PROJECT

ON
AVIATION INDUSTRY

LOW COST AIRLINES

SIMPLE PRDUCTS

NOMEALS,DRINKS &SNAKS FOR FREE

NARORRW SEATING
NO SEATING
NO SEAT RESERVATION
NO FREQUENT FLYER PROGRAMMES

POSITIONING

NON BUSINESS PASSENGER,NON LEISURE TRAFFIC

SHORT HAUL POINT TO POINT TRAFFIC WITH HIGH FREQUENCIES
AGGRESSIVE MAREKETING
SECONDARY AIRPORTS
COMPETITIONS WITH ALL TRANSPORTATIONCARRIERS

LOW OPERATING COSTS

LOW WAGES,LOW AIRPORTFEES
LOW COSTS FOR MAINTENANCE
LEAN SALES(HIGH PERCENTAGES OF ONLINE SALES)

ROLE OF THE LOW COST

AIRLINES IN AVIATION
INDUSTRY
It

has brought a new meaning in

aviation industry. effective cost, time
saving & generating employment.
It becomes very affordable to fly for a
middle class people.
Air Deccan was the first low cost
airlines, it launched in 2003 & it has
a maximum share in LCC market.

 Air

Deccan enjoys the first mover

advantage in terms of access to a
large no. of overni8ght parking spaces
& landing & take-off slots during the
peak period.
The main key objective of low cost
carriers to increase their reach &
provide the services to a large
segment.
Its a boon for domestic travel the cost
of traveling is at par with railways & it
saves great amount of travel time.

This was the first analyzing low cost airlines

report:Four low cost airlines together carried 9.40
million passengers during the year 2007.
LCCs account for almost 50% of the new
aircraft orders placed.
Demand for domestic air travel is expected to
increase at a CAGR of above 25% for the next
five years.
Air Deccan & Spicejet represented 90% of the
increase in seat capacity between 2004 &2007.
LCCs are tying up with fast food chains &
travel portals as a part of their marketing
strategy.

Spice Jet

Spice jet is a low cost

airlines based in New
Delhi. It began
service in May 2005.
Spice jet market its
entry in service with
rs.99 fares for the
first 99 days. There
were 9000 seats
available at this rate.

INDIGO

It commenced
operation on 4 aug.
2006 with a service
from Delhi to Imphal
via Guwahati. It is
owned by Inter global
enterprises. It took
delivery of its first
airbus A320 aircraft on
28 July 2006 &
received 6 aircraft
during 2006.

MDLR

MDLR airlines is owned

by Murli Dhar Lakh
Ram group. It start
operating in 2007. its
based in Gurgaon. It
was reported that
MDLR airlines will
cater to religious
tourism. It also plans
to extend its services
to places of
pilgrimmage.

Go Air

Its promoted by the

Wedia group. Go air
was established in
June 2004. Go air
started its
operations from
Nov.2005. it
operates airbus
A320 aircraft & now
it operates flights to
13 cities with 61
daily flights.

Role of the increased number

of domestic airlines in aviation
The

airlines are introducing many

more aircrafts in their fleet carry the
same number of passengers, there is
significantly more air traffic, all the
airlines are planning their flights in
the best time periods to complete
with the other airlines who are doing
the same thing.

Cycle of the increasing no.

of domestic aviation

India is an
emerging
aerospace market
with de-regulation,
rising domestic air
travel & increase in
the no. of foreign
airlines flying to
India.

 This

report is sanded by the Spice

jet: Spice jet recently inducted two more

Boing 737 800 aircraft in its fleet &
increased its capacity from 4500
seats to over 6600 seats a day.

Role of the aviation in Indias

improving economy
Consumers

have capacity to afford

air travel competition. Amongst the
Airlines has resulted in a sharp
decline in the Air fares.
Higher income due to increasing
economy has made it possible for
more Air travelers.

 More

travelers have encouraged new

operators & in turn higher the
competition forced to offer special
discounted fares & eventually face
cash losses & crises. Yet, the industry
is growing rapidly & will over come
the crises.