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Low Cost Airlines: Burgeoning Segment of Indian Aviation Industry Product Image

Low Cost Airlines: Burgeoning Segment of Indian Aviation Industry

  • ID: 595592
  • March 2008
  • Region: India
  • 37 Pages
  • Koncept Analytics

FEATURED COMPANIES

  • Air Deccan
  • GoAir
  • SpiceJet
  • MORE

The low cost airline industry has changed the definition of airlines that air travel is a luxury and it is only for the upper segment of the population. The key objective of low cost carriers is to increase their reach and provide the services to a large segment. In India, low cost carriers came into existence in 2003 when Air Deccan launched its first low cost airline and that was the first move to open the doors of the airlines industry for middle class.

Rising GDP and increasing per capita income is positively impacting the airlines industry. Another major driver is the booming tourism industry in India. However, the low cost airline segment is facing challenges of increasing competition, rising fuel prices and inadequate infrastructure.

Air Deccan is the market leader, holding the maximum share in LCC market, followed by Jetlite, Air India Express, GoAir, and Indigo, who are making the competition stiffer. Air Deccan enjoys the first mover advantage in terms of access to a large number of overnight parking spaces and landing & take-off slots during the peak period.

This report analyzes the low cost airlines market in India. It discusses the market share of leading carriers, growth drivers and challenges being faced by the industry. The report also profiles the major low cost carriers, with a discussion of their key business strategies.

Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Air Deccan
  • GoAir
  • SpiceJet
  • MORE

1. Introduction

Low Cost Carrier Model
Value Chain Analysis of LCC
History of Low Cost Airlines in India

2. Market Overview

LCC Vs FSC
Market Share
Growth Rate

3. Growth Drivers

3.1 High Economic Growth
3.2 Growing Tourism Demand
3.3 Government Measures to Improve Air Connectivity
3.4 Huge Capacity Induction
3.5 Partnerships with Fast Food Chains & Travel Portals
3.6 Income from Ancillary Revenues

4. Challenges

4.1 Rising Fuel Prices
4.2 Lack of Proper Infrastructure
4.3 Civil Aviation Laws and Regulations
4.4 Massive Pilot Shortages
4.5 Dependence on Leased Aircrafts

5. Competitive Landscape

Market Share
Fleet Comparison

6. Company Profiles

6.1 Air Deccan

6.1.1 Overview
6.1.2 Key Financials
6.1.3 Business Strategies
6.1.3.1 Route Strategy
6.1.3.2 Two-fleet Strategy
6.1.3.3 Focus on E-ticketing
6.1.3.4 Significant Developments
6.1.3.5 Air Cargo Business
6.1.3.6 Cabin Crew Procurement Plan
6.1.3.7 Deal with European consortium
6.1.3.8 Agreement for Holiday Packages

6.2 SpiceJet

6.2.1 Overview
6.2.2 Key Financials
6.2.3 Business Strategies
6.2.3.1 Cost Advantage to Persist
6.2.3.2 Arrangement with United Aviation
6.2.3.3 Significant Developments
6.2.3.4 Inducts Second Boeing 737-900 ER
6.2.3.5 Agreement with Air India
6.2.3.6 Launch of SpiceJet Hotels

6.3 GoAir

6.3.1 Overview
6.3.2 Business Strategies
6.3.3 Superior Process Efficiency
6.3.3.1 Attractive Offers
6.3.3.2 Services for Fog Season
6.3.3.3 Significant Developments
6.3.3.4 Deal with Tata-AIG General Insurance
6.3.3.5 Growth in Passenger Traffic
6.3.3.6 Agreement with Airbus

Appendix

Regulatory Structure
Passenger Traffic in Airports
Airport Traffic Growth by Continent & Type of Airport
Airport Traffic Growth by Type of Airports in Asia
Upcoming Airlines in India
Mergers & Acquisitions

List of Tables

Low Cost Carrier Strategies
History of Low Cost Airlines in India
LCC Growth Projection (2008-11)
GDP Growth Rate (2003-07)
Rising ATF Prices (2007)
Transport Infrastructure Assessment (2007)
Major Airports Share of Traffic
Sales Tax at Various Airports
Parking Slots at Major Airports
Fleet Comparison (2007)
Competitor Matrix
Passenger Traffic in Airports (2006)
Airport Traffic Growth by Continent & Type of Airport (2006)
Airport Traffic Growth by Type of Airports in Asia (2006)
Upcoming Airlines in India
Mergers & Acquisitions

List of Charts

Segments of Aviation Industry in India
Low Cost Carrier Model
Value Chain Analysis LCC
Market Share of LCC vs FSC (Jan 07 Vs Jan 06)
Market Share of LCC vs FSC (June 06 to Sep 06)
Per Capita Income (2000-07)
Spending on Transportation (2000-06)
Foreign Tourist Arrivals to India (2000-06)
Domestic Tourists Visits (2000-06)
Fleet Growth (2006-09E)
Fuel Cost Build Up
Airlines Industry - Domestic Market Share (2007)
LCC Market Share (Nov 2007)
LCC Market Share (July-Oct 2006)
Domestic Fleet Age Comparison
Air Deccan - Market Share
Air Deccan - Cost Generated/Available Seat Km (2006-09E)
Air Deccan - Fleet Addition (2004-09E)
SpiceJet - Market Share
SpiceJet - Cost Generated/Available Seat Km (2006-09E)
GoAir - Market Share

Note: Product cover images may vary from those shown

Air Deccan
SpiceJet
GoAir

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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