Singapore Airlines’ strategy is focus on high level of customer service and business travelers as important market target. To support these high-level quality standards it is important to offer new aircrafts so the depreciation short term is fully aligned with this vision. Question 5 Does the difference in the average age of Delta’s and Singapore’s aircraft fleets have any impact on the amount of depreciation expense? If so, how much? Singapore Airlines have to renew their fleet more frequently than Delta Airlines, due to a shorter aging period for their aircrafts.
The industry become open to private players, with this, private player started their operation and the result was that from 15000 passengers in 1990, the carriage increase to around 2,50,000 by 1992. A large number of private players like Jet Airways, Modiluft, East West Airlines, Air Sahara entered the Indian aircraft market. All the restrictions related to type of aircraft used, seats capacity, non-ownership of land were removed by
Airline industry has become an essential part of the economy in both developed and less developed worlds. When the distances involved are far, air transport plays an important role in moving people and products from one place to another, be it domestic or international Oyewole, Sankaran, and Choudhury (2008). Route is one of factor to student preference in selecting airlines industry. The demand of air transportation industry increases continuously due to the growth of economy. Passengers take airplanes more frequently for business or tourism purposes, and many type of products and parts such as mobile phones, semiconductors, and computer parts are transported through airplane for timely deliveries (Ko & Hwang, 2011).
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.
INTRODUCTION This paper seeks to analyse the structure of the Indian aviation industry and seeks to question whether the airline industry fits into any particular market structure. The Indian transport sector was dominated by the Indian Railways for the longest time before the airline industry started to flourish. This new industry boasted of better quality of travel and reducing large distances to mere hours. However, the prices were much higher than the Indian society was used to. The peculiarity lay in the fact that an industry of this kind would not have been able to survive but it managed to, and even had a large market share in the transport industry.
TERM PAPER 1 COMPARTIVE ANALYSIS OF INDIAN LOW COST CARRIERS 1 INTRODUCTION: 3 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 INTRODUCTION: 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
And also the tickets prices are really good so I recommend it ". 3 – indigo flights It is the fastest growing airline in the world. Indigo follows the policy of discipline and cheap services. The rate of discipline in indigo rises to 99.91 %, this is an excellent rate in comparing with the other airline companies in India. The most powerful start for indigo is that it turns to the world flights begin with Muscat in Oman.
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” .
Indian airline industry has been growing at a rapid pace, as reflected by the increase in traffic over the years. There has been a significant increase in passenger traffic of 12.47% compared to the last year and a compounded annual growth rate in freight traffic of 8.23% and 6.7% over FY’2006-15 for domestic and international traffic respectively. Though the aviation industry has been experiencing a financial crunch due to decreasing airline prices, the decrease in fuel prices in FY’15-16 has come as a timely boost for the industry, and the results are getting reflected in the financial statements of the airline companies. In this report, we will look at one of the more prominent players of the current Indian airline industry- A player
• 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