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Repositioning To Value Carrier Airlines Essay

Repositioning To Value Carrier Airlines Management Essay

Owing to the rising ATF prices and increasing losses and massive cash crunches, intense competition and weak growth in price-sensitive demand India’s domestic LCC market appears to be shrinking,

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Three main players have employed the “value carrier” model which give higher benefits such as priority check ins, inflight F&Bs, Better leg space, Comfort seating,Priority check ins,Rescheduling of travel plans at no extra cost etc. the priced is placed between low cost airlines and the high value ones.

The players that adopted this strategy are:

‘Kingfisher Red'(with former LCC Deccan’s recent absorption and rebranding by parent Kingfisher, it targets higher yielding passengers).

JetLite (the former Air Sahara) has also been re-branded as a value carrier.

GoAir with its newly launched GoComfort carrier

Pure domestic LCC models left remaining are SpiceJet and IndiGo

AIRLINE

TYPES OF AIRCRAFTS

JetLite

Boeing 737 series and Canadian Regional Jets 200 Series.

GoAir

Airbus A320s (leased and purchased)

SpiceJet

Boeing 737-800

Boeing 737-900

Indigo

Airbus A320

AirDeccan/Kingfisher Red

48 and 72 seater ATRs on the regional routes and the 180-seater A320 on the trunk routes.

It is evident from the above table that the airlines flowing the point to point model tend to employ 1 or maximum two types of aircrafts in its fleet in order to save costs, but those following a hub and spoke utilize more in order to use smaller aircrafts for the short haul distances and the large ones for long haul distances.

3. MODELS ADOPTED
AIRLINE

MODEL ADOPTED

JetLite

Point to point between metros, hub-n-spoke for non-metros to metros and vice-versa or between non-metros

GoAir

Hub/Point-to-point model

SpiceJet

Point-to-point, and regional

Repositioning To Value Carrier Airlines Management Essay

Repositioning To Value Carrier Airlines Management Essay

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