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Low-Cost Airlines Case Study

905 Words4 Pages

Low-cost Carrier
Hamida Al Hamhami
Ajai Jayathilakan
AVIA 120
October 26, 2014

Task 1: IndiGo is one of the most fastest growing and successful low-cost carriers in the region. It 's headquarter is in the state of Gurgaon in India. It was founded in August 15, 2006 by Rahul Bhatia and Rakesh S Gangwal. IndiGo has a fleet size of 83 aircrafts of Airbus A-320, flying over 36 destinations, with 534 daily flights. 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 …show more content…

As many people began to travel with the low prices of tickets, Indian domestic income has increased, beside the raise of tourism potentials in the country. Numbers will increase obviously once IndiGo extent the international routes to more than 5 in the future. IndiGo is concentrating on the lower and middle class of people as its main target group. It seems to be that IndiGo has succeeded to attract those people and make money out of them. By its efficient management and operations, and marketing strategies, it became the leader of the LCC market in India with a profit of $51.67 million in 2014. Task3: In a country like Oman, there is a need to start an LCC, not only to develop the domestic air travel, but also to give an opportunity to enter this market. It is difficult for people from the middle classes to travel by are because of the high airfares, especially with the monopoly of Oman Air. As it is the only carrier in the country, and the policy that prevent any foreign carrier to enter the domestic market, the number of domestic travelers is

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