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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Get Help Now!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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