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Aviation Market
The Indian aviation industry is one of the fastest growing aviation
industries in the world, with a growth rate of 18 p.c. p.a .
Today, private airlines account for around 75 percent share of the
domestic aviation market.
India has jumped to 9th position in the worlds aviation market from 12th
position in the 2006
Domestic and international traffic 45% and 15.1% respectively
Over 135 aircraft have been added in the past two years alone
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Market
size
Behaviour of competition
Government regulation
Cost of resources
(fuel, labor, maintenance, te
chnology)
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When one airline company decides to cut fares or one car company decides to cut
new car prices, the other industries will usually cut theirs as well. Price wars
happen because some company is trying to grab a larger percentage of the
market, and the other companies lower their prices to not lose market share.
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||Ô Ô cargo and air freight service providers
through scheduled air routes for perishables such as vaccines, medicines and fruits that may
often require cold storage facilities
The LCC boom in India started with Low Price Tags, Apex Fares, Internet Auctions, Bulk
Purchases and Last Day Fares.
ͻ Rise in Industrialization
LCC
LCC͛÷ and other new entrants together new command a
market share of around 46%
Legacy carriers forced to match low LCC fares, during a
time of escalating costs
Increasing growth prospects have attracted & likely to
attract more players
More players more competition lower fares a continuous
cycle
PRICE DI÷CRIMINATION:
Airlines mostly practice the third degree of price discrimination that involves dividing
customers into segments based on some distinguishing characteristic, thereby allowing
the charging of different rates to different groups.
summation
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