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Indian Airline Sector Analysis

Ever since the aviation sector opened up the skies to private carriers, air passenger travel in India has been expanding at about 25% a year. The Airline industry has experienced a drastic increase in number of passengers, driven by privatization of aviation industry and introduction of low cost carriers like Deccan Airlines, Go Air, and Spice Jet etc. It is said that Indian Aviation Industry is one of the fastest growing Aviation Industry in the entire globe. Due to economic growth and increasing link with global businesses, it has resulted in an increase in passenger traffic.

However, he current global economic slowdown and dramatic rise in aviation fuel prices continues to negatively impact the Aviation Industry across the whole globe. According to government estimates, growth in this sector will outpace the global average until 2025. The Indian aviation market is on a boom. The estimated growth of domestic passenger segment is at 51% per annum and growth for international passenger segment is 26%. The international cargo is likely to grow at a rate of 13%. Here we have taken following Airlines on Domestic Routes as a whole representing the industry to measure the Customer Satisfaction in Airlines Industry.

Spice Jet is a low-cost airline. Their marketing theme “offering low ‘everyday spicy fares’ and great guest services to price conscious travelers”. Their aim is to compete with the Indian Railways passengers travelling in AC coaches. * Go Air The People’s Airline, a low cost carrier promoted by The Wadia Group is a domestic budget airline based in Mumbai, India established in June 2004. It’s a relatively small player as compared to other low cost airlines. * Kingfisher Airlines is an airline based in Bangalore, India. Services started on 9 May 2005, following the lease of 4 Airbus A320 ircraft.

It initially operates only on domestic routes. The airline promises to suit the needs of air travellers and to provide reasonable air fares. Kingfisher are pushing for an amendment of the present Indian government rule which requires an airline to fly a minimum of five years on domestic routes before it can start flying overseas. Indi Go Airlines is a new and a private domestic airline based in India. IndiGo placed an order for 100 Airbus A320 aircraft during the 2005 Paris Air Show. The total order was worth US $6 billion; one of the highest by any domestic carrier during the show.

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