Low Cost Airlines Strategy

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

InterGlobe Aviation is the holding company of IndiGo airlines. IndiGo is largest passenger airline of India. The Gurgaon-based entity is also the largest domestic carrier by market share, they handles 33.8% of the total domestic passenger volume in India. Their strategy is keeps profit margins small and making fares cheap for the passengers. This model is called as LCC (Low Cost Carrier) model. IndiGo started with only one airplane and now they have 97 planes

At the moment Australian passenger airline industry is dominated by thee large domestic carriers: Quantas, Jetstar and Virgin Blue.

• Provide background on the global industry • Present a regional analysis • Discuss current and future evolvement of the industry (trends) • Discuss challenges and strategies impacting the industry • Discuss the new breed of airlines • Discuss why airlines fail and how to achieve success

(CITE).The United States airlines industry shrank by 3% in 2016 to reach a value of $162,531.7 million. However, In 2021, the United States airlines industry is forecasted to have a value of $208,729.5 million, an increase of 28.4% since 2016. (CITE). Among its biggest domestic competitors (Southwest, United Continental Holdings Inc., and American Airlines), Delta has the second largest domestic market share of 21.2%. American Airlines is the only industry which surpasses Delta with a market share of 23.1%. In addition, Southwest and United Continental hold 14.6% and 16.6% of the market respectively. (CITE).

2) Large fleet size: Air India has the largest fleet size when compared to its competitors in India. It has a total of 111 fleets and 16 leased fleets. Out of the 111 fleets 27 of them are Boeing Dreamliner (Jhadav 2009).

There are only two major airlines in the Australian domestic aviation market, Qantas and Virgin Blue. Qantas has introduced a subsidiary, Jetstar, to compete directly with Virgin Blue in the ‘low cost carrier’ market and Qantas still hold the majority of the market share with 65%. Virgin Blue continues to increase their presence in the market holding the remaining 35%.

Airlines operates the largest fleet in the world, which the company is buying from Boeing

There were few players at the time of independence including Tata Airlines, Indian National Airways, Deccan Airways .In 1953 ,the government nationalized the

Market Share: The airline industry is closed, there is no room for a small company or a mistake. American Airlines with US Airways lead around the world, being the largest company. Market share is difficult, reviewing the capacity growth in Pacific market, American Airlines reported to have a 0.5% growth in total capacity as of October 2014. Other regions that are focused on are domestic, Latin America, Atlantic, and total

Delta, totaling 3,567,345 in sales, ranked just below Southwest, making them the primary competitor. The remaining 19% of the overall market is allocated almost evenly amongst the smaller carriers, which are all far behind the top seven.

Acquisition of Air Deccan: Kingfisher acquires Air Deccan to get the international airlines flying license. They should use their aircrafts to increase its connectivity to major flying routes in India at a lower cost than other competitors in India, due to having more number of air crafts.

The airline industry is a competitive market in society today. It is a perfect example of an oligopoly market structure because it is highly concentrated. There are many large players within the industry but only a few that determine the market prices like JetBlue. According to "CNN Travel" (2013) "For the ninth consecutive year, JetBlue Airways ranked first for satisfaction among all North American airlines.”

One of the world’s most competitive and prominent industries is the airlines industry. It generates huge amounts of income as well as employment each year. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc.

The success of budget airlines forced traditional operators to lower their prices by adapting internet sales and yield management techniques. However they still struggle to compete with low prices offered by the LCCs. Further reductions in traditional airline ticket prices are expected.