, we found that there are another issues which is the officer’s harassment at Ho Chi Minh airport as well. The officers of the airport force the people to pay the bribes to clear their goods. The main target of those corruption officer are the overseas Vietnamese.
The result was bad publicity and sensationalism from the media. Not only did passengers endure much chaos being stranded aboard aircrafts but also there were also extensive delays, cancellation of flights, fatigued staff and millions in revenue losses. JetBlue, in essence, suffered from poor corporate communication. As described by Paul Argenti (2013), constituencies form perception of the messages companies send based on the services they perform (p.
The Judge in the case stated that it was “clear social dumping” and “an issue of unfair competition against other airlines that respect national legislation”. Sourcing Revenue from Outside the Airline: Ryanair earned €602 million in profits in 2014 but 20% of this was earned through sources outside of actual airline tickets. This is due to excessive charges on such items as name changing to boarding passes, boarding pass fees, luggage fees per kilo, credit card charges, reserved seat fees, bulky item fee such as wheelchairs, buggy’s, musical instruments along with items such as water, food and scratch cards. Cutting
The number of airlines that operate in India are few in number and cannot at any point, cater to the demand of the entire population in India. This is because of the inherent nature of the model of oligopoly which does not allow for new firms to enter the market. The other reason which is cited very often is the high costs and risk involved in such a market type. The costs of the carrier are high and their maintenance often exceed the revenue generated. The price of fuels and the constant fluctuation in the market also pose a major threat to an industry of this
It has been reporting losses from past 5 quarters. DGCA( Directorate general of Civil Aviation) has ordered SpiceJet “No advance booking beyond a month”, as SpiceJet have frequently cancelled flights, 1861 flights up to December 31.The fall will create bad name for industry as a whole and might lead to blacklisting by banks, aircraft makers and leasing companies, as well as airport operators and fuel suppliers, both in India and abroad. Though Chief executives of foreign airlines don’t see the fall of SpiceJet as big blowback to Indian aviation industry, they think this is high time that government looks into the root causes of failure and act upon issues like high airport fees and fuel taxes to make environment more investment
Airline industry is the one of the most competitive and growing industry in the world which is directly impact to the economic growth, world trades and tourism of any country. With the assistance of the technology, the airline industry is growing significantly. “Emirates” is the one of the pioneer in the airline industry. It is the third largest airline globally by capacity. In 1985, the UAE government has invested $10 million to launch its own airline called “Emirates” with mission of “ exist to deliver the best in flight service” and flew its first routes out of Dubai with just two aircraft a leased Boeing 737 and an Airbus 300B4.
• Although owned by the Abu Dhabi Government, they do not support them financially • Market share growth is restricted due to intense competition levels OPPORTUNITIES • Expansion to more destinations • Increase in popularity of Etihad Airways • Partnerships with more airlines • A main customer of boeing and airbus aircraft producers • Sponsorships outside the airline industry : 1. Principal partner of New York FC – First US destination in 2006 2. Lead Sponsor of Melbourne City Football Club 3. Along with Jet Airways, sponsor and are the official airlines of the Mumbai Indians Cricket Team THREATS • Growth within the airline industry has become more competitive • The ever changing rules and regulations within the airline industry that differs based on politics, economies, etc • Natural environment conditions • Increase in fuel prices NATIONAL CONTRIBUTION
75% are privately owned sector, which stands as the matter of concern. The reason being, the invested capital hardly justifies the retaining the return of the huge capital invested in this airline industry. This envisages more importance of the need of attracting new capital in the tune of $4-5 trillion over the next twenty years for buying aircraft for meeting the legitimate needs of the expansions in the emerging regions, especially in the Asia Pacific regions. If the efficiency of the use of the hardly needed capital is to be improved, and the returns for the investors it usually generate, it is necessary to attract new investment for up keeping the good health of the airlines industry. According to the International Air Transport Association’s Director General and CEO, Tony Tyler, “Air transport is one of those industries those are instrumental in transforming the world” .